I hate to sound redundant but it is another beautiful day in Big Bear. The sky is so blue. You just don't see that in Southern California very often but in Big Bear it is almost everyday, unless it it snowing. If you get a chance to come up you will be surprised, Big Bear is another world. It's not like the city. It is rugged and beautiful and nature is the theme. I hope you get up to visit soon!
I am always puzzled about the people who come to the office and go out with an agent and don't buy. Yes, there are always the obvious reasons of not liking the agent you drew or just not clicking. Or, perhaps, you found that Big Bear was not the place for you. Lots of little reasons in the beginning could send you in another direction. But what I am referring to is the real buyers that spent time in Big Bear as a kid and want their kids to have the same memories. The couple that really wants a get-a-way from the city so he can be away from work for a day or two and see can send the kids out to play in nature and relax herself. The people that want to retire here in just a few years and want to find the perfect house now. We deal with all these buyers on a weekly basis.
What are the things in life that you regret? Think about it. Usually it is the things that you didn't do that you regret, not the things you did! One of my regrets was not purchasing a property that I listed right behind Bank of America. It was an old cabin being used as a small print shop. It was zoned commercial but at that time most of the commercial in Big Bear was originally a cabin and then converted to business use. I knew it was a good property and that it could be rented, until down the road, when the bank would want it for parking. This was in the 1990's during the savings and loan scandal and business was terrible. However, I was doing pretty well selling bank owned properties. I kept telling myself that I couldn't afford the property so I didn't think creatively. I now believe I could have bought that property easier than I thought. I was afraid. My belief system told me that I couldn't't afford it, so that was that. Like now the media was forecasting gloom and doom and they had everyone scared. "Rich Dad, Poor Dad", had not yet been written so I hadn't heard the idea, "It's not I can't afford it", but it is, " How can I afford it"? If only I had known that then I would have been the person who tripled their money in just months! Three quarters of the battle was won by recognizing the good deal and knowing what to do with it. But, without action...nothing happens. Correction something happened alright, but it didn't happen to me, because I didn't get in the game. I was a bystander watching someone else finish the race and collect the prize money! It could have been me. It should have been me, but it wasn't! That was one that got away.
Here's the rest of the story. First Mountain Bank bought that building a short time later and, of course, they wanted the property in the rear for parking. They paid more that three times what it sold for when I had the listing and it sold. So, the question is: who made the money? The guy who stepped up to the plate and took the chance! Unfortunately, it wasn't me. Although, it taught me a great lesson. Go with your gut! I knew it was a sweet deal and that I could make a nice profit but my mind keep saying you are scared and you can't do! That was hogwash! I could have done that deal and made that easy profit if I had just taken a leap of faith and believed in myself. I have come a long way from that time and now I know if I really want something that I just have to figure out, "how can I afford it"! That has worked for me for many years.
If you don't have a fire in your belly or a very strong desire to own a cabin in Big Bear then you probably won't get one. It has to be real. I hear buyers say, "it's meant to be I will get it". That is partially true. But I believe, "don't wait for your ship to come in, swim out and meet it"! You have to do something towards your gaols or you will never attain them. If a cabin in Big Bear is a dream, a goal or a wish why not make it happen. Always kicking tires but never actually signing the paperwork will get you exactly what you have now and nothing now.
Prices couldn't be better than they are now. Interest rates couldn't better than they are right now. Selection couldn't be better than right now. So, what is holding you back? If you honestly want a place in Big Bear you would be a fool to pass up this opportunity. How long it will last, I do not know, but I can tell you from a buyer who has lost what I wanted a few times, this is an opportunity of a life time, don't squander it!
Until next time, BB
Tuesday, March 31, 2009
Tuesday, March 24, 2009
I hate to rub it in but it truly is another beautiful day in paradise. The sky is deep blue and there remains patches of snow here and there. The air is crisp and all is right with the world. I don't know of a better place to be besides Big Bear!
The auction is coming up soon at the Pomona Fairplex. March 28th, this Saturday. I don't know how many of you plan to attend but I wish if you go you would e-mail me and tell me how it was. I would be interested to hear. Several of the Big Bear properties have been or will be pulled because they have sold. Both of my listing that were on the auction block are now in escrow.
I am a firm believer in allowing free enterprise to succumb to supply and demand. I believe that the economy will recover on its own without government intervention. Again, it is supply and demand. When prices climb too high people stop buying. When the price adjusts they buy again. You can see that right now in real estate. The smart people and the real investors withdrew from the market when it became so over priced, and they waited! Now that real estate is "on sale", they are out buying. Why? Because they know that the prices are at a bargain and that it won't last! This is the time to act if you want to purchase real estate at a below value level. This is a window of opportunity that won't be here long. Because "the herd" will figure it out in time and begin buying too! Then prices will then rise and the whole market will turn into something else.
