It might be an Irvine Short Sale, BUT you're still a BARNEY!

It Might Be an Irvine Short Sale, BUT You're still a BARNEY!

So the story goes...

It's a busy Monday morning. I get a call from one of my buyers. He's excited, a new listing came on the MLS and he tells me that it is listed very low and he wants to see it TODAY! I said that I will look into it and call him back.

The listing is a condo that is located on a four level complex next to Irvine Valley College and there is no view. So basically every unit will be relatively the same price for the same floorplan. Before I even look on the MLS, I have this gut feeling that this property is listed by a Barney short sale agent. Sure enough, it is listed as a short sale by "Stupid & Dense Reality", a private brokerage, who should not be doing short sales! A quick comp check tells me that this unit is listed 25% below the other sold and active comps. However, I give this agent the benefit of doubt and call to see if they are using a comp that I did not see.

Calling the agent, she informs me that the unit has many upgrades and will show very nice. I said I can appreciate that the owners have maintained it well, but where did she get the purchase price from? Was there a comp that will support her list price? She responded that it is a short sale and that the price should reflect that. She also stated that it is a great deal as the other units are listed and sold at significantly higher prices.

I could have spent time to educate this agent that her list price does not mean that the lender will accept the sale, especially since the BPO will have access to the same comps we have. However, I said "thank you" and hung up the phone. I called my buyer and set his expectation correctly. I took the time to explain how short sales work and that I will have no issues writing an offer at that price, but don't be disappointed when the bank rejects the offer or counters closer to market value.

Agents like this only make our jobs harder. They give buyers a false sense of value. They waste our time by looking into properties listed at a price in which comps will not support. If you are an Irvine California buyer considering purchasing an Irvine Short Sale, make sure your agent is not a Barney! Work with only the best!

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