So far in this series we've covered the basics of what constitutes a short sale and how they are advertised for sale. Today we'll step into the shoes of a buyer and learn a bit about making an offer on a short sale home.

Remember that "patience is a virtue" quote your grandmother used to tell you? Well, you'll want to dig up and dust off that old adage when looking to buy a short sale property! Buying a short sale can be a great way to get a "deal" on a house but the road to it can be long and bumpy. The final decision to sell the property rests with the bank that holds the mortgage, usually by someone across the country who has no idea about our local market. Banks receive 400-500 short sale packets per day so, needless to say, your offer will be one packet among hundreds. Whereas a seller typically will respond to an offer within several days, when it's the seller's lender making the decision it can take months. Yep, you read that right...months! And, unfortunately, sometimes the answer that arrives a month or two after making the offer is "No!"

The upside is that if you find several suitable properties you can submit offers on each of them. You are not bound to a single home as you would be when purchasing from a "human" seller. Then, whichever bank responds first, you can move forward on that home and rescind your other offers. Washington State has an addendum which provides two important provisions for buyers of short sale properties. One gives you the right to terminate the purchase contract at any time prior to the seller's lender's approval. The second establishes the date of "mutual acceptance" of the offer as the day the lender's approval letter is delivered to the buyer. This means you do not have to deposit earnest money or conduct inspections or appraisals until the bank approves your offer.

One more important thing to remember when making offers on short sales is that you will often find yourself in a "multiple offer" situation. In the time it takes the bank to review your offer, several more may have come in on that same property. As any seller would, they will generally accept the offer that is most likely to close and will net them the most money. That being said, make sure the offer(s) you submit are the BEST you are willing and able to do on that property. This is no time for back-and-forth negotiations!

Our next installment in this series will dip into what actually happens once an offer is submitted to the short sale lender. If you have questions about short sales, or any real estate transactions, please feel free to call the JMC Group at 360-609-6775. Or go to the "Contact Us" portion of our website at www.MyRealtorIsJamie.com. We are here to help!

Lesson 1: http://activerain.com/blogsview/765054/Short-Sale-Basics-First-in-a-Series

Lesson 2: http://activerain.com/blogsview/774079/Short-Sale-Basics-Second-in-a-Series

Lesson 3: http://activerain.com/blogsview/788057/Short-Sale-Basics-Third-in-a-Series

Lesson 4: http://activerain.com/blogsview/796213/Short-Sale-Basics-Fourth-in-a-Series

Lesson 5: http://activerain.com/blogsview/827035/Short-Sale-Basics-Fifth-and-Final-in-a-Series