A quick sale is what the sellers are looking for. It means that the property isn't on the market for a long time. The buyer came forward and made an acceptable offer that the seller accepted and the deal is done quickly.
A short sale is when the property has to be sold and the amount of money that the market will pay for the property is less than the amount owed to the lender. The proceeds are "short" of what is owed.
Obviously the seller does not want a short sale but they are happening now because many people bought homes with loans with 100% financing and adjustable rates that were fixed for a period of time and the will adjust up. The buyers were hoping that the property would appreciate and they could refinance into a fixed mortgage. We are seeing apprecation slowing and the rates are adjusting so thnat the buyer can't afford to make the payments. If they can find a buyer and sell for what they paid they still need to pay taxes and brokerage fees so they will not be able to pay the full amount of the loan.
When that happens the seller needs to get the permission of the lender to accept the offer and pay off less than they owe. It takes longer to close this type of a transaction and the lender can also say no and force the seller into foreclosure.
Great question! While it was a quick question it's not something that can be explined with a short answer.
To expand on what Gregory said, quick sales are just that: houses that are priced below comparables in the area to sell fast!
A short sale is when you are selling the home for more than you owe on it (e.g. you obtained a $200k mortgage, still owe $190k on it 5 years later, and sell it for $170k). Short sales are becoming much more common now.
With short sales there is a different process to follow when selling a home, as well as possible tax implications that need to discussed with your accountant or real estate attorney.
Quick sale is when the seller sells at a lower price, and a short sale is when the mortgage company reduces the note and you buy the note from them.
For more information on short sales and foreclosures you might want to read my blog.
Depending upon the reason for your question, I'd like to make two points:
One is that just because a home sells quickly does not necessarily mean that it is selling for less than market price. A properly marketed home that sells during the first 30 days of market time will probably sell closer to asking price than one that is on the market 3 or 4 months. Market price is market price, meaning the market usually will not let a home sell for less than it's worth.
Second, that when a property is sold for less than is owed, depending upon the market, that may be the lender's preferred path. Lenders do not want to become real estate owners (REOs is another term for foreclsoures). They would rather help the owner stay in the home if possible (read my blog about that), or worst case have a short sale, rather than a foreclosure.
Before we go there, let me tell you of my own thoughts which come from having talked to dozens - if not hundreds - of mortgage bankers, investment bankers and investors - people that walk the walk - over the last 10+ years. A quick sale is about 50% of market value, because that's what it usually takes to make that sale fast. Can it be done quickly at a higher value? Sure - it happens.
The official definition? According to the below link, there is none. It's whatever the person lending you the money to buy the property wants it to mean. The man at the below link states he has been in the private capital lending business for 41 consecutive years.
Yes, as one person stated a quick sale is quick and a short sale means you "sell short" - of what you owe the lender. Most posting here are accurate enough. But the details of a quick sale are best explained by the below link, in great detail, clearly, concisely and accurately as far as I'm concerned. Believe him, not me.
Disclaimer: I have no relationship and simply found them through a search engine. I just wasn't satisfied with all the "quick sale means quick" answers here so I looked for an answer that showed true experience, accuracy and thoroughness.
Through further questioning I grew to understand that the gentleman had just come over from the States to the UK and had the responsibility of selling a relatives property ... 'Quickly'. In short, a week later the sale was complete, with cash in hand he flew back to the States. Now that was a quick sale. Why?... because the sale happened Quickly. We did not have to negotiate with the mortgage company/bank and ask them to accept a loss on what was owed to them, which would have been a Short sale.
However a short sale is when a seller goes to their lender to ask for a discounted payoff to make their house more marketable to stop their foreclosure.
A short sale describes the short fall amount the lender will accept and receive, this short fall amounts to a loss to the Bank and it really depends on the dollar amount of loss they are willing to accept.
Now a Quick sale can be some what different. A quick sale is when a seller is motivated to sell their property quickly. However, the sale could happen using many different purchasing techniques and not always resulting in a loss to the bank, in fact most cases the bank comes away with a profit.