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.