Big Bear Real Estate Blog

Big Bear Bank Owned Spotlight

By Joe Pecoraro

• 41572 Park
  LIST PRICE $295,580
  LAST MARKET SALE N/A Refinanced on 2/14/06 for $420,000
  

  
  This is definitely one of the better bank owned properties on the market right now. The location is great, walking distance to the lake and right down the street from Snow Summit Ski Resort but far enough away that it is not affected by it's visitors. It is also walking distance to Meadow Park, Swim Beach and a fishing dock.

  This home has a very large garage and lots of decking, front and back. The floor-plan is unique, I guess you would call it a split level. The vaulted ceilings over the living room and kitchen are impressive. The one downside to this property is it is a little outdated, however with new carpet would be very clean. The outside has some deferred maintenance that would require some care immediately. Mostly paint and a little wood replacement.

  Overall I think this is a pretty good deal for the area and should sell close to if not at (or over) it's list price.

• 42706 Juniper
  LIST PRICE $274,900
  LAST MARKET SALE $404,000 8-04-06   
  
  
    
  

  Like the first property, this cabin is in a great location. The setting is great with a seasonal creek and boulders in the back yard and vacant land adjoining the property. This of course can change if someone builds behind this property. But for now it is a really nice quiet setting with very nice homes around it.

  The house itself has a reverse floor plan, which means the living space and kitchen are upstairs and the bedrooms are down. There is a bathroom upstairs and down. Although the house is clean and the bank has done some work, the place is in some serious need of upgrading. Especially the kitchen. The living room is large and has a back deck coming off a slider. The back deck seemed really relaxing and seemed like it would be a great place to BBQ.

  I believe this house is a little overpriced at the moment. The neighborhood supports much higher values and I could see someone just wanting to get into this area. I would say this property has a good chance of coming down in price.

• 43496 Primrose
  LIST PRICE $209,000
  LAST MARKET SALE $315,000 10-06-05
  

  
  
  If you have been paying attention to the first two properties there was a common theme, Good locations. Or location, location, location. This property continues that trend with a very clean ski cabin. Located just east of Bear Mountain Ski Resort, although you would never know it (unless they were making snow) because it is such a quiet street.

  The cabin is a full roof gambrel style (barn shaped) with very nice wood ceilings and walls. There is one bedroom and a loft with one full bath. You can enter the house through the kitchen or use the side door off of the deck to enter into the living room. The back deck has a spot for a jacuzzi (there is one there right now but not sure if it works) and plenty of room to hang out with the gang.

  If you like Moonridge or want to be close to the ski resort, this is a decent price. I personally think it is a little high and I know that the bank has already received at least one offer and not come to terms with the potential buyers. This leads me to believe that there is not much room in the current price. It has been on the market for almost 100 days and only been reduced in price by $6k. You never know, maybe the bank is getting more motivated.

If you would like to see other bank owned properties currently on the market, click here. Or email me directly at joe@thetimwoodgroup.com. I would be happy to give you info on any property on the market.

Big Bear Lake Market Snapshot

-Israel Barden

Hello everybody. Thank you very much for taking the time to read The Big Bear REO blog. March is finally here and winter is on it's last legs. Thank goodness. I like snow as much as the next guy but, this year was ridiculous. I am a lifetime resident and I can never recall getting five feet of snow in a single storm. It looks like we may still get a couple of snow storms before it is all over, but hopefully they will not be as prodigious as the last few. I was looking at the numbers for the year so far, and thought it might be something our readers would be interested in.

Currently we only have 658 properties listed on The Big Bear MLS. I say " only " because I have seen the number up around 1200 within the last couple of years. This means there are only half as many properties for sale as there were in 2007. While this is still a buyers market, it is also good news for sellers. If you are astute enough to price your property to sell, the odd's are in your favor that you will attract quite a few motivated buyers. If you insist on ignoring reality and pricing your home at an inflated price, I'm afraid it will be the same old story. Yes, your home will sit and sit while prices decline.

Of the 658 homes listed for sale, 60 of them are bank owned properties, with another 60 listed as short sales. This means short sales and bank owned properties make us less than 25% of the homes for sale in our market. For folks in the market for a distressed property, this is a telling statistic. Because so many buyers are looking for REO's, the competition is fierce. Don't be surprised if there are four or five offers on the house you want to buy.

