Is a short sale a worthwhile investment? Real estate is and always has been the ultimate investment. While there are variations in the market valuation of real estate, and real estate in some areas does sustain a serious loss of valuation, you can find solid real estate investment values, and for the short sale investor, now is a great time to be out looking at potential investments.

The cardinal rule of real estate – location, location, location – always applies, whether you’re talking about a good market or a down market. You can find excellent values in short sale real estate right now as long as you’re patient.

Short sales aren’t for the hurried investor. The days of flipping houses for fun and profit are probably on indefinite layoff. That doesn’t mean you can’t make money selling your short sale real estate, however. If you find a desirable property that’s in reasonably good shape, a little investment on your part can lead to bigger profits as the real estate market in your area recovers.

The slowest part of short sale is often the sale itself. Banks can take months to approve a short sale. Some lenders take months just to acknowledge the short sale offer. If this is the case for you, don’t panic. An unresponsive lender is par for the course.

Consider working with a professional short sale negotiator who can present your offer to the bank in a way that commands the bank’s attention. Given that the alternatives for the lender are often a.) foreclosure or b.) tending vacant property indefinitely, the bank’s loss mitigation personnel can be convinced that a short sale in is the bank’s best interest.

Only about 25% of all short sales are concluded. Working with a professional short sale negotiator will help you evaluate whether your short sale offer is realistic under the current market conditions. Sometimes, small modifications to a short sale offer move it from the “pending bank approval” to “approved” column in short order.

Photo Credit: Mary Harrsch, via Flickr