Big Bear Real Estate Blog

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. 

Bank Owned Furnishings

-Israel Barden

When it comes to agents that list bank owned properties, they seem to fall into two distinct categories. The first group takes their time and makes sure the house is completely ready to be sold. These agents make sure that the house and yard are clean and presentable. They also post the 18 day notice for the foreclosed owner to remove their belongings. Then, after the 18 days are up, they have everything removed to storage, leaving the house in great shape to be sold.

The other group of agents don't bother with all those steps. They don't wait for the home to be cleaned or, sometimes, even for the tenants to be evicted. They just throw their sign up and put it on the MLS. Because of this, the home is often still fully furnished when it is being shown to prospective clients. This leads to nothing but problems.

Because people have a tendency to covet what they see, furnishings left in REO listings lead to nothing but trouble. You can tell your buyer 100 times that none of the furnishings are going to  be included with the sale, and they will still dwell on it and bring it up. Often. Questions about what happens to the furnishings and why they just won't leave them. " Maybe you can call the listing agent and tell him not to do the clean out" is something you will probably hear at least once. Some buyers will go crazy for the mirror over the mantle and insist it must be a fixture. When you tell them it is not, they will insist that you call the listing agent and offer money to buy it. It is not the listing agents property to sell. It is not the banks property to sell.

For all agents out there, be very firm from the start regarding the furnishings in a bank owned home. If you don't, it will cause nothing but problems. You need to quench the desire for that nice couch from minute one or your buyer may start obsessing over ways they can acquire it. Buyers, you need to realize that there is no way you are going to be able to get the furnishings. The bank may be taking the furnishings and throwing them on an enormous bonfire, as you suspect. They still won't give them to you. They may languish in a dust filled storage bin for 20 years until they deteriorate. You still can't have them. Be happy with the great deal you got on the house and let the rest go. Believe me, it's not worth the mental anguish.

Big Bear Lake Bank Owned Info

-Israel Barden

Hi everybody. Thanks for reading The Big Bear Reo Blog. Joe and I really appreciate all your feedback. For today, I thought I would endeavor to give you an idea of how bank owned homes are really driving the market in Big Bear Lake. The best way to do this is to give you some cold, hard numbers.

Currently, there are 863 residential listings on The Big Bear Lake MLS. Of these 863 listings, only 62 of them are bank owned properties. You read that right. There are only 62 bank owned listings today, on the Big Bear MLS. That means bank owned listings make up less than 10% of the market . Compared to most areas of Southern California, that is a substantially lesser number.

Now comes the really important number. What is the percentage of bank owned homes that are currently in escrow versus traditional listings. The answer is not all that surprising. Currently, there are 203 homes listed as pending, or in escrow, in the Big Bear MLS. Of those 203 homes, 83 of them are bank owned properties. So, while bank owned properties are making up less than 10% of the listings, they are accounting for almost 50% of the sales. Can you say " Driving the market ?"

Because you can't really make a solid determination based on one months worth of information, let's expand our numbers to include the whole year. Year to date in Big Bear Lake Ca, there have been 664 homes that have closed escrow. Of that number, 294 of the homes sold were bank owned properties.This means that almost 50% of the sales this year have been bank owned homes. This just goes to show you that, for the most part, bank owned properties are far and away the best deals on the market. Joe and I both pride ourselves on being experts in not only inventory knowledge, but also our ability to successfully close bank owned transactions. If you want a great, experienced bank owned expert in your corner, give me a call at 909-273-8980 or send me an email to izzy@thetimwoodgroup.com.

Short Sale? Be Careful.

I just wanted to give out a word of warning to anybody considering buying a short sale property. The house is a short sale because the owner is in financial straits. People in this situation can be a little unpredictable and do things you wouldn't normally have to be that concerned about. Things like stripping the house to the bone for instance.

A few days ago I wrote an offer on a short sale with some clients. It was a good deal on a really clean home in a nice area. Luckily, as I always do, I wrote into the offer that all appliances and fixtures were to be included in the purchase price. Our offer was accepted and I was getting ready to open escrow. Then, the listing agent called me and told me that the seller was going to take all the appliances and fixtures with him but we could purchase them outside of escrow for $2,500.00 . When I told her that we considered the appliances fixtures and would not purchase the house without them, she said she understood and would try to get the seller to come around. He didn't. It soon became apparent that he was probably going to strip everything he could take out of the house and then try to " Sell " it back to my clients outside of escrow in an effort to defraud the bank.

Needless to say, we refused and backed out of the deal. The seller basically bought the house, mortgaged it to the hilt, defaulted on his commitment to the lender, and then wanted to steal even more money from them. I don't know about you, but I found this unacceptable. I can only hope that the bank catches wind of this and puts a stop to it. I wouldn't be surprised if the window coverings, lighting, and bathroom vanities all end up in the sellers garage. Anybody who deals with somebody like this really needs to be on their toes and write everything they expect to come with the house into the contract. Also, make sure you do your walkthrough at the last possible moment. Don't give a guy like this the opportunity to take advantage of you.

- Israel barden