It may be the case in some instances, but to me an informed and educated buyer is the best kind of buyer I can work with. Those who take their time and do their due diligence prior to looking and buying . The times I see problems come up in a transaction are when buyers move too fast on a property and don’t have all of the details before making the offer. This can get further complicated when the buyer is being represented by an agent with little to no knowledge of selling property in Big Bear.

Take a look at the video below and let me know what you think.

Click her for direct link to video

photo credit: insidious_plots

For many people, buying a house is going to be one of the most exciting things they will do in their lives. Even old hats still get a thrill out of purchasing a new property. The whole journey of finding, negotiating, and closing an escrow on a new place is an experience that is full of emotion. I am sure many folks don’t get much sleep the night before they are going home shopping. Like a kid getting a new bike for Christmas, some people can’t wait to get started.

Sometimes, they are too eager for their own good. Let me explain.

Odds are, you are not going to find the right home the first time you go out looking. There is so much more involved in buying a home than just picking one out and buying it. A home is a major investment and you owe it to yourself to do your homework. The last thing you want to do is tie up a large chunk of your capital in a rotten asset. What if you buy a home, only to discover you like the neighborhood next door much better? What if the home puts your kids in the wrong school district? What if you buy in an area with low resale value and you could have bought in an area on the upswing? Chances are, if you had not rushed into things, and taken your time, you would not have made these mistakes. Of all my escrows that have fallen the out, the majority have been because my client bought on the spur of the moment, and later had buyer’s remorse.

When buying in Big Bear, location is very important. I can’t tell you how many times I have shown property to buyers who told me that they absolutely only wanted to be in a certain neighborhood, only to have them buy somewhere else once they saw what was available. Unless you are a local, there is a very slim likely hood that you actually know every neighborhood and its characteristics. Do yourself a favor and at least drive through the whole valley before you make your decision. If you buy before seeing everywhere, you could be missing out on something special.

If you don’t see a home you absolutely love, wait. We have new homes coming on the market every day. The odds of a home you will love becoming available in a short amount of time are very good, especially if you have a good Realtor in your corner watching the market for you. It is far better to wait until the right home comes along than jump the gun and buy something you only kind of like. I would recommend finding a Realtor you know is a full time professional and letting them do the leg work for you. Someone who is on the ball and knows what you like is in a great position to make sure you know about the house and can move quickly to buy it.

If you have any questions about Big Bear real estate, please contact me at izzy@thetimwoodgroup.com

Izzy Barden

Keep in mind, foreclosure filings are made up of three parts – Notices of Default (NOD), a recorded document that starts the foreclosure process, which is normally filed after homeowners fall behind in their payments. Notices of Sale (NOS), a recorded document that is filed about 3 months after the NOD, which sets the date for the Trustee Sale. Trustee Sales, typically held around 25 days after the NOS is filed, made up of properties that go back to the bank or sold to third parties, generally on the court house steps.

In May, all three – Notices of Default, Notices of Sale, & Trustee Sales back to the bank – dropped considerably.

Here’s how the foreclosure numbers broke down for May 2010.

Notices of Default (NOD) - 44 total, down 32% from April and down 53% from May 2009.

This is a big drop compared to what we were seeing a year ago.  If it continues, great, as it would mark the beginning of the end of foreclosures hitting the market.  But, it is too early to tell that right now.  We need to see consistent, sub-20 NODs per month in order to turn the corner in my opinion.

Why are defaults slowing? Good question.  Could be one of several things.  1.  Homeowners are not falling behind anymore – may be true but unlikely.  2.  Banks are slower to file the Notices – more likely.  We’ll see in the coming months.

Notices of Sale (NOS) – 41 total, down 28% from April and down 46% from May 2009.

Similar to NODs, these numbers are down dramatically year over year.  Even still, the number of homes in Big Bear currently in the NOS foreclosure pipeline is just 1 less than last month.  So, while we have seen a drop in the Notices filed, the total number on the verge of going to sale is nearly the same (see below).

Trustee Sales back to bank – 31 total, down 37% from April and down 24% from May 2009.

This is the lowest we’ve seen since November 2009, another good sign.  Less properties going to back to the bank means less coming on the market, and less downward pressure on pricing.

