Big Bear Bummers

Address: 791 Knight Ave, Big Bear Lake, CA 92315

Link: https://www.redfin.com/CA/Big-Bear-Lake/791-Knight-Ave-92315/home/18262513

Beds/Baths: 3 beds, 2 bath, 1,600 squares

Purchase Price (2/2023): $790,000

Asking Price: $724,900

Difference: -$65,000

Commission (3%): -$21,747

Total Loss: -$86,847

In early 2023, today’s seller plunked down $790,000 for this new-construction home, then a year later listed it for an absolutely bonkers $879,999. You can guess what happened next.

They sat.

And sat.

And by wasting the last year chasing unrealistic prices, the market completely got away from them. This is brutal:

Assuming this sells for the current asking price of $724,900, they will eat nearly $87,000 after fees.

But as usual that loss calculation assumes they can actually find a buyer at the current price. The good news is this place is really dialed in and doesn’t appear to need anything.

Judging by the quality of the finishes, these people aren’t monkeying around…

It’s also in a desirable area walking distance to The Village, and the paid-off solar panels are a major bonus. I really like this place and think it would be a great vacation home for a family, and also has a lot of appeal as a short-term rental.

Interested in buying at the current ask? Here’s what you can expect:

Purchase price: $724,900

Down Payment (20%): $144,980

Monthly Payment: $4,807/mo (@7%)

Given the stellar condition of this house, the current asking price might not be that far off.

But it must be killing the seller to realize if they hadn’t been so greedy when they first listed, they could have avoided much of this financial pain. They now understand that by starting out with such a ridiculous asking price they telegraphed their greed and delusion to the buying public – which probably scared off a lot of buyers from the outset (and there aren’t many buyers to begin with). Then the few remaining qualified buyers watched as the price kept coming down, and chose to continue sitting it out.

After all, why make an offer if another price cut is coming next month?

It’s been a long 10 months, so hopefully this most recent price reduction will get the job done.