Big Bear Bummers

After paying $480,000 in May 2023, they accepted a full-price offer of $389,900. Assuming they only had to pay their realtor’s commission, they ate $101,000 for the privilege of owning a Big Bear cabin for 1.5 years.

Absolutely brutal.

If you recall, they initially swung for the fences with an asking price of $515,000 which would have covered their commissions and provided them with a little profit. You can’t blame them for trying, but that initial demand was pure delusion that ignored the realities of the 2024 real estate market.

However, they quickly found out how bad things were and began cutting the price in big chunks:

When they finally accepted that a sale would cost them a ton of money, they magically found an interested buyer. Recent buyers take note: That’s what it takes to offload your financial mistakes.

The new owner’s payment is around $2,600 a month. A little steep for sub-1,000 square feet, but as long as they have the cash and a stable job they’ll be fine. I wish the new owners well in their new Big Bear adventures!

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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.