Year to date, so far, we have had 130 properties close escrow. Since most escrows are taking around 45 days, this number is actually better than it sounds. Of this number, 63 were bank owned properties and 12 were short sales. Even though bank owned homes make up less than 25% percent of the listings, they are accounting for over half of the sales. Can you say " Driving the market?"

Currently we have 167 properties listed as pending, contingent, or active contingent. Basically, these properties have accepted contracts and have a good chance to close. Of the 167 properties under contract, 67 of them are short sales and 53 of them are bank owned. This is a huge percentage. This statistic really shows you just how much bank owned homes and short sales are affecting what is happening. Because short sales take an average of three months to close, this skews the stats a little bit. Most of the pending short sales have most likely been pending since before the first of the year.

Hopefully this has helped to clarify what is going on at the current time. According to everything I have been reading, foreclosures are going to be driving the market for the foreseeable future. If you are in the market for a property in Big Bear, it is essential that you find somebody who understands the market and is experienced in bank owned and short sale purchases. I would only be too happy to offer my services. If you would like to discuss real estate in Big Bear or have any question, please do not hesitate to contact me at 909-273-8980 or izzy.barden@gmail.com

 

Five Best Big Bear Bank Owned Properties Under $200K as of 2/20/10

by Joe Pecoraro

Here are the top five bank owned properties under $200k (AKA REOs) currently on the market in the Big Bear valley.  The properties are listed in order of listing price.  Also remember there are more and more bank owned properties coming on the market every week, so check back for more properties later or request a list of current bank owned properties at info@bigbearreo.com.

• 858 Fir -Newer cabin in very good shape for a bank owned property.  This property feels brand new and has a very functional floor plan.  It is located in the Erwin Lake neighborhood of Big Bear City which is about 10-15 minutes to the lake and ski resorts.  There is no immediate work that needs to be done to the property and it even has washed and dryer hook ups which is rare for a cabin this size and in this price range.

LIST PRICE $88,000    DATE LISTED 1/27/10
ORIGINAL LIST PRICE $88,000
LAST MARKET SALE  11/17/06
LAST SALES PRICE $174,000

• 815 Rainbow-Charming gambrel cabin located in nice area of Big Bear City.  About five minutes to the ski resorts and lake.  This property just came back on the market after a buyer couldn't complete the deal and the bank reduced the price by $10,000.  Older but clean, the cabin could use some upgrades and has the nice woodsy interior that most people love in a mountain cabin.

LIST PRICE $102,500
DATE LISTED 12/9/09
ORIGINAL LIST PRICE $112,500
LAST MARKET SALE 9/18/98 (property was refinanced, last time 6/10/08 for $143,000)
LAST SALES PRICE $60,500

• 42827 Monterey-Moonridge cabin right next to the Bear Mountain shuttle.  Less than a 3 minute drive to Bear Mountain and less than five minutes to the lake.  This cabin was previously listed as a "short sale" before the foreclosure.  It is no listed less than the "short sale" price and still not selling.  In need of some upgrades, especially the kitchen, this cabin has tons of potential and is priced extremely well.  It also has a bonus, game/laundry room.  It is baffling why this cabin is not selling.  Great location, great price and lots of potential.

LIST PRICE $135,000
DATE LISTED 12/3/09
ORIGINAL LIST PRICE $140,000
LAST MARKET SALE 12/16/05
LAST SALES PRICE $279,000   

• 710 Marin -Duplex near The Village.  One of the cabins is already upgraded and has a full time tenant.  The other cabin is in the middle of being remodeled.  This property comps out with just the one cabin that is usable.  Once completed this would be a very good income property with full time or vacation rental potential.  Great investment property.   

LIST PRICE $144,500
DATE LISTED 2/17/10
ORIGINAL LIST PRICE $144,500
LAST MARKET SALE 6/22/01 (property was refinanced, last time 5/9/06 for $228,000)
LAST SALES PRICE $85,000

• 924 E. Country Club -Another property previously listed as a "short sale".  Not many cabins in this price range have a garage and an extra half bathroom.  Cabin is in pretty good shape for a bank owned.  Could use some upgrades but it is ready to be used right away.  Located about 10 minutes to ski resorts and lake.  Nice Big Bear City location.    