What are reasons properties never go back to the bank? I know of several – 1. the homeowner cures the defaulted amount; 2. the homeowner modifies their loan; 3. the homeowner completes a short sale;  4. a third party buys the property at the trustee sale on the court house steps (these eventually come on the market as investor owned); or  5. the lender incorrectly filed the foreclosure paperwork and has to start over.

Want to see what actually happens at Trustee Sales? Check out the video below.

Foreclosure Inventories In Big Bear (aka the Foreclosure Pipeline)

Though lower than last month, there still remains a large amount of Big Bear properties in the foreclosure pipeline – 169 properties have an NOD filed against it, 167 a Notice of Sale, and 148 are currently owned by the Bank.  Of those 148 that are bank owned, some are already on the market for sale, some are not, and a small amount have already re-sold to new owners. All in all, month over month, the foreclosure inventory in Big Bear is down 8% from last month.

Why are these numbers important? In my opinion, they are the most important stat to keep track of as they offer a glimpse into the future of any market. Everyone knows that foreclosures bring prices down in neighborhoods. So, the more foreclosures in an area, the more the downward push on pricing. And, if we want the market/prices to get better, we need to get all of these properties through the foreclosure pipeline first.

Til next month…..

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Big Bear Home Sales

Home sales in May were down 28% when compared to the April sales (55 v. 76). Year over year, sales are down 5 % from May 2009 (55 v. 58). Compared to May 2008, sales were down 19%! Here’s why this is big news – sales have been hovering in the 70+ range, and have been better than 2009 and 2008 numbers.  May 2010 was the first month in a long time where the the year over year monthly sales were down.  Not a super big deal yet, but if we see this continue, it could be signs of other slow down in sales.

23, or 42%, of the 55 home sales in Big Bear were bank owned, the same percentage as last month. 40-50% per month is about the average we’ve been seeing for a while now.

6 of the sales, or 11%, were short sales, which is 3% less than last month. For the amount of short sales on the market, about 6% of the total market, this is in line.  The fact still remains, with all the news and hype you hear about short sales, they make up a small percentage of what sells every month.  80-90% of what is selling in Big Bear is either REO (bank owned) or traditional (organic) sellers.

29, or 47%, of the Big Bear home sales in May 2010 were organic, or traditional sellers – an increase of 3% from last month.  Organic sellers continue to make up over 85% of the available inventory, yet only about half of what is selling every month.  Buyers are more attracted to the bank owned and short sale properties as they believe that is where the deals can be found.  Most of the time they are right.  If you are a traditional seller, you’ve got to compete with the REOs and short sales or else you won’t sell.

Big Bear Home Prices

The median sales price was up from $181,250 in April to $207,500 in May, a 14% increase. Year over year, the median sales price was down 8% from the May 2009 median. Still a lot of volatility out there in the market when it comes to prices – all over the board.

The average sales price for homes sold in May 2010 was $251,401, up 10% from the April number of $229,149.  Year over year, however,  the average sales price is down 19% from the May 2009 average price of $309,806.

Homes Currently on the Market

As mentioned in the opening, this is probably the biggest story of the month.  For the second straight month, the number of homes for sale in Big Bear rose pretty significantly month over month.  A 16% increase (789 vs. 681) is double what we saw last month. Part of what has been keeping this market going, and prices somewhat level, has been the low inventory. Higher inventory means more competition and lowering of prices so keep tabs on this number.  One thing’s for sure, inventory is increasing in Big Bear. This should open up some more options for buyers, and put a little softening in the prices.

It is important to note, however, that the year over year number of homes for sale in Big Bear is still down 19% from May 2009 (789 vs. 902). Take a look at the graph below – last year at this time we saw a leveling effect, very little gain.  Compare that to this year and the big jump.  Anybody else interested by that?

Buyers – the fact still remains that if the one special deal comes up, you gotta move quickly.  Though the inventory is increasing, the deals are still going quickly.

Time will tell what is going to happen this summer.  Will we get over 1000 homes for sale in Big Bear?   Let me know your thoughts.

Big Bear Home Sales – Thru May 2010

Year-to-Date comparisons – Sales are up 13% from 2009, and 40% from 2008. The median and average prices are each down 11% and 14% respectively from 2009, while compared to 2008 – down 36% and 34% respectively.

Prices still look to be in the 2003/2004 range.  Interesting to see how many homes we were selling back in 2003-2006 and compare the prices.  We were selling over twice as many homes in 2004, the market was a lot more active, yet prices were about the same as they are now.  Compare that to 2007 and 2008, where sales were the same or less than they are now, but price were much higher.  I guess it really does not matter how many homes are selling, sellers just want someone to “show them the money!”

