Tony's Big Bear REO Blog

Do I Really Need To Do A Home Inspection?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sat, 24 Oct 2009 16:06:16 -0500

The Home Inspection has always been pivotal point when buying a home in Big Bear Lake, CA. The importance of this fairly inexpensive inspection has become even more important with the influx of the bank owned, REO properties. When you buy a home in the Big Bear valley from a home owner, you normally get a set of disclosures. But, when you buy a bank owned, REO home in Big Bear, you get very few, if any disclosure regarding the property. This makes it even more important for buyer to do his investigations and to get a home inspection.

So, what do you do when the buyer doesn't want to spend the money for the home inspection? Here in Big Bear, the home inspection is not a required inspection, so how do you encourage the buyer to spend the money and get the inspection? Perhaps the story that I'm about to tell you will help.

I am currently involved in an escrow with a buyer who didn't want to spend the money for the home inspection. After explaining the importance of getting this inspection, especially as he was buying a bank owned, REO property, he still said no. That was ok, but I told him that I would need him to sign something stating that I had advised him to get the home inspection and he refused. The thought of having to sign this paper was more than he was willing to do, so he agreed to come back up to Big Bear and do the inspection. He is now very happy that he took the day off and came to Big Bear!

While the buyer was working with the Home inspector, I took a look at the plot map. The way that the manufactured home sat on the lot compared to the other homes didn't look right to me so I started looking into it. It wasn't long before I discovered that half of the house sat on the next door neighbors land. Had I not noticed this problem and the escrow had closed, the problems that this would have created would have been unimaginable.

Needless to say, the buyer is disappointed that this deal won't go together. But he is very happy that we found the problem while he still had time to back out of the deal without losing his deposit. None of this would have happened had we not done a home inspection.

A Happy and Successful Short Sale In Big Bear lake, CA.

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sun, 11 Oct 2009 13:25:20 -0500

I have been out of the office for over a week, laid up with health issues but was able to go in and work for a few hours yesterday. I was just finishing up and getting ready to head home when I checked one last correspondence. What I learned at that point made me the happiest Realtor in Big Bear. I had just learned that one of the Short Sales that I've worked so hard on was approved! Now, normally this would make me happy as it means another escrow, but this one has some special significance. Here is why.

About four months ago, I received an email from a lady who I had never met stating that she had heard that I was the best person to help her sell her house as a short sale in Big Bear Lake, CA. I emailed her back and asked for a phone number so that I could interview her as too determine ifshe qualified for a Short Sale. We spoke at great length and after listening to her hardship and the answers to so many of my questions, I was convinced that she more than qualified for the short sale. She came in to my office to sign the paperwork. She was very open with me in telling me that all she needed from me was the house to be on the market for 90 days and at that point she would deed the property back to the bank in lieu of foreclosure. After she left, my heart went out to her and her situation and I was determined that I would get her house sold and help her avoid the foreclosure.

I priced the house based off of it's value and in just a short time, I had an offer that was about $10,000.00 below what I was asking for it. As I had the short sale package all together, I send the offer in tho the lender. In most short sales that I've done, you send the short sale package in and then you wait. You have no one person to speak with until it has been assigned to the negotiator, so you call the coustomer service number and someone reads you the notes from the file. That didn't happen in this case!

In less than five days after sending in the complete Short Sale package, I received a phone call from someone at the bank telling me that she would be my contact. I was given her direct phone line and email and every time that I called, she was there and able to help me. To make a long story short, we were unable to put the first deal together as the value placed on this Big Bear home was greater than the offer and the buyer would not come up. The bank was willing to foreclose on this property before it would sell the place for $5000.00 under value! This is a great example that you are not going to steal the house from the bank by trying to buy a short sale. The banks are not going to sell the homes below their value.

The good thing about this house is I had back up offers, so when the first one failed, I simply started over with the next in line. When that buyer bailed out, I turned to offer number 3. Offer number 3 was submitted and within ten working days, I had an acceptance. It took me 138 days to sell this Big Bear home, but that's OK because I got it sold.

Yesterday I had the honor of calling my client and telling her that we had the bank approval and that she was not going to have to deed the house back to the bank or face foreclosure. Needless to say, she was thrilled to find out that we sold the house for her.

The help is out there for the distressed home owner in Big Bear Lake, CA as long as you don't wait until the last minute to ask for it. Once you know that you're in trouble, give me a call and let's see if I can help you with the same success as I was able to give to this client.

All I Want for Christmas is a Geographically Competent Appraiser!

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sat, 05 Sep 2009 14:37:42 -0500

Previously Posted on www.tonycard.com

This past weekend, I had clients come to see me who wanted to buy a cabin in the Fawnskin area. For you who are not familiar with the Big Bear Valley, Fawnskin is a quite little community that sits on the north side of the lake. After listening to what this couple wanted, I knew exactly what to show them. There were a number of cabins that fit what they were looking for, but there was one in particular that I thought they would especially like. I was right! As soon as they walked in to this cabin, it was obvious that this was the cabin for them. After some back and forth with the seller's agent, we put the deal together and we are now in escrow.

These clients are more than qualified to purchase this cabin. Their lender has given me an approval letter, they are putting plenty of cash to put down and their FICO scores are through the roof. Based off of comparable sales in Fawnskin, there should be no problem with the appraisal. So, why am I so worried about this escrow closing? The answer is "The Appraisal"

In the 5 + years that I've been selling Real Estate in Big Bear Lake, the loan process was basically the same. Once the escrow was opened, I would always ask the mortgage broker to use a local appraiser for the appraisal. The reason for this was quite simple. The Big Bear Valley is made up of a number of smaller diverse communities. Because the value of cabins in these smaller communities vary considerably depending on a number of factors, it would be necessary that the appraiser have a good working knowledge of the Big Bear Valley. In other words, he needed to be Geographically Competent.

