Click here to view the embedded video.

How do you locate, appraise and, purchase a house that is being sold as a short sale?

I do a CMA for the local area and then when I have a house, I do what’s called a liquidation appraisal; that’s an appraiser I got myself involved with. They take into consideration all the distressed properties (foreclosures, short sales) and then give me a progress of a declining market over the next six months, to give me a real solid idea that I share with the lender when I list the house.

First and foremost, if I represent the buyer I call the listing agent, I ask them how did they handle the short sale, who the lender is, who the investor is, has the hardship been established with the homeowner? I know the banks will take about 80% of what is fair market value. If there are no additional offers on the table, of course I’m going to try to go as low as I can to get the best deal for my client. If I know I get into a multiple offer situation, I’m a little bit more edgy and a little bit more aggressive.

Debra Allen is a Realtor in the Greater Phoenix, AZ area who specializes in first time home buyers and short sale/foreclosure properties.

Are you interested in having a qualified REALTOR® answer your questions? Click through to Ask a REALTOR® now.

Are you a REALTOR® who would like who like to answer consumer questions? Click through to become an Ask a REALTOR® participant.