Year to Date Comparison (1/1 – 5/31)

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* Note: The charts above are updated on a monthly basis. They represent single family home sales in the Big Bear area, including Big Bear Lake, Big Bear City, Moonridge, Fox Farm, Sugarloaf, Erwin Lake, & Fawnskin. Data courtesy of the Big Bear MLS. These numbers do not include raw land or condos nor does it include homes in the Big Bear MLS that are located out of the Big Bear area or home sales not listed in the Big Bear MLS.

Related Articles

Big Bear Home Sales – April 2010

Big Bear Home Sales – March 2010 & First Quarter 2010

This affects Big Bear home buyers as nearly 80% of them are second home buyers. While they can still submit their offers at anytime, they will have to wait until the 15 days expires in order to get a response from Fannie Mae.

How can you tell for sure of when the 15 days is going to expire?  HomePath.com is the official source.  Check out the video below for more details on First Look, and how you can tell how much time is left in the First Look period.

Or, here’s the direct link to the video.

This must be very frustrating.

It reminds me of shopping at a big box retailer. I just wander around until I find what I am looking for. It takes me twice as long, but I know it is a waste of time to ask one of the clerks for help, since they have little knowledge of any of the products they sell.

If you have experienced this with Realtors, I apologize! I think the biggest enemy of a Realtor is the fellow agents that don’t know their inventory or their market. This gives the buyers in the market the idea that Realtors are not an essential piece in the search for a home. If your agent can’t hear what you want and direct you to it, they are wasting your time.

I won’t waste your time. I know the inventory. I listen to what you want, and then I take you to see all of the homes that fit your criteria.

What do you want in a Big Bear Cabin? Is it the bank owned property that is located in a neighborhood setting that reminds you of the home you live in now? Is it the house that they made the movie “The Money Pit” after? Is it stacked against the homes next to you so tight that you hope the neighbors don’t snore? Does the neighborhood look like a parking lot?

Let’s face it, what most buyers have always dreamed of in a mountain cabin is not unique.

They want something that feels like a cabin, but has the functionality of this era. They want seclusion and privacy. They want a quiet space with a view. They want rustic feel, with craftsmanship. They want to be near the ski slopes, but not at the party. They want to be able to take an evening or morning walk without concern. They want to hear the wind blowing in the trees and they want to smell the pines. They want to bring their family and friends to enjoy Big Bear’s four seasons of fun.

Once you find this cabin, place an offer. Hesitation at this point will give you a bad case of remorse. I can’t tell you how many times I have shown a buyer exactly what they want, and the love it, but they think they should wait a couple of weeks and then see what happens. This usually results in the cabin selling to someone who has already made this same mistake in the past.

The best cabins are not the best just because of price per square foot, or the fact that the bank owns them. The best cabins in Big Bear fit the description above. The only way you can buy one of these properties is to put an offer in writing to the seller.

Steve Hirschler

Check out these real estate market headlines I received in are recent update from C.A.R.

• California’s median home price up 21 percent in April from a year ago
• Nearly 75 percent of homes are affordable
• Foreclosures plateau—finally.  Repossessions soar.
• Real estate’s new problem: not enough homes
• What kind of homeowners choose to default?
• Consumer confidence on the rise

Maybe it is just me, but does anyone else see the conflict in these?

Headlines don’t always tell the whole story, but when all of these are posted within the same week or two, who knows what to believe anymore?

Keep in mind, foreclosure filings are made up of three parts – Notices of Default (NOD), a recorded document that starts the foreclosure process, which is normally filed after homeowners fall behind in their payments. Notices of Sale (NOS), a recorded document that is filed about 3 months after the NOD, which sets the date for the Trustee Sale. Trustee Sales, typically held around 25 days after the NOS is filed, made up of properties that go back to the bank or sold to third parties, generally on the court house steps.

In April, Notices of Default & Trustee Sales went back to the bank increased just a bit, while Notices of Sale dropped considerably.

Here’s how the foreclosure numbers broke down for April 2010.

Notices of Default (NOD) - 65 total, up 14% from March but down 29% from April 2009.

