There is some truth to what the agent is saying about the short sales. It is also getting better. There is a possibility that he/she is being a little lazy and steering you towards and easier commission.Maybe they are really frightened of the prospects of short sales but I doubt that.
About the model homes, I don’t know if the quality issues are true or not.I wasn’t there when they built it. I tend to doubt it. It sounds more like your agent is steering you away from them because the supply is limited and it may be tough to get you into one… easy commission again. Take what I say with a grain of salt. I am not there but it sounds like the person doesn’t want to go out there and command the best deal according to the direction you are hoping to go in. Your way doesn’t necessarily sound like the easy way but is fair enough.