So, what do you do? If you are sure you want a place in Big Bear, and why wouldn't you? Now is the time for all good men ( and women) to come to Big Bear and BUY! You won't get a better price than now! Most buyers will wait because there are fearful. They will wait until prices start upward and they will buy when prices are considerably higher. That is because most buyers follow the herd, they can't step out on their own and seize the opportunity.
I am telling you...you won't get a better deal than right now. Prices are very low and there are great cabins to be had. Don't be one of the herd, instead lead the herd! If you really want a place in the mountains now is the time! Five years from now you will thank me and you will say to yourself why didn't I do it sooner! Don't miss out on the enjoyment you deserve with your family and friends in the mountains.
Until next time, BB
The auction is coming up soon at the Pomona Fairplex. March 28th, this Saturday. I don't know how many of you plan to attend but I wish if you go you would e-mail me and tell me how it was. I would be interested to hear. Several of the Big Bear properties have been or will be pulled because they have sold. Both of my listing that were on the auction block are now in escrow.
I am a firm believer in allowing free enterprise to succumb to supply and demand. I believe that the economy will recover on its own without government intervention. Again, it is supply and demand. When prices climb too high people stop buying. When the price adjusts they buy again. You can see that right now in real estate. The smart people and the real investors withdrew from the market when it became so over priced, and they waited! Now that real estate is "on sale", they are out buying. Why? Because they know that the prices are at a bargain and that it won't last! This is the time to act if you want to purchase real estate at a below value level. This is a window of opportunity that won't be here long. Because "the herd" will figure it out in time and begin buying too! Then prices will then rise and the whole market will turn into something else.
So, what do you do? If you are sure you want a place in Big Bear, and why wouldn't you? Now is the time for all good men ( and women) to come to Big Bear and BUY! You won't get a better price than now! Most buyers will wait because there are fearful. They will wait until prices start upward and they will buy when prices are considerably higher. That is because most buyers follow the herd, they can't step out on their own and seize the opportunity.
I am telling you...you won't get a better deal than right now. Prices are very low and there are great cabins to be had. Don't be one of the herd, instead lead the herd! If you really want a place in the mountains now is the time! Five years from now you will thank me and you will say to yourself why didn't I do it sooner! Don't miss out on the enjoyment you deserve with your family and friends in the mountains.
Until next time, BB
Sunday, March 22, 2009
Well, it's a snowy day in Big Bear. The wind is blowing so the snow is piling up in some places and has just covered the ground in others. The sky is dark and it looks like the beginning of winter instead of the end. As they say, "March comes in like a lion and goes out like a lamb". I think that is how it is going to be. We always look for that "March Miracle" storm that we so often get at the end of the season. So many years that "March Miracle Storm" has made the difference in a beautiful spring and summer and a full lake here in Big Bear. Happiness abounds when we receive moisture anytime because that is our only source of water in the mountains.
I have been looking at the office's statistics and comparing this first quarter of 2009 to the first quarter of 2009. What I found is that we have sold about three times as many homes as we did last year during the same period. Granted, many of those sales were bank owned properties, but they were sales none the less! Many were individual sellers not banks so we have seen an improvement. We have been in a down market for almost two years and perhaps we are seeing the turn around. The stats certainly show change for the better and the buyers have really come out of hiding and are looking once again! The listing inventory continues to remain low which is another good sign.
Whether, government intervention has made a difference or not remains to be seen. It appears that they are always "commencing to begin "but never actually get there in time! Certainly, some of what they are doing will help, someday, after it trickles down to the masses, but I believe things eventually work out mostly on their own. What has happened in the last year is most ordinarily people have made changes in their lives on their own. A year ago they may have said they would stop going to Starbucks everyday or drink less soda! Fine ideas, but not quite large enough thinking to impact the budget. If you asked those same people today what they are doing they may say that they have not only cut out a thing or two but they are now watching every penny they spend. And the kicker is they are saving money for the first time in their lives! This change in the American people happened in an instant. People basically understand that you can't spend more than you make. But, like children, they will continue until they are forced to stop by a higher authority. When your 401K is cut in half , you lose your job, or the interest on your house is re-adjusted up, you pay attention! Americans are smart people and they knew that they were over spending. It was fun while it lasted but now the party's over!
We have probably hit bottom, even though there will be more job losses. Which is really fall-out from the previous problems, lending, house foreclosures, and the stock market. At least that is all in the past and we know what we are dealing with. Everyone is now adjusting to a new way of life which is more frugal. As it should be! I continue to see a bright future! We can now do some of the things we always wanted to do. Such as? Well, many layed off workers always wanted to be a chef, a landscaper, build a business on the internet or write that book! Now there is nothing stopping you, is there? Now you can be anything you want to be! I know, you have to feed the family like we all do, but perhaps, you could work a job and do something else on the side until you can get the new career going.
