The sheer inventory of foreclosure (REO) properties available currently in Greater Phoenix means that there is no reason why a buyer should fiddle with short sales. 

A case in point.

Because of the difficulty of buying short sales our clients put in multiple offers.  This was done also because they lost a few homes to cash buyers who outbid them over the list price.

Anyway.  One of the short sale offers was accepted after an approximately 2 month wait.  But a few days later the lender sent an addendum, that must be accepted, that at any time and for any reason the seller/lender can cancel the contract prior to close of escrow.  How's that for risk?

In essence the buyer could do all their due diligence, inspections and appraisal at considerable cost, all the parties would do all their work only to one day get a notice from the seller saying that they will no longer sell the home.  This is very possible scenario.

Fortunately our clients ended up with a very beautiful move in ready lender owned property for a very good price.

The thing is.  Once the lender gets the property it so much easier to get something done with very little risk to the buyer.  If you can, stay away from short sales.  This is not something the home owners doing a short sale want to hear but it is what it is, even if 25% of the time a short sale does work out.