As of May 1, 2009 the way appraisers are selected has changed. In most cases, the mortgage broker can no longer select the appraiser. They must submit the request for the appraiser to an Appraiser Management Company (AMC) and it is the AMC who assigns the appraiser based off of the Home Valuation Code Of Conduct (HVCC). The problem that we are seeing in Big Bear is that we are getting appraisers from places like Moreno Valley or Temecula. Now I'm sure that these people do a great job in their local areas. But bringing an appraiser to Big Bear who is not Geographically Competent is only going to spell disaster. Time and time again, we are seeing appraisals come in low. In each case, there are a number of recent comparable sales to support the sales price, yet the appraisal is low. How can that be? Quite simply, these appraisers coming to Big Bear are not Geographically Competent. They don't know enough about the Big Bear Valley to be able to do their job competently. The Mortgage broker can ask the AMC to send an Appraiser who is Geographically Competent but there is no guarantee that this is going to happen.

All good things must come to an end and the days of not having to worrying about the appraisal is a thing of the past. Is it too much to ask for something as simple as an appraiser who is Geographically Competent?

CASH IS KING IN BIG BEAR LAKE, CA

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Thu, 27 Aug 2009 17:19:20 -0500

This past week I received multiple offers on one of my bank owned, REO properties in Big Bear. The first offer to arrive was a full price offer with the buyer getting a loan. The buyer was putting 20% down, was pre approved by a local lender in Big Bear, and showed proof of funds for the amount of money he was going to put down. Generally speaking, that's a pretty strong offer. The next offer to arrive was a cash offer for far less than the asking price. If you were the asset manager of this REO property, what offer would you take?

To make a long story short, the asset manager was much more interested in the cash offer than she was the offer with a loan. After going back and forth with a couple of counter offers, the cash offer was accepted. The asset manager could have received more money had she gone with the offer with a loan, but she chose to take cash. Why do you think she did that?

Most buyers and sellers are not aware of the changes put into place for appraisers. As of May 1, 2009 most appraisers must comply with the rules and regulations put forth by the Home Valuation Code of Conduct or HVCC. In the past, the mortgage broker would simply call his or her favorite appraiser to do the appraisal for the new loan. With the new rules put into place by the HVCC, the mortgage broker must now submit the appraisal order to an Appraisal Management Company (AMC). It is the AMC that then orders the appraisal from a pool of appraisers. Now this idea may work well in Victorville or San Bernardino where you have blocks and blocks of tract homes. But when you try to this in Big Bear, it doesn't work. To start with, you want an appraiser who has Geographic Competence for the area that he is working. Bring up an appraiser from Moreno Valley who does not have Geographic Competence for Big Bear is a disaster waiting to happen.

The COMPETENCY RULE requires an appraiser to have both the knowledge and the experience required to perform a specific appraisal service competently. Geographic Competence means knowing the difference between a cabin in Sugarloaf and a cabin in Big Bear Lake. Geographic Competence means you know the difference in value between a cabin in Erwin Lake and Big Bear City. After all, they have the same zip code! Every day I hear stories from Realtors in Big Bear telling me how the appraisal came in low on properties. These are homes that the realtor has multiple comps to support the value of the listing. These appraisals are coming in low because the appraiser doesn't have Geographic Competence.

With the new rules put into place by the HVCC, it is no wonder that sellers are more inclined to take a cash offer for less than the listing price over a full price offer with a loan.

In closing I want to state this as simply as I can. CASH IS KING in Big Bear!

Can the Listing Bank make you pre qualify with them, even if you are already Pre Qualified with another lender?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Wed, 01 Jul 2009 17:35:59 -0500

Just recently, I wrote an offer on a bank owned property in the Big Bear valley for a client of mine. When I first me these clients, they were already pre-approved and ready to move forward once they found the home that they wanted. Well, it didn't take long for my clients to find the perfect cabin and we sat down to write an offer. One of the requirements from the bank that was offering the property for sale was that the potential buyer needed to be pre-qualified through the listing bank. My clients were not very happy with the idea of having to go through the pre-qualification process once again, especially as they were pre-approved for far more than they were looking to spend. Can the bank really require you to pre-qualify with them before they'll look at the offer? The answer is Yes!

I've been asked by a number of people if the banks can make you pre-qualify through their lender, even when you plan to use your lender of choice. The answer to this question is simply yes. Not only can the bank ask you to pre-qualify with their lenders, a lot of them won't look at your offer unless you are pre qualified with them. If you want to buy a bank owned home, you're going to learn very quickly that the bank is in the driver seat. If you want to buy a bank owned property, be prepared to jump through hoops that you may feel are a little odd.

2096 Cedar, Big Bear City, CA 92314

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Fri, 19 Jun 2009 17:07:16 -0500

JUST LISTED for $149,000.00

2096 Cedar Lane is cute 3 bedroom, 2 bathroom home located on a 8,000 square foot street to street lot. With the large lot, there is no problem with parking. Bring your boat or RV and you will have no trouble finding parking.

The entire 1400 square foot home has quality wood flooring throughout. The only exceptions are the bedrooms. The bedrooms have been carpeted with a top quality carpet.

For more information on this home or any of my other listings, please email me at tony@tonycard.com or call me at 909 436 8043

Just Listed! 733 Cedar, Sugarloaf CA 92386

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Thu, 11 Jun 2009 12:42:38 -0500

733 Cedar Lane, Sugarloaf CA just listed for $54,900. This is a small 1 bedroom 3/4 bath cabin that sits on a 25' X 100' lot.

This would make an ideal cabin for a couple just starting out. It would also make a great investment property for the investor.

With less than 500 square feet of living space, this wood stove will keep you nice and warm in the winter months.

For more information on this cabin or any other property for sale in the Big Bear Valley, please contact me at tony@tonycard.com

What does Real Estate and Weather have in common? They’re both local!

