Home buyers today are of the "Bank-Owned/REO Mentality." They want to buy something with that kind of price tag, regardless of who owns it.
I came across an article from CNNMoney that really hits home on what is going on in the current housing market. If you want to sell a home in this market, no matter how much it hurts, you need to price your home like a bank-owned or REO property.
That is your competition.
The tough part about this is that bank-owned or REO properties are priced 20-40% less than the non-REO or bank-owned properties.
The first and last paragraphs of the article spell it out pretty clearly:
Selling a home in this market is hard enough. Competing in a neighborhood flooded with foreclosed homes that are heavily discounted is nearly impossible.
For desperate sellers, that means keeping up with highly-motivated banks and steeply-falling prices - no matter how much it hurts.
Sure, not every seller is going to be desperate, I get that. But if you are not desperate, or willing to price your home like you are desperate, it is not the time to sell.
Related Articles
Bank Owned Properties - What Today's Sellers Need To Learn From Them
Even Andy Rooney Knows How To Sell A Home In Big Bear
Bank's Incompetency = Buyer's Gain
Big Bear Bank Owned Buyers - Be Ready!
Syndicated from & originally posted at The Big Bear Skinny.
Over 4 feet that past 2 weeks and my back is feeling it. To put this in perspective, here are two photos of my listing for sale at 42235 Heavenly Valley, Big Bear.
Summer shot......
And after the storm....
If you are planning a trip up to Big Bear this time of year, it is always a good idea to carry chains with you, regardless of whether you have 4-wheel drive. It is very common for the Highway Patrol to be checking cars as they come up the hill and they have no problem turning people around who don't have chains in/on the tires.
You should also check to make sure the roads to Big Bear are open. With lots of snow comes lots of driving frustration, be careful.
Here are some recommended sites to check on road conditions & chain requirements.
Looking to have your driveway cleared this winter? Give these companies a shout.
Mile High Equipment 909-866-6642
Advanced Equipment 909-556-4084
Source Resource 909-585-5354
Greg's Snowplow 909-585-9870
Mike Lindquist 909-838-5669
Syndicated from & originally posted at The Big Bear Skinny.
If you are thinking of buying or selling a home in Big Bear, you may want to take a look at the absorption rate of homes that are currently for sale. Knowing the absorption rate is a good way to become more informed on the current real estate market conditions in a particular area.
There is an easy to understand article here describing what the absorption rate is and what it means for the real estate market. In simplistic terms, it is a mathematical equation that tells the amount of time it will take for a specified set amount of properties to be absorbed under current real estate market conditions.
To get the most accurate reading for the Big Bear real estate market, you take the number of properties sold in the past month and divide that into the number of properties currently on the market for sale. Some other ways to figure out absorption rate include looking at it from a weekly and yearly basis. I find the monthly time frame to be the most representative and therefore figure it by price range & location.
You can also tinker around with this by looking at different price ranges, locations, beds & baths, features and so on. The more you tinker, the more accurate your calculations should be for that type of property. If you wanted to know the absorption rate of 3 bed, 2 bath homes in Moonridge or Fox Farm for example, you could.
Generally speaking, the higher the number, the more of a buyer's market and vice versa for a seller's market. An absorption rate over 6+ months would be considered a buyer's market, 3-5 months a normal market, and under 3 months a seller's market. Based on this, we have not seen a seller's market in 2-3 years.
That said, there were a total of 50 residential sales in Big Bear during the month of November 2008. Currently, there are 1044 residential properties for sale, which translates into an absorption rate of 20.88 months. This means it would take nearly two years for the current inventory on the market to be absorbed, assuming nothing else comes on the market for sale.
See the breakdown by area & price range below.
Absorption Rate By Price Range
| $300,000 & below | 505 | 30 | 16.83 |
| $300,001 to $500,000 | 294 | 12 | 24.5 |
| $500,001 to $800,000 | 133 | 4 | 33.25 |
| $800,0001 to $1,000,000 | 38 | 1 | 38 |
| $1,000,001 & above | 74 | 3 | 24.67 |
| 1044 | 50 | 20.88 |
Absorption Rates By Area
| Big Bear Lake West | 37 | 0 | N/A |
| Big Bear Lake Central | 112 | 4 | 28 |
| Big Bear Lake East | 89 | 4 | 22.25 |
| Fox Farm | 82 | 9 | 9.11 |
| Moonridge | 178 | 5 | 35.6 |
| Whispering Forest | 20 | 0 | N/A |
| Fawnskin | 40 | 1 | 40 |
| Big Bear City | 222 | 13 | 17.07 |
| Sugarloaf | 122 | 8 | 15.25 |
| Erwin Lake | 93 | 5 | 18.6 |
| Baldwin Lake | 42 | 1 | 42 |
| Lake Williams | 7 | 0 | N/A |
| 1044 | 50 | 20.88 |
As with the month of October 2008, we can see that properties priced under $500,000 are selling the best while those $500,000 and up are not faring so well. In fact, there were only 8 sales of residential properties sold in the whole month of November in the $500,000+ price range. When you have 245 homes for sale in Big Bear that are priced over $500,000, that means the absorption rate is 30.625 months.
