Joe 's Big Bear Real Estate Blog

Big Bear Bank Owned Properties; Newer Construction

Thu, 03 Jul 2008 19:05:35 -0500

Many of the foreclosed properties in Big Bear are older, run down cabins that need a lot of work. Being a a second home community, buyers usually don't want to purchase a property they need to spend all their free time fixing up. Lucky for them there are some newer (even brand new) Bank Owned Properties currently on the market. Some of these homes were built by speculators that missed the "hot" market, others are re-sales that had previous owners lose them to the bank.

The advantage to these properties is the energy efficiency level (windows,insulation and heating units), plumbing and electrical systems shouldn't need to be upgraded as they were built to stricter codes than older homes. There may be some minimal work to do on these properties, but it should mostly be cosmetic.

Less time working on your property= more time to enjoy Big Bear. Isn't that why you want to buy up in the mountains anyway?

BUILT IN 2007

1275 SAN PASQUAL -Brand New Log Style Cabin. Nice quiet cul-de-sac location in Moonridge. Close to Bear Mountain Ski Resort. 3 bedroom, 2 bath over 1700 square feet. Two car garage. Quality construction.

Listed at $449,000 Never Sold Before

BUILT IN 2006

39737 FLICKER -Brand New 3500+ square foot Log Style home on the North Shore of Big Bear Lake. Close to downtown Fawnskin, walking distance to the lake. Great views of the lake, ski slopes and even San Gorgonio. Beautiful log accents, and nice floor plan. Master downstairs other bedrooms and upstairs. Has a game room with a wet bar and a loft.

Listed at $899,900 Never Sold Before

45385 3RD STREET -Looking for an affordable get away property. This 2 bedroom cabin is brand new. It is in the east side of the valley, in the Baldwin Lake neighborhood of Big Bear. About 15 minutes to the ski resorts and Big Bear Lake. If you are looking for an affordable place to get up to the mountains, look no further.

Listed at $119,900 Never Sold Before

BUILT IN 2005

940 WILLOW LANE -Barely used manufactured home in Erwin Lake. This 2 bedroom and 2 bath cabin has a nice floor plan. It's clean, affordable and only 15 minutes from the action.

Listed at $138,000 Last Sale $175,000 5-26-06

BUILT IN 2004

266 LOFTY VIEW -Very clean home in Valley View Estates, a nice Big Bear City neighborhood. Underground utilities and nice homes all around. Lots of upgrades including granite counter tops, marble accents and knotty pine cabinets. Nice open great room. Four bedrooms and three baths, over 2200 sq. feet. Ready to go.

Listed at $399,900 Last Sale $349,900 5-25-06

45375 4TH STREET -Affordable cabin on a double lot. 15 minutes to ski resort and Lake. Needs a little TLC but has potential.

Listed at $109,900 Never Sold Before

BUILT IN 2003

722 SUMMIT BLVD. -Commercial two unit property. Two Bedrooms and Two Bath 960 sq foot cabins. Newer log style construction. Walking distance to the slopes, located a block away from Snow Summit Ski Resort. Could make a great investment property for someone who wishes to rent one unit and keep one for themselves.

Listed at $445,900 Last Sale $695,000 11-11-05

Big Bear Bank Owned Properties (REO's) Listed Over 25% Lower Than Last Sale.

Tue, 10 Jun 2008 13:31:32 -0500

Bank Owned Properties in Big Bear seem to be just in two different groups. Some seem to be priced to sell, and others aren't. A good way to judge the listing price of the property is to look at the last sales price and date.

If you can purchase the property at a substantial percentage below the previous sale, for the most part you should be getting a fair price. Now of course as with all real estate, each property needs to be scrutinized individually. But as a general rule of thumb, a property priced 25% or more below it's 2006 (or earlier) sales price should be a good value.

Here are five Big Bear Bank Owned Properties that meet that criteria.

Listed over 33% below last sale price

722 SUMMIT - Commercial two unit property. Two Bedrooms and Two Bath 960 sq foot cabins. Newer log style construction. Walking distance to the slopes, located a block away from Snow Summit Ski Resort. Could make a great investment property for someone who wishes to rent one unit and keep one for themselves.

Last Sale Date= 11-11-2005 Last Sale Price= $695,000 Current Listing Price= $459,900

Listed over 30% below last sale price

637 SUGARLOAF -With a little TLC this could be a great vacation cabin. It is in Big Bear City but not too far from big Bear Lake. It also has the attached garage that is hard to get in this price range of Big Bear City. With decent square footage and a master bedroom. This place is priced well.

Last Sale Date= 7/20/2006 Last Sale Price= $300,000 Current Listing Price= $209,900

Listed over30% below last sale price

42707 LA CERENA -Charming older cabin in lower Moonridge with tons of character. Heavily treed neighborhood with seasonal creek that runs through property adds to the great setting. The perfect little mountain cabin, close to Bear Mountain Ski Resort.

Last Sale Date= 1-23-2006 Last Sales Price= $285,000 Current Listing Price= $198,000

Listed over 28% below last sale price

901 E MOUNTAIN VIEW -Horse property with all the facilities. Sits on close to half an acre with views of Baldwin Lake and Gold Mountain. Backs to open land and would make the perfect little "mini ranch".

Last Sale Date= 8/08/2005 Last Sale Price= $445,000 Current Listing Price= $319,900

Listed over 27% below last sale price

643 KERN -Located in Sugarloaf near highway 38. This cabin is about 15 minutes from the resorts and 10 minutes from Big Bear Lake. It needs a little work but would be worth the while.

Last Sale Date= 6/23/2004 Last Sale Price= $233,500 Current Listing Price= $169,900

Back up offers. In this market?

Tue, 29 Apr 2008 13:27:43 -0500

Originally posted on the Big Bear Real Estate Blog.

Accepted offer doesn't mean Sold House

In today's Real Estate Market nothing is certain. Opening an escrow is just the beginning of the fun. Escrows seem to be "falling out" almost as fast as they are opening up.

Will the property appraise? Is the loan program a buyer qualified for last month still available? Is the buyer serious and ready to purchase a property or were they just "fishing" to see how low they could get a seller down in their price?