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Thu, 14 May 2009 15:11:43 -0500

Previously Posted on www.tonycard.com

I was reading through a Real Estate forum yesterday when I came across a consumer asking the question, "How Much Should I offer On a House?" The majority of the responses were statements like, Offer 80% of asking price, or my all time favorite answer was LOWBALL the seller. I'm sorry, but in my opinion, this is not giving a potential buyer in any market good advice! Real Estate is just like the weather, it's local. If you want to know what the weather is like in San Francisco, you are not going to listen to the weather reports for Boston. What is happening in the Real Estate market in Rancho Cucamonga has nothing to do with what the Real Estate market is doing in Big Bear. Just because you might be able to low ball a seller in San Bernardino doesn't mean that the same tactic will work in Big Bear. As I said earlier, just like the weather, every market is different and must be looked at from that point of view.

You may live in a market where the percentage of bank owned, REO properties accounts for 50% of the inventory. Or, you could live in Big Bear where the number of bank owned, REO properties accounts for less than 10% of the inventory. If you're trying to buy in a market where just about every other home is a bank owned property, you may be able to get away with offering far less than the asking price. But, if you are trying to buy a bank owned property in a market where only 1 in 10 homes are bank owned, and the banks are pricing the homes aggressively, then any offer made at 80% of list price is marked for failure. It drives me crazy when these Realtor's make these blanket statements like you should low ball the seller, or hey, it's a Buyer's market. They don't know what they're talking about!

Here is an example about why you need to look at each market separately. As I mentioned earlier, Big Bear has an inventory where less than 10% of the homes listed for sale are bank owned. Yet, those 10% of homes make up for more than 60% of the sales. With those kinds of numbers, the bank owned property not only sells quickly, but it sells for asking price or more in many cases. It's not uncommon to see multiple offers on bank owned properties and bidding wars develop over the property.

So, when you start looking to buy Real Estate, don't go into it the deal thinking that what worked the last time you bought a home is going to work now. Don't go into it with the idea that I am the buyer and the seller should be lucky to that I'm looking at his property. Just remember this. You are not the only buyer!

For more information on the Real Estate market in Big Bear, contact Tony Card and tony@tonycard.com

The Short Sale Process

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Fri, 08 May 2009 14:06:32 -0500

While previewing property in Big Bear today and looked at some really good listings as well as some that I thought were overpriced. Some of these well priced listings were homes being sold as short sales. Whenever I see a home being sold as a short sale, I start to wonder if this is a property that can be sold as a short sale. You see, many agents in Big Bear take these listings without ever checking to see if the home qualifies for the short sale. When they speak to the home owner, they tell them what the house is worth. When they find out that the person owes more than the current market value; they automatically suggest a short sale. There are others who decide that because they now owe more on the home than it's worth, they will simply short sale it and get rid of it. It's not quite that simple!

What does it take to qualify a home for a short sale?

The first thing piece of the short sale puzzle is that the property owner must be in a financial hardship if he keeps the property. The property owner will be asked to document in writing what the hardship is. The next piece of the puzzle is the banks willingness to work with the home owner on a short sale. A call needs to be made to your lenders loss mitigation dept. to see what options are available for you. Lenders have different trigger points that they must explore before selling the property short or foreclosing on it. Once the decision is made that you are going to sell the home as a short sale, you will need to gather some financial documentation that is going to be required. For example, the bank will normally ask for two years of tax statements, you're last two months bank statements, two months of paystubs, your financial statement and our hardship letter.

Picking your Realtor to sell your Short Sale.

Once you have the bank's blessing to sell the property short and you have all of your documentation in place, the next step is to find a qualified Realtor who is experienced in Short Sales. You want to find a Realtor who is experienced in listing and selling short sale homes. The last thing you want is a Realtor with no experience in short sales. When you interview your Realtor, don't be afraid to ask them how many Short Sales they have closed. The Realtor should be asking you questions about your hardship, contacts with the bank, and they should be asking about how many loans you have against the property. If they are not asking questions like this, then be careful about hiring him as your Realtor. Once you have chosen your Realtor, let him do his job. He is going to list the property for what it's worth and not what you owe. The value that your Realtor is going to put on the property is a value that he can substantiate with comparable sales. There may be a large difference between what you owe and what the Realtor is suggesting that you sell for. Again, listen to him and follow his advice.

I'm a Realtor who specializes in Short Sales and Bank Owned properties in the Big Bear Valley in Southern California. If you are interested in buying a Short Sale, or need to sell a cabin the Big Bear Valley, please let me know. I am happy to answer any of your questions and help you in any way that I can

Do you have the right Realtor working on your Short Sale?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Thu, 07 May 2009 14:03:55 -0500

If you're in the market for a Short Sale property in the Big Bear area, finding the right agent to help you is going to be paramount in being successful in your endeavor.

I was out on the Big Bear Multiple Listing Tour today and all I could hear were agents complaining about short sales. Many of these agents I spoke with today feel that the quickest way to lose a client is to make an offer on short sale. Others flat out said that they won't make an offer on a short sale, regardless of what the client wants.

I completely disagree with the agents who have this mind set. There are reasons why these agents aren't getting short sales accepted. Either, they're not asking the right questions of the seller's agent, or they simply don't know what they're doing. Short Sales are not hard to negotiate as long as you know what you're doing.

Before I write an offer on Short Sale, I am asking the listing agent if the seller has contacted the bank and I want to know if the bank is willing to work with a short sale. I want to know if the seller submitted his Short Sale package to the bank. I also want to know if the listing agent has been in contact with the loss mitigation department. If the answer back from the listing agent to these questions is no, then I will be cautioning my buyer against that house. The reason for this is that so many agents list a home as a short sale with no idea as to what they are doing. Waiting for an offer to come in is not the time to see if the bank is interested in doing a short sale. Waiting for an offer to come in is not the time to see if the seller qualifies for a short sale. Waiting for the offer to arrive is not the best time to start putting the short sale package together. To be successful in selling a home as a short sale, there is work that the listing agent needs to do before he lists the property.

