In the last few years, buyers have had a crash course on buying distressed properties, whether short sales or foreclosures. But that experience hasn't always been good, and according to Karl J. Trommler, business development manager for PenFed Realty in Reston, Va., a big red flag is a distressed property listing without transaction details.

"When the listing says it is a short sale, but does not address whether or not the lender has been informed and approved of the price, it can be a big red flag," says Trommler, who cautions against getting involved when the listing language refers to third-party approval, but fails to identify that party.

Simply put, the more parties involved in the transaction, the more complicated. Short sellers who are able to be upfront about the deal stand a far better chance of attracting the right buyer at the right time, Trommler says.