The Big Bear Real Estate market is continuing to show signs of weakness.  Closed sales dropped again unexpectedly to 47 units in June.  We typically would expect to see an increase in closed units at this time of year.  Interestingly, the number of pending sales has increased to over 160.  Part of the reason the closed sales have not increased is that  75 percent of all the pending transactions are either short sales or REO properties.  Short sales take much longer to close than an equity seller or an REO transaction.

Bargain hunting is the rule for buyers. Short sale properties and REO’s are driving market value with Banks and distressed sellers pricing aggressively to compete for a limited buyer pool.  Equity seller’s for the most part have not been willing to compete on price.  They represent only 25% of the current pending inventory.

More disturbing from my view for equity sellers is the fact that most don’t have to sell.  And, because of that  belief they hold on too long waiting for the market to recover and continue to lose 1% of their value each month.   Sometimes that 1% in value equals 5% of their equity When confronted with the fact that NO ONE is forecasting any significant price appreciation for at least 4-5 years.  They respond with “Well, you don’t have a crystal ball.”‘

For the next few months the dynamics and attitudes of both buyers and sellers will likely remain the same.  Call me with any questions or comments at (909) 584-2202 or email me at MarkDolan@RealtyExecutives.Com

2016 Wildhorse Lane offered at $325,000.  Call Mark Dolan (909) 584-2202 to see this home!

Mark’s Recipe for a Successful Sale!

Here are three suggestions you can implement, that will make your

sale take place quicker and put more money in you pocket at closing.

Typically, most sellers price their property based on an agent’s

recommendation or on their emotional investment in their home. The

first suggestion is to get a certified appraisal before you list your

property. The reason for this is that if the property is priced

correctly from the beginning, your property will sell without the

need for repeated price reductions. Shorter marketing time means you will

will save several monthly payments. Many Real Estate agents

inflate their estimate of the value to “buy” your listing. Then they

start “beating you up” on the price week after week until you reduce

the price correctly. I recommend that you start at the right price

and save your money.

The second suggestion is to hire a home inspector before you list the

property so you can address any concerns a potential buyer might have

before they become an issue in escrow. If the repairs are done up

front the property will show better, sell for more money, and sell in

a shorter amount of time. It also give you the opportunity to sell

the property in “as is” condition. Waiting to do repairs the last

week before closing usually costs you more because you don’t have the

luxury of time to get competitive bidding.

The third suggestion is to do your termite inspection at the time you

list the property for all the reasons mentioned above.

If you follow these suggestions you will have a solid transaction at

the time you sign the sales contract. No contingencies and no

surprise repairs at the last minute. In addition, I will reimburse

you for your out of pocket expense if you follow my suggestions. That

means it costs you nothing when the property sells through me.

Please be aware that 95% of all sellers do not follow this advice.  And, yet it works well for those willing to follow it.  If this interests you and you have any questions or need

clarification, please do not hesitate to contact me.