Big Bear Real Estate Blog

Big Bear Bank Owned Condo's For Winter and Summer.

By Joe Pecoraro

While Big Bear is known as a four season resort town, two of the seasons bring the majority of the visitors.  Obviously with two major Ski Resorts in town, Big Bear is a winter hot spot.  A few months later,  people from all over Southern California make their way up to Big Bear to escape the heat and play on the lake and in the forests surrounding Big Bear Valley.

The closer you get to the Ski Resorts and the Lake, the higher the prices get.  Meaning that you may have to settle for less house or cabin to stay in a reasonable budget.  If you are looking for a comfortable place in a good location at a great price, check these condos out.

Here are two bank owned condos currently on the market that would work great for the two busy seasons in Big Bear.  One is steps away from Snow Summit Ski Resort and the other is steps away from the lake side Boulder Bay Park. 

• 760 Blue Jay #37- Located next to scenic Boulder Bay, Boulder Creek condos have a pool, spa and tennis courts.  They also sit next door to Boulder Bay Park, a lake side park with plenty of tables for picnicking and  room for fishing.  About 10-15 minutes to the ski resorts depending on traffic.                        
• 569 Summit Blvd #2-This condo part of a four unit complex.   It is on the same street as Snow Summit ski resort.  Walk up the street or take the shuttle and you are there.  Plenty of parking including a one car garage off the alley in back.  You are also a couple minute drive to the lake in the summer time.                                                   

Big Bear Bank Owned Properties With Garages

By Joe Pecoraro

Where's the garage?

Most properties in Big Bear are second homes so they don't have garages.  This is a little frustrating to buyers because many of them are buying in Big Bear to come up and use boats, motorcycles, Sea Doos, etc.. 

So where are they supposed to safely store all these "toys"?  Having a garage makes a lot of sense for many people looking at property in Big Bear, even if they don't plan on parking in it. 

Also, many buyers are looking for a home to buy now and then use as a full time home down the road.  While the prices are low, it seems like more and more people are looking for more than just a cabin. 

Here are five bank owned properties in Big Bear that have garages and would make great full time homes as well.

• 1300 Mountain View- Located on the eastern side of Big Bear City, near Shay meadows and Baldwin Lake.  With a little bit of work this cabin would make a great mountain getaway.  It is on a decent size lot and even has a drive through garage to maximize the space.  You can pull your boat though the garage into the back yard.  This would leave you room to park your vehicle or any other toys in the garage. 
  LIST PRICE $184,900  LAST SALE $262,500 6-21-05
• 2184 2nd Street-This home was built in 2006 and has only had one previous owner.  Built by a reputable local builder who took no shortcuts.  Granite counter tops, custom bathrooms and nice fireplace among other upgrades. This is one of the cleanest bank owned properties in it's price range.  There is a one car attached garage and the lot is fenced with a six foot high wood fence for privacy.  If you are looking for a cabin that needs minimal to no work this is it.
  LIST PRICE $189,900  LAST SALE N/A
• 428 Pineview- This Big Bear City property is a few blocks from Big Bear Lake and in a quiet well treed neighborhood.  There is plenty of room for the whole gang and it also has a one car detached garage.  The home was built in the 80's and could use some upgrading but is pretty clean for a bank owned property.  Most of the work is cosmetic and the back yard is fenced in.
  LIST PRICE $314,900  LAST SALE $390,000 10-17-05
• 829 Mc Alister-A Fox Farm home priced over $200K less than it's last sale.  This property is literally five minutes from everything.  The lake, the ski resorts, shopping and restaurants.  It is on a corner lot so besides the garage you have access to the back yard off the side street.  The back yard is fully fenced and plenty big to park the boat in.  The property needs some work, but some new flooring and general TLC would make a huge difference.
  LIST PRICE $359,900  LAST SALE $560,000 6-20-06
• 42292 Castle Crag- A Castle Glen bank owned property.  Plenty of room in the over-sized three car garage.  This place has four bedrooms two with their own custom bathrooms.  You can see the lake and ski slopes from the top story "great room".  Lots of upgrades on this home, including granite counter tops and lots of decking on both sides of the house.  Built in 2005, this is a newer home in one of the nicest neighborhoods in Big Bear Lake.  There is some deferred maintenance on the outside but overall this place is in great shape.
  LIST PRICE $631,700  LAST SALE $1,200,000  2-26-06

Click here for other Big Bear Bank Owned homes w/ garages.