As the buyer, you need to be ready to act once the short sale is approved. In every short sale that I've closed so far, I am seeing that the bank wants the escrow to close as soon as possible once they approve it. Most banks want to see the escrow closed within fourteen days after they have accept the offer. What this means to the buyer is he may need to do his home inspection before the bank has approved the short sale. H may need to spend the money on the appraisal and get the loan ready for loan approval before the bank approves the deal. The worst case is that the buyer could be out of pocket a few hundred dollars if the deal doesn't go through. But if it all works out, you are most likely going to be getting a great deal on a house and the risk is worth taking.

If you're interested in buying a short sale property in Big Bear, give me a call or send me an email. I am happy to help you!

Can I Short sale My Big Bear Property?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Wed, 06 May 2009 13:40:36 -0500

Do you own a cabin in the Big Bear Valley that you can no longer afford? Are you stuck in an adjustable rate mortgage? Were you planning to refinance the loan, only to find out that the cabin isn't worth what you bought it for? Are you behind on your mortgage payments? Has the bank filed a notice of default against you? Are you afraid of losing your cabin to a foreclosure? If any of these answers is yes, you may have some options that will help you avoid the foreclosure.

Instead of losing the home to foreclosure, why not sell it as a Short Sale? Under certain circumstances, you can sell your home for less than you owe the bank. You ask, why would the bank let you sell your cabin for less than you owe? In the current economic situation, many homes have mortgage balances against them that are far more than they are worth. The banks have figured out that it may be better for them to sell the property short of what is owed against it rather than foreclose. By the time the bank pays for the foreclosure and they look at the time it takes to foreclose, they may be better off working with the owner on a short sale.

For a short sale to be successful, a few things must fall into place. First and foremost, the bank must be willing to work with you on a short sale and you must be able to prove that keeping the home is creating a real hardship. There will be some other financial forms that the bank will want to see, such as the last 2 years tax statements, the last two months of bank statements and a current pay stub. Some banks will want you to send all of the information in to them at that point and others will ask that your Realtor hold on to it and present it with any offers that come in.

Once you know that the bank is going to work with you on a Short Sale and you have your paperwork in place, the key to being successful is to list the property with a Realtor who is experienced in dealing with Short Sales. Listen to what he tells you with regard to a price. Don't get hung up on the difference between what you owe and what the Realtor wants to ask for the property. After all, we are listing the home for what it is worth in today's market and not what you owe.

Once you have an offer that is acceptable, sign the offer and get it back to your Realtor right away. Once it is signed, it will be sent to the bank with the rest of the short sale package. The first step for the bank will be to assign the short sale package to a negotiator. Once the negotiator has the offer, he will ask for a independent agent to do a Brokers Price Opinion. Once the bank has the value they can they determine if the price offered in the short sale what the home is worth. It may be less than the value on the house, but when the figure in how much it is going to cost to foreclose, they may take it.

The biggest thing to keep in mind as a buyer or seller is that whenever you deal with a short sale, it is going to take some time.

If you have any questions about the short sale process or you need to sell your cabin in Big Bear, please contact me. Let me help you with any of your Real Estate needs in the Big Bear Valley

I want to sell my Big Bear cabin, but why should I lower the price?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Tue, 05 May 2009 17:53:43 -0500

About a month ago I took a listing on a property in Big Bear. The listing that I took was not a Short Sale or a Bank Owned property. It was a homeowner who needs to sell his home. When we discussed the value of the home, I explained to the owners that while the market analysis shows that the home is worth X amount of dollars, the true test will come from the number of showings recorded in the lock box.

I tell all of my clients when I list their home, that the lock box is more than just a place to store the keys. In Big Bear, our lock boxes keep a record of everyone that enters the house. This is good information from a security standpoint, but it also tells us the rest of the marketing story. By keeping track of the number of showings recorded in the Big Bear lock box, we can get a feel for whether or not we priced the home correctly. For example, if the lock box shows that the cabin is getting ten showings a month, I can report back to my client with confidence that we have priced the cabin correctly and we are simply waiting for the right buyer to see the place. But after thirty days of being listed in the Big Bear Multiple Listing Service I find that I have one to two showing, something is wrong! One to two showings in a month tells me that the market feels that your home is overpriced. You see, when I list your cabin for sale, I need to sell it twice. First off, I need to sell your cabin to the other Real Estate agents in Big Bear, and second, I need to sell the cabin to a buyer. If the other agents see the value of the home at the listed price, then they're going to show it. If, however they feel that the home is overpriced, they won't show it.

When I reported back to my clients that we were not getting the showing activity that is needed to bring an offer, the seller was rather offended. His comments back to me were that he felt that the agents were all in collusion. They felt that it was a conspiracy perpetrated by the Real Estate agents in Big Bear to drive the price down on his home. Remember, it is the market that dictates the value of a home, not me, not the owner, and not the other agents. The home, whether in Big Bear or anywhere else, is only worth what the market will pay. The market in Big Bear is being driven by the bank owned, REO properties and if you want to sell your own cabin in Big Bear, you need to price your home accordingly. If you price your home so that it stands out as the best deal out there in comparison your competition, then the place will sell.

Sellers are very proud of their homes and it's a hard pill to swallow when you are forced to sell your home for less than you paid for it and for less than you feel its worth. This is the reason why I ask a seller why he is selling in this market. This is not a market to see "what if". This is a market where if you chose to sell your cabin, you need to price it right and not be afraid to reduce the price if your Realtor suggests that you do it.

For more information about Real Estate in the Big Bear Valley, send me an email at tony@tonycard.com or call me at the office, 909 866-3481

Bank Owned Property in Big Bear Lake, CA

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Mon, 04 May 2009 13:42:05 -0500

One of the first questions that I ask a potential seller when I arrive at his house to discuss listing his home is, do you really need to sell? If they answer that question with no, then my recommendation is to hold on to the property. I'm sure that this sounds funny coming from someone who makes his living listing and selling real estate in Big Bear. That being said, before I take a listing I make sure that the seller really needs to sell the property and I also need to make sure that he can afford to sell the property. The reason I am asking these questions is that I need to make sure that the home owner is in a position to compete with the bank owned properties if he needs too.

