If you own a second home in Big Bear, you’ve probably considered jumping into the rental market. The Big Bear vacation rental market is one of the most active and lucrative markets in California. The City of Big Bear Lake currently has over 1,100 registered vacation rentals on the books and they estimate another 300 to 500 properties are operating “under the radar”. If you take into account the hundreds of vacation rental properties located outside of the city limits, the total number of rentals in the Big Bear valley is somewhere around 2,000.

Vacation rental listing sites like VRBO and HomeAway make it much easier for the “rent by owner” to market vacancies to the masses. If you have the time and patience to set up your listing and respond to inquiries you can save thousands of dollars on management fees. You’ll still need to hire housekeepers, coordinate cleanings, respond to emergency calls, and have a secure way of getting the keys to your guests. As long as you have someone local that you can count on, renting by owner can be an excellent way to generate income while you’re not using your home. Just remember that the property will receive wear and tear that may be hard to take. Be sure to collect an adequate security deposit and always inspect the property thoroughly before you refund any deposit money.

Many property owners employ management companies to market and manage their rentals. Commissions range between 25% and 50% of the nightly rental rate, depending on the company, and some charge for monthly inspections, snow plowing, spa service, etc.

Over the Christmas / New Year’s holiday season practically every available Big Bear property gets rented. Depending on how much snow we receive, the winter months usually account for 75% of the annual rental income. Nightly rental rates for a two bedroom cabin average about $165 annually and three bedroom properties average about $215 per night. Occupancy rates for Big Bear vacation rentals rarely rise above 50%, with average occupancy in the 35% to 40% range.

Long term rentals can be a bit more challenging. The trick here is to screen your prospective tenants thoroughly. You must obtain and investigate credit/background information, references, employment history and past addresses. If things don’t work out or the tenant stops paying rent you will have to go through the eviction process to get them out. Long-term rental rates have remained relatively low for years. Two bedroom properties typically rent for $750 to $1100 per month and three bedrooms average $1000 to $1800, depending on location and amenities.

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It’s the ultimate in Big Bear real estate – a single family home on Big Bear Lake with a private dock. Imagine being able to jump in your boat for an afternoon cruise or entertaining a few friends on your lakeside deck while enjoying one of the best views in California. Now imagine that dream becoming a reality.

Thanks to the correction in the Big Bear real estate market, what was once out of reach for most homebuyers is now becoming surprisingly affordable. Bank-owned lakefront homes, some located on prime deep water parcels, have been coming on the market at prices that haven’t been seen in a decade. Add in record low interest rates and these properties are easily some of the best values our local real estate market has ever seen.

A recent example is a three bedroom bank-owned home located at the tip of Gilner Point that came on the market at $449,000. The property quickly had multiple offers but it’s a prime example of the amazing opportunities that this market has created.

If you’ve always dreamed about owning a home on Big Bear Lake now is the time to act. The real estate professionals at The Tim Wood Group are Big Bear lakefront experts and they’ve been helping homebuyers make their Big Bear real estate dreams become reality for over 25 years. Call us today and find out just how affordable the ultimate in Big Bear real estate can be.

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Now that the weather has settled down, Big Bear is switching gears for Spring and Summer. Many call this the “slow time” of Big Bear. You can’t ski and you can’t swim! Not to worry. Everything is being prepared and this is NOT the “slow time”.

In less than 2 months, official Summer starts. Here in the mountains, we take advantage of every warm day we can. We set our calendars a little differently. We watch the weather and plan ahead. Set YOUR calendar. Spring is here and Summer is coming fast!

No matter what the weather, Big Bear is declared in “high gear” on Memorial Day weekend. Plan ahead and don’t forget to carry lots of cash! The whole Big Bear valley wakes up to little signs all over the roads…”GARAGE SALE”. Many organizations, shops and churches also open up for the long weekend. In fact, Big Bear is rather famous for opening and closing the Summer with garage sales. Memorial Day and Labor Day should be added to everyone’s calendar.

In 3 days if you take the time to hunt, you will find more than you could possibly imagine. From bedroom suites to handmade jewelry, stoves, trucks, generators, clothes and more knicknacks than you can imagine. Now is also the time to find next Winter’s goodies. Snowboards, skis, sweaters and boots are discounted heavily on the boulevard. Meanwhile, if you are planning your Summer, mountain bikes, motorboats, sailboats, canoes and kayaks can be found. Over the years, we’ve seen computers and monitors, swords and rugs, yard spinners and all kinds of art, paintings and prints. Books? You want books?

Are you getting the idea that you can find almost anything?