Big Bear Lakefront Sale

 

This home is located at 730 Tayles Point in The Boulder Bay neighborhood in Big Bear Lake. It is situated on a spur of land that juts out into the bay. For my money, it might be the best lot on the entire lake. It actually has 160 feet of lake frontage. It sold for $685,000 and was on the market for only four days. It is my second lakefront sale this year. If you would like to see other listings in Big Bear or have any questions, please don't hesitate to contact me at izzy.barden@gmail.com .

Bank Owned Checklist

-Israel Barden 

Recently, it seems like every time a good bank owned property comes on the market, it is like blood in the water with four, five or more offers coming in. If you want to have a chance at snagging one of these good deals away from the other sharks, you need to come prepared. I have prepared a sort list of things you need to have ready in order to write the best offer possible.

1. Make sure you are preapproved and have your letter with you. This will let you know what you can afford and also let's the selling bank know that you are already approved and can buy the property in question.

2. Have current bank statements and your check book. You will need to write a deposit check and many banks are asking for proof of funds up-front with the offer.

3. Be prepared to go over asking price. If a home is worth $200,000, but only priced at $135,000, you can be sure that somebody else will offer full price for it. If you really want it, you will have to come in even higher. Most banks will give everybody the chance to come in with a " Best and Final " offer, but not always. Sometimes, your first offer is your only shot. Be prepared for this eventuality.

4. If your Realtor is an experienced agent who has dealt with REO properties, listen to their advice. Odds are they have been in a similar situation and they know what to expect.

5. If there are multiple offers, don't ask for a home warranty, termite work, or anything that is not absolutely necessary. The more you ask for, the less chance you have of getting your offer accepted.

While there are many variables that can occur, keeping these five things in mind will help you get the property you want.

Watch Out For The Other Guy

 

-Israel Barden

Originally posted at www.bigbearilluminated.com

One of the benefits of the market being in decline is the mass exodus of bad agents. If you are a buyer or a seller, the odds are much better that you will get a competent agent to represent you. Unlike days past when an agent just had to sit by a phone to do business, today's Realtor actually has to work his or her tail off to be successful. That being said, you still need to be careful.

There are still part time housewife's out there who do a deal or two a year for some extra money. The checker at the local Von's still dabbles when an unsuspecting victim falls into the web. Even the meter reader for the electric company will try to pass as a full time professional Realtor. They are not doing their clients any favors. The market has undergone a massive upheaval and you can not do business the same way as five years ago. In Big Bear, bank owned properties make up 10% of the inventory and 40% of the sales. If your Realtor is not proficient in dealing with REO's, Short Sales, etc, you are asking for trouble.

I have an example from my last escrow to share with you. My clients put in an offer on a bank owned property listed by an office from out of our area. We did everything we were supposed to do and were just waiting for escrow to open. I have sold around 20 bank owned properties in the last year or so and there is almost always a delay in the bank opening escrow. So, after a week went by I wasn't too concerned. After almost two weeks went by, I became alarmed. I called and emailed the listing agent two or three times a day for three days without receiving a response. I finally had to call his broker and demand that someone who was competent be put in charge of the deal. I was given an assistant who seemed to have some idea of how things worked. Finally, after almost three weeks, I was emailed an extension agreement that stated we were requesting an extension due to the listing office opening escrow with the wrong company and not realizing it for two weeks. Two weeks? If I hadn't called the broker with my concerns the listing agent would have just coasted along obliviously and incompetently until our deal crashed and burned.

I also have experiences that are the exact opposite. I sold a bank owned property a little while back that was listed by Theresa Grant with Coldwell Banker in Lake Arrowhead. Like most bank owned homes, it took the bank longer than usual to open escrow, but everything else ran perfectly. Theresa made sure I received regular updates and her assistant was on top of everything. I got all the paperwork on time and done correctly. Because we both did what we needed to do , the transaction was very smooth and I was able to give my client excellent service.