When I was a kid, and that was along time ago, many of my parents friends worked a day job and they had another job going on in the garage at night. Like a little machine shop, or a bakery, or making something that they could sell until they were large enough to just do that business and quit the day job. That was after WWII and the guys that came home from the war had lots of ideas of how to make money. They weren't afraid to work harder on something they believed in. Lots of them went back to school to acquire a better eduction so they could make more money. It is no different now than then.
What we need more of is people with ideas and the determination to make those ideas pay off. We need those right brained people to get out there and start new businesses and produce products. I remember reading "Megatrends" in the 1990's and several other books and articles that said we had entered the information age and the paperless society. That we wouldn't be the manufacturer's that we had been since the industrial revolution. That third world countries could do it cheaper and outsourcing was the new buzz word. Well, I think we have proven that we can't survive just on information. We may have to get our hands dirty and start producing products here in our own country once again. And there is nothing wrong with making good, solid, needed products right here at home!
Americans are hard workers, they are full of ideas and they care about this country. So, I say let's go back to the garage or the game room or the home office and start something new! Maybe, it is a new idea on the internet. There are infinite ways to make money on the internet you just have to do some thinking! All of us can do better than we are doing now and live better at the same time. Sitting in front of the TV and drinking beer won't cut it! You have got to work smarter now and maybe a little harder. If we all did just a little extra imagine what could happen! The government can't do it. They have no money. The only money they can spend is our money, tax money. I, for one do not want more big government and government programs, unless they work! And that rarely do. So it is up to us to turn around this economy and quit whining. We can do it, but we have to get off the couch and make something happen! Instead of saying , "I can't do that", say, " How can I do that"!
Until next time, BB
I have been looking at the office's statistics and comparing this first quarter of 2009 to the first quarter of 2009. What I found is that we have sold about three times as many homes as we did last year during the same period. Granted, many of those sales were bank owned properties, but they were sales none the less! Many were individual sellers not banks so we have seen an improvement. We have been in a down market for almost two years and perhaps we are seeing the turn around. The stats certainly show change for the better and the buyers have really come out of hiding and are looking once again! The listing inventory continues to remain low which is another good sign.
Whether, government intervention has made a difference or not remains to be seen. It appears that they are always "commencing to begin "but never actually get there in time! Certainly, some of what they are doing will help, someday, after it trickles down to the masses, but I believe things eventually work out mostly on their own. What has happened in the last year is most ordinarily people have made changes in their lives on their own. A year ago they may have said they would stop going to Starbucks everyday or drink less soda! Fine ideas, but not quite large enough thinking to impact the budget. If you asked those same people today what they are doing they may say that they have not only cut out a thing or two but they are now watching every penny they spend. And the kicker is they are saving money for the first time in their lives! This change in the American people happened in an instant. People basically understand that you can't spend more than you make. But, like children, they will continue until they are forced to stop by a higher authority. When your 401K is cut in half , you lose your job, or the interest on your house is re-adjusted up, you pay attention! Americans are smart people and they knew that they were over spending. It was fun while it lasted but now the party's over!
We have probably hit bottom, even though there will be more job losses. Which is really fall-out from the previous problems, lending, house foreclosures, and the stock market. At least that is all in the past and we know what we are dealing with. Everyone is now adjusting to a new way of life which is more frugal. As it should be! I continue to see a bright future! We can now do some of the things we always wanted to do. Such as? Well, many layed off workers always wanted to be a chef, a landscaper, build a business on the internet or write that book! Now there is nothing stopping you, is there? Now you can be anything you want to be! I know, you have to feed the family like we all do, but perhaps, you could work a job and do something else on the side until you can get the new career going.
When I was a kid, and that was along time ago, many of my parents friends worked a day job and they had another job going on in the garage at night. Like a little machine shop, or a bakery, or making something that they could sell until they were large enough to just do that business and quit the day job. That was after WWII and the guys that came home from the war had lots of ideas of how to make money. They weren't afraid to work harder on something they believed in. Lots of them went back to school to acquire a better eduction so they could make more money. It is no different now than then.
What we need more of is people with ideas and the determination to make those ideas pay off. We need those right brained people to get out there and start new businesses and produce products. I remember reading "Megatrends" in the 1990's and several other books and articles that said we had entered the information age and the paperless society. That we wouldn't be the manufacturer's that we had been since the industrial revolution. That third world countries could do it cheaper and outsourcing was the new buzz word. Well, I think we have proven that we can't survive just on information. We may have to get our hands dirty and start producing products here in our own country once again. And there is nothing wrong with making good, solid, needed products right here at home!
Americans are hard workers, they are full of ideas and they care about this country. So, I say let's go back to the garage or the game room or the home office and start something new! Maybe, it is a new idea on the internet. There are infinite ways to make money on the internet you just have to do some thinking! All of us can do better than we are doing now and live better at the same time. Sitting in front of the TV and drinking beer won't cut it! You have got to work smarter now and maybe a little harder. If we all did just a little extra imagine what could happen! The government can't do it. They have no money. The only money they can spend is our money, tax money. I, for one do not want more big government and government programs, unless they work! And that rarely do. So it is up to us to turn around this economy and quit whining. We can do it, but we have to get off the couch and make something happen! Instead of saying , "I can't do that", say, " How can I do that"!