The few bank owned properties that list in the Big Bear market are driving the market. I checked the Big Bear Multiple listing service this morning and out of 895 residential listings, 51 of them are bank owned. Just over 5 % of the current inventory is bank owned properties yet they account for 60% of the overall sales. The bank doesn't want the homes in their inventory, so when they list the property, they price them to sell. It is not uncommon to see multiple offers on these properties and they normally sell very quickly.

Bank Owned Property is Selling in Big Bear

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Mon, 27 Apr 2009 12:28:26 -0500

In 2003 I started selling Real Estate for the Tim Wood Group at Coldwell Banker in Big Bear. I remember those days well. When you wrote an offer on Big Bear property, you worked with the seller to try and write the cleanest and strongest offer possible. It was not uncommon to see multiple offers on these listings and you wanted your offer to stand out as being the best offer presented to the seller.

The market has changed tremendously since 2003 yet there are some similarities. With the decline in the stock market, many investors have pulled their money out and are now buying Real Estate. They aren't out in the market buying just any home. The buyers of today are looking for the best deal possible. It's not uncommon to see a bank owned property list in the Big Bear Multiple Listing Service at a great price, only to find that it has multiple offers on it. Even though it's a Buyer's market the structure of an offer is just as important today as it was back in 2003. The Big Bear multiple listing services have 928 residential listings and out of that 928 listings, 55 of them are bank owned properties. What is really interesting is when you take a look at what is selling this year. Since January 1, 2009 there have been 218 residential sales recorded through the Big Bear Multiple Listing Service. Of the 218 home sales, 98 of the sales were bank owned properties. Almost 50% of the home sales in the Big Bear valley in 2009 have been bank owned properties.

What does this mean if you are a home owner in the Big Bear Valley? How does this affect you if you want to sell your cabin? Here is a good example of what I'm talking about. I'm working with a seller right now who doesn't understand that he is competing with bank owned properties. His thought process is that not only did he pay more for the home that it is listed for, but he also spent a lot of money in a re model. He doesn't understand that it doesn't matter what he paid for the property. He hasn't figured out that it doesn't matter how much money he has spent on the property. If he is going to be successful in selling his property, it is going to come down to price. The question is what should he price his home at so that he can compete with the bank owned properties. What price does he need to place on his home so that it stands out as being the best deal out there? Until he is ready to make that kind of price adjustment, the house is not going to sell.

As a buyer who is looking to get a great deal on a property, there has never been a better time than now to buy. Interest rates are at an all time low and there are some great properties for sale.

For more information on real estate in the Big Bear valley, give me a call at 909 866 3481 or email me at tony@tonycard.com

682 Holmes, Sugarloaf CA 92386

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sat, 04 Apr 2009 17:52:31 -0500

682 Holmes just came on the market in Big Bear at the remarkably low price of $219,000.00. The cabin was built in 1977 and has over 16oo square feet of living space. There is plenty of room between you and the guy next door. This home sits on a 50 X 100 foot lot and when you buy this home, you get the 25 X 100 foot lot next door.

The kitchen was remolded soon after my clients bought the place. Besides the new appliances, the kitchen has all new cabinets, counter tops, wood flooring and lighting.

This is a very workable kitchen with the down draft stove top.

Big open living room with wood burning insert in the fireplace. One bedroom is over the one car garage and the other two are upstairs. Besides the three bedrooms and 1.5 baths, there is a cozy loft.

The back yard is completely fenced with 5 foot dog eared fencing and you have some nice decks to entertain on.

If you have any questions about this property or would like to see it,pleasegive me a call at 909 436-8043 or email me at tony@tonycard.com

Short Sales In Big Bear Lake, CA

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sun, 29 Mar 2009 14:04:08 -0500

Originaly Posted On www.tonycard.com

There has been a considerable amount of discussion in my office lately about the Short Sale process. Many agents state that they hate Short Sales and they do their best to stay away from them. With the Federal Government's plan to try and help homeowners stay out of foreclosure, the number of Short Sales is only going to increase.

So, let's take a look at some of the more common issues that arise out of a Short Sale.

•1. Who accepts the offer that I have made on a Short Sale property, the homeowner or the bank?

The thing to keep in mind is that you are negotiating with the homeowner and not the bank. If the homeowner accepts your offer, you have a deal and it's time to open escrow.

•2. Once the homeowner accepts my offer, when will the escrow open?

Unless you, the buyer and the seller have agreed to other terms, according to the Residential Purchase Contract, escrow should open within 72 hours.

•3. Is the offer contingent on bank approval? What happens if the bank doesn't approve the price?

The offer on a short sale property is contingent on the banks approval of the price. If the bank doesn't approve the price, then the escrow cancels and you walk away and your deposit is returned to you. One of the things I learned early on with the Short sales that I've done in Big Bear is that if the bank accepts the price, then they will want to close as soon as possible.

•4. How long does it take to get bank approval on a Short Sale?

Every sale is different and so are the banks that hold the mortgages. There are a number of questions that your buyer's agent needs to be asking before the offer is written. Questions like, has the seller submitted his Short Sale package to the bank? Has the third party authorization been submitted? Without this document, the seller's agent can't speak to the bank regarding the Short Sale. Is the seller's bank open to a Short Sale? Does the listing agent have comparable sales to support the asking price? Depending on the how these questions are answered will have a lot to do with how long it is going to take for the bank to get back to you on the Short Sale. In my experience in selling Short Sales in Big Bear, I've seen banks approve the Short sale in 7 days. I have also seen them take 6 weeks to approve.

•5. How long after the bank approval of my Short Sale offer will the escrow close?

Every bank is different but my experience has been that once the bank gives you written approval of the Short Sale, they want it closed as soon as possible. The last Short Sale that I closed was in Sugarloaf and the bank gave the buyer 21 days from the date the bank accepted the price to close the escrow. It isn't going to matter whether you're in Big Bear or Los Angeles. The bank is going to want the escrow closed as soon as they can get it closed.

