Big Bear Bummers

Wow, they pulled it off. After all that shit I talked they actually found a buyer willing to step up and overpay, resulting in a $25,000 profit for our seller.

I’ve said from the beginning that the dialed-in, turnkey properties have the best chance of getting good money in this environment, but I never thought they would get a 2023+ price!

Purchase Price (10/2023): $729,999

Sales Price: $795,000

Difference: +$65,001

Commission (5%): -$39,750

Total Gain/Loss: +$25,251

Let’s just hope the new owner, who bought at one of the worst times in real estate history (high rates, high prices, high likelihood of future price declines) has enough cash to weather any economic storms. Because if they suddenly need to get out in the next few years I doubt they’ll get as lucky as our seller.

But if the new owner can easily afford the $5,400 payment (likely, given the price point of this property), then they can just focus on enjoying their new cabin and built-in Stairmaster.

***********ORIGINAL POST BELOW***********

Address: 42504 Alta Vista Ave, Big Bear Lake, CA 92333

Redfin: https://www.redfin.com/CA/Big-Bear-Lake/42504-Alta-Vista-Ave-92315/home/4114280

Beds/Baths: 3 bed, 2 bath, 1,445 squares

Purchase Price (10/2023): $729,999

Asking Price: $800,000

Difference: +$70,000

Commission (5%): -$40,000

Total Gain/Loss: +$30,001

This seller is rabid with delusion if they think they’re getting out of this without a massive financial loss.

They purchased in October 2023 – a mere nine months ago – and now expect to earn a $30,000 profit for all their “hard work.”

What planet are they on?

And by the way, I’m always crapping on greedy sellers but it’s really the listing agents who should be ashamed of themselves. Realtors know better than anyone how bad the market is right now, yet they’re allowing clients to come up with idiotic Wishing Prices that in no way reflect reality.

How any listing agent can look at the Big Bear landscape and agree that $800,000 is a realistic asking price demonstrates a troubling level of obliviousness.

I don’t know if realtors are just desperate to get listings, but what good is adding yet another property to your roster if you can’t actually sell it? Bragging rights? Confidence that you can just convince your nut job client to cut the price later?

I don’t get it.

The good news is this place seems pretty dialed in.

However, a major flaw not addressed in the listing description is that you and your guests have to park at the bottom of this enormous hill and schlep your luggage, ski gear and groceries up and down this monster staircase. Need a new couch? Good luck!

The bright side is you’ll get in some good cardio.

As nice as this place is, it’s egregiously overpriced. And I feel like I’m taking crazy pills because I’m the only one who seems to realize it. Just look at the monthly payment:

Purchase price: $800,000

Down Payment: $160,000

Approx. Payment: $5,434/mo (@7.3%)

As the Norwegians say, uf da!

Oh but don’t worry, you can supplement that with VRBO income because the seller assures us it is “a proven successful vacation rental.”

Define “successful.”

Because it wasn’t successful enough to keep the current owner from cutting bait less than a year after purchasing. And keep in mind they got to rent it out all winter when rates were highest – and they still couldn’t make it work.

But they hope you’re too stupid to figure that out.

The sad thing is, even if they cut the price by $50,000 today (guaranteeing a $20,000 loss), they’re still not competitive. Because this dude down the street with a comparable property can’t even get $749,000:

https://www.redfin.com/CA/Big-Bear-Lake/42639-Alta-Vista-Ave-92315/home/12364469

Even worse, this nearby flipper has been struggling to offload his nicely updated cabin for 120+ days. Their asking price?

Just $645,000 – 20 percent cheaper than our featured seller!

https://www.redfin.com/CA/Big-Bear-Lake/42634-Sonoma-Dr-92315/home/4114345

Our seller is in deep shit.

And by pricing as if these competing properties don’t exist, he joins a long, growing list of losers clogging up the market who stubbornly refuse to acknowledge that real estate doesn’t always go up.