Big Bear Bummers

Although the final sales price is a far cry from the seller’s initial $1,389,000 demand, I’m sure they’re stoked they found a greater fool–ERRRRR, a willing buyer to bail them out and provide a tidy little profit.

Assuming our seller only had to pay their agent’s commission, they walked away with roughly $120,000. Pretty rare for a 2021 buyer to make such a big profit, but this is no Sugarloaf Shitbox. It’s super dialed in with a ton of square footage, so it’s not terribly shocking that a well-heeled buyer would be willing to pay a premium for it.

But is the new buyer catching a falling knife? Frankly, at this price point I don’t think they’re too worried. They clearly have a ton of cash to ride out any economic storms.

While I bet the seller regrets wasting two-and-a-half years chasing monster profits rather than being reasonable from the outset, I’m sure they’re relieved this whole ordeal is finally over.

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Address: 749 Cameron Dr, Big Bear Lake, CA 92315

Link: https://www.realtor.com/realestateandhomes-detail/M2916854799

Beds/Baths: 4 bed, 3.5 bath, 3,060 squares

Purchase Price (2/2021): $995,000

Pending Price: $1,150,000

Difference: +$155,000

Commission (3%): -$34,500

Total Gain: +$120,500

Today’s seller purchased in early 2021 for just under a million bucks. After hearing tales from friends and neighbors about “intense bidding wars” and sellers getting “crazy prices,” in June 2022 they swung for the fences with a hilarious Wishing Price of $1,389,000.

Although that would have yielded quite an impressive profit, no buyers were dumb enough to take the bait.

So the property languished on the market with one measly price cut to $1,299,000, then in January 2023 the seller took their ball and went home.

“WE’RE NOT GOING TO JUST GIVE IT AWAY!”

During their little timeout our seller had to ruefully watch as demand for vacation homes and AirBnB “businesses” plummeted further. But surely the widespread price cuts and value dips in the Big Bear market didn’t apply to them, and in March 2024 they confidently re-listed for $1,249,000 – still demanding a substantial reward for their investing genius.

And once again they heard a chorus of crickets.

And after a few more price reductions they’re finally pending at $1,150,000. But will they get full asking price? Or do buyers smell blood in the water after 2.5 years on the market?

I mean, look at this nonsense:

The good news is this place seems pretty dialed in:

Although I love that they’re demanding $1,150,000 and can’t be bothered to replace this dead light bulb. Come on, bro.

Anyhow, if the new buyer pays full boat here are the numbers :

Purchase price: $1,150,000

Down Payment (20%): $230,000

Monthly Payment: $7,793/mo (@7.3%)

This place looks pretty nice, but that’s a beefy payment for a second home. Oh, but the listing description helpfully adds, “It’s no wonder this home has been a successful vacation rental!”

It can’t be that successful if they’re still trying get rid of it. Seriously, if it has been such smashing success, why not just hang on to it and revel in all that glorious Airbnb loot? The answer is obvious: because it never penciled out as a rental and they’re hoping the new buyer is either too stupid to realize it, or is so cashed up they don’t care.

The good news is because they bought in 2021, our seller will still make a decent profit. But they would have made way more if they had just priced it realistically in 2022! Instead, they wasted literal years pissing off the buying public by demanding wildly idiotic prices.

But as we all know, greed can be more addictive than heroin.