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.
