Big Bear Bummers

Address: 428 Crater Lake Rd, Big Bear Lake, CA 92315

Link: https://www.realtor.com/realestateandhomes-detail/428-Crater-Lake-Rd_Big-Bear-Lake_CA_92315_M13658-72166

Beds/Baths: 3 bed, 2 bath, 1,316 squares

Purchase Price (12/2022): $560,000

Asking Price: $649,900

Difference: +$89,900

Commission (3%): -$19,497

Total Gain: +$70,403

Today’s seller bought in December 2022 for $560,000 and just nine months later shot for the moon with a patently absurd asking price of $729,000.

Since then they have been playing the de-list/re-list game to obscure the true days on market, and after some painfully slow price cuts they are now pleading for $649,900. They have been trying to get this ridiculous price since June with no luck (or price cuts), so they are clearly not stressed about selling.

Any buyer foolish enough to plunk down $649,900 for this place will gift our seller with a nice, fat profit of $70,000, but this asking price is a relic from a bygone era. The seller clearly doesn’t read the news because the entire real estate landscape has changed dramatically since they purchased.

I mean, just look at the monthly nut for the new owner:

Purchase price: $649,900

Down Payment (20%): $130,000

Monthly Payment: $4,403/mo (@7.3%)

Realistically, how many buyers are looking to spend that kind of cash on a second home right now? Like, four?

The good news is this place has a lot going for it. It’s cute and tidy with decent interior updates and a hot tub on the back deck. Although there isn’t much of a cabin vibe, it truly looks move-in ready.

I like this place. Unfortunately, buyers don’t seem as impressed. Although it went under contract in August, it quickly fell out. Either the inspection went poorly or the buyer got cold feet. But now it’s back on the market with a big question mark.

I keep saying all it will take is for a few neighbors with a ton of equity to come on the market with an aggressive asking price, and all of these dreamers slow-walking their price reductions will be forced to make a move.

But until then sellers like this can continue living in ignorant bliss, safe in their deluded assumption that nearby sellers won’t “just give it away” and set brutal new comps.

That’s true until it isn’t.