•6. Should I do my inspections and get my loan ready before the bank approves the Short sale price?

Whenever I write an offer on a Short Sale in Big Bear, I use the Short Sale addendum. This is one of many forms available to us through the California Association of Realtors. This addendum provides the buyer the opportunity to not have to start the inspections until the bank has accepted the price in writing. If the Realtor doesn't use the Short Sale Addendum, then you as the buyer have 17 days from date of acceptance from the seller to do his inspections and get the loan in place.

•7. Will I be reimbursed for the home inspection and loan fees if the bank doesn't accept my offer?

The answer is NO. This is one of the risks that you as a buyer will take if you are looking to take advantage of a distress sale. This is another reason why you need to make sure that you are working with an experienced Short Sale Realtor.

•8. Why use a Realtor? Why don't I negotiate on my own with the seller?

Not only do you want to use a Realtor, but you need to make sure that you're working with a Realtor who has a lot of experience in Short Sales. By making sure that you have the right Realtor working for you, you are going to improve the chances of your Short Sale being approved. By using an experienced Short Sale realtor, you will get a better idea from your Realtor if the home being offered as a short sale even has a chance of closing.

I am a short sale specialist in the Big Bear Lake, CA. If you're a buyer looking for deal on a short sale in the Big Bear valley, hit me up. I am available any time at the office, 909 866 3481 or by cell 909 436-8043. My email is tony@ tonycard.com. If you are a buyer who finds himself in a position where you're behind and don't know what to do, get in touch with me so we can discuss your options to a foreclosure.

Who takes Responsibility?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Fri, 27 Mar 2009 10:27:24 -0500

Originaly Posted On www.tonycard.com

One of the agents in our office sold a bank owned property to a client of his just recently. When the buyer arrived for the home inspection, they opened the house and found it flooded. It turns out that the pipes broke due to the lines freezing while there was still water in them. Frozen pipes are very common in Big Bear if you don't winterize the property when not in use. My question is this. Who is responsible for the repairs to the house?

According to the verbiage in the California Residential Purchase Contract, the seller is required to keep the home in the same condition that it was when the offer was accepted. In other words, if a window is broken after the offer has been accepted, the seller must replace that window before the close of escrow.

As this was a bank owned, REO property that was sold, there is no guarantee that the bank is going to make the flood repairs. When an offer has been accepted on a bank owned, REO property, the bank sends out an addendum to the purchase California Residential Purchase contract that changes any number of items. Before assuming that the bank is going to make the repairs that would be necessary to bring the house back to the condition that it was when the offer was accepted, read the addendum.

In fact, before you entering into escrow on any bank owned, REO property, make sure that you read and understand the addendum.

How much off asking price should I offer?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Thu, 26 Mar 2009 17:46:23 -0500

That is a very common question that I get from buyers who are looking to purchase a home in Big Bear. It matters not whether it is a Seller's market or a Buyer's market, the question is asked. I've even been asked if it is safe to figure on offering 30% less than the asking price, no matter what the property is or how long it has been listed for sale.

My answer to this question is this. Every property is different and you need to look at all the data that you have in order to determine the value.

A good example of what I am talking about is this. You find the perfect home in Big Bear and you decide to make an offer. You ask your Realtor how long the cabin has been on the market and you see that they have been trying to sell it for 270 days. Just because the cabin has been on the market for 270 days doesn't mean that the current asking price isn't a good value. In the 270 days that this cabin has been listed for sale, how many times has it had a price reduction? What was the starting asking price? What are the neighborhood homes selling for? Is the current asking price in line with current selling prices? If the answer is that the asking price is probably very close to the value of the cabin.

Other cabins come on the market and they are priced very aggressively from day one. These homes are normally bank owned properties and the bank wants them gone. Homes like these come up every now and then and if you want the home, you need to be ready to offer full price. I know, you're thinking that he's crazy. No one offers full price in this market. Just last week I wrote an offer for a client on a home that had been on the market for 72 hours. My clients agreed that this house was listed at a good price and offered the bank full price for it. You would think that they would now be in escrow but they're not. The lost out on the house to an offer that was written for above the asking price.

When you find the cabin in Big Bear that you could picture yourself owning, look at all of the data that your Realtor can provide before making your offer. Don't just assume that you're the only person out looking at property.

I’m Pre Approved. Why do I need to Pre Qualify with the bank that is listing the property?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Thu, 26 Mar 2009 17:43:23 -0500

This is one of the most frustrating things for a buyer in today's Real Estate market. You do your homework and come prepared to buy a home in Big Bear. You come to Big Bear and meet with your Realtor with your checkbook and your Pre Approval letter. He has shown you the best 5-6 properties that fit your parameters and you are prepared to make an offer. The home that you have chosen is a bank owned property and your Realtor informs you that even though you are pre approved, you will need to get a pre qualification letter from the bank who owns the property. You simply ask, WHY?

The banks are offering their foreclosed homes in the Big Bear area at extraordinary prices. If you decided to buy a bank owned, REO home in Big Bear, then you'll be playing by the banks rules. Not only will many banks ask you to pre qualify with them, but they are going to be making a lot of changes in the structure of the offer. For example, the California Residential Purchase Contract gives the seller 7 days to provide the buyer will all disclosures. The RPA also gives the buyer 17 days from date of acceptance to review the seller's disclosures and perform any inspections that they wish to do. Once the bank accepts your offer, they are going to send an addendum changing your inspection times from 17 days to either 5 or 10 days. They are going to change the wording on how to terminate the contract if you find problems with your inspections. The bottom line is that if you plan to buy a bank owned home in Big Bear, you need to read and understand the fine print in the addendum. If the fine print says that the bank will only accept a Cashier's check or money order at close, DON'T bring in a personal check. The ramifications of bringing in a personal check at close of escrow are that escrow now must wait 14 days for the check to clear the bank. This could delay the close of escrow and you could be paying the $100.00 per Diem for going past the close date. I've seen it happen too many times where the buyers and their agents don't read through the addendum and it costs the buyer money.

