Short-sale activity clears market of distressed homes
By Scott Lindsley I’ve been in real estate sales or brokerage for 10 years now. During that span, until about a year and a half ago, I participated in the purchase of short-sale homes three times. I’ve helped clients buy foreclosed homes, or I bought them myself, just over a dozen times. That comes to about twice a year out of a few hundred transactions. Not a large percentage of my business for sure and probably typical for a real estate broker unless they concentrate on investors and investment property. Until relatively recently, agents didn’t necessarily have a large base of knowledge of what a short-sale was or much about foreclosures. It wasn’t necessary and it wasn’t a large part of our business. But things have changed, and most of us have increased our awareness and knowledge of these sales. If you don’t know the basic difference, a short-sale is a property still owned by the homeowner, but they have entered into an agreement with their lender to seek a sale for less than what they owe. The lender must agree to whatever offer a potential buyer brings and has the right to decline.