If you are considering buying or selling, ask the Realtor you are dealing with some qualifying questions before you proceed. Make sure they are a full time, professional Realtor and not a part timer. Make sure they have a good, working knowledge of the local market. If you are planning on buying in Big Bear, it is a very bad idea to use somebody from L.A. or Orange County. If you are planning on buying a Bank Owned listing, it is especially important to use somebody who is experienced in selling them. The banks do thing very differently and a Realtor who doesn't know what they are doing can blow the deal or end up costing you a great deal of money.

Buyers flock to Big Bear Bank Owned Property

By Joe Pecoraro

 

 

This past weekend I did an Open House on a newly listed bank owned property located in a very desirable neighborhood. The cabin was built in 2001 so both of those features alone would place it high on any buyers list. Not to mention the fact that it is was very aggressively priced...

 

So I set up my signs, opened the door and got ready to show the home. Not more than ten minutes later, the first car showed up.

 

With flyer in hand I went to greet the potential buyers and then realized they had a local agent with them. I told the agent to go ahead and show the house and I would stay out of her way.

 

Walking out the front door I noticed another car pulling up.  This time I recognized the car right away, it was another local agent. He was bringing another interested party to look at this cabin that had literally been on the market less than 24 hours.

 

Naturally we decided to give the first agent and her clients time to complete their tour before sending in the next group.

 

Thinking that this had to be a fluke, two agents showing up at the same time to show the same house, I got ready for the next visitors.  I had placed my signs in great locations and I knew that it wouldn't be long before they attracted a well qualified buyer that would love this home and make a full price offer.  While standing at the street in front of the house, daydreaming about my "new clients" (that were no doubt less than a block away), I saw another car I recognized slowly approaching me.  You guessed it, another agent with clients. 

 

At this point it looked like the original agent was wrapping up her viewing, and the second agent was making his way into the home.

 

 I met up with the latest agent and explained the situation.  The agent basically talked to his clients, and got in line.  Sometime while I was talking to this last agent, another car (that I didn't recognize) pulled up to the property.  I waited anxiously for the driver to open the door, so i could give him a flyer and figure out how I was going to take cuts in line to conduct MY "Open House". 

 

While I was waiting another familiar car was coming down the street.  I could clearly see the agent was driving by himself as he parked and began to get out of his car.  The minute he did the driver I had been waiting for, slowly opened his door and began to get out.  I didn't even have to ask, I knew he was there to meet this fourth agent that had just pulled up. WHEW!

 

I could go on and on about how this continued for the next couple hours but I think you get the point. 

 

Buyers were flocking to this new listing like it was built on a mound of gold and all the potential buyers seemed interested

 

Since I had so much time to think about this situation, I put myself into the shoes of the agents showing the home.  I had a few thoughts I wanted to share with you. 

 

First and foremost is the fact that if this property was not priced so aggressively, there would never be this level of activity on it and I knew then it would was going to sell for at least the full asking price....maybe more.

 

Secondly, I thought about how if I was representing one of these clients, I would advise writing the offer at nothing less than full price.  Maybe even a little over.  I would also let them know to expect a multiple party counter that would be a "best and final" offer.  This is the most common counter on a bank owned property when it has multiple offers.  It kills any chance of slowly negotiating the lowest price and terms for the purchase.  If this is the type of buyer you are, which there is nothing wrong with, focus on other properties that aren't as aggressively priced or even look at short sales (if you have the time and patience).

 

And finally, I got excited about our Big Bear real estate market.  Prices may be down but interested buyers are definitely out there. This is usually a slow time of year for us and here we have SEVEN potential buyers.  For two straight weeks I have had buyers write offers on aggressively priced Bank Owned properties like this one.

 

Both buyers wrote strong offers the first day the properties were on the market, and both of my buyers got beat out by other buyers.

 

This may be a buyers market but if you are looking for a great house at a great price, don't be surprised to find you are competing with other buyers.

 

REO Timelines

 

-Israel Barden

Originally Posted At www.bigbearilluminated.com

Buying a bank owned (REO) property is a much different process than a traditional listing and it is imperative that your Realtor know the difference. If your Realtor is not aware of the differences, they could not only cause you to lose the property, but also cost you money in the process. Let me explain.

