Big Bear City, CA

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

One of the most common mistakes sellers make in this market is overpricing their home. It is human nature to think ours is better than the others. In real estate however, the numbers speak for themselves. The quote, "Liars figure, but figures never lie" seems appropriate.

The biggest risk with overpricing a home now is that every month the home in on the market the price moves farther down, sometimes 1-2% (for Big Bear) per month. Many times sellers start out too high, and then reduce only to see that they are still be behind the real price. They continue to chase the market down, never getting low enough to get ahead of it, in a what can be a frustrating process.

It is similar to missing a train, a train filled with the right buyers. And then moving on to the next stop, only to see the train has already left the next station. You need to get ahead of the train.

So what's the best way to get a property sold in this market? Get in front of the market from the very beginning. Get the the train station before the buyer train comes through.

Check out the video below for some more of my thoughts on this topic.

Like the video above? Check out some of my other video posts.

Related Articles

Pricing A Property In Big Bear - Follow Your Real Estate Gut

Big Bear Lakefront Properties - A Different Kind Of Animal

Syndicated from & originally posted at The Big Bear Skinny.

How Many Times Have You Seen A For Sale Sign In Front Of An Interesting Cabin In Big Bear, And Wondered About The Asking Price?

If you're like most people thinking about buying a cabin in the Big Bear Valley, you see ads about cabins for sale, and it seems that everywhere you look, there are signs in front of cabins that catch your eye. What has stopped you from calling the number on the sign? Perhaps, like thousands of home buyers, you hesitate to call the real estate company on the "for sale" sign because you don't want a pushy, big mouthed real estate agents calling you at all hours of the day and night.

To be honest, I don't blame you. With the age of the computer, there is now a better way to obtain all of the information on the cabin for sale in a prompt, courteous manner, with absolutely no cost or obligation to you.

I like to call this "Instant Facts"

Here's the deal. I will find the listing (no matter which company has it listed) that same day on my Multiple Listing Service Computers. I will then email it to you with a detailed listing sheet, showing you all the details of any homes that fit into what you are looking for. Most people that have utilized this service like me to send the information by e-mail the same day. This way, you have all the information right away at no hassle, no cost, and no obligation.

The reason I offer this service is the hope that when you find the perfect home that you will use me to help you get the cabin at the best price possible. (But please note that, unlike many real estate salespeople, I will not be calling you or bugging you.) I feel that true real estate service begins first with furnishing you with the factual information that you need. Any information that you want, when you want it, and it will be Unfiltered and unscreened. Again, I provide this service to you without cost or obligation.

Sit back and relax. I will put my computers to work for you! If you're checking out the real estate market in Big Bear by calling on real estate for sale ads, or driving around and calling on signs, you will probably miss out on the perfect cabin. I say this because I know that some listed homes don't have for sale signs. With so many foreclosures on the market, brokers don't bother having open houses, and most "discount" real estate brokers never even advertise their listings.

Free Personalized Home Searches

My computers at home and the office are configured to search for cabins in the Big Bear Valley that are for sale and meet your exact specifications. Simply, tell me what type of cabin you are looking for. I will need to know things like. what price range is best for you, what area you prefer, the style, the views, and whatever else you find important. Once I get this information from you, I will put my computers to work, download all the information on the cabins that meet your exact specifications. Once I have compiled this list, it will be delivered to you by email in a professional and courteous manner, Please keep in mind that there is never any obligation on your part. Because of my computer's direct access to MLS, You'll often know about new listings the day they are entered into the MLS computers. This is often 4 to 7 days before other buyers know about these homes - and a week or more before these homes are advertised or held open.

It doesn't matter what style of cabin you want, if it's out there, I will find it. Do you want a two bedroom, one bath cabin for $100,000? Would you like to have a fireplace? Are you looking for an acre of land that you can build on? Is your idea of a get a way in Big Bear a lakefront property? If you specify it, and it's out there, I'll find it and you can have that information the same day that it appears on the Multiple listing Services. Because there are so many properties now being listed by out of area agents, you will have this information before many Real Estate agents are even aware of it!

You Decide Which Homes You Want To See - And When You Want To See Them!

