Big Bear Bummers

Address: 1709 Columbine Dr, Big Bear Lake, CA 92315

Link: https://www.redfin.com/CA/Big-Bear-Lake/1709-Columbine-Dr-92315/home/3513753

Beds/Baths: 2 bed, 1 bath, 966 squares

Purchase Price (5/2023): $480,000

Asking Price: $389,900

Difference: -$90,100

Commission (3%): -$11,697

Total Loss: -$101,797

Wow, these people know they’re screwed.

In May 2023 they paid $480,000 and not even a year later listed it for a Wishing Price of $515,000 – foolishly hoping they could actually make money on this deal. And after four months of price cuts they are finally under contract, staring down the barrel of a six-figure loss.

Keep in mind their down payment in May 2023 was $96,000. Even if they get full asking price that money is gone, baby gone.

And assuming the new buyer agreed to pay full asking price, here are the basic financials:

Purchase price: $389,900

Down Payment (20%): $77,980

Monthly Payment: $2,649/mo (@7.3%)

As to what a comp below $400,000 ($404 per square foot) would do to the hordes of sub-1,000-square-foot dreamers nearby, that’s what they get for dicking around with meaningless price cuts.

The longer those stubborn sellers sit around waiting for a miracle, the more opportunity there is for other, more desperate sellers to take (extremely painful) measures just to get it over with.

I imagine nearby sellers will delude themselves into thinking this is “just one comp” and “it won’t set the market,” but if enough people in Moonridge suddenly decide to cut bait…look out below.