home prices downAs you drive through the neighborhoods of San Diego, you suddenly see a sign that says, “Short Sale” posted in the yard–why are short sales so attractive?

This is different than the other “For Sale” signs you have seen and you may not understand what this is all about.

Before you proceed with contacting the seller or the financial institution, find out why a short sale is so great.

Short Sales are Cheaper Properties

The first and most obvious point of a short sale is that the buyer is paying less than the home is worth. It’s like finding a $350 blouse on sale for $75, depending on how deep of a cut the seller is willing to take. Why would a homeowner do this? Why not wait for a buyer who is willing to pay full price?

They may need to move right away due to military life demands or simply because they cannot afford to stay there. Rather than damage their credit any further, they are willing to take a hit on the selling price of the home and get out from under it as soon as possible.

Of course, this is not your average purchase, so you do need to have some very specific documentation in order to complete it.

Fewer Property Fix-Up Needs

Many times, buyers look for short sales because there is less work to be done. They don’t have to invest as much money into the property itself and can instead focus on simply moving in. If they are already working on a small budget, then this could be the perfect solution for them.

This is especially true for couples that are just starting out or single buyers who just want to establish themselves as a homeowner. The home inspection report will be a very important part of this process and can determine what, if anything, demands immediate attention.

If you find yourself asking why short sales are so attractive, consider these two points. It will help you decide between a brand new home and an “oldie-but-goody” with a lot of potential.

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