What is a short sale? You've probably heard this term used frequently lately and have no idea what it means. A short sale is a type of real estate investment that thrives in a down market. Right now, most of the United States is in what's known as a buyer's market. This means there are more homes for sale on the market than there are buyers. When supply exceeds demand, prices fall. This is not the case in all parts of the United States. In certain areas that are still coveted, the supply of housing has not exceeded demand and the value of housing has remained the same, or even appreciated. However, the residential real estate market has essentially collapsed. States like Florida, California and Nevada are experiencing an influx of foreclosures. In many areas of Florida, short sales are the standard financial transaction for a real estate closing. Many people mistakenly think that a short sale is something that can only happen when someone goes into foreclosure. It is important to realize that not all short sales are foreclosures or about to be foreclosed. There is another misconception that you have to pay cash if you buy a short sale property. Once again, this is false information. You can finance a short sale property, but you must be prepared to purchase the home in a short period of time. In other words, there can be no financing contingency on the real estate contract. And you'll need to prove that you're able to make this purchase either with cash or approved financing. Some people think that all short sales occur in distressed areas. Again, this is not true. In fact, most short sales in some states take place in upscale neighborhoods. Short sales are all different than dealing with lenders and negotiating short sales. You can give them paper references of people they can call who you have helped through the short sale process. Remember, the more information you have and can provide to the landlord, the more professional you will appear and the more impressed the landlord will be with your presentation. You will only have one chance to make your first impression on your potential short sale seller. Make sure you are well dressed and look professional. Have business cards and other information in writing so they can look at it after you leave. Don't force them to decide right away, give them time to think about it. But then you should follow up with a phone call to see if they have any questions after your presentation that they neglected to ask while you were at their house..