While these are just a few of the issues we are dealing with everyday in today's market, they definitely aren't the only ones. With so many properties on the market, it seems like everyone has time to "keep looking" for that steal without worrying about missing out on the "one".

REOs falling out of Escrow

Having a large inventory of houses on the market also gives the buyer more properties to compare their potential purchase to and possibly second guess their offer. This seems to be particularly true with Bank Owned Properties (REOs).

A number of these Repos go into escrow, don't close and end up back on the market. While there are many reasons for this happening as we discussed above, one reason that is most likely not the case is the pricing. Most of these REOs are priced well and usually below the previous purchase price. Because of that, these are sometimes some of the best deals on the market.

With a large number of qualified buyers looking for their second home in the mountains, it is important to move quickly on these good buys. There have been a number of well priced Bank Owned Properties come on the market in the past few months, that went into escrow right away. A couple weeks later they fell out of escrow, were on the market for a couple days and went back into escrow with some lucky buyer.

Be smart not lucky

Being a Second Home Market, most of the buyers don't live in Big Bear and sometimes can't get up here quick enough to see these properties before an offer is accepted by the bank. Timing is everything in Big Bear Real Estate. Some buyers plan a trip up here for months, and a great listing comes on the market the day after they leave. Other buyer's come up here to get away from the city for a day and a well priced cabin comes on the market minutes before they walk in to a Real Estate office.

You might miss out on being the first offer accepted on these properties, but make sure you don't miss out on being the first offer accepted after the property falls out of escrow. How do you do this?

Write a Back up offer. If a property is a great deal, chances are it will be getting multiple offers anyways. Many times the person that doesn't win in the initial negotiations with the bank, just moves on to another property. They don't consider telling the listing agent to keep their "second place" offer as a backup offer in case the accepted deal doesn't close.

You can still look for another deal while your back offer awaits its chance to step in for a canceled escrow. And if the escrow does fall out, you already have a head start on all the other buyers looking for a great deal. Either way it can't hurt.

3 Bank Owned Properties to Consider Putting a Back Up Offer On

1362 Balsam- Listed at $399,900 Last sold for $550,000 8-16-06. Log Style built in 2001. Walking distance to Bear Mountain Ski Resort with views of the slopes from cabin. Two car detached garage.
43427 Ridgecrest- Listed at $549,000 Last Sold for $730,000 8-2-05. Log Style built in 1996. Spectacular views of Big Bear Lake, Bear Mountain Ski Resort and the San Bernardino National Forest.
411 Oriole-Listed at $319,000 Last Sold for $459,500 8-22-05. Charming Chalet Style cabin. Walking distance to the lake and Meadow Park. Nice quiet street.

Five Unique Bank Owned Properties In Big Bear

Thu, 17 Apr 2008 15:59:03 -0500

Originally posted on Big Bear Real Estate Blog

Bank Owned Properties are coming onto the market at a pretty steady pace in Big Bear Valley. While many people would consider any home in the mountains special, there are five REO properties currently on the market have an attribute(s) that seperate them from the rest.

39380 North Shore Uniqueness Factor=Possible lot split/Three Units Located across the street from the lake with beautiful views. This Fawnskin property offers a very unique opportunity. Sitting on over half an acre with three units and a over sized detached two car garage, you will be hard pressed to find a bank owned property with so many possibilities. Keep the main house and garage and scrape the other two smaller units, they are non conforming anyways,then split the lot and build your dream house on the front of the property. Or just keep it as is, rent out the units as a vacation rentals and make it an investment property. With Dana Point Park , a lakeside day park with picnic tables and BBQ's, and Captain John's Fawn Harbor Marina directly across the street it would be a perfect summer getaway. Last Sold-8-17-2006 for $650,000 Current list price $489,000
776 Elm Street Uniqueness Factor= Three multifamily zoned units Have you always dreamed of owning units? Are you looking for a Real Estate investment that has potential? Torn between renting out the cabin to help with the mortgage, or keeping it all for yourself. Look no further, here is a three unit bank owned property located between Snow Summit and Bear Mountain Ski Resorts. For vacation rental ski cabins it doesn't get better than this. Walking distance to the shuttle that can get you to both resorts, these are in the perfect location for those die hard skiers and snowboarders that want to be close to the action. This multifamily zoned property needs some TLC but has a lot of upside. It looks like the previous owner used them as full time rentals but in my opinion with the right owner these could do very well as vacation rentals. Last Sold-3-10-2005 for $305,000 Current list price $222,900
901 East Mountain View Uniqueness Factor= Horse Property Calling all horse owners, here is a horse property located in Big Bear City. With almost a half acre of land including stalls and corrals this REO is ready for your livestock. The property backs to open land and has views of Baldwin Lake and Gold Mountain. It needs some work but would be worth the effort. This 3 bedroom 2 bath 1500+ sq ft home sits at the end of a street and would make a great full time or part time home. Last Sold- 8-08-2005 for $445,000 Current list price $339,900
353 Meadow Circle Uniqueness Factor= Gated Community Gated communities might be common place down off the mountain, but up in Big Bear they are few and far between. Eagles Knoll Estates doesn't need a fence around the whole community to keep people out, it has the lake bordering almost half of the community to help. This community has two entrance gates and is close to the shopping centers. With its own boat facilities and tennis courts you never have to leave. It is also a short walk to the Alpine Pedal Path that runs along the North East side of the lake. This is a newer 2000+sq ft home was built in 2001 and a boat dock. You can see the ski slopes from the back yard and the lake form the front. This is a perfect place to spend your summers and escape the city heat. Last Sold 4-24-2006 for $675,000 Current list price $599,000
103 N Marina Drive Uniqueness Factor= In Upscale Eagle Point Estates If you are looking for a nice neighborhood by the lake, you can't do much better than Eagle Point Estates. This prestigious lakeside subdivision is protected by strict CC&R's and home owner's association. It really is one of the nicest areas of Big Bear and an alternative to a lakefront home since it has its own boating facilities. It also has private tennis courts and a lakeside park (that doubles as an Eagle Preserve in the winter). The home itself is a beautiful newer construction that was originally built as a "spec home" in 2006. It is over 3400 sq ft and comes with a boat dock. Barely used and ready to go. You owe it to yourself to take a look at this beauty. Last Sold 9-18-2006 for $1,120,000 Current list price $950,900

FIRST QUARTER 2008-BIG BEAR VALLEY MLS REO MARKET UPDATE

Wed, 02 Apr 2008 19:35:13 -0500

Origninally Posted on the Big Bear REO Blog.