LIST PRICE $147,500
DATE LISTED 2/12/10
ORIGINAL LIST PRICE $147,500
LAST MARKET SALE 5/16/06     LAST SALES PRICE $246,000

If you need anymore info on these or any other properties in the Big Bear Area feel free to contact us.  There are over 50 bank owned listings currently on the market.  Contact us for a complete list.

 

 

 

Big Bear Bank Owned Dogfight

-Israel Barden

I have always been told that the key to success is practice. If you are planning on buying a property in Big Bear, you need to practice saying " Yes, I realize I may need to pay 10% over list price." Believe it or not, if you are planning on purchasing a well priced bank owned property, that is most likely what you will have to be prepared to do. With low prices and low interest rates, qualified buyers are coming out of the woodwork. In large numbers.

Every single home, that was a good buy, that I have written up in the last six months has had multiple offers on it. Every single one. Even traditional listings that are priced well are getting swarms of activity. The only way to combat this is too be bold. This is no place for timid buyers who want to " see what happens." There is no reason to make a low offer and see, because I can tell you exactly what will happen. You will waste a great deal of your time and end up on the losing end.

On Thursday a really good deal popped up on Hillendale in Big Bear City. I had clients that the house would be perfect for. I went out and took numerous photos for them and made sure the house was as good a deal as it looked. It was better than it looked. My clients drove up early Saturday morning and loved the place. When we got back to the office I called the listing agent. The home already had three offers, one of which was the listing agent's, and she was expecting more. The house was listed at $204,900 and probably worth around $235,000 or so. We discussed the situation and I told my clients if they were not prepared to go to at least $220,000, not to waste their time. Due to the fact that two other Realtors showed up to show the house while we were there, they had little difficulty believing me. They decided to pass and write up a traditional listing we found in Sugarloaf that was priced at only $149,900. Guess what? The next day the listing agent emailed me to inform me that another offer was on the way in. Arrrgh.

The days of low balling bank owned homes is over. The good ones anyway. I am sure if you find a tear down or a home in a very bad location, you could still negotiate a good percentage off the price. On anything halfway decent, you are in for a fight. The one thing in your favor is most people are willing to step over a dollar to save a dime. However, there always seems to be at least one dog in the fight who is willing to do what it takes to win the battle. You have to be prepared to be bold and make your move at the right time to beat them out. If you know there are other offers, make your first offer full price with no fat. That way they will feel compelled to, at least, give you the option of going higher. If you come in too low, chances are they will counter the best offer and not even respond to you. When you get a best and final counter, give your real best and final. Don't play games like you are negotiating for a persian rug in Morocco. Go in strong and leave them no choice but to accept your offer. If you make a commitment to being aggressive and follow through on it, you have a great chance of being successful in purchasing a great home you really want.

Five Great Bank Owned Properties in Big Bear 12/15/09

Bank owned properties continue to be some of the best bargains on the market in Big Bear.  While the overall inventory is going down,  bank owned listings continue to come on the market at a pretty steady pace.  As of December 15th there are currently 48 available bank owned properties on the market in the Bear Valley MLS.  Here is a list of the top five in all different price ranges.

815 Rainbow-If you are looking for an affordable little ski cabin or mountain getaway, this is a must see.  Located in a nice part of Big Bear City this little place is priced pretty well and has lots of potential.  The ski slopes and lake are only about five minutes from this charming little cabin.

LIST PRICE $112,500  2 bedroom 1 bath 896 SF

616 Kean-The true definition of a mountain cabin.  Great setting, nice deck to bbq on and lots of trees around.  This place needs some upgrading but the basics are already there.  Large living room with open kitchen, open beam ceiling, and plenty of sleeping room for the whole gang.  Cabin is located at the end of a very quiet street with no through traffic. 

LIST PRICE $185,300  4 bedroom 1 bath 1440 SF

1629 E. Big Bear Blvd-Great horse property in beautiful Shay Meadows.  Close to 1/2 an acre and newer construction.  Property has many upgrades including granite counter tops and a nice floor-plan.  One of the "best price per square foot" on the market.  Would make a very nice full time home or summer getaway for someone that needs space.

LIST PRICE $359,900  3 bedroom 2.5 bath 2385 SF

42438 Bear Loop-Beautiful log style home in the Bear Loop neighborhood of Big Bear City.  Easily on of the nicest neighborhoods in the Valley.  This property has never been lived in and has some very nice features.  It just came back on the market and may not last.  Close to the lake and National Forest.

