3 Short Sale Tips

According to a report published this week by Zillow.com home values in the United States have declined by over 14% (year-over-year) for the first quarter of 2009. In addition, 1 in every 5 homes in the U.S. has negative equity.

When you look at the giant real estate picture it is obvious why there are so many short sales on the market. The good news is that if you are a qualified buyer, there may not be a better time to buy a home than right now.

If you are considering buying a short sale, let me give you 3 short sale tips.

1. Don't go about it alone. Use a Realtor who has experience with distressed properties and in doing short sales. A real estate agent who has experience either listing or representing buyers in short sale transactions will be much more prepared to walk you through the short sale process. Warning: DO NOT use a Realtor who has never been involved in a Short Sale transaction!

2. Inspect before you buy. When you buy a short sale, you are buying the property in AS-IS condition, with the responsibility of repairs falling upon the buyers. A home inspection will cost a few hundred dollars, but may save you thousands in immediate repairs.

3. A short sale will inevitably take longer than a traditional transaction. Remember, there is a third party (the lender) involved in the decision, so be prepared to wait it out. It may take several months before you receive the keys to the home. In addition, a short sale may turn into a bidding war, so be prepared to walk away from your favorite home in favor of another.