Until next time, BB
Tuesday, March 17, 2009
It is another gorgeous day in Big Bear with warmer temps and deep blue skies. It sure feels like SPRING and looks that way too! Come on up for some fresh air!
So, you think the real estate market is depressed and there are no buyers. Or, is that what you are being told on T V and in the newspaper? Well, I'm here to disagree! On Saturday I held an open house at one of my bank owned listing on Crystal Lake in the Fox Farm area of Big Bear and was I in for the shock of my life! This property was to be auctioned at the Pomona Fairplex on the 28th of this month. The auction has been heavily advertised on TV and in the papers, so many people knew about. I was required to hold an open house on the property so prospective buyers could do an inspection before the auction. I am use to having open houses and in fact I wrote a book on open houses some years ago that I continue to sell to agents around the country.
So, Saturday morning I put my signs in the car along with a couple of chairs since the house was empty and headed to the property. I had strategically placed the open house signs and unloaded my brochures, pencils, maps and the like at the house. I barely got the door open and put the things down when the traffic started. This was about 11:00 a.m. I saw the cars begin to pull up and park and I thought that is good that there are early birds because usually when I have an open house I start after lunch because the traffic is much better in the afternoon. But this day the lookers were there in the morning.
I got my table set up and arranged the items I planned to give to the visitors and then all hell broke lose! Car after car of camera toting, notebook carrying buyers poured through the door. I was inundated with more people than I could talk to. I soon realized that there was no way I could speak to all of them. So, I talked to the couples that I could, handed out flyers to the whomever I could and tried not to get upset. I have held countless open houses over the years but have never experienced this much traffic. I thought about calling another agent to come and help but there was no time to even use the phone. Questions were flying from every direction and it was hard to control the crowd. Several hours into the open house when the crowds were still coming I needed to use the ladies room. Well, that wasn't going to happen because the water was turned off at the house and I would have to go home, which was only a few blocks away but there was no way I could leave with all these people in the house! What a dilemma!
Most of the people looking heard about it from the auction advertisement but about 15 or 16 people just walked in off the street or were driving by. I had a couple of neighbors, too. All in all, I believe there were about 60 people through the house. I had nothing left to give, flyers or anything, about half way through the open house. They cleaned me out fast! Several people said to me that they really wanted the house and they planned to bid on it at the auction. I stayed for 4 hours and then I decided I couldn't handle it any more so I closed up. It was a fight to close because people kept coming before I could get the door shut. I was exausted by that point and I had to stop. I also had other business that had to be taken care of before the end of the day.
I know that TV is showing all the empty houses in the city and saying that there are no buyers. I would like to argue that point. Because on Saturday my eyes were opened by about 60 people that all want to buy a mountain cabin in Big Bear. These people either have cash or they can get a loan. They haven't lost their job, and they are living a normal life. They just recognized that there are great deals out there and that they can now afford them. So buyers are alive and well contrary to what you are hearing elsewhere! I was shocked by the number of buyers there were at my little open house. I believe that this story is repeating itself in lots of areas of this great country. Furthermore, I believe that this slump is turning around in real estate and there is a great pent up emotion out there to buy, not only resort property but family homes as well. We will be seeing more of this as the year progress.
Oh, as for the house on Crystal Lake...I sold it yesterday! So, there won't be an open house there next weekend. And, I fear there will be many unhappy people when they see that that house is not on the auction block on the 28th!
Until next time, Bonnie
So, you think the real estate market is depressed and there are no buyers. Or, is that what you are being told on T V and in the newspaper? Well, I'm here to disagree! On Saturday I held an open house at one of my bank owned listing on Crystal Lake in the Fox Farm area of Big Bear and was I in for the shock of my life! This property was to be auctioned at the Pomona Fairplex on the 28th of this month. The auction has been heavily advertised on TV and in the papers, so many people knew about. I was required to hold an open house on the property so prospective buyers could do an inspection before the auction. I am use to having open houses and in fact I wrote a book on open houses some years ago that I continue to sell to agents around the country.
So, Saturday morning I put my signs in the car along with a couple of chairs since the house was empty and headed to the property. I had strategically placed the open house signs and unloaded my brochures, pencils, maps and the like at the house. I barely got the door open and put the things down when the traffic started. This was about 11:00 a.m. I saw the cars begin to pull up and park and I thought that is good that there are early birds because usually when I have an open house I start after lunch because the traffic is much better in the afternoon. But this day the lookers were there in the morning.
