Big Bear Bummers

Address: 859 Silver Tip Dr, Big Bear Lake, CA 92315

Link: https://www.redfin.com/CA/Big-Bear-Lake/859-Silver-Tip-Dr-92315/home/4118700

Beds/Baths: 2 beds, 1 bath, 820 squares

Purchase Price (10/2012): $145,000

Asking Price: $425,000

Difference: +$280,000

Commission (5%): -$21,250

Total Gain: +$258,750

Now this is a Big Bear Bummer.

Woof.

The sole bathroom looks decent, but what’s up with the cabinet door that’s been ripped off its hinges. Yikes!

And this sure looks like prior water damage:

The listing description is just as low effort as the photos:

“Moonridge Charmer. High Demand location and sought after price in mid Moonridge. Located Minutes to Bear Mountain Ski Slopes, Golf Course, Alpine Zoo and hiking and mountain biking trails. Charming Cabin with woodsy interior and new flooring downstairs. Large front deck and paved section in front yard for additional entertaining space. Fully furnished, less personals.”

When the word “charming” is used in a listing description, it’s usually code for “small and crappy.” And boy does that apply here.

And I love that the cabin comes “fully furnished” as if that’s a huge selling point. Bro, nobody wants your ratty-ass couches and mattresses!

And what the heck is going on with this “staircase” to the water heater? I can only imagine what other maintenance nightmares lurk below the surface (and the surface is bad enough).

And they somehow managed to include the power lines in nearly every exterior shot.

Good God. This is depressing.

And what’s even more depressing is the asking price. Check out the monthly payment on this dump:

Purchase price: $425,000

Down Payment (20%): $85,000

Monthly Payment: $2,910/mo(@7.3%)

Three grand a month is pretty wild considering how much work this place needs.

However, based on recent comps I sort of see where the seller is coming from. For example this property, which is also very “charming” (if you know what I mean), got $410,000 four months ago:

However, I think anybody buying at these crazy prices is catching a falling knife. Dumpy little hovels like this with tons of cosmetic issues and deferred maintenance will get hit hardest in the coming years.

The good news for our seller is they, unlike most of the listings we feature, got in early enough that they can afford to slash the price to close a sale. They purchased in 2012 at the last bottom for just $145,000 and rode the equity wave all the way to the peak of this cycle.

I seriously doubt they’ll find someone stupid enough to pay $425,000 (which would allow the seller to walk away with an astounding $258,750 after commissions), but even if they had to cut the price by 25, 50, or even 100 grand to close a sale they would still still be swimming in profit.

Of course, if this longtime owner decides they just want out and slash the price to be done with it, that will devastate other nearby sellers who don’t have nearly as much room to discount.

Oh well, that’s the gamble you take when you decide to sit around waiting for a miracle.