REO's are rapidly coming on to the market in Big Bear. The local MLS is averaging close to three new bank owned listings a week. With the amount of properties already in default, this trend is likely to continue.

LOCATIONS AND PRICES

REO's are now scattered all over Big Bear Valley. 33 new REO's have been listed since the first of the year. There are currently 29 REO properties available in Big Bear

The majority are on the eastern side of the valley, namely Sugarloaf and Big Bear City.

Bank Owned properties come in all different price ranges. There have been small cabins under $100K. And newer large home a block from the lake, including a dock, for just under a million.

No matter what price range you are looking in, chances are there is an REO property in it.

REO'S IN ESCROW

There are currently 93 residential properties in escrow. Out of those properties 15 are REO's(over 16%).

It seems many of the banks and their asset managers are pricing the homes more and more aggressive. That's good news for buyers.

Some of these properties have gone into escrow in less than two weeks. One property went into escrow in 3 days. So be prepared to move fast on the ones that look like a "steal".

SOLD REO'S

The first quarter of 2008 has been extremely slow for residential properties, but REO's are taking up their fair share. Out of the 108 residential sales 19 were bank owned properties (roughly 17%).

These bank owned properties are selling at, on average, just over 90% of their listing price. This rules out the "pennies on a dollar" purchases everyone has heard about.

Take a look for yourself.

BETTER MOVE FAST

As previously mentioned, some of the properties are priced aggressively when they come on the market. The 19 sold REO's were on the market for an average of 55 days.

Comparing that to the over 120 days on the market for non-bank owned properties, you can get a feel for how fast these REO's are moving.

If you are looking for a vacation home or mountain getaway, make sure you are using an agent that has a strong knowledge about the REO market. Including the bank owned properties not listed in the local MLS. Otherwise you may miss out on one of the "deals"

Myths About Big Bear REOs

Fri, 14 Mar 2008 16:38:32 -0500

Originally Posted on the Big Bear REO Blog.

With all the foreclosures happening around the country, REOs have become the hot topic of real estate conversations.

Listing agents want to know how they can get them in their inventory, buyers want to find one to buy for cents on the dollar, and neighbors are complaining about how they are bring down the prices on their street.

There is even talk that REOs can solve the JFK assassination or prove global warming. So what's with all this REO talk? Are they really all they are cracked up to be? Lets take a look at REOs in Big Bear and see.......

Claim #1

REOS CAN BE BOUGHT FOR 50 CENTS ON THE DOLLAR.

By now everyone has heard about an REO being bought for an incredibly low price. Either from friend, coworker, or a friend of a coworker, or an uncle of a friend of a coworker, or..you get the picture.

Now banks are definitely interested in getting all these foreclosed houses off their books, but they aren't going to give them away. It may be possible to get these properties way under market value in some areas (real estate is local after all) but in Big Bear this isn't happening.

On average the nineteen REOS, that have closed escrow since last May in Big Bear's MLS, have closed at close to 95% of their list price. Now this doesn't take price changes in to consideration.

Some of these properties may appear to have been better deals, if you compare their ORIGINAL List price with their sales price. However a good agent that knows their inventory wouldn't be showing you grossly overpriced properties, REO or not.

So without going out on a limb, Big Bear REOS can not be bought for 50 cents on the dollar. In fact they aren't even selling for 75 cents on the dollar.

Claim #2

REOS ARE ALWAYS THE BEST DEAL ON THE STREET

A current REO property($319k) in Big Bear Lake is on a street with 3 non REO properties on the market. One of these three match up comp wise almost identically to the REO. It is around $11,000 more than the REO($330K).

So for arguments sake lets say you get the REO property for 5% less than the asking price or $303,050. And you can only get the other seller down 5% on their home making it $313,500.

Now the REO property needs a lot of work which costs time and money. The other property is ready to go with a few minor repairs. Which is the better deal?

Well it depends on the cost to upgrade the REO. If you can clean up the REO and get it into the same condition as the other property for $10,000. They are both equal in value. However if you exceed the $10,000 in cost, the REO isn't as good a value as the other home.

One thing to remember is the non-REO property had a seller that could price it right to begin with. They actually priced it below what they bought it for, about 20 months ago.

Claim #3

REOS WERE PUT HERE BY ALIENS

To be addressed in a different blog.;)

Claim #4

REO PROPERTIES ARE ALL RUN DOWN AND NEED A LOT OF WORK

REO's come in all different conditions. They can be stripped down by the previous owner that lost the home. They can be neglected and need some "cosmetic work" to make them more attractive or they can be "move in" condition.

They can be a one bedroom cabin that looks like it can be pushed over or they can be a 3500 square foot lakefront

So instead of assuming that an REO will be too much work, each property needs to be taken into consideration individually. You might be surprised by what you see.

Submit An Educated Offer

Hopefully this helps clear up some of the myths involved with REO properties, or at least the ones in Big Bear.

If you treat these bank owned properties like any other individually owned property, you should be fine. Research, investigate, compare and make an educated and "strong" offer.

Got views? Big Bear Lake Does.........

Thu, 06 Mar 2008 14:36:31 -0600

Originally posted on the Big Bear REO Blog.

One of the most sought after features of property in Big Bear is some sort of view. Whats more relaxing than sitting on a deck in the summer and looking out at a beautiful lake. Or enjoying a spa during the winter with the ski runs you conquered that morning as a backdrop. One thing is for certain, nothing adds to a setting like a incredible view.

Lake Views

A lake in the middle of a valley surrounded by hills and mountains makes for some dramatic lake views. The lake is visible from many different parts of the valley. The cabin can be across the street from the lake or up on a hill a . There are many different areas to find a lake view.

