Are They Really Short Sales?

Short Sale or Long Sale?

You’ve heard the term “Short Sale” by now and probably wondered what does this really mean?

The simple answer is the person who owns the home is selling their home for less than they owe on it.

In the Real Estate field I like to call them long sales because the length of time it may take to close.

For a successful “Short Sale” transaction a few components are needed.

1. A co-operating Seller (remember they are selling at a loss and will not profit at all)
2. An Experienced Agent and Lender Negotiator
3. A patient Buyer

Put these few components together and the seller can move on with their lives and the buyer can usually get a good value on their purchase.

Now remember it’s the seller’s bank they owe the money too who is taking the biggest loss and ultimately will decide on the final price and terms.

Although the owner (seller) may offer to sell at one price and accept your offer, the bank they owe the money to will appraise the property and may even raise the price from what the seller agreed upon.

This is where it is wise to choose an agent or brokerage experienced in the process to assist you along the way.

Although it says short it may take long!

Gary Trieschman is the president of Pacific Realty Property Sales & Management.