Understanding Why the Short Sale Discount Exists

Understanding Why the Short Sale Discount Exists

I want to talk first about why the short sale discount exists based on my personal experiences of trying to buy (and then actually buying) short sale properties.

By understanding the nature of the discount, you can more confidently invest. And by understanding the discount, you can avoid short sale investing if you're not really suited to this unique opportunity

I'm going to break my discussion and explanation into four parts, as shown below:

1. Traditional Real Estate Purchase Process The place to start any discussion of the short sale process and everything that's crazy about it is by looking at the traditional steps one takes to buy a property.
2. Short Sale Purchase Process Once you've got the steps in a traditional real estate purchase in the back of your mind, you can objectively consider all the weirdness that occurs when you try to buy or actually buy a short sale property. This weirdness, by the way, is largely what creates the great short sale investment opportunities you regularly see...
3. Additional Short Sale Complications and Issues Short sale investing burdens you with some additional headaches and hassles, and you'll want to carefully consider these issues if you choose to pursue investments in shortsale (or foreclosure) properties...
4. Making Sense of the Short Sale Purchase Discount With a solid understanding of the shortsale purchase process and all its complications, you can better understand why the shortsale discount often runs twenty percent or more--and how to verify you're getting the discount you deserve...

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