When looking at lake view listings online, make sure to keep in mind that a seller is going to market anything he can to sell his property. Unfortunately this includes calling a view of a little blue sparkle, thru the trees while standing on a toilet in the master bathroom, a lake view. Usually described as a "peek-a-boo" lake view, these properties can really disappoint some one that wants a better view.

Another thing to watch out for is a property in the Baldwin Lake area claiming to have a lake view. Baldwin Lake is a normally dry lake that can be beautiful when full, but usually isn't. Most agents in Big Bear do not label these properties as lake views but some do.

Ski Slope or National Forest Views

Ski slope and National Forest views are usually easier to get than a good lake view. There are always plenty of properties with these views on the market. Also you may be able to get one in a more affordable price range.

These views can also be found in many different parts of the valley. Some properties in the Peter Pan area of Big Bear City look out across the valley at both Bear Mountain and Snow Summit. You can also see the ski resorts from many of the streets in Moonridge and Big Bear lake. Even all the way in Erwin Lake, believe it or not, there are properties with views of Bear Mountain.

Best Of Both Worlds

Now if you are lucky enough and looking in the right area, it is possible to get both lake views and Ski Slope Views. Castle Glen, Upper Moonridge, and Fawnskin all boast these breathtaking views. Usually you look one way off the deck to the slopes and when you turn the other way, there is the lake.

In Fawnskin you can look across the lake and past the ski slopes to see the peak of Mount San Gorgonio, also called Old Greyback. Rising above the ski slopes to over 11,500 feet, Mount San Gorgonio is the highest peak in Southern California. It is even visible from parts of San Diego.

With its large treeless bowls, it is hard to imagine a more beautiful sight any where in the winter. The best thing about these views from Fawnskin is you usually only have to look one way to see all three views.

Don't Worry They Are For Everyone

If you aren't lucky enough to own a place with a view, or are just up here visiting, there are many places in the valley to appreciate the views. Just take a walk on the Alpine Pedal Path off of Stanfield Cutoff. Or grab a map and take a drive into upper Moonridge or Castle Glen.

One thing is guaranteed, when you see one of the views mentioned here, you will know it. Even long time residents of Big Bear never get sick of seeing their beautiful surroundings.

Choosing A Lender For Your Big Bear Cabin

Mon, 03 Mar 2008 17:37:50 -0600

originally posted on the Big Bear REO Blog.

So you found a cabin in Big Bear you would like to buy, whats the next step? If you said buying new furniture you are wrong. Choosing the right lender is a very important step that is often overlooked or undervalued.

Finding Lenders Thru Advertisements

Many buyers believe they just need to open the phone book, search the Internet or listen to radio ads to find someone to get them a loan. They may get lucky using one of those methods and get a lender that earns their business. However they can also get unlucky and end up with a lender that jeopardizes the deal on their Big Bear property. Without anyone you trust to verify that the lender is going to take care of you, it turns into a crap shoot.

The main problem with choosing the lender in this fashion is that 9 times out of 10 you become just a number. It may be hard for the buyer to get a hold of the lender with questions. The buyers loan could just be put on the bottom of a stack of loans, even though there are time constraints on the deal. Many times the Lender is not in the same area as the property being purchased as well. Meaning there is no office for the client to walk into with questions or concerns.

Reusing A Lender

Other people will already have a lender they have a relationship with. They could have been using the same lender for the purchase and re-financing of their primary home. They are a face to these lenders and not just a number. They choose to reuse the lender because they were successful in other deals. It is almost as if the buyer is referring themselves back to the lender.

This is a great way to choose a lender, but since Big Bear is a specialized market it is important that the lender hires a local appraiser. Most agents make contact with the lender when escrow opens and can easily supply a list of the local appraisers to use. The buyer pays the appraiser anyways so they should demand to use a local appraiser. Nobody would take their boat to a car dealership to see what its worth. So why would you hire an appraiser who is usually looking at stucco houses in the desert to look at a Log Cabin in the middle of the woods? Doesn't make sense does it?

Asking Your Realtor For A Lender

If you don't already have a lender in mind you can ask your Big Bear Realtor if they can recommend anyone. Realtors interact almost daily with a lender during the escrow of your Big Bear property. That means they are able to give you an outside opinion on the services of a lender.

A good Realtor will only give out names and numbers of lender's they trust to take care of their client. The Realtor can give you a number of lenders that treat their clients as a priority. These lenders have pr oven time after time to be competent and efficient. If there is an issue during an escrow, the Realtor can call the lender and work things out.

These lenders will already understand the importance of hiring a knowledgeable local appraiser. They won't waste anytime trying to track down an appraiser to hire. They will also be familiar with the local escrow offices which will help keep the transaction running smoothly as well.

Can Not Be Stressed Enough

Any escrow can be stressful enough with issues beyond the buyers control. Which lender is being used is in the Buyer's hands. Don't add to the stress by choosing a lender that adds more stress to a deal. If you don't already have a lender, do the right thing and ask your Big Bear Realtor for a list of

New Log Style Construction In Big Bear

Sat, 01 Mar 2008 14:47:23 -0600

Looking for a cabin in the Southern California Mountains? Then you will definitely want to check out Big Bear Valley. This Four Season Resort town is only 2-3 hours from Los Angeles, Orange County, San Diego and Las Vegas. Big Bear Valley offers two ski resorts, a public lake for boating and fishing, numerous hiking and biking trails. There is something for everyone up in Big Bear.

This brand new beautiful Log Style cabin in the Big Bear area has it all. It sits on a 7500 sq. ft. lot near the National Forest. A covered front porch with real log accents, gives this new home exceptional curb appeal. Inside you will find three bedrooms,two baths and a laundry room all with nine foot ceilings. Also a "great room" with an open kitchen, vaulted knotty pine ceilings and a slider to a back deck.

Granite counter tops, Bamboo flooring, a nice rock fireplace and Alderwood cabinets add to the rustic look. The home has a two car garage with plenty of room for storage. With room to park an RV on one side and a nice large side yard, this would be a perfect mountain retreat.

About ten minutes to Bear Mountain and Snow Summit Ski Resorts and Big Bear Lake, this cabin still keeps its forest setting. Home is still under construction but to be completed in early spring. Be the first to own this wonderful mountain getaway.

