When you are researching real estate comps and considering property deals, you may want to consider buying a short sale.  Short sales are great for the investor that has patience to hold on until the bank goes through the decision process.

A few things to consider when looking at short sale properties:

First off, don’t let the name fool you.  Short sales are typically anything but “short”.  They can take several months to finalize.  Because of that, you may want to continue looking at other properties while the short sale process is underway. 

Also, remember that while the buyer and seller determine the sale price, the bank makes the final decision on whether the price is acceptable or not.  So, even if you and the seller agree on a price, the bank can come back and say “no”.

Be sure to submit a realistic offer.  Unlike traditional sales, submitting a low offer is not recommended.  You can pretty much expect that a bank will reject a low offer right away.  In fact, even a reasonable offer may not be accepted right away.  By submitting an offer for what you legitimately want to pay for a home is the best thing to do on a short sale.

Check out my post tomorrow where I want to give you a few more tips on purchasing a short sale.  Remember the investor that decides to be patient can make short sales a very profitable avenue!