Pitfalls: Time, No Repairs to be expected(can sometimes happen depending on the bank), bank wanting a certain price for the house.
There are definitely benefits to short sale because they are likely to be taken care than someone not caring and being foreclosed on.
With negotiations expect what Brian said below.
As a seller its your last resort before a foreclosure, it damages your credit for 5-7 years unlike a foreclosure that will effect your credit for 7-10 years.
Because there are so many properties that come on the market, you could miss out on a better deal waiting on the bank to possibly just say no to your offer.
Brian the House Flipper
Cindy Andrew http://www.CindyAndrew.com