Contact me with questions or for more info.

Originally posted on the Big Bear REO Blog.

Looking for a Big Bear Cabin? Get to know the area first...

Sat, 01 Mar 2008 12:00:56 -0600

Originally posted on the Big Bear REO Blog.

So you want to buy a second home in Big Bear. You have been coming up for years and enjoying the ski resorts in the winter and the lake in the summer. You have always dreamed of owning a cabin up here and feel ike now is the time to strike. Interest Rates are very low, inventory is high (plenty of cabins to choose from) and its finally a buyer's market. You know what price range you want to look in and what you can afford. So whats next?

Big Bear Valley has many different sub-areas all with distinct characteristics and settings. Figuring out where in Big Bear you want to be should be your first decision. Now if you are familiar with Big Bear Valley, this is obviously a easy step. You already know where you want to buy and its just a matter of finding the right property. So what if you don't know the area? What do you do?

The "I don't want to waste anyones time but my own" Method.

One way to do this is exploring the valley. Get a map and drive around. Mark on the map what areas you like, and dislike. Look at the views and settings but keep your eyes on the road. Try not to get lost and make sure you keep your sense of direction. When you see a real estate sign in front of a home that looks nice, call the agent and ask the price. Maybe its in your price range, maybe its not.

Keep driving around, wasting gas and hoping that one of these real estate signs are in front of a cabin in your price range. Make sure you look at Big Bear Lake, Big Bear City, Moonridge, Sugarloaf, Erwin Lake, Fawnskin, Fox Farm, and Lake Williams. Take notes so you can remember which areas had which prices. Study these notes next time you come up to "look around" and stay out of the areas that you already decided against.

Now does that sound like a fun time or what?

The "I Trust the professional to find the right property" Method

Your other choice is to call or email a local Realtor. A good Realtor will ask all the right questions and determine what areas would suit you. They will eliminates all the areas that are not going to work, and they will only send or show you properties in your price range. Most of the time the Realtor also drives, so you can sit back and check out the surroundings. You will get a better feel for the different areas.

When I am showing property in Big Bear to clients for the first time, my primary goal is to narrow down the search. After a series of questions, I can pretty much determine what areas will work and what areas won't. My next step is to give my clients the "Tour" and get them into the best listings in the different areas I think will work for them.

I don't show places out of their price range, or in areas that they aren't going to like. I will point out recent sales or homes in escrow while we are driving. In other words, I make my extensive knowledge of Big Bear Valley and it's Real Estate Market (born and raised in Big Bear) available to them.

In other words I understand your time is precious and don't want to waste it.

Bank owned, Reo activity.

Sat, 12 Jan 2008 14:23:33 -0600

Yesterday while looking at my local MLX's activity sheet I noticed the one escrow opened for the day was on a bank owned property. I knew that the price was pretty good, so I wasn't very surprised.

Right before I left my office last night I looked one more time at the "hot sheet". Still only one escrow opened for the day, which like I said was on an REO. Then I noticed we had one sale close for the day, and low and behold it was on an REO property as well.

So this morning I get to the office grab some coffee and pull up the "hot sheet" again. No new escrows (big surprise, seeing how this is 7:30 in the morning) but the two new closings catch my eye. They were both on (you guessed it) bank owned properties.

We currently have 24 available REOs in our local MLS. We also have 10 REO properties in escrow in our MLS. Obviously that is a great percentage. I work in a small second home market in Southern California. Many of these REOs were vacation homes.

So my question is, is this happening all over the US? Are you seeing this much activity on bank owned properties in your area?

Big Bear Lakefront REO property turns into great buy .

Sat, 12 Jan 2008 13:40:58 -0600

Originally posted on the Big Bear REO Blog.

Everyone is hearing about how great of a deal a bank owned property can be. There is a misconception that these REOs are all run down, neglected properties. Well this isn't always the case. In fact sometimes a great property is foreclosed on and becomes available as a bank owned.

This lakefront property in Big Bear Lake is one of those unique properties. This home went into foreclosure and came on the market as an REO during the summer of 2007. The bank first priced the property at $1.825 Million which was close to the price of the last sale on the property back in Summer 2004. While this was probably a little high, it wasn't as outrageous as it might seem. Prices have came down in Big Bear but as everyone knows Real Estate is all about location, location, location. You can't get a much better location than on Big Bear Lake.

Even though the home was priced under the last sale, the property remained on the market. After a couple of price reductions the lake front was reduced to a price, $1.55 million, that brought in offers. It is rather amazing that this property lasted as long as it did. All in all it was on the market for 112 days as a bank owned.

Now that the property has closed escrow we can evaluate the type of "deal" the new owners received.

Last Sale Price and Date $1,900,000 9-02-04

New Sale Price and Date $1,420,000 12-28-07

Difference in price between sales $480,000 or a little over 25%

What this means

Considering the market in 2004 was much better than todays, the savings may be a little inflated. Still the ability to sell the property at a much lower price , almost half a million lower in this case, comes directly from the property being an REO.

It might be a lot of work to sift thru all these bank owned properties flooding the market, but with a little time and patience you can find a great buy. The important thing is to to be ready when these unique bank owned properties show up on the market. Otherwise some other savvy buyer will beat you to it. For a complete list of Big Bear Bank Owned properties feel free to contact us.

Big Bear Foreclosed properties and the broken "TDS Disclosure chain"

Thu, 10 Jan 2008 18:00:15 -0600

Originally posted on the Big Bear REO Blog.

During a Real Estate transaction buyers are bombarded with Disclosure after Disclosure to read and sign. While all the Disclosures are imprortant for different reasons, some seem unnecessary to buyers. Often times buyers even question why something so obvious has to be put down on paper. Obviously most of the forms are to protect the parties of the transaction and none more so than the three page Transfer Disclosure Statement, commonly referred to as the TDS.

Agent Section of TDS

California law requires a TDS to be part of all transactions involving 1-4 residential units. Although the responsibilty to deliver the TDS is on the Buyers agent, the TDS form is filled out by the seller, Listing agent and Buyers agent.

