What should i expect on a Short Sale property?

[William Huston]

Hello All, 

I have personally never bought a Short Sale property before, but recently I have been searching for a new house to buy, because the place I am renting is possibly changing in the near future, requiring me to find somewhere else to live. I have a bit of money saved up that i was planning on using on another rental, but i have had poor luck with finding something that meets high enough returns in the current market as of lately. After searching and viewing a few properties and making lots of offers, i have come across a townhouse that in a short sale with an approved price of 155k, but similar properties in the section have been selling in the 180-185k range. Its been on the market for a while, so i keep seeing it listed on my searches, but not taken a look at the property because of the short sale tag. 

My question is this. What are some essential things i should ask for or expect if i make an offer on the property? This property would turn into my new primary residence. I am highly thinking of house hacking it also, because its a 3/2 and I'm just solo by myself. 

Since there is an approved number already, is it wrong for me to ask for a lesser amount, based on just looking at the pictures it needs some tlc like new carpet and paint. 

[Minna Reid]

You could certainly present a lower offer, but if this was recently approved there probably wont be too much flexibility. If it was in fact approved, there would have been a BPO or appraisal done and once those values are established they are usually good for a few months.  Won't know until you ask for more details. As far as the purchase itself, from a buyer side perspective be prepared that even an approved short sale will still take a little while to get re-approved for a new buyer, so you'll have to exercise some patience. Also, you would want to do some basic homework on title, hoa fees, liens etc. If a mortgage isn't being paid, sometimes other things aren't getting paid either, and you will want to know all these issues have been addressed with the approval, or if not what the plan is for their payment.