Is buying a short sale a good idea?

Short sales are a good idea if you have plenty of time and you’re looking for a fixer-upper. But if you’re looking to buy a home right now, the buying process is clunky and can drag on for months.

What are the risks of a short sale?

Unless you're an experienced investor or house-flipper, a short sale runs the risk of buying a home with expensive repairs, taking longer than expected, or falling through — even after months of negotiating. You might also miss better real estate opportunities as a result.

What does a short sale mean for the buyer?

For a buyer, a short sale means you’re buying a home for less than its mortgaged amount. In other words, the homeowners still owe money to the lenders, but they’re gotten approval to sell for less than what they owe.

What is a reasonable offer on a short sale?

Lenders favor offers that are at least 85% of the property's appraised value. However, in some severely distressed real estate markets, lenders have been known to accept offers as little as 50% of the appraised value.

Steven Porrello

Contributing Writer

Steven Porrello is a regular contributor at Anytime Estimate. When he's not writing about real estate and investing, Steven spends his time surfing, reading on the beach, and traveling.

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