If you are looking for collectors and their collections, try the Elks Lodge. Some of the vendors are as old as what they are selling! The Elks show is a very long running affair in Big Bear. If you are looking for hobby collectors, they draw quite an eclectic crowd.

Don’t forget to check out the churches on the North Shore. The variety and quality of their donations give some great picking! This is where to look for large appliances and furniture, as well as those small treasures you didn’t even know you needed.

It seems funny to have to say this…

Please be careful driving during the Memorial Day weekend. Those “Garage Sale” signs can be small and hard to read.

*PLEASE*

Watch behind you!

When you hit your brakes to read the tiny print, you don’t want to get hit from behind. Not everyone is reading as fast as you. When you slam on the brakes, the people behind you may not have a clue to what you are doing. Give some space and avoid “fender benders”.

Memorial Day weekend in Big Bear is always a lot of fun. The last of the boots and sweaters are put away and shorts and t-shirts are the norm. Serious Summer tanning needs to be taken into account. Ice cold drinks need to be poured and barbecues lit. Activities on the lake, in town, and in the hills need to be planned. For the “slow time”, Big Bear has quite a bit happening.

Real Estate News;

• Real Estate Market on Course for Recovery in 2012;  The National Association of Realtors is adding their support to the growing opinion that 2012 is the year of recovery for real estate. The reason behind this estimation stems from the fact that pending home sales rose in March above an upwardly revised February estimation, showcasing a 4.1 percent increase to 101.4 in the Pending Home Sales Index. This has been the highest the index has climbed since April 2010.
• Bill to Help California Short Sellers to be Heard in Committee; A bill that could give struggling homeowners a better chance to negotiate a short sale – and avoid foreclosure – passed the Assembly banking committee Monday on a unanimous vote.

One of the great things about living in Big Bear is the variety of weather we enjoy. In mid-April, we had over a foot of snow and temperatures were well below freezing. As I write this, just two weeks later, the temperatures are in the seventies and the snow has all but disappeared. We’re swapping our ski poles for fishing poles and everyone is happy to see warm weather again.

As temperatures rise and snow melts it signals the time to start thinking about seasonal home maintenance. On average, exterior home surfaces of Big Bear homes should be painted and decks stained or sealed every 2 to 5 years. Cold temperatures, snow, and ice can take their toll on your Big Bear property. Peeling paint may be a sign of water damage from a roof leak or a broken rain gutter and our temperature extremes and bright sun will quickly deteriorate unprotected wood. A little preventative maintenance now will help you avoid even bigger repairs down the road.

This is also the time of year to check your irrigation system and get the yard in shape. It’s fairly common for sprinkler lines to break from frozen water in the lines or careless snow plow operators. Make sure you’ve fixed any leaks before you set the sprinkler timer and drive away. Minor water leaks can get expensive if left unattended.

Consider replacing non-native plants and grass with drought tolerant species and synthetic turf. Native wildflowers and rock gardens will give your Big Bear home a natural mountain look and provide substantial savings in maintenance costs and water bills.

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When it comes to selling Big Bear real estate you have to understand the marketing process to reach the ultimate goal of a closed escrow. Here are a few crucial tips for selling your Big Bear home in today’s challenging market.

Choose the right agent

Choosing an experienced agent to help guide you is the most important step in the marketing and sales process. Unfortunately, there are dozens of agents that claim to be Big Bear real estate “Experts”. Working with an unqualified agent can cost you time and money. The Tim Wood Group is the premier real estate company in the Big Bear valley and their reputation for getting the job done is the reason why Big Bear property owners choose a professional Coldwell Banker agent.  While most other companies average 2-8 transactions per year per agent, The Tim Wood Group agents average 35 transactions per agent.  With more  sales comes more experience & knowledge of how to get the job done in this market.  The proof is in the results.

Get real on your pricing

It may be difficult to accept the realities of today’s real estate market but this next action step is among the most important. A good agent understands that pricing is the #1 factor in whether or not a home sells. An over-priced home will sit on the market and in many cases, not even have walk-throughs.  Ultimately, it will end up selling for less later on, than if it was priced right in the beginning.  One of the common mistakes sellers make these days is listing it too high and then spending a year or more chasing the market down on the price.  It just makes more sense to get it done sooner than later, for top market value – money & time is saved by all.

A qualified, experienced agent studies the Big Bear real estate market and understands realistic pricing. The agent isn’t emotionally vested in the price and therefore can help you compare your home to others that have sold or are currently on the market so that you can see how your home should be properly priced.

