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Short sales can lead to great deals, but there are some things you need to be aware of. Whether it’s choosing the right short sale or making sure you can close on time, the short sale can be a tricky beast in the world of real estate. Here are just five tips for purchasing a short sale home.

Avoid Short Sales Homes That Have Two Banks or Haven’t Been Approved

In today’s economy, there are several short sales on the market. However, some are trickier to purchase than others. For example, a short sale that has more than one bank loan can be a nightmare. Not only will the seller have to agree to the offer, but both banks will as well. Then there are the short sales that are listed as such, but haven’t been approved by the bank. This means that your offer could be approved by the seller, but the bank will refuse the offer because they have not approved the property for such a sale.

Check the Comparables

You must do your homework when it comes to offering on a short sale home. Short sale homes are priced competitively so that they will sell quickly. However, you still need to make sure your offer matches what the home is worth. A good real estate agent will be able to pull the comparable sales to determine the best offer.

Go in with Your Best Offer

Speaking of the best offer, you may only get one shot to get it right so you need to determine what’s the most you want to pay compared to what other homes are selling for. You can then submit a strong offer. Remember, the offer will need to be approved by the seller and the bank so it could take a while to hear back and low-ball offers may never get a response.

Get the Home Inspected and Ask for Credits, If Necessary

A home inspection is important with any sale, but especially short sales and foreclosures because the seller isn’t making any money. Why would they bother to leave the home in good shape when there’s not profit to be made? An inspection will determine what needs to be fixed and then you can ask for credit to fix the property. It is rare in a short sale that the seller will fix the problems, but credits are negotiable.

Close on Time

You need to have all your ducks in a row so that you can close on time with a short sale. This isn’t like a typical sale. If you don’t have all the paperwork and everything done, you could lose the house. It is recommended that you finish everything early so that everything goes more smoothly.

A short sale can be a wonderful deal, but you need to take the necessary steps. The tips listed above will help ensure you pick a home that is not only a great deal, but easier to get into.

About the Author: Pearlie Brandy is a real estate specialist who enjoys working with short sales because of their unique properties. When she’s not working you can often find her searching daily deal sites for hot entertainment and pampering promos!