Big Bear Bummers

Address: 789 Rueda Ln, Big Bear Lake, CA 92315

Redfin: https://www.redfin.com/CA/Big-Bear-Lake/789-Rueda-Ln-92315/home/3488248

Beds/Baths: 2 bed, 1 bath, 752 squares

Purchase Price (8/2023): $429,900

Sales Price (6/2024): $445,000

Difference: +$15,100

Commission (5%): -$22,250

Total Gain/Loss: +$7,150

Today I want to focus on a recent buyer who offloaded their mistake without getting crushed.  In fact, they eked out a tiny profit just a year after purchasing.  Can you believe it?!  Definitely a rarity around here, which is why I want to highlight it.

These folks bought in August 2023 for $429,900, but just nine months later decided it wasn’t for them.  Why the quick escape?  Nobody knows. 

Divorce?

Death?

Job Loss?

Rising insurance costs in California?

AirBnB not all it’s cracked up to be?

Either way, they needed out and they needed out fast.  But rather than starting with an aggressively attractive price, their initial ask was $455,000 (25K more than they paid) and they accepted $10,000 less to get the deal done.  It must have felt good to walk away with a cool $7,000 when you consider the carnage going on among pandemic-era buyers right now. 

Anyhow. It’s important to remember that it’s not all doom and gloom out there. 

Even better for the sellers is that they didn’t put a dime into improving this place – the photos show it is virtually unchanged from when they purchased. 

They didn’t even spend the $13 to fix that kitchen countertop.

Nice.

Everything about this listing, and the result, exudes total, unadulterated confidence. Maybe that’s what the other sellers languishing on the market are missing?

Look at this staging! Linoleum floors and yellow wires coming out of the ceiling? Confidence!

Frumpy office? Confidence!

Washer and dryer facing each other so there is no way to open them at the same time in order to transfer wet clothes into the dryer? Confidence!

Anyhow, here is what the new owner looking at as far as monthly payments:

Purchase price: $445,000

Down Payment (20%): $89,000

Monthly Payment: $3,054/mo (@7.4%)

That seems relatively manageable compared to some of the homes I’m seeing out there, but that’s still a lot of scratch for 752 square feet.  But with peek-a-boo lake views, hopefully the new owner thinks it’s worth it.

But if nine months from now they suddenly decide that paying 2023 prices was a bad idea and pull the ripcord, what are the odds that they will also get out with a profit?  Not great, I reckon.

Or maybe the bottom is in.  We shall see.