The Two agents (or one if it is a dual agency situation) are supposed to disclose any defects or concerns they come across while doing their diligent visual inspection of all the accessable areas of the property. While many times an agent might see something the buyer or seller doesn't, usually this section of the TDS is not as important as the section the seller fills out.

Also good agents will fill out another form called AVID (Agent Visual Inspection Disclosure) and simply use their section of the TDS to say "see attached AVID Form. The AVID form is a more in depth visual inspection record, that allows for more input from the agents on every section of the property.

Seller section of TDS

The seller meanwhile is asked to fill out a check list of items that are present in the house.. These items include spas, dishwashers, garage door openers and others common items found in a residence. The seller is also asked if they know of any defects to any of the items listed.

Then the seller is given the opportunity to describe any defects or concerns about the property that they know about. concerning the actual structure. This includes walls, foundations, plumbing, driveways, etc. Many of these defects are concerns that would show up on a home inspection as well.

Lastly the seller is asked a series of yes and no questions about their knowledge of the property. This is important because many of these questions could only be answered by the seller. These questions cover everything from noise problems to previous flood and earthquake damage.

This is one of the most important sections of any form involved in the transaction. This is where the seller has the chance to alert the buyer of encroachments, unpermitted additions and remodels and other potentitial detrimental issues.

Benefits of TDS

The important part of this section is that the seller has to explain any yes answers and give the buyer insight they normally couldn't get about the property. Also if the seller was told of something when they bought the property, they should pass that knowledge to the new potential owner creating a chain of information that should stick with the property. So even if a home flooded three owners ago, the new buyer should hear about it.

After reviewing the TDS the buyer then decides whether or not to move ahead with the purchase of the property. In some cases they may see something on the TDS that alerts them to cancel the deal before paying for a home inspection.

TDS and Foreclosed properties

There are exemptions to the TDS law. Some of these exemptions are trivial, such as a co-owner selling their share of a property to the another co-owner. Other exemptions are obvious, like foreclosed properties.

Since the bank never lived in the home, or recieved any of the disclosures from the previous sale they are not in a position to fill out a TDS and don't have the knowledge of the property that a traditional seller would. So when a property goes into foreclosure it literally breaks the "Disclosure chain".

The buyer of a bank owned property will not hear about when the property flooded two years ago. They also won't be told about how the bonus room used to be a garage, and the owner didn't pull a permit or build it to code. They might end up buying a property that has a deck encroaching into the "setbacks" of the lot, and on and on...

What does this mean to the buyer of a bank owned property?

Not recieving a TDS in a transaction just makes all the investigations a buyer does that much more important. Most likely you aren't going to get any repairs from the bank so you will want to find out all you can about the property's defects and concerns.

A professional Home Inspector will be able to find any existing problems and a trip to the local building and safety department can help determine if permits were pulled or obvious additions are conforming.

A trip to the county accesors office may help identify additions done to the property. And if you are lucky enough to talk to a neighbor or someone else familiar with the area, you may find out about floods or other distaters that might have affected the property.

A buyer should always investigate any of their concerns on a purchase of property and when buying a bank owned property, this is even more true.

Exploring Big Bear Lake: Big Bear Lake West

Mon, 07 Jan 2008 13:58:00 -0600

Originally posted on the Big Bear REO Blog.

On the far west side of Big Bear Valley is an area commonly referred to in the Real Estate Market as Big Bear Lake West. This area of Big Bear begins at the dam and continues along the south side of Big Bear Lake along Big Bear Boulevard for approximately two miles. Big Bear Boulevard (or Highway 18) is only two lanes wide thru out Big Bear Lake West with lots of curves and lake views.

Big Bear Lake West is heavily treed with huge pines and full of beautiful boulders and manzinita trees. There is definitely a mountain feel in every part of Big Bear Lake West. The south side of the Highway is either National Forest or a street away from National Forest. The topography of the area varies from lake level to steep slopes.

There are some great hiking trail in this area, especially the Castle Rock trail which should be on every ones itinerary. The hike is a little less than a mile winding uphill but well worth the effort. Once you climb to the top of castle Rock you have panoramic views of the lake and Big bear valley that are hard to match.

Along with the great hiking in the area, there are also great places to enjoy the lake. Although there are many beautiful sights to enjoy when driving thru Big Bear Valley, one sight usually makes a lasting impression on Big Bears first time visitors. A boulder covered shoreline with a two boulder islands gives this area its fitting name, Boulder Bay. With a public park along the shore of this beautiful bay, it makes a great place to enjoy lunch, fish, read a book or just relax and enjoy the lake.

There is a also a marina in the area a market, and great little cafe. This makes the area more convenient on busy weekends and holidays for people who want to avoid the crowded town.

Big Bear Lake West has quite a few older charming cabins, including government leases , large lakefront homes, and everything in between. Most of the lots are large enough to still offer privacy and a nice setting. There were cabins built in the 1920's still in use in the area as well as some new constructions. Vacant land is hard to come by in the area but there are still some lots available. It is a very popular area for locals, vacation renters and second homeowners alike.

There are three bays in the area, Papoose Bay , Boulder Bay and Metcalf Bay, which makes almost every property in Big Bear Lake West walking distance to the lake. Many of the streets run parallel with the shoreline creating some beautiful and spectacular lake views. Along with the lakefront properties, there are properties bordering the National Forest which provides extra seclusion for those trying to get away from the city life.

Big Bear Reo Market Update (12/18/07-1/2/08)

Wed, 02 Jan 2008 18:32:31 -0600

Originally posted on the Big Bear REO Blog.

***In an effort to keep you all up to date on Big Bear Bank owned properties, we will be giving you updates approx. every two weeks.****

Since our last update on 12-17-07 there has been a lot of action in the Big Bear Banked Owned Properties. The fact that these REO properties are becoming a larger and larger part of the local Big Bear Real Estate Market can no longer be denied.

New REO Listings

We have seven new REO properties come on the market since December 17th. There are now 24 available REO listings on the market.

The new listings were spread all over the Big Bear Valley. Now if you look at it from a broad view the 24 available REO listings are less than 3% of all the available listings in the Valley. However it is worth noting that of the 61 total new residential listings that have came on the market the past two weeks or so, the seven new REO lisitngs represent over 11% of the new listings.