Not as high as a year ago, which was some of the highest numbers we’ve seen for Defaults, but sill elevated.  In my opinion, not until the Default numbers get consistently below 20 per month, will we start to see prices get better in the Big Bear real estate market.  Since this is the start of the foreclosure process, and the majority is these will end up on the market as an REO or bank owned, it is a signal of things to come 6-12 months down the road.

Notices of Sale (NOS) – 57 total, down 26% from March but up 19% from April 2009.

Monthly numbers for NOS are still all over the place, but like the Defaults, April was elevated.

Trustee Sales back to bank – 49 total, up 4% from March and up 29% from April 2009.

This number is at the upper end of the monthly average, and only 3 below the all time monthly high of 52.  Many of these 49 are already on the market or getting close to being put up for sale.

Want to see what actually happens at Trustee Sales? Check out the video below.

Foreclosure Inventories In Big Bear (aka the Foreclosure Pipeline)

There still remains a large amount of Big Bear properties in the foreclosure pipeline – 189 properties have an NOD filed against it, 168 a Notice of Sale, and 167 are currently owned by the Bank or Lender. Of those 167 that are bank owned, some are already on the market for sale, some are not, and a small amount have already re-sold to new owners. All in all, month over month, the foreclosure inventory  in Big Bear is down 5% from last month.

Why are these numbers important? In my opinion, they are the most important stat to keep track of as they offer a glimpse into the future of any market.  Everyone knows that foreclosures bring prices down in neighborhoods.  So, the more foreclosures in an area, the more the downward push on pricing.  And, if we want the market/prices to get better, we need to get all of these properties through the foreclosure pipeline first.  But, as I stated earlier, the more Defaults that happen, the more that gets added to the pipeline.

We are still in for a long, bumpy ride..

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Lately, however, I have found myself working with some clients who are first time buyers and I have been answering many questions I take for granted folks already know. For a first time buyer the process can be intimidating and a little overwhelming. I thought I would take this opportunity to answer some basic questions I have been asked lately and hopefully make someone else’s home buying experience a little easier.

1. What is the purpose of the appraisal and who pays for it? The appraisal is ordered by the buyer’s lender for the express purpose of determining the value of the property the money is being loaned on. If the value is too low, the lender will, in most cases, refuse to fund the loan unless the borrower can kick in the funds to make up the difference, or the seller agrees to renegotiate the selling price. Because the appraisal fee is generated by the buyer’s lender, the buyer is responsible to pay for it. Unless the seller has agreed in the contract to credit the buyer some closing costs that is.

2. Does the seller have to make repairs to the home I am buying? In short, no. The contract spells out clearly that a home is sold in “as is” condition and the seller is in no way required to make any repairs on the property. That being said, most traditional sellers are usually willing to make some repairs in order to make the transaction close smoothly. With bank owned or short sale properties, it is usually very difficult to get any kind of repairs done. With short sales, the seller is in financial distress and does not have the funds available to make any repairs. With bank owned homes, it is usually the bank’s policy not to do any repairs of any kind.

3. What are closing costs and who pays them? Closing costs are the monies required at the end of the escrow to close the deal. They are everything from title insurance fees to taxes. Typically each side generates their own closing costs and are responsible for paying them. If you are getting a loan, that is where the majority of your closing costs are going to come from. In many cases, you can get the seller to pay your closing costs by raising the price of your offer. However, if the property is very close to value, the higher price can make the home appraisal come in under value.

4. What is escrow and who pays for it? Escrow is basically a neutral third party that coordinates the whole transaction and makes sure everything runs smoothly and correctly. The escrow company works with the lender, insurance, title, and buyer and seller to make sure all the pieces are put into place at the right time and all the money is distributed to the right people in order for the transaction to close correctly and on time. Usually the buyer and the seller each pay their own costs for the escrow process. However, in some cases, either the buyer or the seller will agree to pay for all escrow fees.

5. What is a home inspection and am I required to have one? A home inspection is a general summary of the property’s condition.  It is not required, but highly recommended.  The home inspection, in my opinion, is the most important part of the home buying process. You wouldn’t buy a car without taking a test drive and you shouldn’t buy a home without having it thoroughly inspected by a licensed professional. A home is a large investment and it is imperative you know what you are getting yourself into. Even brand new homes usually have a number of things wrong with them, let alone a house built in 1940. I have put homes into escrow only to discover during the home inspection that the foundation was sinking in one corner and the whole floor, joists and all, needed to be replaced. Without that home inspection, my clients would have been forced to spend many thousands of dollars to correct those problems. Luckily, we found them and were able to get out of a rotten deal. Because the home inspection is being done for the benefit of the buyer, the buyer hires and pays for the services of the home inspector. Believe me, it is well worth it.

