Exploring the real estate market in Phoenix gives homeowners multiple options to sell their homes. Two common choices are selling for cash to professional home buyers or opting for auctions.
Before finalizing your decision, consider the pros and cons of both sales avenues. Read on below for a better understanding of both.
Pros and Cons of Home Auctions in Phoenix
Home auctions have become a popular way to sell a property, particularly if it possesses distinctive features that separate it from the rest in the area. An auction typically involves potential buyers competing to bid on the property, with the highest bid ultimately winning.
For homeowners seeking a speedy sale, an auction could be the right choice, thanks to a pre-set auction date and immediate finalization upon acceptance of the winning bid.
Advantage: High Selling Price for New or Restored Older Homes
One of the key benefits of selling a home through an auction is the potential to secure a high sale price. The presence of multiple interested buyers could lead to the final sale price significantly exceeding what the homeowner might have received through a conventional sale.
Furthermore, the auction process often sparks a sense of urgency among buyers, which could expedite the sale. This potential for a high selling price is particularly true for homes in excellent condition, newer constructions, or older properties that have been renovated and restored.
Disadvantage: Associated Fees and Commissions
However, auctions come with their share of drawbacks too. Organizing an auction entails significant costs, including marketing expenses and fees for the auction company.
Also, there is no guarantee that the property will sell or reach a desirable price. If the bidding fails to meet the homeowner’s expectations, they may have to accept a lower offer or withdraw the property from the market.
Disadvantage: Real Estate Disclosure Laws
The most significant point in the pros and cons of an auction sale concerns older homes requiring substantial repairs or renovations. According to Phoenix’s disclosure law, defects and needed repairs must be reported to prospective buyers.
The disclosure law often necessitates paying for a home inspection (sometimes included in the auction company’s fees) and potentially repairing issues like storm damage or a cracked foundation. While making repairs isn’t mandatory, disclosure is, which often negatively impacts the selling price.
Pros and Cons of Selling Your Home to A Cash Professional Home Buyer in Phoenix
Selling a home to a professional buyer for cash is an alternative for homeowners seeking a quick, fuss-free sale. These buyers are often real estate investors eager to acquire properties swiftly and without the complications of traditional home sales.
They typically make cash offers below market value but cover all associated costs, such as inspections, repairs, and closing costs.
Advantage: Speed and Value
The primary advantage of selling a home to a professional cash buyer is the speed of the sale. Homeowners usually receive a cash offer within days of contacting the buyer, and the deal can be finalized within weeks.
This option can appeal to homeowners grappling with financial hurdles like foreclosure, inherited homes, severe illness, or those needing to relocate quickly for personal or professional reasons.
Advantage: Simplicity of the Process
The simplicity of selling to a professional home buyer is another attractive aspect. Homeowners need not worry about home staging or repair work before the sale. Also, there are no marketing expenses or fees tied to the sale.
Sellers merely need to accept the cash offer and proceed with their plans. While the cash offer may be below market value, factoring in costs and fees associated with other selling methods, such as public auctions, makes the offer seem more appealing.
Savings on commissions, closing costs, inspection fees, repair costs, and time-related expenses like insurance, taxes, and utilities paid during inspections, repairs, or closings can be considerable.
Disadvantage: Potential for Scammers
There are, however, downsides to selling your home for cash. Some dishonest home buyers might exploit homeowners in challenging financial situations. It’s crucial to thoroughly research potential buyers and collaborate with a reputable home-buying company.
Learn more here to find a genuinely professional home buyer with an excellent reputation.
A Success Story: Cash Home Sale in Phoenix
Jane is a widow who needed to sell her home quickly due to an unfortunate situation. Her husband passed away a few years prior, and she struggled to maintain their large family home alone.
Lacking the funds for repairs or renovations and unwilling to bear the uncertainty and stress of an auction, she contacted us.
Within a few days, Jane received a cash offer for her home. The offer was lower than what she might receive through an auction, but it was sufficient to cover her remaining mortgage. If you are in a similar situation, please contact us at LRT Offers. Let us help you begin anew with a fair cash offer.
Contact LRT Offers in Phoenix For a Fair Cash Offer Today