After you see exactly what cabins are available, there may be some that prove interesting. If you would like to see the interior of the cabin, just let me know. I will make arrangements for you to look at any cabin in the Big Bear Valley at your convenience, no matter which Real Estate Company has its sign in the yard. Before, during, and after the showing of a home, I promise to never make you feel under any obligation. It will be a pleasant, guilt free, learning experience. That's the way I do business.

When the time comes to make an offer on one of the cabins you see, I will help you prepare the offer and negotiate in your best interests as a buyer's agent - all for no cost to you.

My Goal: To Provide You With More Service Than You Expect!

Again, all this costs you nothing. If you buy a cabin in Big Bear, I am paid by the seller. And if you look at cabins for a while and decide not to buy, that's ok too. I am here for one reason. That reason is to help you find the perfect cabini within the Big Bear Valley at the very best price and terms.

One of the most commonly asked questions that I am asked when showing property in Big Bear is, how much should I offer? Is there a set rule that says I should offer 30% less than the asking price?

This is an excellent question and it is also a difficult question to answer. The reason I say this is because if you haven't gone through the education phase of looking at homes, you're not going to have any idea what a good value is. When you review 30 to 50 listings on line, drive by 10-20 of them, and then look at 5-10, you will recognize the cabins that stand out as a great value. You'll also recognize the cabins that stand out as being anything but a deal. Seller's price their homes differently reasons. Let's take a look at some of them.

1. Ridiculously Overpriced Big Bear Cabin!

In this case, the sellers have listened to a real estate agent over price the home in an effort to obtain a listing. There are sellers out there who choose their listing agent solely on what agent will quote them the highest price. I have been on many of those types of listing appointments and I walk away if I can't get the listing at a price that will sell. This type of seller doesn't want to hear about your marketing strategy, all they want to hear is what you think the house will sell for. If that price is high enough, they'll talk to you. If you are not quoting the highest price, then they want you out if there as quickly as possible. Even here in Big Bear, there are real estate agents who give the seller a high "value" in an effort to obtain the listing. These homes can easily be 10-20% overpriced and they won't sell. Some sellers figure it out in a month while it takes other buyers much longer to figure out why their home isn't selling. The longer an overpriced home is for sale, the less it is worth. In time, the seller will see that other homes are selling and start asking himself why his home isn't selling.

2. The Big Bear Cabin That Is A Little Overpriced!

These sellers fall into 2 categories:

1) There is the seller that feels their home is worth every penny of their asking price. I have run into this group of sellers here in Big Bear. They listen to you as you explain the value of their home, yet they aren't quite prepared to accept the price. The normal response on the price is "Let's Give It a Try" This is not a market to "Give It a Try"

2) Then you have the seller that want to leave a little room to negotiate. We all know that most offers that are presented in today's market are low. So, it is not surprising that sellers want to pad their asking price a little bit. But this strategy can hurt you more than it helps. The reason I say this is that in the current market, the longer the home sits, the less it is going to be worth. Because of this simple fact, the goal should be to price the cabin to sell. You don't want to be one of the many who have priced their cabin so that it sits on the market and depreciates.

These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale are priced in this range.

3. Priced At Fair Market Value

Some sellers carefully and realistically studied the local Big Bear real estate market and they know what other homes in their area sold for. These sellers have priced their homes with the knowledge that they need to compete with the bank owned properties if they are going to sell their home. These homes usually sell within 4 weeks at or very near the asking price.

4. Priced Below Fair Market Value

There are some cabins in Big Bear that are priced far below the market price. In most of these cases, these listings are bank owned properties or sellers who need to sell the home as quickly as possible. The bank may wish to unload their properties quickly as they have a large inventory of homes. They know that the best way to decrease their inventory is to list these homes below the market value. In some cases, the real estate agent made a mistake and recommended too low of a price to the seller. Whatever the reason, these homes usually sell within 7-10 days. These cabins usually have multiple offers and sells for asking price or more.

Summary

If you listen to the evening news, you hear nothing but bad news about the economy and you hear that no one is lending. Yet, with all of this bad news, the buyers are still coming to Big Bear to buy cabins. These buyers are taking advantage of the current market conditions and are buying cabins in Big Bear at sometimes fifty cents on the dollar. Now, the sellers who understand that price will overcome any objection and is prepared to compete with the bank owned properties will sell his cabin. The seller who owes more on his cabin than it is worth is going to have a difficult time selling it. He is not going to be able to reduce his price to where it is going to need to be to sell. The advice that I give potential sellers when I go out and meet them is that if they don't have to sell, if they can wait it out or a couple of more years, then don't sell. But if you must sell, then price the cabin so that it is competitive with the bank owned properties.

