I get asked this question a lot:  “are short sales a great deal?” “what kind of deal can I get with a short sale or REO property?” “I want a HUD home” ….  My opinion, at least in the Salt Lake valley is normally these are not the best value and for the following reasons at this time.

1- the banks are already taking a lost.  They are taking the lost from the current homeowner principle balance due, not from fair market value of the property. 

2- if there is a deep discount in the price, you will normally be seeing it in the work that needs to be done to get it in livable condition.

3- you will usually find a better ‘deal’ from a homeowner who has their home on the market, has equity, and is willing to discount it to move quickly. 

The time that it takes for lenders to get back with offers that have been submitted on short sales is not very timely.  And depending on the listing agent, are they reviewing all offers or are they working for their client/buyer/investor and only getting that offer reviewed for approval.

As a listing agent, I work with the lenders and the sellers to get the highest and best offer by continual marketing of the property and open communciation. As a buyers agent, I steer my clients away from the from short sales and hud homes because of the time delays, silence auction mentality and too many other unknowns.