Big Bear Real Estate Blog

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

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.