What defines a short sale in the real estate market?

In the real estate market, a short sale is specifically defined as a situation where the property is sold for an amount that is less than what the owner owes on their mortgage. This typically arises when the homeowner is facing financial difficulties and can no longer afford their mortgage payments. In order to complete a short sale, the lender must approve the sale because they will be receiving less than the full amount owed on the mortgage. This allows the homeowner to avoid foreclosure, making it a viable option for those in financial distress.

The other options describe scenarios that do not accurately capture the essence of a short sale. While quick sales, buyer financing issues, and the involvement of real estate agents are all relevant to different types of real estate transactions, they do not pertain specifically to the definition of a short sale. Thus, the correct choice effectively encapsulates the unique financial circumstance that characterizes short sales in real estate.