A short sale is a transaction in which a homeowner negotiates with their bank to sell the home for less than the amount of the loan balance. The bank will then take a loss on the sale of the home and the buyer of the home will normally be able to purchase the home for much less than it sold for in the past.

Buyers can also get significant discounts on homes if the home is located in a less desirable neighbourhood, if the home is in poor condition and needs a lot of repairs, or if the seller of the home mispriced the home or is simply trying to undercut the entire market.

Favourable sales

One of the most common ways of The Continuum Price purchasing a below market value home is through a favourable sale. With a favourable sale, a parent will sell a home to their child for less than the market value. This is ideal for younger people that do not have the necessary funds available to make the deposit for a home of that price. It could drastically improve their chances of being approved for a mortgage.