The odd thing about short sales is that it can take a lot of time to complete. If you spot a short sale house that interests you, call a real estate agent, because it needs to be researched before any type of process begins. In fact, just because a home is listed as a short sale doesn’t mean it’s really for sale (because it’s subject to lender approval), nor does it mean it will sell at the advertised price.

Here are six things to know before trying to buy that short sale:

Comparable sales for a short sale house
Short sales take anywhere from two to four months, on average, to close, and pending sales will become the comparable sales at closing. Some short sales are priced so low that the sellers’ bank will never accept them. To get your offer accepted, it will need to be priced near market value. If you’re not prepared to pay above a superficial price on a low short-sale listing, then pass.

Mortgage amounts, number of loans and lenders
Ask your agent to research how much is owed against the home and find out the number of loans that are recorded. A second or third mortgage lender won’t get much when compared to the amount a senior lender in first position will get. If your offer is 20 percent or 30 percent of the mortgaged amount, it’s unlikely your offer will even get to the negotiator’s desk.

Short sale listing agent’s track record
A listing agent who is advertising a short sale but has never closed a short sale is a risky proposition for you. That’s because it’s up to the listing agent to submit the short sale package to the lender and negotiate. Your buyer’s agent can’t talk to the bank. Some listing agents hire outside companies to do their job, and the results of those negotiations can be sketchy.

Short sale seller qualifications
Find out if the listing agent has received a completed short sale package from the seller, and ask about the contents of that package. A complete short sale package should have at least the following: sellers’ hardship letter, tax returns, W-2s, payroll stubs, financial statement and bank statements. You don’t want your short sale purchase delayed because the listing agent doesn’t have the required documents.

Number of short sale offers received
Homes priced under market value will receive multiple offers. An agent is not required to disclose the terms of those offers, but you want to know how many offers you are up against. You want to make an offer that will beat the competition yet still be below market.

Listing agent’s short sale procedures
Some short sale listing agents might decide to submit only the first offer to the bank and withhold all other offers. But this is considered to be a violation of the fiduciary relationship formed between the listing agent and the seller. The seller is entitled to receive the highest and best price. Realize that even if your offer is submitted to the bank, because another buyer could outbid you as you wait for approval.