In our hunt to scour Orange County for residential lots on which to build a spec house, I came across two listings I hadn't seen in MLS. Each lot was $250,000. They were in the city of Orange. Knowing Orange is quite a distance from the ocean, when the listing mentioned ocean views, a red flag went up. I called the agent and he told me the lots were terraced, and you could see all the way to Catalina Island. No matter where you are in OC, everyone touts Catalina Island, for some strange reason. The agent also told me that the lots backed to Panorama ? subdivision, a very expensive neighborhood with million dollar homes. So, what the heck, we went to look. To get to the lots you have to drive down a residential street with little cottages around 800 sq. ft. (maybe $200-$300k) then behind the end house are the lots. If a person moved a lot of dirt, you could get a panoramic view, and you might see Catalina Island with a telescope, of course if they remodel the house in front of it to a two story... it's gone! Way.... up on the hill in back of the lots, though adjoining them physically, in a neighborhood in no way connected to that of the lots, (and are in reality located in another city), are homes worth 1,500,000+. Adjacent to the lots is a PUD with condos that are 1200 s.f. and max sales price of 295k.

In checking with the City on zoning, etc. we found out only 1 house could be built on the lots (something the agent didn't know). Obviously with all of that, the lots won't pencil out at basically any price the seller would consider ... but you gotta wonder, why do agents bother to take listings from sellers that are so unrealistic?