The Impact of Short Sales on the Atlanta Real Estate Market

Posted by on Tuesday, September 6th, 2011 at 8:41am.

Atlanta Short Sales

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.

5 Responses to "The Impact of Short Sales on the Atlanta Real Estate Market"

John Evan Miller wrote: Great post--I think many people fail to understand the drawbacks of short sales sometimes.

Posted on Saturday, September 10th, 2011 at 9:48am.

Lisa K wrote: This is a very good post. Many buyers do not understand the short sale process and aren't aware of the fact that there is a good chance the bank will never approve the sale and if they do approve it, the buyer may end up paying above list price for the property.

Posted on Tuesday, September 13th, 2011 at 6:21am.

Utah short sale help wrote: The Lake Club real estate is, without a doubt, one of the finest home investments available in the Sarasota-Manatee market today. Besides being part of the award-winning Lakewood Ranch master plan, this village boasts of its own Tuscan-style clubhouse with an opulence to match its selection of acre-wide villas. The posh community center is made of fine terracotta, accented by stone towers and columns, and laden dramatic finishings of wrought iron and marble flooring.

Posted on Wednesday, November 2nd, 2011 at 9:29am.

Bill Gassett wrote: Hi Tina! Short sales have become one of the biggest facets of my business over the last few years. The biggest difficulty with them is so many agents don't have a clue about them and how things work. I am constantly educating other Realtors on how the contracts need to be written etc.

Posted on Wednesday, December 7th, 2011 at 8:12am.

Anita Clark wrote: I am seeing more and more short sales in my area, but the one constant remains...many agents do not understand the process, how to complete the documentation, or when/how to follow-up. Very simple and clear post on short sales...much appreciated!

Posted on Saturday, December 31st, 2011 at 4:06pm.

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