I got my table set up and arranged the items I planned to give to the visitors and then all hell broke lose! Car after car of camera toting, notebook carrying buyers poured through the door. I was inundated with more people than I could talk to. I soon realized that there was no way I could speak to all of them. So, I talked to the couples that I could, handed out flyers to the whomever I could and tried not to get upset. I have held countless open houses over the years but have never experienced this much traffic. I thought about calling another agent to come and help but there was no time to even use the phone. Questions were flying from every direction and it was hard to control the crowd. Several hours into the open house when the crowds were still coming I needed to use the ladies room. Well, that wasn't going to happen because the water was turned off at the house and I would have to go home, which was only a few blocks away but there was no way I could leave with all these people in the house! What a dilemma!
Most of the people looking heard about it from the auction advertisement but about 15 or 16 people just walked in off the street or were driving by. I had a couple of neighbors, too. All in all, I believe there were about 60 people through the house. I had nothing left to give, flyers or anything, about half way through the open house. They cleaned me out fast! Several people said to me that they really wanted the house and they planned to bid on it at the auction. I stayed for 4 hours and then I decided I couldn't handle it any more so I closed up. It was a fight to close because people kept coming before I could get the door shut. I was exausted by that point and I had to stop. I also had other business that had to be taken care of before the end of the day.
I know that TV is showing all the empty houses in the city and saying that there are no buyers. I would like to argue that point. Because on Saturday my eyes were opened by about 60 people that all want to buy a mountain cabin in Big Bear. These people either have cash or they can get a loan. They haven't lost their job, and they are living a normal life. They just recognized that there are great deals out there and that they can now afford them. So buyers are alive and well contrary to what you are hearing elsewhere! I was shocked by the number of buyers there were at my little open house. I believe that this story is repeating itself in lots of areas of this great country. Furthermore, I believe that this slump is turning around in real estate and there is a great pent up emotion out there to buy, not only resort property but family homes as well. We will be seeing more of this as the year progress.
Oh, as for the house on Crystal Lake...I sold it yesterday! So, there won't be an open house there next weekend. And, I fear there will be many unhappy people when they see that that house is not on the auction block on the 28th!
Until next time, Bonnie
Wednesday, March 11, 2009
Another beautiful day in paradise! The sky is blue and the snow is melting. There is plenty of snow left to play in so come on up and enjoy!
I hear that Fannie Mae and Freddie Mac are holding back the foreclosures again. They are not proceeding with new foreclosures for the present. Perhaps, because of the new government rules that went intro effect March 5th. Part of the stimulus package to get the banks to loosen up credit as well as keep people in their homes, if possible. For whatever reason there won't be as many bank owned properties on the market in the next 90 days because of this halt. The bank owned properties we now have may dry up before the pipeline is opened again. Several of the bank owned are going to auction, as I mentioned in an earlier blog so that will leave even fewer to choose from.
Actually, this is not a problem because there are so many properties for sale that are owned by individuals which are priced as good and often times better than the bank owned properties. So, now is the time to come and look. The deals are there! Everything is on sale! Although, as the bank owned dry up prices will rise. I don't know exactly when that will be but it is going to happen. Our listing inventory is down from last year and that is another clue to market recovery. Without a glut of houses for sale prices have a chance to gain ground.
We are at a cross roads. The government money will soon take effect, many borrowers will be allowed to stay in their homes by the banks and the real estate market will begin to recover. Yes, I know that unemployment numbers are higher than usual but remember, unemployment is that last shoe to drop. What I mean is that the sub-prime loans defaulted first and then the housing market fell. The stock brokerage houses were next. Then the banks had their problems and lastly is job loss. It is the ripple effect. The jobs weren't lost over night. The who cycle had to occur for the jobs to dry up. That is how the cycle works. The ripple effect from the original sub-prime loans and real estate collapse finally got to the job sector of the economy. What we are now seeing is the tail of the cycle. Real estate was the first to fall and will be the first to recover. It won't happen overnight but we will begin some recovery.
The whole real estate thing began in only a few counties in the country. Namely, southern California, around the Detroit area and in Florida. Those were the areas that saw tremendous price increases as well. Most of the country didn't have double digit price jumps. It really doesn't matter much now because the lenders made these bad loans just about everywhere by the time it collapsed. Many borrowers qualified for a normal loan but were put into the sub-prime product because the lender make a great deal more money on the back side. That is all water over the bridge now so we have to move on.
We have felt the real estate slow down in Big Bear for over two years now so we expect it to turn around this year. I can't pinpoint when but it is coming. If you want to buy in Big Bear don't wait too long. As I have said before, it is impossible to time the market. So, look at what has happened and what will happen and make a decision. Contemplate what I also said before. You don't know how long you will live. Why wait to enjoy your dream of a place in the mountains? The kids are growing fast and you want them to build memories in your mountain cabin. Are you allowing a few thousand dollars to steal your dreams? Little difference those thousands will make in five or ten years when you go to sell the property. Historic data will tell you that the property will be worth much more in five or ten years. So, what are you waiting for? Give us a call and come to Big Bear. We will show you the best properties available!