If you are looking to buy a home in this upper price range, make sure to be diligent as there should be a lot of options and a good deal can be found. If you are selling a home in the $500,000 range, you may want to give some thought to having your home priced under $500,000 as opposed to just over it.
It should be noted that all of the $1,000,000+ sales for the month of November 2008 were located in the Castle Glen area of Fox Farm. Sales there ranged from $1,150,000 to $1,600,000.
From a location perspective, the properties in Fox Farm, Sugarloaf, Erwin Lake, & Big Bear CIty sold better as compared to Big Bear Lake, Moonridge, Fawnskin, Lake Williams, & Baldwin Lake. These numbers are a little surprising in that Big Bear Lake & Moonridge are generally considered more desirable. It just shows that the buyers these days are driven more by price and value than location. They are buying in lowered priced areas currently.
These numbers do change on a monthly basis. One month a particular area may perform better than others and then not so good the following month. Click here if you are interested in seeing the absorption rates for Big Bear from some of the previous months.
If you are interested in how the real estate market in Big Bear is performing, be sure to sign up for my RSS feed or email newsletter.
Syndicated from & originally posted at The Big Bear Skinny.
Selling a home in Big Bear should be easy, at least according to Andy Rooney.
I remember seeing this video last year and laughing when he reviewed all the self help books he has received over the years. When he gets to the "Tips on selling a House" book, around the 1:10 part of the video, he gives his simple, yet very true, advice, "you don't need 1001 tips on how to sell your home, just lower your price and your home will sell."
Seems simple and easy enough, right?
Now I understand that not everyone can lower their price enough to sell. They may owe too much or don't want to accept a lower price. That is fine, just don't try to sell right now.
In this market, price is everything. Buyers are value shopping more than ever. You may have the nicest house in the area with all the upgrades, but with all due respect, it does not matter. You need to have that, AND the lowest price. Anything else and the buyers are going to pass on your property.
It is just that simple!
Buyers today are of the bank owned, short sale mentality. They want to buy a property that has a bank owned price tag, regardless of whether it is owned by the bank or a distressed sale.
Sellers must realize that their competition in not necessarily their neighbors who are trying to sell or who have already sold, but rather it is all of the negative economic news coupled with the bank owned & short sale properties currently available. Home buyers today are listening & watching.
If you are considering selling your Big Bear home, take it from Andy Rooney and get your price in line.
Related Articles
Pricing Your Big Bear Property - Get Ahead Of The Buyer Train
Pricing A Property In Big Bear - Follow Your Real Estate Gut
Bank Owned Properties - What Sellers Need To Learn From Them
Syndicated from & originally posted at The Big Bear Skinny.
The Castle Glen neighborhood is one of the most sought after locations in all of Big Bear Lake. Generally referred to as a subarea of Fox Farm, Castle Glen is known as the area "up on the hill" above Stater Bros. It also borders Hwy. 18 along the Baker Pond section of Big Bear Lake.
Castle Glen, which consists of a total of 245 parcels, was first developed at the end of 1998 in the hilltop area previously referred to as 'Rebel Ridge.' Lot prices in the first phase ranged from $39,900 up to $69,900. As the second, third, and final phases came in, prices for the top lots in the area were well over $200,000. Today, the subdivision is approx. 70% built out. Most of the homes are newer log or mountain style, with sizes ranging from 1,800 sqft. to over 5,000 sqft. Lot sizes in area range from 10,000 sqft. on up to 40,000 sqft., nearly an acre.
Within walking distance to the lake and shopping, and just a short drive to the ski slopes and Village area, Castle Glen's central location is obviously one of the major upsides to owning a property in the area. There are plenty of other advantages as well. The subdivision sits perched high up on the hillside, making for some attractive views of the Big Bear Valley. In fact, some of the best lake, ski slope, and mountain views in Big Bear are found in the Castle Glen area.
The area is nearly surrounded by open space and eagle preserve. Many of the homes in Castle Glen back to this private space, adding to the quiet mountain ambiance. Upscale homes, pride of ownership, underground utilities, and protective CC&R's round out the best features that Castle Glen offers.
Home prices in the area today range from the upper $400,000's to just over $2,000,000. The highest closed residential sale in the history of Castle Glen is $1,900,000, which two properties in the area share the honor of. Vacant lots in Castle Glen range from the mid $100,000's to the upper $400,000's. Generally speaking, the better the views and setting, the higher the land/house price is going to be.
Where is Castle Glen Located in Big Bear? & A Closer Up Version
Search For Properties That Are Currently For Sale in Castle Glen
Photos of the Castle Glen Area/Houses
If you are looking for a centrally located property with great views and an upscale neighborhood, then Castle Glen may be the fit for you.
Related Articles
Castle Glen Sales Hitting High Numbers Early In 2008
Castle Glen Home Sales For 2007 In Big Bear Lake
Syndicated from & originally posted at The Big Bear Skinny.
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I am a professional real estate consultant living in Big Bear Lake, CA. I am highly passionate about my profession and where I live.
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