The market has changed in a few keys ways over the past 6-9 months when it comes to buying distressed properties. Here are the key factors you need to know about:

1. Listing agents are getting more savvy on how to list and sell short sales. As of a year ago, very few agents had experience listing short sales. This process is very different than  a “traditional” listing. This opens up fantastic new opportunities for buyers. Many buyers would steer clear of short sales in the past due to the many unknowns, in particular the time frame. Now with the progression of experienced agents, attorneys, and negotiators - there are some excellent short sale deals that can often be closed in as few as 60 days or less.
2. If you’re shopping for distressed properties, be prepared for multiple offers. Yes – it’s not only happening, but extremely common. Since the supply and demand balance is still out of place, there are still less buyers than properties. Since buyers in this market expect a great deal, it’s obvious to see whay they flock to properties that are priced aggressively.  Many buyers instincts are to walk away given that it’s such a clear cut buyers market. I strongly recommend against it. An experienced agent (aghh-humm… LoftHunt peeps!) can guide you through the process to make sure you not only secure the property, but at the best terms possible.
3. It’s more important than ever to get a strong pre-approval from a reputable lending organization. If you’re paying cash – you had best have documentation prepared ahead of time. In regards to the source of your pre-approval, it doesnt have to be a Chase or Wells Fargo. In fact to be honest, some agents are slightly put off by larger banks that have a reputation for slow moving loan departments.  Local and regional mortgage banks like Wintrust or Chicago Bancorp have excellent repiutations in the brokerage community. What’s also becoming more popular with distressed sales in particular is the listing agent requiring the buyer to get pre-approved thorugh a preferred lender of their choice. If you run into this - you had better do it or you run the risk of not being competitive. Now don’t misunderstand what I’m saying here - no one can make you use their lender. The reason they are requiring a pre-approval from their preferred lender is that they really want to know (from someone they trust) if you can truly afford the place or not.

In short, the market for distressed properties is becoming very competitive. If you’re holding on to last years mentality “I am the buyer and they need me so I’ll proceed as I choose”, we’ll then you just might miss the boat.  If you embrace the changes to the market and have the approriate expectations going into your search, then you’re one step closer to gettting a great deal. Cheers!