One way to take advantage of low home prices is through a short sale, in which the homeowner and lender agree to sell the home for less than the homeowner owes on the mortgage, and call it even. All they need is a buyer who is ready and approved for the deal to go through. It can be a very sweet deal for the buyer, but not without its own complications. The smart buyer will look into this option thoroughly before jumping in.

A short sale does not mean "Steal of the Century."
Why? The lender agrees to sell the house for less than is due on the mortgage, but the lender is no dummy. They will look closely at which route will be most advantageous for them, whether it is a short sale or foreclosure. What does this mean for the buyer? Don't make ridiculous lowball offers.

Settle in for a long wait.
Short sales are never short, in terms of time. If you are in a hurry to move into a house, a short sale may not be for you. If you can wait, be prepared for at least a few months, depending on the situation. Your actions may help speed up the process:

• Before you start looking around, get pre-approval from a bank or lending institution, and have all the necessary paperwork to prove you can afford the loan.

• Make sure the property in question is already approved for a short sale by the lender. This can cut out many weeks from the process.

Find an experienced short sale agent who has a successful record.
Besides knowing all the hidden, important details of a successful short sale, your agent can help you settle on a reasonable offer the lender will be more likely to accept.

A short sale is not a guaranteed good deal. Buyers, proceed cautiously when it comes to short sales. But if you have the time, flexibility, and nerves of steel to ride the short sale process, you may be rewarded for your time and determination with a great home.