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 Myrtle Beach, SC.
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. The process typically allows for negotiation, inspections, and a flexible timeline, giving both parties more control and less stress. Although there may be personal circumstances prompting the seller to move—such as relocating for a job, upsizing, or downsizing—she is not being forced into it by a lending institution, as is the case with short sales and foreclosures in Myrtle Beach, SC. In traditional sales, the seller usually has equity in the home and the ability to cover closing costs or make necessary repairs, which often results in a smoother transaction and a better-maintained property. Buyers also tend to feel more confident purchasing a home that hasn’t been distressed, knowing it likely received proper care and maintenance. This kind of sale reflects a stable housing market and offers advantages to both the buyer and seller that simply aren’t present in more distressed property situations.
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.” 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. What a short sale does is allow the seller to avoid foreclosure. For buyers who are willing to wait after making an offer, short sales can yield some good deals.
Foreclosures
If a homeowner fails to make mortgage payments, the lender can issue a foreclosure notice, which states that the property will go into foreclosure after 90 days. This notice acts as both a legal warning and a final opportunity for the homeowner to bring the loan current. If the payments aren’t brought up to date or a suitable payment arrangement isn’t made, the property proceeds to a public auction where individuals and investment companies can bid on it—usually with a set minimum bid determined by the outstanding loan balance and any accrued fees. In many cases, if the auction doesn’t result in a sale, the lender takes the property back, turning it into what’s known as a “real estate owned” (REO) property, with the intention of reselling it later, often through traditional real estate channels.
Typically, foreclosures are appealing to buyers looking for below-market deals, but the complexities of the transaction—like title issues, potential liens, or the need for significant repairs—can be pretty daunting. In fact, it can get downright ugly at times because people are being forced to give up their home. These owners aren’t just walking away—they’re often dealing with emotional turmoil, having been pushed into foreclosure due to life-altering circumstances beyond their control, such as prolonged illness, unexpected job loss, or a painful divorce.
Foreclosure can be painful for the homeowner, but good news for the deal-hunting buyer. The silver lining for sellers is that they may be able to exclude canceled mortgage debt from their income tax through IRS provisions like the Mortgage Forgiveness Debt Relief Act, depending on the situation. Additionally, they are no longer burdened by unaffordable mortgage payments, offering at least some financial and emotional relief. It’s important to note that until the foreclosure is finalized—which can take several months—the homeowner still legally owns the home and may have time to explore last-minute options like loan modifications, short sales, or even redemption, depending on state laws.
Observations About Short Sales and Foreclosures
Short sales in Myrtle Beach, SC typically take a lot longer to close than traditional sales, requiring complex documentation and extended back-and-forth between the seller and lender. Unlike a standard transaction, where the seller can independently accept an offer, a short sale must be approved by the lender, who is agreeing to take a loss on the mortgage. If you make an offer, it not only needs to be accepted by the seller, but then submitted to the bank for a secondary approval—often a slow, bureaucratic process. If the lender rejects your offer or counters with different terms, you may find yourself back at square one, repeating the entire process. As a result, short sales usually take three to six months to complete, sometimes longer, while foreclosures—once listed—typically close within 30 to 45 days of an accepted offer.
Another important aspect to keep in mind is that short sale and foreclosure properties are often vacant for extended periods and may have suffered from deferred maintenance or even intentional damage. These homes are frequently sold in “as-is” condition, which means buyers should be prepared for anything from minor cosmetic updates to major repairs. Inspections are still critical, even if the bank won’t negotiate on repairs. The good news here for buyers is that if you’re willing to invest in renovations and put in some sweat equity, you could end up with a fantastic deal—potentially creating immediate equity by simply restoring the home to market-ready condition.
Traditional sales vs. short sales and foreclosures in Myrtle Beach, SC—which one is right for you? That depends on your timeline, risk tolerance, and overall goal for the property. Are you looking for a move-in-ready home, or are you hoping to find a fixer-upper with investment potential? If you’re comfortable navigating delays and unknowns—and can spot the opportunity beneath the surface—distressed properties can offer great value. But if you want speed and certainty, a traditional sale is often the smoother path. In either case, having a qualified real estate professional by your side can make all the difference. Our team is ready to guide you through every step and help you make the smartest decision based on your unique needs. Call us today at (843) 256-8393!
Interested in Myrtle Beach, SC short sales or foreclosures? We can help! Contact us today for more information! (843) 256-8393