The pricing on these new REOs goes from $130,000 to $359,000. All and all the prices seem to be good value, or close to it.

Price Changes on REOs

Five Bank Owned Properties in the Big Bear Valley had price changes over the past couple weeks. This shows that the smart Banks are doing everything they can to get their inventory sold. This number could and probably should be higher, but at least we are seeing some movement.

REO New Escrows

For buyers considering an REO property in Big Bear Valley, its a good thing seven new properties were listed. The reason? Big Bear Bank Owned properties are going into Escrow almost as fast as they new listings come out. There were three more escrows opened on REOs since the last update. One of the escrows is on a listing that only lasted 14 days on the market. Talk about priced to sell.

Over all there are now 10 REOs in escrow. If you consider that only 63 total residential listings are in escrow, Bank Owned Properties represent over 15% of all escrows. That is an impressive number and further demonstrates that if you are looking for a good buy, you must look into REOs.

Sold REOS

There were three escrows that closed on Bank Owned Properties since our last update. All three sold under the listing price.

The three sold under the original asking price by over 7%, 9% and 12%. One was on the market for 214 days and the bank only reduced the price once. The other was on the market for 48 days and had two price reductions. And the third was only on the market one day and the bank still took over 7% less than their first price. What does this tell us? That banks are motivated sellers.

Well hopefully everyone had a great New Year. Look for another update in about two weeks. If you have any questions or need more specific information on REOs or any other properties in Big Bear let us know.

Things to consider when buying a Big Bear property to use as a Vacation Rental.

Sat, 29 Dec 2007 16:44:53 -0600

Many people dream about buying a cabin in Big Bear and using it as a vacation rental property. They can rent out their second home in Big Bear (which is vacant most of the time anyways) and still enjoy it themselves when they want. Who wouldn't want someone to help pay their mortgage with rental income? There are definitely some things to keep in mind when deciding to buy a Big Bear cabin and put it on a vacation rental program.

First and foremost you want to make sure you are up to date on any Big Bear Lake Rules and Regulations regarding Private Home Rentals.

Secondly, you need to make sure your Big Bear property is in the right area of Big Bear Valley to make a viable rental property. You will want to stay in the Big Bear Lake, Moonridge, or Fox Farm areas. Most people visit Big Bear for winter sports or to use the lake (Big Bear Lake, not Baldwin or Erwin Lake). If you drift too far from the Ski Resorts or Big Bear Lake, you will be limiting the number of people who will want to rent your cabin.

Also make sure to pick a cabin that someone would want to spend their hard earned money to rent. Make sure it is "renter friendly." This includes, but is not limited to, large bedrooms, more than one bathroom, a kitchen that is large enough to cook a holiday meal, a nice open living room, plenty of off street parking and hopefully a nice yard.

There are other improvements you can make to the house to make it a better vacation rental too. Decorate the place in a mountain decor, antler light fixtures are real popular. Add a spa if there isn't one already, people love to sit in the spa after a day at the ski resort or on the lake. A game room with a pool table or at least some kind of activity (shuffleboard, table tennis, foosball, or darts). If you don't have an extra room, sometimes a garage can suit this purpose. A decent entertainment system, and nice comfortable furniture. Don't just leave the 70's couch that came w/ the place and call it good. In other words, anything you would expect if you were renting your place.

Most successful Big Bear Rentals also have repeat customers. You want them to request your cabin when they come up. Like any good business, good product equals good results. Since you will most likely be using a property management company for your investment, make sure you check into as many of them as you can.

Many people just worry about how much they will get per night and how many nights per year the cabin will be rented. There are many other services that the property management companies provide. Remember they are the ones your customers will be dealing with, pick the company that you believe will best represent your investment. Consider the companies customer service, appearance of office, marketing, cleaning procedures, and cost of their service.

Just remember the company that takes the least percent of the rent might not be the best choice. Make sure to ask questions about fees for snow removal and other "hidden costs".

Lastly, don't expect to have your Big Bear vacation cabin pay your whole Mortgage, taxes and utilities. Hopefully you are just trying to supplement your mortgage by renting it out when you are not using it.

Remember there is a lot of competition out there so don't get into a situation were you are relying on the rental to pay for your second home. you need to look at your Big Bear Vacation Rental as an investment, and if you aren't willing to invest your own money its not going to work. Everyone knows nothing in life is free.

Originally posted on the Big Bear REO Blog.

Market is Heating Up For Bank Owned Real Estate in Big Bear Lake

Sat, 29 Dec 2007 16:41:41 -0600

Originally posted on the Big Bear REO Blog.

***In an effort to keep you all up to date on Big Bear Bank owned properties, we will be giving you updates approx. every two weeks.****

During the past two weeks we have seen two bank owned properties in Big Bear go into Escrow. We featured one of the properties on this blog back on December 10th. Do you remember the Property that was listed 30% below the previous sale? Well a smart buyer saw the value and made a successful offer on the property. It is now in Escrow and we will keep you posted on the closing price. There is a good chance that the buyer got the bank down even further than their asking price.

The second property that went into escrow was in the North/East section of Big Bear City. This property was such a good deal that we didn't even have time to tell you about it. The listing price was over 35% below the previous sale back in February 2006. Hopefully you are beginning to see a trend here.

Along with the two properties that went into escrow, we saw six price changes on bank owned properties in the Big Bear Valley. Another property we brought to your attention back on December 10th (remember the Bank Error in your Favor?) was one of the six that were reduced. If you thought a $37,500 bank error in your favor sounded good, how about $55,000? That property has now been reduced to $520,000 which is $119,000 less than the previous sale. As you can see, there are many motivated banks out there looking to clear their Big Bear Real Estate off their books.

Finally, we saw one bank owned property in Big Bear actually close escrow. This property was a three bedroom, two bathroom 1400 square foot single story with a two car garage located in the desirable neighborhood of Fox Farm in Big Bear Lake East. The previous owner paid $375,000 for the place in September 2006. The new owners got the home for almost 17% below the previous sale. They paid $312,900 for the place on Pineview Lane. Just another example of how bank Owned properties can turn into a really sweet deal for you.

