I am a recent listing agent for a short sale in san francisco. After the long process of the short sale I have the following advice: Start low and incrementally increase your offer. Leave room for buyer credits to be applied for things banks refuse to cover. There are many parties who often want a piece of the pie and unless all the lien holders agree, the sale won't go through. So have credits available (reduce it from the amount your buyer wants to offer) to be applied toward unspecified other liens and fees. Then when everyone demands a piece of the pie, you have a place to go without going back to each party for a new approval. Above all, I have learned that you need to be prepared to resubmit your offer. Banks wonâ€™t give priority to any short sale until they see activity. So if you have to manufacture it in order to get their attention, that is a way to keep them moving toward an approval. Finally, donâ€™t paint yourself in a corner, hold back credits that you will need later in case new demands appear. Pay attention to the HUD statement, who pays what and how to satisfy all parties. Simply being the highest bidder will not always get you a successfully closed short sale transaction.