Living in Big Bear Lake

Category: Uncategorized

  • Bills…Bills…Bills

    A common question that I am asked by my buyers is “How much do you pay in bills?”  I’ve saved some of them over the last month just to give that information for those that are curious.  For reference, I live in my home full time (not a vacation rental, or a second home).  Also we are pretty moderate with our heating, we use our fire stove more often.

    Electric- $60.91
    Gas- $83.75
    Water – $70.98 for 2 months

    Also, if you’re interested Charter, for us is roughly $130 for internet and cable.  No house phone, don’t believe in them =)

  • Offers above asking price

    Offers above asking price

  • Motivated Seller?

    There has been analysis of the effect of certain descriptive terms in relation to sales price and time on market.  The sampling was over a three-year period of home sales in the Dallas-Fort Worth Metroplex area but relevant to all real estate markets, including the Big Bear Real Estate Market.  Agents often, and sellers urge to put the phrase “motivated seller” in a listing in hopes of generating offers quickly.  The analysis found that listings where the sellers were “motivated” resulted in a 4% lower sales prices and 15% longer time on market.  While the intent of “motivated” is to entice buyers, the opposite occurs, hurting the sellers in the end.  Still thinking of adding that to your listing?

  • The Ten Commandments When Applying for a Real Estate Loan


    1. Thou
      shalt NOT change jobs, become self-employed or quit your job.
    1. Thou
      shalt NOT buy a car, truck or van (or you may be living in it)!
    1. Thou
      shalt NOT charge cards excessively or let you accounts fall behind.
    1. Thou
      shalt NOT spend money you have set aside for closing.
    1. Thou
      shalt NOT omit debits or liabilities from your loan application.
    1. Thou
      shalt NOT buy furniture.
    1. Thou
      shalt NOT originate any inquiries into you credit.
    1. Thou
      shalt NOT make large deposits without first checking with your loan
      officer.
    1. Thou
      shalt NOT change bank accounts.
    1. Thou
      shalt NOT co-sign a loan for anyone.
  • Price Per Square Foot Per City

    Price Per Square Foot Per City

  • Attractive terms in a contract

    There are many ways to make an offer more attractive that have nothing to do with price or contingencies.

    The closing date is frequently a prime consideration for sellers. I try to determine, based on a quick phone call to the seller’s representative, what is the seller’s timing to close. Sometimes sellers want to move right away; other times sellers haven’t even identified their next property and would like some time to do so.
    Allow the seller to select escrow. Often the seller’s representative has a preferred escrow company. In a competitive bidding situation, every effort to come the seller’s way helps. Unless you have strong reasons for selecting a particular company, it may be best to allow the seller to choose the escrow company.
    Limit repair costs to a specific dollar amount, or make the transaction an as-is deal. This may help give seller’s ease that you will not be nickel-and-diming them. Simply write into the contract, “Buyer requested repairs not to exceed $500 in value.” You, of course, reserve the right to pay for repairs beyond this value, or terminate should major repair items be uncovered during the inspection. 

  • Demonstrate your financial strength

    Cash is best, of course. But if you are financing, the pecking order in terms of buyer financing (from an ability to conclude the transaction) is this:

    1. Large down payment, conventional financing.
    2. 20 percent down payment, conventional financing.
    3. Minimal down payment, VA or FHA financing
    4. Seller financing
    Other ways to put your best financial foot forward are:
    • Include a preapproval letter, not a prequalification letter with the offer.
    • Include a check with the purchase agreement.
    Make the earnest money check substantial.

  • Price talks—but it isn’t everything.

    Most sellers are looking for three things:

    1. The most money they can possibly get.
    2. A buyer with the financial ability to close the transaction.
    3. An uncomplicated deal.
    The bane of every seller is to have the deal fall apart after the house has been off the market, and the seller has already proceeded toward another home purchase. In a competitive bidding situation, I always counsel my buyers to offer their best price first. If another buyer submits a more attractive offer at the same time, we may be rejected on the spot with no chance to improve it.
    However, keep in mind that the property must appraise. A high price may win an accepted offer but ultimately cost you the deal when the property fails to appraise. Be certain any price offered is within the realm of possibility!

  • How a Realtor is like a Running Partner

    Don’t get me wrong, even I enjoy running alone and shopping alone, but I can’t discount the benefits of doing either with a partner.  There’s a reason a quote was made that two heads are better than one.  Even if you’re, like me, interested more in solo running and shopping you can greatly benefit from choosing the right person to tag along.  When I run solo, I notice I don’t have that competitive urge to race at the very end of the run.  Similiarly when I’m shopping by myself I notice I don’t think as realistically (Is it a good deal, does it look good, what’s my ROI?)  All questions my shopping partner, or your realtor would and should be doing for you.   There are many benefits to training with a partner/shopping with a Realtor, to help you get as much as you can out of your workouts or to get the best deal and negotiate the best offer for you. Here are a few of the reasons I like to buddy up when it comes to training and shopping.

    Get Motivated

    While we love the ease of getting a run in when we’re going solo, skipping a workout is even easier.  Similarly we love the ease of driving around town looking at houses whilst in Big Bear, but wouldn’t it be more effective if someone was shopping for you while you were gone?  When the weather gets blustery, or when the time change leaves you in a darkness, it’s very enticing to just hit snooze and catch a little more shuteye. Similarly, once you leave the mountain its very easy to put the ‘snooze’ button on shopping for a home since you aren’t physically in Big Bear.  Having a running partner/Realtor will hold both of you accountable to your workouts and your real estate needs so that you can develop a consistent habit and get the most out of your training and the homes your realtor is sending to you.  For my clients I like to continue to reach out to them when a home they may be interested hits the market, keeping both our motivation levels for your dream home high!

    Stay Strong

    Having someone to talk to can help pass the time on a long run, or on a particularly grueling run or learning more about the market and how to draft and submit offers based on how our market is currently performing.  A running partner/Realtor will help you power through when the going gets tough. Problem solving, stress relief, drafting an offer or discussing whats on your mind or the Big Bear Lake Real Estate market while you run/shop for homes will help you get through your run/offer on a home.

    Safety First

    There’s some truth to the old adage ‘there’s safety in numbers.’ If something unexpected happens while you’re on your run or doing inspections it’s nice to have a partner with you who can help you navigate the situation. Even if you opt not to run with a partner/shop with a Realtor, it’s a good idea to know the benefits of both sides and choose wisely!

  • Interest rates and demand

    Interest rates and demand

    Rising rates reduce affordability, but not always demand.

    While historically low mortgage interest rates certainly helped fuel the housing rebound in 2012-2013, a spike in rates that occurred in May 2013 did not appear to impact buyer demand. Many buyers become even more anxious to buy when rates begin climbing, fearing that further rate hikes will push them out of the market entirely.

    Rates are relative as well. In the mid-1980s, when mortgage interest rates were hovering near 15 percent, it was not unheard of for prospective homebuyers to camp overnight in bank parking lots to get promotional rates of 12.5% offered only to the first 200 applicants the following morning.

    A change from 3.5 percent to 5 percent can make a difference in how much a buyer can spend for a home, but it will not force many buyers out of the market.

    Take a look at the following chart which shows how mortgage interest rates have fared over time. This provides some perspective on today’s current low rates.