Until next time, BB
I hear that Fannie Mae and Freddie Mac are holding back the foreclosures again. They are not proceeding with new foreclosures for the present. Perhaps, because of the new government rules that went intro effect March 5th. Part of the stimulus package to get the banks to loosen up credit as well as keep people in their homes, if possible. For whatever reason there won't be as many bank owned properties on the market in the next 90 days because of this halt. The bank owned properties we now have may dry up before the pipeline is opened again. Several of the bank owned are going to auction, as I mentioned in an earlier blog so that will leave even fewer to choose from.
Actually, this is not a problem because there are so many properties for sale that are owned by individuals which are priced as good and often times better than the bank owned properties. So, now is the time to come and look. The deals are there! Everything is on sale! Although, as the bank owned dry up prices will rise. I don't know exactly when that will be but it is going to happen. Our listing inventory is down from last year and that is another clue to market recovery. Without a glut of houses for sale prices have a chance to gain ground.
We are at a cross roads. The government money will soon take effect, many borrowers will be allowed to stay in their homes by the banks and the real estate market will begin to recover. Yes, I know that unemployment numbers are higher than usual but remember, unemployment is that last shoe to drop. What I mean is that the sub-prime loans defaulted first and then the housing market fell. The stock brokerage houses were next. Then the banks had their problems and lastly is job loss. It is the ripple effect. The jobs weren't lost over night. The who cycle had to occur for the jobs to dry up. That is how the cycle works. The ripple effect from the original sub-prime loans and real estate collapse finally got to the job sector of the economy. What we are now seeing is the tail of the cycle. Real estate was the first to fall and will be the first to recover. It won't happen overnight but we will begin some recovery.
The whole real estate thing began in only a few counties in the country. Namely, southern California, around the Detroit area and in Florida. Those were the areas that saw tremendous price increases as well. Most of the country didn't have double digit price jumps. It really doesn't matter much now because the lenders made these bad loans just about everywhere by the time it collapsed. Many borrowers qualified for a normal loan but were put into the sub-prime product because the lender make a great deal more money on the back side. That is all water over the bridge now so we have to move on.
We have felt the real estate slow down in Big Bear for over two years now so we expect it to turn around this year. I can't pinpoint when but it is coming. If you want to buy in Big Bear don't wait too long. As I have said before, it is impossible to time the market. So, look at what has happened and what will happen and make a decision. Contemplate what I also said before. You don't know how long you will live. Why wait to enjoy your dream of a place in the mountains? The kids are growing fast and you want them to build memories in your mountain cabin. Are you allowing a few thousand dollars to steal your dreams? Little difference those thousands will make in five or ten years when you go to sell the property. Historic data will tell you that the property will be worth much more in five or ten years. So, what are you waiting for? Give us a call and come to Big Bear. We will show you the best properties available!
Until next time, BB
Thursday, March 5, 2009
You're wondering if it snowed yesterday and last night in Big Bear! It was just a dusting of snow. Nothing to even shovel but is is extremely COLD! The sky is a deep blue and the snow we did get is shimmering. It is truly beautiful. The four seasons really shine in Big Bear.
Let's talk about real estate auctions. Perhaps you have heard that a Fannie Mae auction will be held on March 28, 2009 at the Fairplex in Pomona. A couple of my listings with Fannie Mae will be on the auction block on that date.
Are auctions a good deal? Sometimes! Most of the time buyers get caught up in the buying frenzy and pay way too much for the properties. I have attended many tax sale auctions in the past and I have purchased some property. However, I did my homework. If you plan to attend this auction or any other for that matter here's what you must do.
1. See the property. Do an inspection of the property so you know what you are buying and if it is a good deal.
2. Acquire comparable sales for properties that are like the subject property. Compare apples to apples, i.e., similar square footage, lot size, year built and condition. Not just whatever sold near the subject property because often times the properties are not the same.
3. Enlist the help of a knowledgeable agent to determine a price for each property you plan to bid on.
4. This is the hard part. Decide on a price you will pay for the property. One that you will not go above! If you don't have a solid price that is you limit, you, too, will fall into the "at the auction" excitement and pay too much. Believe me, I have seen it happen.
5. Under no circumstances go over your highest limit. If you do you will be sorry. Especially in a declining market where the prices are falling as you are bidding.
6. Be very careful when you hear the auctioneer say that this property was recently valued at "X". Most of the time they are taking about three or four years ago value, if that was ever the value at all. The two properties that are my listings on the chopping block have a recent value that is not what they are worth today. You want to know what they are worth now, not three years ago. And, no one is going to tell you the truth. They want to sell these houses. So, you must determine the real value well before you arrive at the auction. If you don't you will be a victim and now you will own the white elephant in the room.
