The 4 sale paths for any PA property
(1) **Traditional MLS with real-estate agent** — best when the property is in good condition, you have 30-60 days of patience, and the 5-7% agent commission difference is worth the higher price. Works well for suburban houses in good condition, properties with strong school districts, and high-end properties. (2) **For Sale By Owner (FSBO)** — saves the agent commission but requires you to handle everything: pricing, marketing, showing, negotiation, contract, title. Works for experienced sellers or unique properties that will sell themselves. (3) **Auction** — for properties difficult to value traditionally (farms, large parcels, investment properties). Fast but final price is unpredictable. (4) **Cash buyer / investor** — for properties in any condition, time-critical situations, title complications, or properties a mortgage buyer can't finance. Close in 7 days, no repairs, no commissions.
What property types ABE buys (and what we don't)
ABE buys: (a) 1-4 unit single-family houses in any condition (including code violations, structural damage, electrical problems), (b) rowhomes and duplexes in urban districts like Center City Allentown, South Side Bethlehem, West Ward Easton, (c) houses with tenants in place (selling rental properties has specific rules under PA Landlord-Tenant Act of 1951), (d) inherited properties with multiple heirs (we need Letters Testamentary from the county), (e) properties in pre-foreclosure or pending probate, (f) small mixed-use properties (storefront-with-apartment-above — common across Lehigh Valley's cement-era and steel-era main streets). ABE does NOT buy: (a) vacant land with no structure, (b) purely commercial properties (large offices, retail, restaurants), (c) properties outside the six service counties (Lehigh, Northampton, Berks, Bucks, Montgomery, Carbon), (d) multi-family properties over 4 units, (e) out-of-state property (even if the owner is a PA resident). If your property doesn't fit, we can refer you to an appropriate buyer.
Why "sell my property" fast usually means cash, not MLS
The structural reason: MLS listings depend on mortgage buyers, and mortgage underwriters routinely reject properties with: active code violations, condemnation, non-operative plumbing or electrical systems, known structural damage, liens exceeding available equity, or any indication of "not habitable." This means for distressed properties, the buyer pool shrinks to cash buyers. For investment / multi-parcel / inherited properties with complications, traditional buyers also tend to lose interest due to title complexity. In any of these cases, a cash buyer closes; a traditional agent typically can't.
How to evaluate the net result: commissions, repairs, time, certainty
To honestly compare your options, calculate the NET result for each path: (1) Traditional MLS: listed price × 0.93-0.95 (5-7% commission) − prep repairs − transfer tax (1% PA state + 1% local typical) − months of mortgage payments during market time. (2) FSBO: listed price − marketing costs − transfer tax − time-cost of your own labor. (3) Auction: unpredictable final price − 5-15% auction commission − auctioneer fees. (4) Cash buyer (ABE): the contract price is the net closing price — no commissions, no fees, no repairs, we cover transfer tax and closing costs. Mike walks the property and the offer reflects the actual condition. As an InterNACHI Certified Professional Inspector, his walkthrough IS the inspection — the contract price is the closing price, guaranteed. Compare the four NET NUMBERS, not the listed prices.
Selling investment / rental property in PA — the tax reality
This is the section most cash-buyer pages skip because it's uncomfortable. Selling an investment property is fundamentally different tax-wise than selling a primary residence: (1) **No Section 121 exclusion** — the $250K/$500K capital gains exclusion only applies to primary residences you lived in for 2 of the last 5 years. Pure rentals don't qualify. (2) **Long-term capital gains** — if you held the property more than 1 year, the gain is taxed at federal LTCG rates (0%/15%/20% depending on income — most middle-bracket owners pay 15%). If held less than 1 year, short-term gains tax at ordinary income rates (much worse). (3) **Section 1250 depreciation recapture** — this is the trap most landlords don't know about. If you depreciated the property (annual residential depreciation is 1/27.5 of the building basis), the IRS RECAPTURES that depreciation at sale, taxed at a maximum 25% rate. Example: 10 years of depreciation at $5,000/year = $50,000 of recapture × 25% = $12,500 owed to the IRS, IN ADDITION to regular capital gains. (4) **PA state tax** — 3.07% flat on the gain, no primary-residence discount. A typical investment sale carries three tax layers: federal capital gains + depreciation recapture + PA state. Calculate this BEFORE accepting any offer.