So, if you plan to buy a bank owned, REO property in Big Bear be prepared to get pre qualified with the bank who owns the property for sale. Be prepared to work with a short inspection time frame and understand that you are buying the property as is. The most important comment that I can make is to make sure that you read and understand the addendum before you sign it. Make sure that you understand the time frames.

Five Of The Most Frequently Asked Questions I’m asked in Big Bear

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Wed, 18 Mar 2009 16:20:05 -0500

Previosly posted on www.tonycard.com

I've been selling Real Estate for the Tim Wood Group at Coldwell Banker in Big Bear since 2003. In this time period, I've seen the market do some crazy things. In 2003 we had a strong sellers market with double digit appreciation. In those days, the days on market would average 30 days and less it was not unusual to have multiple offers on your listings. Fast forward to 2009 and take a look at what is going on in Big Bear. We're in a market where home values have plummeted and lot sales are almost nonexistent.

The good news for 2009 is that homes ARE selling in Big Bear. The home values have dropped to 2003 and 2004 prices, but as long as they are priced right, they are selling.

Listed below, are 5 common questions that I am asked by a buyer in today's Real Estate market in Big Bear.

How much money should I use as my Good Faith Deposit?

Real Estate is just like the weather, it is local. What I mean by that is the information that I am providing today is what works best in the Big Bear Valley. That being said, I always recommend to the buyer that they write a good faith deposit check for 3% of the offered price.

When is the Good Faith Deposit Check Cashed?

In Big Bear, your good faith deposit check is not cashed until the offer has been accepted and the escrow has been opened. Once we write the offer on your new Big Bear cabin, the good faith deposit check is logged in and placed in a file. That check will sit there until we have an agreement and we go to escrow. If we are unable to put the deal together, the check is then voided out and mailed back to you.

I have noticed that the bank owned, REO property that I want to buy has three broken windows. Will the bank make these repairs?

Generally speaking, the banks aren't going to spend any more money than is absolutely necessary to sell the house. My advice to my clients has always been that if there is something that you want done in the way of repairs, then make sure that your request is in the original offer. By placing your request in the offer, you are making it part of the offer and it must be dealt with as the offer is negotiated. This is a better way of handling the repair compared to doing a home inspection and then asking the seller for repairs.

What is the difference between a Short Sale and a Bank Owned, REO property?

A bank owned, REO property is a property that has already gone through the foreclosure process and is owned by the bank. When you make an offer on a bank owned, REO property, you are dealing with the bank.

A Short Sale is a completely different situation. In a Short Sale situation, the home owner is trying to sell his or her home for less than is owned against the mortgage. As a home owner, you can accept an offer on your home for less than you owe, but the bank has the final say. If the bank is willing to accept the offer and write off the difference between what is owned and what was offered, then the sale will go through.

People tell me that Short Sales take forever to close. How long can I expect to be in escrow on a Short Sale, and why does it take so long?

There is no disputing the fact that short sales take a lot longer to get approved. Banks are doing a much better job at working with short sales than they used too and the approval process is getting quicker. If you make an offer on a short sale, be prepared for a wait. The seller will sign off on the offer rather quickly but that is when the work starts. Providing that you already have the 3^rd party authorization on file with the bank, and then you can present the short sale package. Once the bank gets the short sale package, it is assigned to an asset manager within a few weeks. The first thing the asset manager does is he orders a Brokers Price Opinion. This process can take a few days to complete. Nothing can be done until the BPO is completed, but once the BPO is complete, a decision is right around the corner. If the decision is to accept the offer, then the escrow can open. The last time I did a short sale, I wrote the offer in November of 2008 and we got it accepted and closed the escrow in March of 2009. Just keep in mind, that a Short sale is not a short process. It WILL take some time.

Increase in Bank Owned, REO Properties expected in Big Bear

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Mon, 16 Mar 2009 15:34:04 -0500

Banks are overwhelmed with foreclosed property and they are doing everything that they can to get them off the books. After all, banks are not in the business of holding real estate. As the consumer, everywhere that you look, you see advertisements for bank owned property for sale and the Big Bear market is not exempt.

As I am a Realtor in the Big Bear Valley, I follow the foreclosure market very closely. I find myself looking at the Notice of Defaults that are published in the local paper, as well as following the foreclosure data that is published by third party companies. I find it worth noting that the number of notices of default, notices of sale, and properties that went back to the bank in February 2009 were the highest we have seen since the tracking started in October of 2006.

What this means is that as consumers, you are going to see an increase of bank owned properties, REO's and short sales post on the market in the next few months.

One of the methods that banks are using to unload their Real Estate inventory is by sending them to auction. The auction companies publish books with page after page of bank owned property that it is planning to be auctioned off. As I looked through one of these books the other day, I noticed that the company publishes the starting bid as well as what is owed to the bank. As you go through the book, you will see homes that are going to be auctioned off with starting bids of only $500.00!

Before you get too excited about the possibility of buying a home in Big Bear for $500.00. You need to read the fine print. In most cases, the bank has placed a reserve price on the home. They can advertise that the starting bid is only going to be $500.00 but you are not going to buy the home for that if the reserve price is $100,000.00 If the auctioneer is not able to bring in enough money to cover the reserve price, then the bank will not sell the home, even if you were the highest bidder.

No matter what method the banks choose to use to liquidate their foreclosed properties, there are some great deals out there for the consumer. For a free list of current listings in the Big Bear area, email me at tony@tonycard.com.

Has the Big Bear Real Estate Market hit the bottom?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Wed, 11 Mar 2009 15:31:09 -0500

This is one of the questions that I get almost daily. This question got me thinking about the changes in the Big Bear market between 2008 and 2009. As the results are rather interesting, I thought I would share them with you.

Let's compare the number of homes sold in January and February of 2008 with the same time period in 2009.