LIST PRICE $559,900  5 bedroom 3.5 bath 2933 SF

1234 Bruin Trail-Very clean Fawnskin bank owned cabin with a very secluded and quiet setting.  Plenty of space on the decks to take in nature and the views.  If you want to get into the mountains but away from the crowds, add this property to your list.

LIST PRICE $294,000  3 bedroom 2 bath 1300 SF

If you have any questions about any of these properties or want a complete list of Big Bear Bank owned properties, please contact us and we would be happy to help.

joe@thetimwoodgroup.com

Only Fools Rush In

 

Have you heard the old saying “Only fools rush in? “ In real estate, this can be doubly true. In today’s society, we are used to instant gratification. When we want something we don’t even have to leave the comfort of our homes. We just go to the website advertising the thing we want, click on the item, provide our credit card information and it arrives on our doorstep a few days later. With this mentality, it is no surprise that some home buyers in today’s market expect the same kind of results. They expect to look at a few house’s, find the perfect one, put in an offer and have it accepted all in the same day. Unfortunately, it rarely happens that smoothly. Many different scenarios often come into play that can derail even the most carefully laid plans. And even if it is possible, I wouldn’t recommend it. Let me tell you why.

First off, it is impossible to get a really solid grasp of the market with only a few hours of viewing time under your belt. To truly understand property values in the area you desire, I feel you need to look around at least a couple of times. Impulse buys seldom turn out well. In fact, if I were to look closely at all my deals that failed to come together, I strongly suspect that most of them were homes I wrote up with clients who were buying on the spur of the moment. If you aren’t completely sure of the market and what is available, doubt will probably creep in and make you second guess your decision. I am not saying it is impossible, I have many clients who bought after one day, but it heightens the possibility of failure.

Impulse buys also encounter difficulties because the buyer many times has not taken all the steps to insure that they actually are able to buy a home. I can’t tell you how many times I have heard “Oh, this won’t be any problem. I have excellent credit and make plenty of money “only to find out the buyer in question actually does not qualify for a loan. Or, if they do qualify, it is not at terms they find acceptable. There are a myriad of fees and taxes that many buyers do not take into account before they decide to make a purchase, especially if they require financing. It can be a very expensive proposition to procure a loan. When you add mortgage insurance, tax impounds , title fees and insurance, etc into the mix, it can be quite a bit more than an unprepared buyer expects to pay.

Lastly, a buyer who is patient has a much better chance of actually finding and buying a home they will truly love. An educated buyer will know the perfect house when they finally find it. They will know it is a great deal and they will know what they have to do in order to buy it. An educated buyer will know when it is a bad idea to try to lowball a home. They will be smart enough to offer an amount the seller will take. Because they have been patient, they will be pre-approved and have all their financing in place to be able to write a strong offer. Also, they will have had time to build a good relationship with their Realtor, and will trust and listen to his advice. There is nothing worse than losing a deal because a buyer who has no clue about the market, refuses to listen to reason and makes bad choices that torpedo their chances to buy a home that they really love. If you are in the market for a property, take some time to learn the market. Look at some of the various internet sites that allow you to see the listings in the area. Talk to a lender and find out what you can afford. Take the time to research local Realtors and contact one you feel comfortable with. Do not use an out of area Realtor unless you want to deal with the frustrations of working with somebody who knows very little about the area and won’t know a good buy from a bad buy. Nothing beats local knowledge. Listen to the Realtor you have entrusted with your purchase. Looking at the internet for a few days will not make you more savvy than somebody who deals with the market every day for a living.  If you listen to this advice, you will know with a certainty when you find the place you really want to buy. Then, buy it and enjoy the feeling of a job well done.

REO Urban Legends

It seems like everybody has a story about a cousin or brother in law or long lost Uncle who offered half of the asking price on a foreclosure and got it. It has almost reached urban legend status in this market. I have bad news for people that believe this story. There are no giant alligators in the sewer. If you say Bloody Mary three times in front of a mirror, she will not appear. Even more terrifying, there are no bank owned properties in Big Bear that you can buy for half of the list price.

