By now, most buyers should have some idea of what a short sale property is. Well, at least I hope so. In this present real estate market, you can't search for homes for sale and not discover that many, or even most, happen to be short sale properties. So, what do you do? You highly consider purchasing a short sale property.
First, what is a short sale property? According to investopedia.com, "A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan. It is therefore an alternative to foreclosure." In other words, the seller sells the home at a lower price because the home's market value is less than what is owed on the home. No profit is made from the sell of the home. For the buyer, this becomes an extraordinary opportunity to purchase a home for thousands and even hundreds of thousands less than what the owner owes the bank for the home. For example, a seller may owe $650,000 for a home, but sells it for $400,000 because the market value of the home is around this price.
Any buyer looking for a great opportunity to purchase a home for less would consider a short sale. Thus, the buyer gets the chance to purchase a home for less than what it would be worth in a stronger market. Ultimately, a buyer may be able to get more of the dream house they want, but at a fraction of the cost. As a real estate agent, my recommendation is for buyers to take advantage of the current real estate market while there are still homes listed at bargain prices. A short sale may be just what the doctor ordered.
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