Joe Pecoraro

By Joe Pecoraro

The bank owned properties in Big Bear just keep on coming. We are now starting to see properties in the more exclusive neighborhoods of Big Bear Lake. Even a couple lake front properties have become REO listings. These five properties are all in great locations and priced well. One of the properties is a lake front and two are in the exclusive Fox Farm area. I only picked properties in the Big Bear Lake part of the valley for this blog. Big Bear Lake includes: Big Bear Lake (East, West and Central) Fox Farm, and most of Moonridge.

• 42592 PEREGRINE AVENUE- This is a great little ski cabin. It is technically a 1 bedroom but does include a bedroom size loft that has a closet. It is located in Lower Moonridge between the Big Bear Mountain Ski Resorts. The property is very easy to get to even in snowy conditions and walking distance to the shuttle to the ski resort on busy days.
  LIST PRICE $149,000 LAST SALE 12/14/05 $212,000
• 384 MEADOW CIRCLE- Looking for a lakefront property, this REO might be the one for you. Located in the gated lakefront community of Eagle Knoll, this property is very good shape for a bank owned property. This property has plenty of decking to enjoy the summers on the lake and comes with dock rights. Eagle Knoll is located at the east end of the lake right before Stanfield Cutoff. Lakefront properties have held their values more in this market than any other properties.
  LIST PRICE $830,000 LAST SALE 3/10/05 $745,000
• 717 JEFFRIES ROAD- You can't beat this price per square foot ($122) in Big Bear Lake. Formerly a Bed and Breakfast this place has a bathroom in every bedroom and even an indoor pool. It would make a great retreat for a large family or a company. It is located in Big bear Lake Central and appears to be in great shape. The lot is only a few square feet short of an acre so you have plenty of room for the whole gang. Or if you are looking to start a Bed and Breakfast this might be the place to start.
  LIST PRICE $649,000 LAST SALE 12/01/00 $276,000(before addition and remodel)
• 42694 EDELWEISS- This Fox Farm log sided home was recently upgraded before being foreclosed on. It has a beautiful kitchen and a game room. The neighborhood is very nice and quiet with nice properties all around it. The property is very centrally located and you won't have to worry about the crowds disturbing you. There are very few vacation rentals in the area.
  LIST PRICE $615,000 LAST SALE 5/12/03 $338,000(before addition and remodel)
• 42756 TANNENBAUM PLATZ- Another Fox Farm home, this one is at the end of a cul-de-sac and very spacious. The property next door, a vacant lot, is also on the market. This home has a very nice setting and floor-plan. It is very clean and would make a great full time property or second home. It is about five minutes from the lake and ski resorts.
  LIST PRICE $589,800 LAST SALE 2/28/07 $740,000

-Joe Pecoraro

Since two of the last three bank owned deals I wrote about are currently in escrow,I figured it was a good time to pick three others to share.  Just like last time, these cabins are all priced to sell.  In today's market aggressive pricing is the name of the game, if it is not priced right it won't sell.

This weeks top Bank Owned Deals

• 42584 JUNIPER- For such a great street in the Fox Farm area, Juniper Drive is sure getting it's share of Bank Owned properties.  We had a Juniper property on the last list as well.  Counting this new listing  there are currently four bank owned listings on Juniper.  The other three are all currently in escrow and I see the trend continuing with this property.  The street and setting are just too nice for it to sit on the market for very long.  It is also the most affordable Juniper Drive bank owned cabin yet.  It is tough to find a cabin in this type of area for this price.  The cabin could use a little upgrading but is in very good shape for a REO.  The setting off the back deck is what most people think of when dreaming of getting away from it all and relaxing.
  LAST SALE Dec/2005 $360,500  CURRENT LIST PRICE $259,700
• 1110 MOUNTAIN- This cabin has been on the market since December and it is a little surprising to me that it has not sold.  It has now been reduced to a very aggressive price and it shouldn't be long before a buyer sees the value in this very clean REO.  The bank already took care of most of the repairs and TLC needed on this cabin.  The cabin is in Big Bear City but only a block away from the City of Big Bear Lake.  You can take "back-roads" to either ski resort on those busy weekends and you can walk down to the Baker Pond section of the lake about five minutes.  This cabin has a great setting and a large lot with a seasonal stream that runs through on side of it. 
  LAST SALE Dec/2005 $369,900  CURRENT LIST PRICE $299,900
• 676 CIENEGA- Looking for a cabin near the lake?  This property sits across the street from Metcalf Bay.  You have great views because there is nothing across the street but the lake.  Located in the Boulder Bay neighborhood this cabin would be great for a year round vacation spot.  You are about a 10 minute drive to the ski resorts and less than five minutes to the Village.  The cabin could use a little upgrading but overall is in good shape.  There is a nice deck off the front to enjoy the views and a fenced in backyard if you want a little more privacy. Pleasure Point Marina is a block away and there is a little store and restaurant in the area as well.
  LAST SALE Aug/2005 $432,900  CURRENT LIST PRICE $334,900

Just like the last three properties I shared, I don't expect these properties to last long.  The most important thing to do in this market is be ready to make a move when something you are interested in comes on the market or is reduced into your price range. 

Many buyers are missing out on well priced bank owned cabins because they don't have all their ducks in a row.  Most banks require more info or documents than a standard seller .  To top it off many of these requirements are rapidly changing.  This makes it even more important to be working with an agent that follows the REO market and has experience dealing with the banks and their pet peeves. 

Another thing to keep in mind is most buyers these days are looking for deals and steals.  If you want to get a good price on a property you must realize that you are not alone and act accordingly.  Let me know if I can help you.  I can help save you time (countless hours looking through overpriced or undesirable listings) and money (targeting well priced listings and negotiating the best deal).