As a matter of fact, writing lowball offers is a sure way of losing out on a property you might really like. When an asset manager sees an offer that is over 10-15% low, they automatically put that offer into the crank file. Usually, they don't even bother countering an offer that low. When they do counter, it is usually for $100.00 off of the listing price. The only thing that happens when you write a really low offer is you lose all your credibility. Instead of coming off as a serious, viable buyer who is looking for a good deal, you come off as a shyster trying pick the bones of an unfortunate soul.

When a bank prices an REO property, they don't just pick a random number. They don't price it off of what the remaining loan is. They actually have Realtors give them price opinions on current market value. Then, they price the home at a fair market price. Usually, this a very good deal. Just because there is only $50,000 owed on $200,000 property, does not mean the bank will take $100,000 for it. They will sell you the property for a good, fair price. If you come in at $125,000, they will not even acknowledge you. If you come in at $150,000, they will counter at $199,000. If you come in at $175,000, they will probably give you a real counter to work with.

I am not saying that it is impossible to get a great deal. It is highly possible. You just have to reevaluate what a great deal is. If a home last sold for $350,000, and you buy it for $250,000, you are getting a great deal. You just need to be realistic. Plus, while you are dickering around with lowball offers, the odds are very good that someone who understands what is going on will come in with a respectable offer, and you will lose out. If you think it is a good deal, it is certain that somebody else will too. I feel the best strategy is too give the bank the opportunity to say " Yes."

Big Bear Short Sale Update

- Israel Barden

I know that I have written several blogs about why I really don't like doing short sale transactions. In my experience, a vast majority of the time, the only thing a short sale does is cost you your clients. They have a very small sucess rate, and the headaches involved can frustrate even the most patient buyer. The one I am involved in right now is a perfect example.

My clients and I first wrote this property up over five months ago. That's right. Five long months from the day we submitted the offer until the day we opened escrow. The only reason we made it this far was because nothing else came on the market that my clients liked as much as this house. Since I sit directly behind the listing agent, I had the opportunity to see how incompetent the bank really can be in these situations. For one, they switched asset managers on us at least four times. To make matters worse, the previous asset managers left no notes of any kind for the new asset manager, basically forcing everything to start all over again. Three months into it, the bank sent out a letter to the seller offering to modify her loan. They didn't bother to mention that even though the seller didn't do it, it forced everything to go back to square one. Again.

Finally, once the offer was accepted, things didn't get much better. The bank decided that not only would they not pay one penny towards termite work or repairs of any kind, they also would not pay the back taxes owed on the house. They basically told the listing agent that either my buyers had to pay them or he and I would have to pay them out of our comissions. Since the home is only selling for $150,000, $750.00 a piece is a big chunk out of our money. I know it may sound strange but, I work to make money to support my family.

Since this deal has yet to close, I can not even call it a sucessful transaction. Any number of things can derail a short sale, and since the bank doesn't seem to care, they often do. The best I can hope to do as the buyers agent is to stay on top of everything, be a pest to everyone else involved, and hope the bank doesn't do something incredibly stupid to wreck it for everyone. Thanks for reading my vent:) If you are considering buying a short sale, prepare to be very patient. Enter a zen like state and hopefully five or six months later, you will awaken to the home of your dreams.

Big Bear Bank Owned Listing

This bank owned property just came on the market. It is listed by Tyler Wood of Coldwell Banker The Tim Wood Group in Big Bear Lake Ca. What I really like about this house, besides the price, is it's location. It is only two houses away from The National Forest and that is always a good thing. The cabin needs a little upgrading, but overall is in good shape. It is 816 square feet with two bedrooms and one bathroom. It was built in 1980 and sits on a 3,750 square foot lot. At only $128,800, this one won't stick around for long. If you are interested in this listing, bank owned homes, or any listing at all, please give me the opportunity to be your Realtor of choice. I can be reached at izzy@thetimwoodgroup.com or by phone at 909-273-8980 

Big Bear Lake Lakefront Sale

- Israel Barden

I just closed escrow on this lakefront home located at 39597 Lake Drive. The home is a Tudor Style construction located in The Gilner Point area of Big Bear Lake. The home is 3,698 square feet and sits on a 12,810 square foot lot. This is my third lakefront sale so far this year. If you are looking to buy a lakefront home, or just a little cabin in the woods, I would appreciate the opportunity to be of service. Feel free to contact me anytime at izzy@thetimwoodgroup.com or call me at 909-273-8980.