Banks hold all the cards in a bank owned transaction. They don't have disclosure requirements and set all the rules. They usually make the buyer sign an addendum that basically takes away most of the buyers protections and puts the ball squarely in the banks court. They set out a timeline you, as a buyer, have to meet or face the consequences. While they don't have to deliver anything until they feel like it.

For instance, I have a bank owned property in escrow right now that I got approval on almost a month ago. Guess what? The bank didn't open escrow until three weeks into the 30 day time period. We didn't get a copy of the signed contract or bank addendum until three weeks into the deal. Of course, the bank addendum we signed at the beginning of the transaction had us agree to pay a $100.00 per day per Diem for every day we went over the 30 days agreed upon in the contract. Then they did nothing on time to make it possible for us to make the deadline.

This is where my experience came into play. I have had this happen to me numerous times on bank owned purchases and I have learned that my buyer just needs to forget about the bank and make sure he does everything he needs to do to stay on track. As long as we can show the delay is not of our making, we can get out of paying the per Diem. I made sure our inspections were all done within 10 days and I made sure the listing agent had the termite inspection done also. Since my buyer is paying cash, the appraisal was not an issue. On a property where the buyer is getting a loan, you need to be on the phone with the lender every step of the way to get the appraisal done before the contingency period is up. You don't want anything going wrong at the last minute if you can help it.

You can't always get everything to go the way you would like, but if you do everything you can do, things tend to turn out OK. I always have to remind my clients that most banks don't really have any idea of what is going on at any given time. They seem to just flounder around in the hopes something will eventually happen. In the last couple of years I have seen numerous instances of banks doing things that make absolutely no sense. It is actually kind of rare to have a bank owned transaction that goes perfectly smoothly. If you hire a good, knowledgeable Realtor and do everything you need to do on time, you will come out ahead in the end.

Bank Owned VS Short Sales

-Israel Barden

Originally Posted At www.bigbearilluminated.com

A question I seem to get quite a bit these days from my clients is " What is the difference between short sales and REO's?" I then , usually, go into a whole explanation of the pro's and con's of each, and end up telling them that REO's are superior in every way. I have a couple of dealings over the past couple of months that really bring this point home.

The first case involves a really neat family I have been dealing with for over a year. They are from North Hollywood and have wanted to buy a place up here for a long time. When we initially looked, we couldn't find anything that really fitted their needs. They decided to wait a year and then take a look when the prices had really dropped. So, I took them out a couple of months ago and found a cabin that was perfect for them. The cabin is super clean and situated on a great lot with a ton of beautiful oak trees. Even at the $149,900 price tag, it was a great deal. The one big problem with it was it being a short sale listing. I warned them of the major hassles that usually accompany buying a short sale, but they liked the house enough to risk it.

As many of you know, the majority of short sales do not close successfully. This is usually due to the listing agent not knowing how to do them, but taking the listing anyways. If the listing agent doesn't put in all the work ahead of time, a short sale is a nightmare. In this case, the listing agent assured me that he had done all the footwork and the bank was ready to move. With this information, we decided to offer $120,000 cash for the cabin, knowing it would probably be refused and we would have to come up to make the purchase.

A month into the process  we still hadn't heard back from the bank. At this point I was fairly certain the listing agent was full of it and hadn't really done what he needed to do to get a short sale done. I told my clients that all we could really do was wait and see what the bank would do. After a month and a half, the listing agent called me to say that the bank had just taken the listing away from him and never gave us an answer. I knew sooner than later, I would be seeing the home again as a bank owned listing. I told my clients to hang tight and that I would check the MLS everyday until it appeared.

Sure enough, a week and a half later it came on The MLS for $130,000 as a bank owned property. I called my clients the minute I saw it and we wrote an offer for $115,000 cash. The bank came back the next day at $117,000 cash and we snatched it up. Not only that, but the bank repaired some broken pipes under the house that the original owner most likely would not have been able to afford to do. Basically, the bank took a month and a half and did nothing when it was a short sale. Once it was a bank owned, we bought it in two days for less money and had repairs thrown in as a bonus. Bank owned One, Short sales Zero.