As always, if you own property in Big Bear and have been thinking of selling it, please get in touch with me. If you are a buyer who has always wanted a cabin in Big Bear and have held off until the prices come down, your time has come. If you're tired of the roller coaster ride of the stock market and want to invest some money in real estate, let's talk.

Most people think that the arrival of November is the start of the holiday season. After all, Halloween is over and Thanksgiving is just around the corner. When I think of November, I think of the Santa Ana winds. There hasn't been a year that has gone by without the Santa Ana winds howling through the Inland Empire in November. It never fails that as soon as the Santa Ana winds start to blow, fires seem to break out. There are times when these winds blow down a power line and this is the reason for the fire. But in many cases, these fires start because of some sick arsonist.

November 24, 1980 is a day that is etched into my brain for the rest of my life. That particular morning I received a phone call from my younger brother. He was needing some help repairing a fence that had blown down as a result of the high winds that had been blowing since early that morning. I had to fight the winds as i drove to his home in North Park. North Park is a newer residential community in the northern section of the city of San Bernardino. As I arrived, I mentioned to my brother that I had noticed some light smoke coming from the mountains in the direction of Waterman Canyon. Neither of us gave the smoke much thought as we went about fighting the wind and worked on the fence. I don't recall how long I had been there, but it didn't seem like I had been there very long. Out of what seamed like no where, the skies suddenly turned black with smoke. The smoke was so thick and so black that it was hard to see 3 feet in front of you. We both scrambled for the house to get out of this smoke, only to find that the homes across the street were fully engulfed in flames. In no time, the winds blew the fire that started at the Panorama Point in Waterman Canyon had been blown into the residential homes. The high wind was blowing hot embers directly at us so we grabbed a few of his things and got out of there as quickly as we could. Thinking that once we got into our cars, we could get away from the flames and smoke. We were mistaken! In every direction that we looked, you saw nothing but thick black smoke and the orange glow of the fire.

By the time the Panorama Fire was contained, the firestorm had destroyed 280 homes and burned 23,800 acres. Four people lost their lives in a fire that was later determined to be caused by an arsonist

In 2003 the region suffered yet another devastating fire. This fire, known as "the Old Fire" burned 91,281 acres, destroyed 993 homes and killed six people. This fire was also started by an arsonist.

If you live in Big Bear or any of the other mountain communities in Southern California you live with the threat of fire. When the Santa Ana winds start up, it only increases the threat.

Let's get back to the original question in this blog. Do you have adequate fire insurance on your mountain get a way in Big Bear? There is a large number of home owners that purchased their Big Bear cabin before 2004. These homeowners paid much less for their cabins than most homeowners did after 2004. So, let me ask you this. How many of these home owners have kept their fire insurance in line with the current replacement cost of their cabin? I don't have that answer, but my guess is that there are quite a few cabins through-out the Big Bear valley that are under insured. Wouldn't it be better for you to check with your insurance carrier and make sure that you have adequate coverage before the need arises?

Imagine this. You come home from work and sit down to watch the evening news. It is then that you find out that there is a wind fed fire raging through the Big Bear Valley and that your cabin is being threatened. If it turns out that your cabin was lost to the fire, do you have a inventory of it's contents? Most insurance companies are going to ask for your inventory before they start paying for things. If you haven't completed an itemized inventory of the contents of the cabin, you should take the time and do it.. By making the inventory ahead of time, you're going to do a much better job of compiling an accurate list of your personal belongings. Your other option is to try to reconstruct the interior of your cabin in your head and try to remember everything that you had in the cabin. There are software programs out there, some that are free that make it easier to organize your inventory. If you have a video camera, you might find it easier to go through each home and document what you own with a video recorder.

Once your inventory is complete, take it with you. Don't leave it in the cabin. Store the inventory in a safe deposit box or a fire proof safe. With any luck, you will never need to use it, but in the event that you have a fire, you will be thankful that you took the time to complete an itemized inventory of your property ahead of time.