Big Bear Bummers

Address: 1224 Redwood Dr, Big Bear Lake, CA 92315

Link: https://www.realtor.com/realestateandhomes-detail/1224-Redwood-Dr_Big-Bear-Lake_CA_92315_M27672-28985

Beds/Baths: 4 bed, 3.5 bath, 2,553 squares

Purchase Price (2/2022): $960,000

Asking Price: $899,900

Difference: -$60,100

Commission (3%): -$26,997

Total Loss: -$87,097

Don’t all sellers technically “want it sold”? Isn’t that the point of listing a property – to sell it?

The real question is what kind of price are they willing to sell for?

A price that guarantees a massive profit? A price that provides a modest profit? A price that allows them to break even after sales commissions? A price that results in a little loss but not too much? Or a price that spells financial disaster for the seller but at least the property is gone?

That’s why the “seller wants it sold” language is so meaningless.

You often see sellers claim in listing descriptions they are “highly motivated!” and “need to sell now!” only to notice the property been languishing on the market for 178 days with rinky-dink price cuts. Obviously those sellers are only motivated to get top dollar, not to actually sell for market price.

But this seller means business.

In February 2022 they plunked down $960,000 (30 grand over asking price) and just eight months later tried to flip it for $1,074,900. That strategy flopped and for the next two years they arrogantly refused to consider any price that would actually cost them money.

Then about a week ago they suddenly saw the light and realized a sale will require a major sacrifice to the price discovery gods. Assuming they can find a buyer at the current list price of $899,900, our seller fully acknowledges they will eat $87,000. And considering they only owned this property for 2.5 years, that is a brutal and sobering loss.

And good for them for facing it head on.

Now the only question is whether this new price will get the job done. I can’t predict the future, but I do know the substantial monthly payment will significantly narrow the buyer pool:

Purchase price: $899,900

Down Payment (20%): $180,000

Monthly Payment: $6,113/mo (@7.3%)

Yowza. Have fun with that.

At least the place looks…fine?

Although this seller finally seems willing to do what it takes to sell, what if this money-losing price still isn’t enough to snag a sale? Then I guess we’ll find out if they truly “want it sold,” because by definition that means accepting the highest bid – even if they have to kiss their entire down payment goodbye.

That’s the difference between “motivated sellers” and actual sellers.

Time will tell which one they choose to be.