If you can't do your homework DON'T GO TO THE AUCTION because you will LOSE! Remember, it is human nature to want to win. That is why at the auction people bid higher than a product is worth. If someone is bidding against you it raises your blood pressure and you want to be the one who gets the property. You want to win. So, you keep raising your price and you can't stop. That is exactly what they want you to do at an auction. Just keep your cool and stick with your plan. If you don't buy a property, perhaps it wasn't meant to be. Paying more than it is worth is not a good plan!
I once was at the tax sale auction and I saw people buying Big Bear property that was worth nothing because they didn't do their homework. They bought in what is called the "Lost Sub-Division". It is out in Erwin Lake and it is landlocked. It has no access. But they paid high prices for the lots anyway. I stopped one fellow on the way out of the auction and asked him why he bought that property for such a high price. He said,"California property is always valuable and I know that this property will be worth a lot in the future". He couldn't have been more wrong. Those lots are still worthless and that was many years ago. Those same lots are auctioned at the tax sale almost every year and some unsuspecting person buyers them.
I did buy one very nice lot in Fox Farm at the auction and I did make a profit on it. However, when you buy at the tax sale you can't get title insurance on it for one year because of the redemption period. So, I had to sit on the lot for one year. Luckily it was an escalating market and I still turned a profit. I didn't buy the other properties I wanted because other bidders ran the price up to way over the real value.
It is a learning experience and remember, all sales are final. You don't have a 17 day inspection period to make sure you really want what you bought. I can probably show you cabins listed right now in Big Bear for the price you will pay at the auction with inspection period and some guarantees about condition, etc. It's your choice, at the auction, or work with a REALTOR and allow them to find you that special place in the mountains for about the same price. There are lots of good buys "In them thar hills", right now! Call if you have questions about the above.
Until next time. BB
Let's talk about real estate auctions. Perhaps you have heard that a Fannie Mae auction will be held on March 28, 2009 at the Fairplex in Pomona. A couple of my listings with Fannie Mae will be on the auction block on that date.
Are auctions a good deal? Sometimes! Most of the time buyers get caught up in the buying frenzy and pay way too much for the properties. I have attended many tax sale auctions in the past and I have purchased some property. However, I did my homework. If you plan to attend this auction or any other for that matter here's what you must do.
1. See the property. Do an inspection of the property so you know what you are buying and if it is a good deal.
2. Acquire comparable sales for properties that are like the subject property. Compare apples to apples, i.e., similar square footage, lot size, year built and condition. Not just whatever sold near the subject property because often times the properties are not the same.
3. Enlist the help of a knowledgeable agent to determine a price for each property you plan to bid on.
4. This is the hard part. Decide on a price you will pay for the property. One that you will not go above! If you don't have a solid price that is you limit, you, too, will fall into the "at the auction" excitement and pay too much. Believe me, I have seen it happen.
5. Under no circumstances go over your highest limit. If you do you will be sorry. Especially in a declining market where the prices are falling as you are bidding.
6. Be very careful when you hear the auctioneer say that this property was recently valued at "X". Most of the time they are taking about three or four years ago value, if that was ever the value at all. The two properties that are my listings on the chopping block have a recent value that is not what they are worth today. You want to know what they are worth now, not three years ago. And, no one is going to tell you the truth. They want to sell these houses. So, you must determine the real value well before you arrive at the auction. If you don't you will be a victim and now you will own the white elephant in the room.
If you can't do your homework DON'T GO TO THE AUCTION because you will LOSE! Remember, it is human nature to want to win. That is why at the auction people bid higher than a product is worth. If someone is bidding against you it raises your blood pressure and you want to be the one who gets the property. You want to win. So, you keep raising your price and you can't stop. That is exactly what they want you to do at an auction. Just keep your cool and stick with your plan. If you don't buy a property, perhaps it wasn't meant to be. Paying more than it is worth is not a good plan!
I once was at the tax sale auction and I saw people buying Big Bear property that was worth nothing because they didn't do their homework. They bought in what is called the "Lost Sub-Division". It is out in Erwin Lake and it is landlocked. It has no access. But they paid high prices for the lots anyway. I stopped one fellow on the way out of the auction and asked him why he bought that property for such a high price. He said,"California property is always valuable and I know that this property will be worth a lot in the future". He couldn't have been more wrong. Those lots are still worthless and that was many years ago. Those same lots are auctioned at the tax sale almost every year and some unsuspecting person buyers them.
I did buy one very nice lot in Fox Farm at the auction and I did make a profit on it. However, when you buy at the tax sale you can't get title insurance on it for one year because of the redemption period. So, I had to sit on the lot for one year. Luckily it was an escalating market and I still turned a profit. I didn't buy the other properties I wanted because other bidders ran the price up to way over the real value.