Don’t be surprised to see an offer come through in less than 30 days.  With inventory down and sales up, the properly priced homes are standing out even more.  When an offer comes in, be sure to give careful consideration to it.  If the home is priced right, you will see offers come in and you must be ready to take action.  And remember, more times than not, the first offer you see might be the best offer to come in.  I’ve seen many sellers scoff and reject the first offer that comes through only to sit on the market 3-6 months after that with few other offers to consider.  They kick themselves later.

Depersonalize and Declutter

When presenting your home on the market you must realize that potential buyers want to see the home as their own. That’s really hard to do when you have your personal mark all over it.

So, pack up your personal belongings and declutter the areas so that the true value of your home can be seen. The rooms will look larger and buyers can better visualize how their furnishings will look in the home. Buyers will appreciate being able to see each room without getting lost in your pictures, memorabilia, and other stuff.

In the end, a little inconvenience for a faster sale is really worth it. Take the action steps needed. Make your home stand out, and sell your home faster; even in a market that’s saturated with homes for sale.

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• 

The National Association of Home Builders expects future housing trends to reflect the current economic and demographic changes of our society.

They believe the average size home will be reduced by about 400 sq. ft to 2100 sq. ft. These homes will be energy efficient and family friendly. Expect to see homes that have larger family rooms and smaller dining rooms. Formal living spaces will be either downsized or eliminated. We may see the end of the living room.

The demand for resource efficient water systems and windows has also increased. Solar panels and tankless water heaters are eco-friendly and economically effective.

Real estate investors are cashing in on this trend, buying homes and transforming them with eco-friendly improvements. Investor improvements include thicker insulation, and energy efficient appliances and lighting. The average household spends $2200 a year on electricity with half going towards heating and cooling.

This trend reflects the changing landscape of the population. By 2015, 41% of the population will be above the age of 55 years old. Baby boomers are expected to downsize both their primary and vacation homes.

The other lifestyle change is “Intergenerational Living.” Children staying in the home longer; and in some cases we’re seeing grandparents living in the home. This mixed household trend may influence building plans. We may see more homes designed with a central hub of common areas.

The American Institute of Architects predicts homes will move towards an open space layout with finished basements and attics. Expect to see more energy efficient, single level floor plans.

Home sellers may want to consider incorporating eco-friendly appliances and solar panels to give their home a competitive edge in this market.

More About Energy Efficient Homes;

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Buying a vacation home for rental can be a great investment, especially if you have a stock heavy portfolio. According to MSN, baby boomers hold 57% of all vacation homes and about 21% have two or more vacation properties.

Big Bear Lake is a great place to consider investing in vacation rental property. It’s southern California adjacent, with a small town feeling. An alpine forest surrounds the valley and the summer abounds with outdoor fun. Our well stocked lake will keep any fisherman happy. Activities range from Ziplining and off-road driving, to hiking and camping. In the winter, Big Bear is filled with snowboarders and skiers in the winter and is home to Snow Summit and Bear Mountain.

As a popular destination, there is plenty of demand for vacation rentals. Vacation real estate properties in the valley include houses, lakefront cabins, condos, townhouses and horse properties…

Before viewing properties, you may want to get a pre-approved mortgage. If you need a better cash flow, consider refinancing your primary home at a lower rate. Be prepared for the additional bills; tax, power, phone and repairs.

Once you have shopped around and settled on a home, find out if the property has been rented in the past. You can ask for a rental history or ask the owner’s experience. Look at other rental properties in the neighborhood and compare. Game rooms and jacuzzi hot tubs are popular amenities in the valley. Make sure your home is competitive.

We invite you to call us at The Tim Wood Group. We’re local and can help you find your dream home here in the mountains!

More About Vacation Home Real Estate Investments;

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Bear Meadows Town Houses

The number of homes under contract has nearly doubled while available inventory is down about 25%.

Most people are concerned with the number of closed sales every month and what direction prices are heading, but the basics of supply and demand always come first.  Based on the most recent numbers, there are some reasons to be optimistic about the Big Bear real estate market.

Pending Home Sales -

(click chart to enlarge)

The number of pending Big Bear homes sales is up 82% from March of 2011 – 104 pending sales compared to 57 last year.  Even more encouraging, this was the highest month for pending home sales that we’ve seen the past 12 months.  It is even higher than the July thru October numbers we saw, which are supposed to be the busiest months of the year.  So, there are a lot of buyers out there right now.

Available Inventory For Sale -

(click chart to enlarge)

The months supply of inventory has dropped 58% – from 13.4 months supply down to 5.7 months.  This is due to a combination of more homes selling and less homes on the market for sale (see below).

(click chart to enlarge)

The number of homes on the market for sale is down 23% – 590 now vs. 764 last year this time.

