What is a short sale? A short sale is a situation where the proceeds from selling a property will likely be less than the monies owed. These sales usually occur when there are circumstances that have placed the seller in a real (documented) hardship.
A major point I try to make early on is short sales and foreclosures are entirely different breeds.
Another discussion that comes up is about pricing - Why are foreclosures priced lower than short sales? After all, they are both distressed properties, right?
- First of all, short sales are not short. In most real estate transactions time is extremely important. With short sales I am almost convinced lenders considering a short sale offer do not look at it that way. But when they make a decision they expect the buyer to get it closed asap!
- Secondly (and probably more importantly), short sales are not for everyone - sellers or agents. The uncertainty a short sale transaction offers is not for very many people. If you do not have the time, patience, flexibility, do not pursue a short sale as it will only lead to frustration and stress!
Short sales and foreclosures offer opportunities for those who are equipped to deal with them but they are not for all buyers. Nor does every real estate agent possess the skills to manage short sale transactions.
If a short sale is a consideration (as a buyer or seller), call me at 321-693-3850 or email me if I can assist in any way.