Big Bear Bummers

I had sort of forgotten about this listing – I wrote the below post way back in October.

The good news is they are finally starting to get serious about price. The bad news is they waited too long to do it. That’s because the recent California fires are most certainly going to have a negative impact on buyers in the form of even higher insurance premiums.

So while a $4,800 monthly nut might seem hefty to a lot of buyers, imagine that figure increasing by 10 percent. Or 20 percent. Or more!

Half of this seller’s down payment is already gone – how much more pain are they going to take before they bail out?

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Address: 760 Club View Dr, Big Bear Lake, CA 92315

Link: https://www.redfin.com/CA/Big-Bear-Lake/760-Club-View-Dr-92315/home/4116857

Beds/Baths: 4 beds, 3 bath, 1958 squares (two separate units)

Purchase Price (4/2022): $790,000

Asking Price: $760,000

Difference: -$30,000

Commission (3%): -$22,800

Total Loss: -$52,800

This seller purchased in April 2022 for $790,000 and in July of this year shot for the moon with a hilarious Wishing Price of $898,898.

In August they dropped the price to $841,000 – still insisting on a fat profit — but the deafening chorus of crickets was too much…this week they knocked a cool $81,000 off the price in a desperate effort to nab a sale.

Assuming they can close a sale at this price, it will cost them a little over $50,000. Uf da. I’ve certainly seen worse losses for 2022 buyers, but 50 grand is undoubtedly a big chunk of change to light on fire.

This place looks…fine:

Nothing crazy, but reasonably tidy. Of course, we don’t know what the other unit looks like. You see, this situation is unique in that this a two-for-one deal.

The listing description tells us more:

TWO lower Moonridge mountain houses for ONE price: 380K for each house. Located in coveted prime Big Bear Lake on one large triangle corner lot each adorable alpine opportunity lives across the street from Big Bear Alpine Zoo and Bear Mountain Golf Course, walking distance to Bear Mountain, Big Bear Resort (one mile), Vons and Stater Bros shopping center is a convenient five minute (or less) drive! Duplex on title, this property hosts two stand alone single family homes with their own address. House at 760 Club View Drive: 2B | 2B 1,008 SQFT with 1 car garage, new front stairs + front porch/deck, updated kitchen: brand new fridge, custom butcher block countertop + tiles, updated bath, new overhead lighting, and wood burning fireplace. House at 42775 Peregrine Avenue: 2B | 1B 950 SQFT. First unit tenant occupied (can be delivered vacant at close of escrow); second unit is vacant now: ready to live in or lease short/long term!

Dude, who wants to deal with an inherited tenant? That could be a major drawback from a buyer’s perspective (especially in California where tenant’s rights are so strong), but at least the seller is offering to deliver the unit vacant.

They don’t provide any rental income information in the listing information, but it looks like they listed this unit for rent in August 2023 for $2,150 per month.

Assuming that’s the going rent, that does not bode well for the new owner since their total monthly payment will be over $5,000.

Not to mention this place is right on Club View Drive – a relatively busy thoroughfare. That could also be holding this place back.

The question, as always, is whether this new price is attractive enough to close a sale. Considering it’s two units for $760,000, they might not be that far off.

But it’s also a very specific situation that probably needs a very specific kind of buyer. Similar to this moron.

What do you think? Will this bold new price seal the deal, or will is more pain in store for this seller?