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Contributor
tonyc
Posts: 30
Registered: ‎02-27-2011
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Where are the comps for this transaction ...

http://www.redfin.com/CA/Dana-Point/36-Bright-Water-Dr-92629/unit-16/home/5705480

 

How does this happen?  This looks like an incredible deal, or is it not?

 

I've been watching the low end Dana Point condo market on the internet every day for 3+ years and have been to many open houses and submitted several offers and every conversation with an agent (selling or buying) starts out with "let's check the comps".

 

Where are the comps for this transaction?  Doesn't anyone at the bank check them before a sale is approved?  I just ran a Redfin 6 month sales history for 2 bedroom Dana Point condos under $325k and the closest price per sq foot to this sale is $208, and the average including this is $249.

 

The closest active listing is $192 (one at this price - closer to the ocean but not really comparable otherwise) and the active listings average is $256.

 

Can anyone help me understand this?  Is it dumb luck, right place at the right time, knowing the right people?

 

Your opinions please.

 

Thanks

 

Gold Contributor
BobPhillips-RE
Posts: 1,701
Registered: ‎12-13-2010
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Re: Where are the comps for this transaction ...

The property was a "pre-approved" short sale, with Bank of America, which means that the seller, or his agent, ( Who later ended up also being the selling agent - probably at a reduced commission, like most "double-ended" short sales.) applied to B of A to get most of the paperwork out of the way, before even listing the property. ( This process takes a couple of weeks, usually, giving the listing agent some time to do some "marketing" of his database, before putting in the MLS.)

 

The listing agent is a highly successful agent in that area, and obviously was able to put together a deal - acceptable to B of A - prior to exposing it to the MLS.  The probable ONLY concession to a regular price was likely a "slightly" reduced total commission - perhaps 4%, rather than 5 or 6%.  That is MY take on the situation, from the evidence provided.

All this, of course, is merely MY opinion. Thanks for reading.

Bob Phillips - Realty ONE Group - South Orange County, CA
Contributor
tonyc
Posts: 30
Registered: ‎02-27-2011
0

Re: Where are the comps for this transaction ...

Thanks Bob but it is so far off the previous activity it's hard to fathom.

 

Reducing the 2 bed comps to this HOA or the one accross Golden Lantern it's even worse, the closest at $280 and the average at $291.

 

I try to work on the premise that I can only control the things I can control and that the banks hold the paper so they can do whatever they do (write down, reduce or sell off) as long as I don't have to pay for it (with my taxes) but it would be nice to get in on this action if I could.

 

 

Gold Contributor
BobPhillips-RE
Posts: 1,701
Registered: ‎12-13-2010
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Re: Where are the comps for this transaction ...

I understand.  

 

I don't see it happen often, but every once in a while I see a short sale - OR, an REO - close escrow at a price that makes you scratch your head - usually on the low side.

All this, of course, is merely MY opinion. Thanks for reading.

Bob Phillips - Realty ONE Group - South Orange County, CA
Contributor
tonyc
Posts: 30
Registered: ‎02-27-2011
0

Re: Where are the comps for this transaction ...

Some of my faith has been restored.  Was checking recent sales and this listing was updated on 04/02, after the inital posts and the selling price was $310,000 or $254/sq ft.  An apparent data entry error in the first few days.

 

Thanks again Bob.