The pros of buying short sale properties include reasonable price and minimal competition, according to Zip Realty. The cons of buying short sales include long wait times for closing and the as-is condition of such properties.
Price can be a benefit of buying short sales, depending on local real estate market conditions, says Zip Realty. Short sales are better deals in sellers' markets, when regular listings are selling way above market value, than they are when prices are holding at market value.
Minimal competition is also a benefit of buying a short sale, explains Zip Realty. This is because it takes a significant amount of time - sometimes up to nine months or more - for short sale transactions to close. Buyers who might otherwise be the competition but need homes sooner look elsewhere.
Short sale properties are sold as-is, which means that the bank does not pay for any repairs, says About.com. This is a disadvantage because buyers end up paying for all the repairs. An additional disadvantage is that banks sometimes ask buyers to pay more than the listing price when short sales appraise higher than expected, even after a price has been agreed upon, according to Realtor.com.