Can a 1031 exchange help? The honest answer: usually not for cash sales
An IRS Section 1031 like-kind exchange lets you defer capital gains and depreciation recapture if you roll the proceeds into another similar investment property. Strict rules: (a) a Qualified Intermediary (QI) must hold the proceeds — you can never touch the money, (b) replacement property must be identified within 45 days of closing, (c) replacement property must close within 180 days. The reality for cash sales of distressed property: most sellers needing to sell for cash don't have another investment property identified and ready to close fast — they're exiting the investment game, not recycling capital. 1031 works best for planned sellers who have time, a QI ready, and a clear replacement target. If you're selling because you need out, it's generally better to accept the cash offer, pay the capital gains + recapture, and move on. Cross-check with your accountant before deciding. For tenant-in-place situations, see our dedicated guide: [Selling rental property with tenants in PA](/sell-rental-property-with-tenants-pa).
Selling multiple parcels — subdivision math and why one bundle buyer simplifies
When you own 2 or more adjacent parcels — inherited estates, subdivided farms, adjacent commercial lots — the sale math changes. **Sometimes the bundle is worth MORE than the individual parcels**: a development buyer pays a premium for the combined footprint because it eliminates the land-assembly complication. **Sometimes the bundle is worth LESS**: if parcels are individually attractive to different buyers (one with a dwelling, one without), selling separately may maximize gross proceeds. **PA mechanics**: every PA county (Lehigh, Northampton, Berks, etc.) has a Recorder of Deeds that requires a SEPARATE deed for each parcel number, even if sold the same day to the same buyer. A bundle sale to one buyer still results in separate deeds recorded — but a single closing day, a single HUD-1 settlement statement, a single check to the seller. ABE handles bundles: Mike walks all parcels, prices them as a portfolio, we coordinate one closing with the title company handling the separate deed recordings. This is especially useful for estate situations where the estate owns 3-5 properties and the heirs want one end point, not a 6-month negotiation with 5 different buyers.
Selling commercial / mixed-use property — the zone where most buyers pass
Mixed-use properties (storefront-with-apartment-above, converted garage with dwelling, small multi-family with ground-floor office space) are ubiquitous on Lehigh Valley main streets — legacy of cement-era rebuilds (1900-1940) and steel-era downtown rebuilds (1950-1970). But they're notoriously hard to sell for one reason: **residential mortgage underwriters won't touch the commercial portion**. A conventional mortgage will reject a mixed-use property if the commercial portion exceeds ~25% of square footage. This leaves sellers with: (a) buyers with commercial loans (stricter underwriting, larger down payment, higher rates — smaller pool), (b) cash buyers. Additional challenges: zoning verification (every PA municipality defines mixed-use differently — Allentown vs. Bethlehem vs. Easton have distinct codes), code compliance for the non-residential portion (ADA access, emergency exits, commercial ventilation), and often separate deeds but common notes. **ABE's lane**: small residential-dominant mixed-use (1-4 residential units above, a single storefront below). Mike walks both portions, evaluates the condition of each, and the contract covers the entire asset as a single transaction. We don't touch large mixed-use (10+ units, major commercial anchors) — that's true commercial territory.
How to verify a cash buyer / investor before signing
Three basic tests: (1) **State registration**: look up the legal entity at file.dos.pa.gov. ABE Homes is a registered Pennsylvania company. (2) **Owner's professional credential**: Mike is an InterNACHI Certified Professional Inspector, verifiable at nachi.org. InterNACHI is the International Association of Certified Home Inspectors — the largest non-profit home inspector organization in North America. Most wholesalers / assignors don't have verifiable professional credentials. (3) **Contract price = closing price guarantee**: ask in writing whether the price can change after signing. ABE's answer: signed contract = closing offer, guaranteed. Any other answer is the wholesale-trick signal.