It is a learning experience and remember, all sales are final. You don't have a 17 day inspection period to make sure you really want what you bought. I can probably show you cabins listed right now in Big Bear for the price you will pay at the auction with inspection period and some guarantees about condition, etc. It's your choice, at the auction, or work with a REALTOR and allow them to find you that special place in the mountains for about the same price. There are lots of good buys "In them thar hills", right now! Call if you have questions about the above.
Until next time. BB
Monday, March 2, 2009
Happy March 2nd! Spring has arrived in Big Bear. The light is different and there is more brightness. The feeling of spring is in the air and all around us! It causes that urge to go outside and enjoy the sun.
In the last three days so much snow has melted and the ground is showing in the areas of southern exposure. Seeing the ground is almost shocking after only white snow for so many weeks. It makes one think of planting.
If you heard Obama last week or read about his plans to stimulate the economy you may have come across some numbers that he and his economists have thrown out. They expect no growth in the economy this year; however, they expect 3.4% in 2010 and an even larger number, 4.5% in 20011. If that is the case we are already in recovery we just don't know it yet! Furthermore, if we are in recovery and if 2010 will bring economic growth then the cheap, cheap houseing available today in Big Bear and elsewhere will be gone sooner than we thought!
The prices we see today are a result of two years of sliding real estate values. Houseing was the first area of the economy to tank. And it will be the first to rebound. Infact, in some areas of the country signs of stabilation are alreday there. So, if you have been thinking about buying in Big Bear...don't wait too long! Unfortunately, as I have said in the past, we won't know when it actually does trun the corner. We won't know for many months that it has actually happen. It is something that can only be pinpointed afterwards. Then the ecomistists that study numbers will tell us that it was that particular day when it all headed the other way! That is well and good but...it means you could lose your edge. You want a good deal. That is what you have been looking for. Now is the time to seriously look at what is available and make a plan to buy in the next 90 days. Timing the market is almost impossible and you run the risk of actually paying much more than you would have...so, think about it. If you are a serious buyer now may be the very best time to buy!
In time, the bank owned properties will dry up. Before that happens banked owned properties will not be such a great bargain. The cycle is that at some period people are so brainwashed that foreclosures are the best deal out there that they will actually get into bidding wars and pay more than the properties are worth. While at the same time the really good deals are for sale by individuals and they are priced lower when all is said and done! I saw this ocurr in the 1990's when the market was flooded with banked owned properties from the savings and loan scandal. Buyers continued to think that bank owned houses were the best price...but because more than one buyer was bidding on the house it eventually sold for more! We are approaching that period once again! If you want a place in Big Bear now is the time to sucure it!
Timing is everything when buying. However, you are probably buying for the same reasons as most people. And, that is to build memories for your family. Or, to re-live your childhood in the snow with your kids. Those are the real reasons people buy cabins in the mountains...not just the price!
Until next time, BB
In the last three days so much snow has melted and the ground is showing in the areas of southern exposure. Seeing the ground is almost shocking after only white snow for so many weeks. It makes one think of planting.
If you heard Obama last week or read about his plans to stimulate the economy you may have come across some numbers that he and his economists have thrown out. They expect no growth in the economy this year; however, they expect 3.4% in 2010 and an even larger number, 4.5% in 20011. If that is the case we are already in recovery we just don't know it yet! Furthermore, if we are in recovery and if 2010 will bring economic growth then the cheap, cheap houseing available today in Big Bear and elsewhere will be gone sooner than we thought!
The prices we see today are a result of two years of sliding real estate values. Houseing was the first area of the economy to tank. And it will be the first to rebound. Infact, in some areas of the country signs of stabilation are alreday there. So, if you have been thinking about buying in Big Bear...don't wait too long! Unfortunately, as I have said in the past, we won't know when it actually does trun the corner. We won't know for many months that it has actually happen. It is something that can only be pinpointed afterwards. Then the ecomistists that study numbers will tell us that it was that particular day when it all headed the other way! That is well and good but...it means you could lose your edge. You want a good deal. That is what you have been looking for. Now is the time to seriously look at what is available and make a plan to buy in the next 90 days. Timing the market is almost impossible and you run the risk of actually paying much more than you would have...so, think about it. If you are a serious buyer now may be the very best time to buy!
In time, the bank owned properties will dry up. Before that happens banked owned properties will not be such a great bargain. The cycle is that at some period people are so brainwashed that foreclosures are the best deal out there that they will actually get into bidding wars and pay more than the properties are worth. While at the same time the really good deals are for sale by individuals and they are priced lower when all is said and done! I saw this ocurr in the 1990's when the market was flooded with banked owned properties from the savings and loan scandal. Buyers continued to think that bank owned houses were the best price...but because more than one buyer was bidding on the house it eventually sold for more! We are approaching that period once again! If you want a place in Big Bear now is the time to sucure it!
Timing is everything when buying. However, you are probably buying for the same reasons as most people. And, that is to build memories for your family. Or, to re-live your childhood in the snow with your kids. Those are the real reasons people buy cabins in the mountains...not just the price!
Until next time, BB
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