I hope I have been able to shed some light on these basic questions that are actually very important to understanding the home buying process. The best thing you can do for yourself is to do your homework and find a knowledgeable, honest, experienced Realtor who specializes in the area you want to buy in. Google their name and find out everything you can about them before you contact them. If you do a search and nothing comes up, move on the next one until you find somebody you feel comfortable with.

Izzy Barden

Big Bear Home Sales

Home sales in April were up 3% when compared to the March sales (76 v. 74). Year over year, sales are up 21% from April 2009, more good news for the market. Compared to April 2008, sales were up 52%!

32, or 42%, of the 76 home sales in Big Bear were bank owned, about 5% less than last month.  40-50% per month is about the average we’ve been seeing for a while now.

11 of the sales, or 14%, were short sales, which is 4% more than last month.  This is the second straight month we’ve seen over 10 closed short sales per month. Many are calling 2010 the year of the short sale. With the new HAFA rules only a month into full swing, it is still too early to tell if that prediction will be true.  If my personal business is any indication, I’ve got two short sales in escrow, a first for me.

33, or 44%, of the Big Bear home sales in Arpil 2010 were “organic”, or traditional sellers – an increase of 8% from last month. This is an important number to keep an eye on. Organic sellers make up a majority of what is on the market for sale, 85% to be accurate. And yet they only made up 44% of what sold in April. Conversely, bank owned and short sales homes in Big Bear make up 15% of what is currently for sale yet they made up 56% of what sold in April. Can you see what the Big Bear home buyers are biting on?

Big Bear Home Prices

The median sales price dropped from $219,500 in March back down to $181,250 in April, a 17% drop. And year over year, the median sales price was down 12% from the April 2009 median. Still a lot of volatility out there in the market when it comes to prices – all over the board.

The average sales price for homes sold in April 2010 was $229,149, down 11% from the March number of $256,236. Year over year, the average sales price is down 6% from the April 2009 average price of $243,669.

Homes Currently on the Market

The number of homes for sale in Big Bear rose pretty significantly month over month. It was bound to happen, right?  An 8% increase (681 vs. 633) is the largest we’ve seen in more than a year. Part of what has been keeping this market going, and prices somewhat level, has been the low inventory. Higher inventory means more competition and lowering of prices so keep tabs on this number.

Year over year, the number of homes for sale in Big Bear is still down 24% from April 2009 (681 vs. 894).

We normally see a build up of inventory this time of year as we head into the busier selling time in Big Bear.  But, that did not really happen last year as you can see below.  If the inventory levels stay around the 700-800 mark, the real estate market in Big Bear should remain pretty active.

My advice from months past still remains -

The reality of lower inventory is showing up everyday in the market. Properly priced homes coming on the market have 3-4 offers within a week period. There are still a low amount of options for sale, and the buyers are all looking at the same properties.

If you are trying to sell, and you are not seeing any activity, you have to ask yourself why?

For sellers, this is why it is extremely important to price your property correctly in the beginning. The first 30 days are crucial to a successful sale. Miss that opportunity and you will be fighting uphill the rest of the way as it’s very hard to get back in the buyer spotlight.

For buyers, if something good comes on the market, you can be assured that you will be competing against more than one buyer.

Big Bear Home Sales – Thru April 2010

Year-to-Date comparisons – Sales are up 17% from 2009, and 65% from 2008. The median and average prices are each down 10% and 12% respectively from 2009, while compared to 2008 – down 36% and 35% respectively.

Prices still look to be in the 2003/2004 range.

Year to Date Comparison (1/1 – 4/30)

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* Note: The charts above are updated on a monthly basis. They represent single family home sales in the Big Bear area, including Big Bear Lake, Big Bear City, Moonridge, Fox Farm, Sugarloaf, Erwin Lake, & Fawnskin. Data courtesy of the Big Bear MLS. These numbers do not include raw land or condos nor does it include homes in the Big Bear MLS that are located out of the Big Bear area or home sales not listed in the Big Bear MLS.

Related Articles

Big Bear Home Sales – March 2010 & First Quarter 2010

Big Bear Home Sales – February 2010