Short sales are coming back. Why? Well anytime there is a recession of any sort in real estate, short sales are a fantastic alternative to foreclosures.
Short sales are not just prevalent in a real estate recession.
Take a look at any major city or even small town that has hit hard times due to economic hardship.
Even with the pandemic, rioting and burning down cities in 2020, many people have been trying to escape certain cities like Seattle, New York and Minneapolis.
What can this do to the housing market in these locations? Well simple supply and demand. When people are moving out, they place their homes on the market. And when a lot of people put their homes on the market, supply increases, demand decreases and many times property values drop.
If not timed correctly, a seller could end up stuck if prices decrease too quickly. If they do and the seller has a debt amount equal or higher than the property value, then they will have to come to the table at closing with a check to close the deal.
If they are unable to and cannot afford the mortgage, then a short sale will be a great option.
Short Sales On The Rise in 2021
I believe we will see a lot of short sales increase and on the rise and begin to hit in mid to the end of 2021. Why? Many factors why short sales are coming back are due to the Pandemic leaving many in forbearance, job loss, increased costs of living and abandonment of certain areas mentioned above.
How Can You Prepare For Short Sales On The Rise?
Well, if you are currently in a hardship situation or forbearance and do not think you will be able to make your mortgage payments, be proactive.
Once you stop making your mortgage payment, the clock starts ticking and the foreclosure can be initiated. So search out a good Short Sale Expert in your area.
The Short Sale Process is not very complicated. However, there is a certain level of work that needs to be completed, similar to when you initially applied for a mortgage.
Again, just search out a Short Sale Expert in your local area who has the experience in listing and selling short sale properties.
Short Sales On The Rise For Investors
On the flip side, if you have been waiting on the sidelines for pricing to come down, this may be an opportunity to Buy A Short Sale.
Traditionally short sales properties sell at a discount below market value. And this could be an opportune time for you to buy a home to live in or investment property.
Just remember, real estate is local in nature. It is hard to say that the area you live in will be a market that is decreasing in value. It all depends on the local market and what is happening.
Future Of Listing Short Sale Properties
If you are a real estate agent, I believe it is your obligation to understand short sales.
There are many people who will need your services now and in the future. So be sure to check out our Short Sale Expert Course.