Contact us today for a complete list of Big Bear bank owned properties as well as other great deals in the beautiful Big Bear Valley.

Until next time....

Emotionless Sellers Are A Great Reason to buy a Bank Owned Property in Big Bear Lake.

Sat, 29 Dec 2007 16:40:09 -0600

Originally posted on the Big Bear REO Blog.

Anybody who has purchased a home knows how stressful it can be and how much more stressful when the other party in the transaction seems to be fighting the sale as much as pushing for it.

There can be many elements of a real estate deal that upset the seller. Low ball offers and multiple counter offers are two of them. It can even turn into an "Us vs.Them" competition with the sellers letting their emotions and ego's cloud their judgement.

What if you could take all the emotion away from the seller? Would that tend to smooth out the buying process?

Well you can do exactly that by dealing with bank or lender owned properties....

The reason there is no emotion for the seller with a bank owned property is pretty simple; the person you deal with didn't buy the property so they have no real emotional investment in it.

They didn't paint the bedroom, build the deck, remodel the kitchen or even pick the neighborhood. They have no tie to the property other than the fact that it's in their books and they want it off.

They generally look at every offer with one very simple thing in mind, the bottom line. They won't get upset when you start the negotiations with a "low-ball" offer. They probably won't get frustrated sending multiple counter offers back and forth and may not even blink when they receive an offer from the same buyer that didn't "step up to the plate" a month ago on the very same property.

In fact, they may even give the buyer a more attractive counter the second time around.

Its a given when you see a bank owned property that the seller is motivated and more likely than not, taking their Realtor's advice.

The banks realize who the experts are and hopefully pick a Realtor that is going to price the property at or below current market value. The bank is not going to try and get that extra ten grand for the "Peek-a-Boo" lake view you can see from the bathroom window if you stand on the toilet ;)

They seek out the advice of an experienced Broker and simply go from there...

So until they make a pill listing agents can give to their clients to remove emotions and egos and get their clients to listen to their professional advice, do yourself a favor and look at some Bank Owned Property (REO's)

Until next time...

Big Bear Bank Error Saves You $37,500!

Sat, 29 Dec 2007 16:37:19 -0600

Originally posted on the Big Bear Reo Blog

Everyone has played Monopoly, right? Remember when you got a card stating the bank had made a mistake and you received money you otherwise wouldn't have? Well this bank owned property is like a Community Card in real life....

Listing Price= $537,500

Previous Purchase Price= $639,000

Previous Purchase Date= 9-28-06

This property was foreclosed on after being on the market for six months.

The previous distressed owner did the right thing and tried to limit his losses by listing the home and asking his Lender for a "short-sale". Now, by definition a "short-sale" is a transaction that doesn't satisfy the previous loan on the property. So this seller tried to find someone to buy his property at market value and hopefully salvage some of his credit.

Usually the Lender agrees to sell the home for less than is owed and deals with the seller later. In this case, the seller got an offer from a qualified buyer and chose not to accept it. The Lender chose not to take the offer which was around $575,000. No other offers came in and the property is now in the Banks inventory and back on the market as an REO. Now, lets get back to the bank error in your favor...

Offer on property not taken by Lender $575,000

New listing price as REO $537,500

Amount of "Bank Error" in your favor $37,500
(or more depending on negotiations)

Isn't real life monopoly a lot more fun?

Bank Owned in Big Bear and Listed 30% below Previous Sale!

Sat, 29 Dec 2007 16:34:19 -0600

Why are REO's attractive to buyers? Where else can you find seller's willing to list their property over 30% below what they paid less than two years ago? This cabin, close to the National Forest and the Ski Slopes is priced at exactly that.

Listing Price $361,900

Previous Purchase Price $519,000

Previous Purchase Date 1-17-06

This property is in the Big Bear Lake Central area of the Big Bear Valley. It has a very nice setting close to the National Forest and only a few roads away from Snow Summit Ski Resort. This is a very good example of someone that bought a property they could not afford. Less than eight months after purchasing this property the Owner tried to put it back on the market at an incredibly high price ($655,000). Why someone would think they can purchase a property in a slowing market and see over 20% appreciation eight months is anyones guess. The fact is the property was never going to sell for more than it was bought for in January 2006. So the seller tried to not only get out the property he was in danger of losing, but also wanted to make an insane amount of profit. Naturally it doesn't make sense but it isn't an uncommon tactic by a distressed seller. Now the bank owns the property and is offering it for $157,100 less than the last time it sold.

Nobody said life was fair...

Originally posted on the Big Bear REO Blog.

What exactly is an REO Property?

Sat, 29 Dec 2007 16:27:49 -0600

Originally posted on Big Bear REO Blog

An REO property is simply a Bank or Lender owned property. The term REO is an acronym for "Real Estate Owned" which banks use to describe a property that has already gone through the foreclosure process but did not sell at a Trustee's Sale.

There can be many reasons a home didn't sell at the Trustee Sale but the most common reason is that the property is no longer worth what is owed to the lender.

Therefore, a buyer looking for a deal would not be interested in satisfying the debt including the late charges and attorney fees which normally sum up the minimum bid at a Trustee's Sale.

Another downside to a Trustee's Sale besides paying more than the current market value (do you really need one?) is there are no negotiations with the seller (read bank). It is an auction and the highest bidder wins.

So when is the best time to buy a foreclosed property?

Typically the best time to buy a foreclosed property is when it comes on the market as an REO. This is when you might be able to actually "wheel and deal" with the lender and get the best price on the property.

The reason being that after the unsuccessful Trustee's Sale, the lender will then consult with a Real Estate Broker and get their opinion of the fair market value for the property. A good Broker will give the Lender a true market value not taking into consideration what the Lender was originally owed on the property. For the most part REOs come on the market at a fair price and have at least some room for negotiation.

In conclusion let me say that an REO Property might not be for everyone (we will get into the pros and cons later). However, if you are looking for a way to buy Real Estate at a great price, deal with an emotionless seller and have instant equity, you will definitely want to take a look at REO's.

Until next time...