Home sales usually fall into one of three main categories: traditional sales, short sales, and foreclosures. For buyers, each has pros and cons, though generally speaking the cheaper properties are short sales and foreclosures. But if you’re a buyer, you need to keep in mind that these properties are usually cheaper for a good reason. The best route for you depends on your financial situation and your goals, especially whether you’re buying the property live in or as an investment. Let’s take a look, then, at traditional sales vs. short sales and foreclosures in North Carolina.
Traditional Sales
This is what first comes to mind for most of us. Traditional sales involve a seller and a buyer who agree to sell/purchase the property for a specific agreed-upon price. These transactions typically include inspections, appraisals, negotiations, and a relatively straightforward closing process. While the seller may have a personal reason for moving—such as upgrading, downsizing, or relocating—there is no pressure from a lender or legal proceeding, unlike in short sales or foreclosures in North Carolina.
Traditional sales tend to be the most predictable and streamlined route for both buyers and sellers. They generally involve homes that are move-in ready, have full disclosures, and allow for normal negotiation and inspection periods.
Short Sales
With short sales, the money from the sale isn’t enough to fully cover the amount owed on the property, hence the term “short.” The lender must agree to accept less than the remaining mortgage balance. Because the seller has to get the lender to approve the sale price, there is nothing short about the amount of time a short sale takes. The process can be long and complex—but it allows the seller to avoid foreclosure and its more damaging effects on credit.
For buyers with patience, short sales in North Carolina can offer a chance to purchase homes below market value. However, expect delays, counteroffers from the lender, and potential issues with the property’s condition.
Foreclosures
If a homeowner fails to make mortgage payments, the lender can issue a foreclosure notice, stating that the property will go into foreclosure after 90 days. If the payments aren’t brought current or no payment arrangement is made, the property typically proceeds to auction where investors and individuals can place bids—often beginning at a set minimum. If the property doesn’t sell at auction, it usually becomes bank-owned (REO).
Foreclosures can be a goldmine for buyers searching for discounted properties, but they come with risk. The properties are often sold as-is, may have hidden issues, and could require significant repairs. The legal and logistical hurdles can also be intimidating.
While foreclosure is undoubtedly difficult for the homeowner, it can offer some financial relief: the canceled debt may be excluded from taxable income, and the homeowner is freed from mortgage obligations. The foreclosure process can take months, and the owner retains legal ownership until the process is fully finalized.
Observations About Short Sales and Foreclosures
Short sales in North Carolina typically take significantly longer to close than traditional transactions—often three to six months due to the extensive paperwork and third-party approvals. Even after the seller accepts an offer, the lender must sign off, and there’s no guarantee they will. This can result in long waits or the need to resubmit offers entirely.
Foreclosures, while still complex, tend to move faster—often closing within 30 to 45 days after acceptance—especially if the property is already bank-owned.
Another factor to consider is property condition. Homes involved in short sales or foreclosures are frequently vacant for extended periods and can fall into disrepair. These properties are almost always sold as-is, without warranties or repairs. However, buyers willing to put in the work—both physically and financially—can unlock significant value and equity.
Traditional Sales vs. Short Sales and Foreclosures in North Carolina
Which path is right for you? That depends largely on your goals. Are you looking for a turnkey home with minimal hassle? Traditional sales may be your best bet. If you’re an investor or homebuyer with flexibility and a tolerance for risk and repair, a short sale or foreclosure might yield a hidden gem.
In any case, navigating these options—especially short sales and foreclosures—can be tricky. That’s where a seasoned real estate professional can make all the difference. Whether you’re buying or selling, we’re here to help guide you through the process and protect your interests every step of the way.
Call us today to learn more or get started.984-983-4158!
Interested in North Carolina short sales or foreclosures? We can help! Contact us today for more information! 984-983-4158