If you are one of the many buyers waiting for a good deal on a bank owned property in Big Bear, you probably know by now that you have to be quick with your offer to have a chance.
Many times a property will get multiple offers the first couple days on the market.  If you think it is a deal, so do 100 other buyers waiting for such a opportunity.  So what can you
do to give yourself a better chance?  Be prepared and know what the banks are requiring these days before they even look at your offer.

Most buyers and agents are aware that many banks have their own purchase contract.  This is one of the first places you can go wrong and waste time.  While it really is the agents responsibility to
know what forms to use, sometimes they need a little reminder.  Some listing agents make it very clear-that they have their own form-on the listing itself.  This
is very helpful and prevents an agent from having to redo their work. 

After you figure out what forms to use, you must also make sure you have all the other documents that the bank requires.  These can be a pre-qualification by a specific lender.  Signing addendum's
to the purchase contract, waivers and some times even proof of funds for your DOWN PAYMENT.  Not having these items can delay your offer from being presented to the bank or asset manager.  Often times
allowing other buyers, who weren't as quick as you, to get in the mix.  Nobody wants to be in a bidding war, especially in a buyers market.

Things to have ready and strategies to make sure a bank gets your offer ASAP

1.)Pre-Qualification or Pre-Approval letter.  Sometimes the bank will accept any letter, other times the bank requires you talk to a specific lender. Make sure you know what the bank you are going to deal with accepts.
2.)Proof of funds for a cash offer.  If you are writing a cash offer the bank will need to see some sort of document from the bank to prove you have the funds.
3.)Proof of funds for the down payment.  Banks are beginning to ask for this more and more.  Even if you have already talked to a lender that has verified your funds, the bank will still want you to supply the proof.
4.)Use the correct Purchase contract the first time.  Make sure your agent is proactive in finding out which contracts the bank in question uses.  If you just use the California Purchase Contract by default, you may think you have an offer submitted and find out later that the bank never even looked at it.
5) Have you agent make sure you sign all the addendum's and waivers required by the bank.  Sometimes these addendum's are very redundant and seem unnecessary but the bank won't take your offer serious until they see them.
6.)If you know something is a good deal, write it at full price or even a little above to beat out other buyers who are trying to negotiate.  I have had clients write an over full price offer on a property within the first two hours it was on the market.  The bank got three offers and just accepted the over full price one, without countering anyone.  I only advise this when you know there are going to be multiple offers.  Otherwise you may have time to negotiate.

Hopefully these tips help you in your search for a good deal on a Big Bear bank owned property.  If you have any questions or suggestions, feel free to share them.

With the increase in the amount of bank owned listings in the Big Bear MLS, the chances that a buyer will be dealing with a bank as a seller is also increasing. Even a savvy real estate buyer or investor may be trying tactics that worked in the hot market but are now losing their effectiveness. In order to compete in this changing market there are a few things to keep in mind and use to your advantage when trying to get the price you want on a foreclosed home.

• Realize that you are not the only one looking at the property. Even though this is a slow market and many people are hesitant to make a move with so many uncertainties, there are still other buyers out there. One common mistake I have seen with potential buyers is their assumption that they are "the only ones crazy enough" to be considering buying a place. Not only does this frame of thinking give the buyer a false sense of having the upper hand in negotiations with the bank, it also cause the buyer to believe they have all the time in the world to decide if they want make an offer. Neither of these beliefs are true.
• The good ones get multiple offers, be prepared to offer over the listing price. I get all kinds of funny looks from my clients when I tell them they need to write their offer $20,000 (or more sometimes) over the bank's asking price. Not only does this go against everything they believe a "buyer's market" should be, many people don't believe they are getting a "deal" if they don't get the property for x dollars under the listing price. While I understand the mind game going on with that type of thinking, it is wrong on every level of reality. A listing price is just a number.
• Let the property "season" before you "low-ball" it. Just like regular sellers sometimes banks do get the price wrong. However it usually takes the bank longer to admit it. If you see a bank owned property that you absolutely must have but not at their price, let it sit. In my experience a bank becomes more negotiable after 30 days of sitting on the market. If it gets to 60 days, then they know they priced it wrong. I am not afraid to write an offer under the listing price if I believe it is a realistic price, but I still advise my clients to wait a few weeks to write the offer. That way the bank has actual proof (the days on the market) that it needs to adjust it's price or take less money.
• When writing a low offer, leave out the petty stuff. My philosophy for any offer, on a bank owned or otherwise, is if you are going to beat them up on price make the rest of your offer strong. Writing in -seller to pay closing costs- is not a strong offer. Either is asking for a bank to pay your escrow fees. Or asking the bank to survey your property. Etc..
• Don't be afraid to resubmit a rejected offer at a later time. So the bank rejected your offer and then the property sits on the market for another ten days, what do you do? If you haven't found anything you like better, resubmit the same offer. Unlike a traditional seller the bank isn't going to play any of those ego games. They aren't going to read your name and say "wait a minute this is that buyer from two weeks ago". They are going to look at the offer and if it makes sense to them now, they will react accordingly. I have seen this strategy work successfully.

The Bank Owned market started slow up here in the mountains. Most of the early REO listings were in the lower priced areas and many were being listed by "off the hill" out of area agents. The past few months we have seen more and more banks begin to list properties where they belong, in the local MLS. Not only does this increase the chances of the property selling quickly, since the majority of agents in the valley only look at the local MLS, it also increases the chances of multiple offers, less days on the market and the need of adapting to this changing market. Hopefully some of these tips will help you get a great price on a your dream home in the mountains.

Feel free to contact me if you have any specific questions or need any more info.

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