Date	Units Sold	Date	Units Sold	Percentage
January 08	30	January 09	50	67% Increase
February 08	34	February 09	57	68% Increase

As you can see from these numbers, there has been a significant increase in sales from the same time last year. Would these additional buyers be out buying if they didn't think that we were at or very close to the bottom?

In January 2008, 30 homes sold... Of the 30 homes that sold, there was only 1 Bank Owned, REO property that closed escrow. In February of 2008, 34 homes sold and none of them were Bank Owned, REO.

Of the 50 homes that sold in January 2009, 27 of them were either bank owned REO properties or short sales. February of 2009 shows a total of 57 homes sales. Of those 57 sales, 32 of them were bank owned REO properties.

The increase in the total number of sales is a good indicator that we are at the bottom, or very close to it. Currently, the bank owned, REO properties are driving the market. If you, as the home owner want to sell your home and be successful at it, then you are going to have to compete with the bank owned, REO listing. Over half of the homes that are currently selling in Big Bear are bank owned, REO properties.

Just Listed

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sun, 08 Mar 2009 12:46:55 -0500

154 Poplar is located in the Fox Farm area of Big Bear Lake. This home features a level entry, 3 bedrooms and 2 bathrooms. Plenty of room to park your cars in this over sized garage. There is no need to worry about storage as you get a nice sized workshop adjacent to the garage.

June of 2005 was the last sold date on this home. At that time, it listed and sold for $349,900.00. It is now a bank owned, REO property and the bank wants to gone. They have priced the home to sell at $264,500.00. That's right! For $264,900.00 you cab be the proud owner of this 1480 square foot home that sits on a fenced 8680 lot.

Please email me or call for more information or additional photos.

Tony Card

tony@tonycard.com

909 866-3481 Office

909 436-8043 Cell

www.tonycard.com

If Real Estate is local, then your Realtor should also be local.

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Sat, 07 Mar 2009 18:49:35 -0600

If you're looking for beach front property at Newport Beach, wouldn't it make sense to hire a Realtor who specializes in the ocean front property? What good is a Realtor from San Bernardino going to be? Is your local Realtor going to be qualified to answer your questions about owning a home on the ocean? Are they going to know anything about the high tide? What do you do to prepare for a big storm? These are questions that you might want answers too. Don't you think that it would be wise to hire a specialist who deals with nothing but ocean front homes?

If you want home in the High Desert of the San Bernardino County, wouldn't it be smart to locate an agent in that area. An agent who specializes in the area and knows the difference between Apple Valley and Victorville? If you have children, knowing what the schools are like and how close they are to the home that you're interested in buying would be good information to have. Is your out of area agent going to know this?

It's good to find a Realtor that you like and trust. He gave you great service in the past and you made a connection with him. If that Realtor values you as a client, the best thing he can do for you is to refer you to a specialist in the area that you want to buy.

I can't tell you how many people come to Big Bear with a list of homes that they got from the down the hill Realtor. As the down the hill Realtor doesn't have access to the property, they send the buyer up by themselves to view the homes. They call the local Realtor and ask to see the property, yet they want their "friend" down the hill to represent him. Their down the hill Realtor has not been to Big Bear, has NO IDEA what is or is not a good value, and they write ridiculous offers. If they were really interested in their client's best interest, they would refer the buyer to a local specialist, such as myself and be happy with a 25% referral fee.

This past week I had a Realtor call me who has a client who wanted to buy in Big Bear. He admitted to me that he had no clue when it came to Big Bear and needed my help. He wanted to come to Big Bear, sit down with me and basically, listen as I gave him a list of homes that he could show his client. Heaven forbid, I brought up the subject of compensation and asked how I would be paid. He simply stated that if I was the listing agent, then I would get paid as the listing agent. I informed him that I didn't have any listings that would work and he then wanted to know if other agents in my office had listings that would work. The answer to that question was yes, other agents in my office did have listings that would fit into what this guy was looking for. Yet, he was very disturbed that I would not provide that list to him. Again, I asked how I would get paid from this and he told me that I would have to work it out with the listing agent. Now, If I understood this guy, he wants to come to Big Bear where I can fill him in on good areas to live, tell him about the schools, etc. He then wanted a list of homes that would fit what HIS client was looking for. And for my time and efforts, he said that I should work it out with the listing agent.

I have a better idea. REFER the client to an expert in the area. That is the best thing that you can do for your client. For God's sake, Don't be so greedy! Just for once, think of what is best for your client!

Short Sales In Big Bear Lake, CA. Are You Really Getting A Great Deal?

Tony Card, Your Big Bear REO Specialist (Coldwell Banker) — Wed, 04 Mar 2009 17:08:02 -0600

Back in November of 2008 I wrote an offer for a home that was being offered as a short sale. In December of 2008, I wrote another for a client on a home that was being offered as a short sale. It is now March 4, 2009 and both of the escrows will close today. I know one of my clients knew that the short sale process would take some time but the other client was clueless. Before writing the offer in November, I explained the short sale process to my client and asked him if he was sure that this was what he wanted to do. When I told him that the short sale could take some time, I don't think he really understood just how much time we were talking.

How much are you really saving when you buy a home listed as a short sale?

Three days before the short sale closed, the property next door came on the market for what appeared to be a fantastic price. The home is being offered for $15,000.00 less than my client paid for his and the new listing has twice the square footage. At first glance, it looked like my client is now paying too much for his home, but you needs to get past the first glance. Once I took a look at this property, it was clear why it was being listed at such a price. The house is in shambles and is going to need $25,000 to $30,000 in repairs.

While the Big Bear market is a resort market, it has not been insulated from the current economic developments. Values have dropped and homes are selling for prices that we haven't seen since 2003 and 2004.

That being said, I would be very careful before getting involved with a short sale here in Big Bear, or anywhere else for that matter without having some buyer protections built in to the contract. The last thing that you want as a buyer is to be under contract on a escrow that won't close. The wonderful deal that you thought you were getting on that cabin in Big Bear could end up costing you more than it's worth if the escrow goes on too long.