All of this adds even more to the window of opportunity for Big Bear home sellers that I talked about several months back.

There’s still a lot of questions out there, like what is going to happen with all the distressed properties that hang in the shadows.  But as of right now, there are plenty of buyers looking, and a lot less homes to look at.  Stay tuned!

Big Bear winters may not be as harsh as other parts of the country but they can take their toll on your mountain home. Here are a few tips for getting your Big Bear property back in shape after the snow has melted away.

Exterior Maintenance Inspection

Grab a ladder and thoroughly inspect your roof for missing shingles and flashing. Pay special attention around chimneys and vents. Minor roof damage can quickly turn into major problems if left un-checked.

Inspect gutters and downspouts to see that they haven’t pulled loose and that they aren’t clogged. Make sure downspouts are extended away from the foundation.

Walk around the foundation and make sure the dirt slopes away from the home. Melting snow and rain can undermine the foundation and lead to moisture damage and mold. Check foundation vents and look for any animal nests under the home.

If you have a deck or porch, check for rotting materials or mold. Make sure all nuts and bolts are tightened. If the deck still shakes or sways, extra bracing should be added. Decks and porches should be cleaned and sealed every two to three years.

Open and close all windows and screens to make sure they’re working properly. This is a good excuse to go ahead and clean the windows and screens. Check for air and water leaks.

Interior Maintenance Inspection

Walk room to room and check the ceilings and walls for any water stains or paint bubbles that may tip off roof damage or a plumbing problem.

If the attic is accessible grab a flashlight and look for any water damage or animal nests.

Look under the sinks and wherever plumbing is visible to check for leaks. Calcium build-up is a good indication of water leakage.

Spring is a good time to service hot water heaters and all heating, ventilation and air conditioning units. All systems should be professionally inspected and serviced twice a year, and a hot water heater should be serviced at least once a year.

Run all of the appliances and replace/clean filters as needed

Spring inspections are particularly important if your Big Bear property is a rental or second home. You may only have a few times each year to inspect your property and protect against small problems becoming big ones. Most local contractors and tradesmen offer free inspections.

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Big Bear second home sales have always driven our local real estate market. With over 25 million people living within a 2 hour drive, Big Bear is a natural choice for families looking for a vacation home or investment property. Thanks to affordable prices and unlimited recreational opportunities, the local vacation rental market is one of the hottest in California.

The trend for second home purchases seems to be increasing across the country. The National Association of Realtors recently published the 2012 Investment and Vacation Home Buyers Survey, which showed a surge in sales of investment properties and vacation homes in 2011. As opposed to investment purchases, which are made out of the desire for rental income, vacation homes are driven by lifestyle factors and are purchased by households making an average of $88,000 a year. According to the National Association of Realtors, investment property sales account for over one third of all purchases. Forty-nine percent of those investors paid all cash in 2011.

My recent experience with a cash buyer looking for a Big Bear investment property is typical of what’s happening in the market. They made offers on two properties but were out-bid each time. They learned their lesson and when their agent (Coldwell Banker, of course) found them of another good buy in the area they liked they offered full price. It proves that well-priced properties are selling in Big Bear.

If you’ve been on the fence waiting for the market to bottom out, wait no further. The professionals at The Tim Wood Group have been helping their clients find the perfect investment and vacation properties for over 25 years. Give them a call today.

NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Yun said the shift in investment buyer patterns in 2011 shows the market, for the large part, is able to absorb foreclosures hitting the market.

Increased investor purchases are partly responsible for the large percentage of all-cash purchases seen in the last year. They make up around one-third of all purchases. Forty-nine percent of investors paid cash in 2011.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Yun said. Of the buyers who didn’t use all cash they paid a hefty average 27 percent downpayment.

As opposed to investment purchases, which were made out of the desire for rental income, vacation homes were driven by lifestyle factors and were purchased by households making an average of $88,000 a year.

What portion of the market are these vacation sales? They accounted for 11 percent of all sales in the market.

Overall mortgage applications increased 4.8 percent from last week, according to the Mortgage Bankers Association (MBA). The refinance share of the market decreased again to 71.2 percent. Just a few months back it was over 80 percent.

“Applications to buy a home picked up last week, and are running more than two percent above the level reported at this time last year. Home purchase applications for conventional loans are now about 10 percent above last year’s level,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Applications for government loans increased by more than 10 percent over the week, for both purchase and refinance, likely spurred by borrowers seeking to apply before scheduled increases in FHA mortgage insurance premiums at the beginning of April.”

More Real Estate and Second Home Owners;

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