Are you buying a home in Virginia, Maryland, or Washington DC?  Buying a home in today’s real estate market often has challenges – but it does not have to if you prepare yourself as to what to expect and how to avoid the obstacles.

Here are the top 5 challenges that short sale buyers can have:

1)  The seller under prices the home.  Some times a seller of a short sale home and their real estate agent list a home for much less than what it is worth.  This strategy often results in wasted time for all parties involved.  You have to understand that any offer considered will be contingent on a third party (the bank) and the bank will want to be sure that the property is being sold for what it is worth.

2)  Understanding the time that it may take.  Most short sales take a long time to close.  Buyers of a short sale have to be willing to wait for up to 6 months to get an answer.  Some banks are more reasonable to work with than others.

3)  Writing an offer on a property with a listing agent that has no experience in closing short sales.  The listing agent is often the factor as to if a short sale will go to closing or not.  Those agents that have proven success are more likely to continue their accomplishments than an agent without the same experience.  Be sure that the real estate agent that you select understands the short sale process and explains it to you.  Ask for references from clients that they have represented on a short sale transaction and ask to see their MLS print out of short sale properties that they have been successful with.

4)  Writing an offer on a home that the listing agent insists on ratifying more than 1 offer and submitting all offers to the bank for approval.  The banks rely on the seller (with the consult of the listing agent) is submitting only the highest and best offer for them to consider.

5)  Understanding that the approving party is an institution (not a traditional seller).  The bank considering the short sale makes decisions based on financial criteria – they never make emotional decisions.

Not all short sale are created equally.  Short sales are a very complicated sale.  You can make the process easier by avoiding the above 5 short sale obstacles.  Best of luck on your home search!!

Interested in learning about Selling your home as a short sale?  Check out 5 Steps to Short Sale Your Home