What is a short sale

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What is a short sale? You have probably heard this term used frequently lately and have no idea what it means. A short sale is a type of real estate investment that flourishes in a down market. Right now, most of the United States is in what is known as a buyer’s market. This means that there are more homes on the market for sale than there are buyers. When supply exceeds demand, the prices drop. This is not the case in all areas of the United States. In some still coveted areas, the supply of home has not exceeded the demand and the housing values have stayed the same or even appreciated. For the most part, however, the residential real estate market has crashed. States such as Florida, California and Nevada have an influx of foreclosures. In many areas of Florida, short sales are the normal financial transaction for a real estate closing. Many people are under the misconception that a short sale is only something that can only take place when someone is entering into foreclosure. It is important to realize that not all short sales are foreclosures or close to being foreclosed upon. There is another misconception that you have to pay cash if you are buying a short sale property. Again, this is false information. You can finance a short sale property, but you have to be ready to buy the home in a short amount of time. In other words, there can be no financing contingencies on the real estate contract. And you will have to show proof that you are able to make this purchase either with cash or with approved financing. Some people think that all short sales occur in blighted areas. Again, not true. As a matter of fact, most short sales in some states are in upscale neighborhoods. Short sales are all dif... ... middle of paper ... ...of dealing with lenders and negotiating short sale deals. You can give them references on paper of people who they can call who you have helped through the short sale process. Remember, the more information that you have and can provide to the owner, the more professional you look and the more impressed the owner will be with your presentation. You will only get one chance to make your first impression on your potential short sale seller. Make sure that you are well dressed and look professional. Have business cards and other information in writing so that they can review it after you are gone. Do not press them to make up their minds right away, give them time to thing about it. But then you should follow up with a phone call to see if there are any questions that they have after your presentation that they neglected to ask while you were at their home.

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