Big Bear Bummers

Address: 41569 Swan Drive Dr, Big Bear Lake, CA 92315

Link: https://www.redfin.com/CA/Big-Bear-Lake/41569-Swan-Dr-92315/home/3509797

Beds/Baths: 6 bed, 3.5 bath, 2,844 squares

Purchase Price (1/2022): $900,000

Asking Price: $1,125,000

Difference: +$225,000

Commission (3%): -$33,750

Total Gain: $191,250

In January 2022 our seller paid $900,000 for this big bomber and proceeded to do a total, top-to-bottom renovation. We’re talking new kitchen, bathrooms, floors, fixtures, appliances, interior/exterior paint and even a new concrete driveway ($). Unlike a lot of flippers out there, these people invested a lot of time, effort and money.

Then in March 2024 they listed for $1,150,000 to cash in on all of their hard work. After a de-list and re-list, in May they dropped the price to $1,125,000, representing a gain of $191,250 after commissions.

Considering they haven’t cut the price in four months, wanna take a wild guess what the renovation costs were? Does around $190,000 sound right? It would certainly explain the stubborn refusal to budge on price.

“WE CAN’T POSSIBLY LOSE MONEY ON REAL ESTATE! PERISH THE THOUGHT!”

Which is a shame, because this place looks fantastic.

However, despite their considerable attention to detail they seemed to have missed the burned-out bulb above the pool table. Nobody’s perfect. And it’s not like you’re asking over a million dollars.

The only real bummer is the barren back yard that slopes down toward the house.

Anyhow, here is what the monthly payment will look like for the new owner:

Purchase price: $1,125,000

Down Payment (20%): $225,000

Monthly Payment: $7,642/mo (@7%)

That monthly nut is no problem for the well-heeled folks shopping in this price range, but it’s a question of value. Rich people didn’t get rich by overpaying for stuff, and the market has decided this asking price is simply too high.

I don’t know what the right price is, but this obviously isn’t it.

But until these sellers swallow their pride and accept that the massive profits they originally anticipated aren’t going to happen – and recent buyers like them might actually *GASP* lose money – this place is going to continue rotting.