Atlanta Short Sales
The abundance of short sales across the country has made for affordable Atlanta real estate for buyers, but it has also had a direct impact on the housing market overall. Whether you are in the market for cheap Atlanta real estate, or thinking about selling your own home, it is important to know what a short sale is and how it can affect your own real estate transaction. We have the lowdown on the state of the short sale market today.
What is a Short Sale?
Short sales occur when a borrower is a number of months behind in mortgage payments, and the mortgage company agrees to accept a lower amount than what is actually owed on the property. The buyer benefits because he can unload a property he can no longer afford, avoiding foreclosure. The lender manages to recoup a large portion of the loan amount without getting saddled with an unwanted property. The biggest benefit is to the person who purchases the short sale because he buys a property at a price well below that of comparable Atlanta real estate.
Potential Problems with Short Sales
While a short sale on the surface sounds like a win-win for everyone involved, there are some drawbacks as well. First, short sales can drive down the purchase price of Atlanta real estate in the same neighborhood, which is not good news to sellers hoping to make a profit on their property.
Second, short sales are not a guarantee for a buyer, since they are subject to bank approval and do not always make it to closing. When they do, competition for short sales, as well as scrutiny from the bank, may result in a much higher price than the original short sale listing.
Because there is no streamlined process for short sales, there are also unforeseen problems that may arise in this portion of the Atlanta real estate market. If you decide a short sale is the best way for you to purchase a piece of Atlanta real estate, it is important to find an Atlanta real estate agent experienced in short sales to ensure your transaction is a success.