Client Question –
I am on your subscriber list. Had an inquiry regarding 5 Goldenwren (Woodbridge). Is the $275K price correct, and if so, are there any problems with the property that you know of? We recently purchased a rental in Woodbridge and I note that this price seems to be below market.
Thanks so much for the question!
I looked up the home on 5 Goldenwren in the Woodbridge community, and it is currently listed as a short sale that has been available for only 2 days. With short sales, the process can take anywhere from 3-9 months depending on how complicated the sellers situation is and the banks that are involved. What I think is going on is a situation where the listing agent is attempting to create a “frenzy” of offers. This is more common with foreclosed homes where the banks typically list their properties for 5-10% below market to generate multiple offers and 99% of the time they will end up selling just at or even above market value due to the bidding process.
The bottom line with a short sale, is that the bank will most likely only accept an offer at “market value” or very close. Regardless of how low the offers are at, the bank will not approve it, if they feel that the home is selling for less than it should. If you are concerned with the sale of this home affecting your recently purchased investment home, I wouldn’t worry too much. Either way, the home will sell for “market value” especially since the bank has final say.
Based on the recent sales in this community for the last 3 months, I would say that this type of home would sell (today) for anywhere between $345,000-$365,000 depending on the interior condition of the home and the demand at the time of purchase. The good news is that the Woodbridge holds it value better than most areas in Irvine The most likely case is that most buyers have already submitted offers above the $275,000 asking price because, if their agent is doing a good job, they would actually advise them to offer “market value”, or else it is simply a waste of time.
You are correct, overall. The home is definitely listed below market, however from what I have seen in the last several months, it will definitely sell for above that price depending on how long it actually takes to finalize the short sale process with the sellers’ lender.
Thanks so much for the question, and if you ever need any help please feel free to email or call me directly! Have a great Labor day weekend!
All the best,
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