The second situation is very similar. My clients put in an offer of $340,000 on a short sale listed at $389,000. Again, we waited patiently for almost two months while the bank had the home reappraised and numerous BPO's done. In the end, after two months, they rejected our offer and let the home go into foreclosure. Like the last time, I watched the MLS and saw the home come up as a bank owned property for $390,000. My clients and I both felt the home was overpriced and we should wait and watch it to see if it would reduce. After two weeks, it hadn't sold and we decided to make our move. We came in at $333,000, and waited for a response from the bank. This time it took one day to get their answer, which was no. After a week of wrangling, we put the home into escrow for $339,000. So, we got a lower price in only a week when it was bank owned. Bank Owned Two, Short Sales Zero.

Five Bank Owned Properties in Big Bear

by Joe Pecoraro

Bank Owned properties continue to come on the market at very affordable prices.  These properties also are coming on the market in all areas of the valley.  The majority are still concentrated in the eastern side of the valley (Big Bear City, Sugarloaf, Erwin and Baldwin Lake).  However, if you are looking in Big Bear Lake or Moonridge you still have options.  The following are five of the better newly listed Bank owned properties in the Big Bear Valley.

• 904 Peter-  In the Peter Pan area of Big Bear City this property is priced extremely well.  At this price it won't last long.  The property needs some upgrading but is in pretty good shape for a bank owned.  The 5000 sq. ft. lot gives you plenty of room and the property has a great setting.  With a little work this would make a great cabin.
  List Price $135,000
• 465 Georgia- Charming older cabin near Big Bear Lake and Meadow Park.  Large 8195 sq. ft. lot allows room to add on.  Cabin was built in 1938 but was upgraded somewhere along the line.  Property is walking distance to the lake and less than five minutes to the ski resorts.
  List Price $189,000 
• 41545 Brownie- Older cabin on nice size lot.  Some upgrades have been done, including newer windows and extensive decking.  Centrally located in Big Bear Lake, cabin is a couple minutes from Snow Summit and the lake.  Nice size lot, there might be enough room to add a garage.   Nice setting in the backyard with lots of trees.
  List Price $259,000
• 658 Moreno- Newer cabin in Sugarloaf.  Previous owners were a little hard on it.  You would need to replace the carpet and paint the inside but that's about it.  Similar cabins are selling in the area for much higher prices.  Newer construction means better energy efficiency and  more comfort.  Affordable cabin less than ten minutes to ski resort and lake.
  List Price $138,900
• 225 Imperial- Brand new log style "Dutch Gambrel".  Has a carport and lots of decking.  High ceilings and woodsy interior.  Similar cabin went into escrow in less than a week a couple streets over without the carport.  Cabin appears to be complete and is very nice construction.  Potential buyers should definitely do their homework regarding the Notice of Occupancy on this property.  If you need to be pointed in the right direction to ge that info, please let me know.
  List Price $239,000 

Better Than Bank Owned

 

-Israel Barden

Originally Posted at www.bigbearilluminated.com

With all the fervor over bank owned properties, it is sometimes easy to overlook homes listed by an actual homeowner. This can be a big mistake. If the homeowner in question is savvy on market conditions and has a good Realtor to advise them, traditional listings can be just as much of a bargain as an REO. Case in point is this home on 385 Glenwood, located in The Castle Glen area of Big Bear Lake. This home is a true beauty. It is full log construction and backs to wide open eagle preserve. The home is 2,200 square feet and sits on an oversized 15,300 foot lot. It has three bedrooms, two bathrooms and a detached two car garage. All for only $599,900.

Believe me when I tell you, there are bank owned homes in worse condition and lesser settings that are priced higher. This seller realized that he was in direct competition with bank owned homes and priced his home accordingly. Since the home is owned by a real person, there would be full disclosure and a chance for repairs to be done. I guess the point I am trying to make is, don't just concentrate on REO's. There are a great many other homes out there that may be even better buys. Enlist the services of a professional Realtor and let them be your bloodhounds. If they are good, they will be aware of the best deals, no matter who the seller. For information on this home or any other for sale in The Big Bear Valley, please email me at izzy.barden@gmail.com or call me at 909-273-8980.