Some buyers have a misconception that in a buyer's market, low-ball offers are the way to negotiate a sale.

Ultimately, a house will sell for the market value. Therefore, looking at a listing price and automatically deciding to knock 20% off, thinking the seller is desperate to sell, is not a sure-fire way to write a successful offer.

Feeling out the reason behind the sale is key. If it's an REO, obviously the bank is selling the house to offset a loss. A short sale isn't a far cry from that. A traditional sale is the most flexible. Any number of reasons can be involved, so have your agent inquire about the seller's circumstances and motivation level.

This is short-sale speak for a market analysis. A Broker Price Opinion is ordered by a bank that is considering the acceptance of a short sale offer. A broker or independent agent will evaluate the home (in person) and check comps in the area to provide feedback to the bank on their opinion of the current market value. This is done before a bank will approve the short sale and respond to prospective buyer.

How long does it take to get an offer accepted in a short sale where there is a first and second lender? We have been waiting to hear from the second lender for months after the first lender accepted the offer.

Unfortunately, you may never have an answer. Say you offered $500K on a house with a first loan of $550K and a second of $50K. The first lender will get a good portion of their investment back….in comparison to the second lender who will get nothing. There is no advantage for the second lender to agree to accept nothing. The second lender may foreclose, take the house back by paying off the first, and then sell it. Unless the first lender agrees to allow some of your $500K offer to go toward the second lender's note, then the foreclosure option may be the best solution for a second note holder to obtain some of their investment back.

I'd suggest you continue to shop for other properties. Without lender approval (both lenders) you should be under no obligation to wait around, though that is determined by the terms your agent included in the offer. If it works out later on and you haven't found another property, then pursue it.

Wow! This is a rare find within walking distance of Lake Almaden! For more information about this home, click here: 6050 Cottage Place.

Just reduced this morning to $499K! Unbelieveable opportunity to purchase a high-end, energy efficient home effectively 2 years old!

5986 S. Surf Court, San Jose

For more information and photos, visit the virtual tour at: http://www.tourfactory.com/452941