Big Bear Market Report June 2009

June 2009

The Big Bear Report

A Monthly Review of the Big Bear Real Estate Market

As we "sell off" the future of our children we continue to enable all 545 policy makers (Government Representatives and Bureaucrats) to use our tax dollars (known as public funds) to protect bond-holders for their confidence in some of the most mismanaged companies in our nation's history instead of allowing them to take losses that were clearly their own.

Most "career" Realtors from across the country are finally getting fed up with all the doom and gloom of daily economic reports that confuse the buying and selling public. Industry insiders have had enough of the uninformed and misdirected financial press and "we're not going to take it anymore". Our industry has always recognized that real estate is both a neighborhood and relationship business and it's time to get buyers back in the game. However, it's going to take more effort from the buyers. They must realize if they are trying to time the bottom of the market they may see an increase in mortgage rates which negates their over all investment.

Over the past decade, most lenders were complacent and did not require proof of income or documentation. It was all about FICO scores and whether you could "fog a mirror" in order to get a loan. Nowadays, like in the 1980's and ‘90's, borrowers are required to provide evidence of their ability to repay their loan. They must provide pay stubs, bank statements, verification of deposits and even tax returns. During my first 20 years of selling in Big Bear, this was the normal sequence of events.

For sellers, the order of the day is "price reductions". I routinely convince sellers that reducing their price today could actually net them more money in the long run. Besides saving the "carrying costs" over the next several months, as values continue to slide, converting your real estate equity to cash can provide you the opportunity to make an investment that would surely make up for any loss you think you would lose otherwise. In today's economic climate, survival requires the willingness to accept the change in the way we conduct our business. I will remain relentless in my effort to attract prospects while keeping you informed.

Until next month.

Mike Dolan

Big Bear's Leading Realtor

# 8 Prudential Agent Award

7 time PREA 100 Award

11 time Diamond Circle Award

2 time 5 Year Legend Award

(909) 866-6453 (Office)

(909) 936-6453 (Cell)

mikedolan@bigbearproperties.com

Mikedolan.com

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