Home sales in Big Bear rose over 37% in June when compared to the May numbers (77 v. 56), and over 24% when compared to June 2008 (77 v. 62). This is great news for the Big Bear real estate market.  In fact, June was the best month for home sales that we have seen since Sept. 2008.

25, or 32%, of the 77 home sales in Big Bear were bank owned. This is a little higher than last month, but still well below the 50% mark we were seeing earlier in the year.  5 of the sales, or 6%, were short sales. That means 47, or 62%, of the sales in June 2009 were “organic”, or traditional sellers - another strong months for them.

It will interesting to see how the rest of the year plays out.  There is without a doubt still a large number of foreclosure properties that will be hitting the market.  The effect they have on the  number of sales & pricing is yet to be seen.

Big Bear Home Prices

For the fourth straight month the median sales price in Big Bear has gone up. More importantly though, for the first time in well over 2 years, the median sales price increased when compared to the same month the year before.

The median sales price in June was $265,000, 13% higher than last month and a modest, yet significantly important, 7% increase from June 2008. (See the chart below for the historical median prices).

If this continues to happen, it could be the sign of a market bottom or stabilization.  But, with all the foreclosures still coming up, along with the job losses, I don’t see prices continuing to rise that much.  Every month is a new story.

There is a $45,000 difference between the median asking price of $310,000 and the median selling price of $265,000.  This is about 1/2 as much as it has been the previous months, another good sign for the real estate market here in Big Bear.

Some “organic” sellers are starting to understand that if they want to sell, they need to be priced very aggressively. More times than not though this comes after being on the market for many months - a hard lesson.

The median asking price for bank owned & short sales properties in Big Bear during June was $199,450, $65,000 below the median selling price. More importantly, it is $110,000, or 36%, below the median asking price for “organic” sellers. It is no wonder that bank owned properties in Big Bear are seeing 2-6 offers within the first 1-2 weeks there are on the market while other sellers are lucky to get 2-6 showings, let alone offers, in the first couple months.

Homes Currently on the Market

The number of properties on the market for sale in Big Bear stands at a total of 927.  This is interesting as I expected to see it rising faster than this.  It has been hovering around 900 for the past 6 months.  The lower this number stays, the better is will be for sellers as this means less competition.  And the summer season means increased buyers.  If it stays under 1000 homes for sale in Big Bear, and sales continue to pick up, things might start looking up for Big Bear home sellers.

Big Bear Home Sales - Thru June 2009

Second Quarter Comparison (4/1 - 6/30)

Year To Date Comparison (1/1- 6/30)

Year to date, sales in 2009 are up 24% from the 2008 number, but prices are still down 22%  & 20% respectively for the median & average sales prices. Prices continue to remain the same range that we saw in 2004.

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* Note: The charts above will be updated on a monthly basis. It represents single family home sales in the Big Bear area, including Big Bear Lake, Big Bear City, Moonridge, Fox Farm, Sugarloaf, Erwin Lake, & Fawnskin. Data courtesy of the Big Bear MLS. These numbers do not include raw land or condos nor does not include homes in the Big Bear MLS that are located out of the Big Bear area.

Related Articles

Big Bear Home Sales - May 2009

Bank Owned & Short Sale Homes Taking Market Share In Big Bear

This is not always the case.

A good example just happened to me this week. My clients were aware that the home was sold ” As Is ” and they knew that it was unlikely the bank would make any repairs. However, when we were doing our home inspection, it was revealed that a pipe in the wall above the kitchen sink had ruptured and water was leaking out of the light above the sink when we turned the water on. This was an issue because we were unable to finish our inspection of the plumbing due to the leak. I contacted the listing agent right away and filled him in on the situation. The next day the bank had a plumber at the property repairing the pipe so we could finish the inspection.

Another specious belief is that the bank won’t pay for a termite report or any termite repairs. Again, I have been involved in numerous transactions where the bank not only paid for a termite inspection, but also all the section 1 work that was uncovered.

The bottom line with banks is, usually, how much profit they will net at the end of the deal. As long as your offer is high enough, they will usually pay for Natural Hazard Disclosures, Home Warranties, Termite Reports, and Transfer Taxes. If you really put the screws to the bank and get a very low price, they probably won’t do anything at all. Every bank is different and every situation is unique. There really isn’t a general rule to follow in regards to buying an REO property.

I guess the lesson to be learned is, it never hurts to ask.

My name is Izzy Barden and I would love the opportunity to be your Realtor of choice in The Big Bear area. Please don’t hesitate to contact me with any questions or requests.

Izzy Barden

Foreclosure filings in Big Bear were up 20% in May 2009 compared to April 2009. And year over year, foreclosure filings were up 53% as compared to May 2008.  Foreclosure filings, which are made up on Notices of Default (NOD), Notices of Trustee Sale (NTS), and Trustee Sales, are a good indicator of the future health of any real estate market.  Accordingly, the real estate market in Big Bear stands to lose a few pounds.

Here’s the breakdown for each -

Notices of Default - at 94, they were up just 2% from April 2009, but up 50% from May 2008.  The all-time high was set in March of this year, with 107 total.

Keep in mind the NOD starts the foreclosure process.  Generally speaking, the vast majority of these properties will be hitting the market in 6-12 months.

Notices of Trustee Sale (NTS), which sets an auction date & time, shot up sharply in May. In fact, the 76 NTS filed is the largest we have ever seen in Big Bear.  That number is up 58% from the April 2009 number, and 73% from May 2008.

The number of properties that went back to the bank in May was also the highest we have seen in Big Bear history. Granted, it was only 1 higher than the previous high, it is still important.

This was a 16% increase from April’s number of 38.

Year over year, the number of properties that went back to the bank in May was up 33% from that same month last year.

Here are the monthly foreclosure numbers broken down by each area in Big Bear -

92315 = Big Bear Lake, which is made of Big Bear Lake West (the Boulder Bay area), Big Bear Lake Central (the area around the Village), Big Bear Lake East (Eagle Point area, Summit Estates), most of the Fox Farm area (including Castle Glen, Eagle Mountain, Alpine Woods, and others), & most of the Moonridge area.

92314 = Big Bear City, which includes Erwin Lake, Lake Williams, Baldwin Lake, Whispering Forest, and small parts on Moonridge & Fox Farm.

92386 = Sugarloaf.

92333 = Fawnskin area of the North Shore.

Notices of Default

Notices Of Sale

Properties Back To The Bank

Related Articles

Big Bear Foreclosure Numbers - April 2009

Big Bear Foreclosure Numbers - March 2009

Big Bear Foreclosure Numbers - February 2009

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I just wanted to share a story on a bank owned property that my client currently has in escrow. This was a very aggressively priced property in Big Bear Lake. Going in my client (who is very real estate savvy) and I knew there was going to be more than one offer. We wrote a very aggressive first offer, over asking price and very clean. We expected to at least get a best and final counter from the bank but were hoping the bank would accept his offer outright.

There turned out to be four offers on the property and all four potential buyers were given the standard best and final counter. Of course the bank only gave us a 24 hour window to submit the best offer we could.

Well, to make a long story short, my buyers went up in price and were able to get a verbal acceptance of there counter offer. So about two days later, we finally received the unsigned counter from the bank.

Now we were a little leery of not having signed paperwork because the property was such a great deal, even at the price my clients had to stretch up to. My clients feared that someone else would come and offer an insane amount, even though the offer was already verbally accepted. We submitted the counter back to the listing agent and requested the bank sign the counter and original offer ASAP.

So about five days later, and after numerous phone calls from my stressed out clients, I finally get receive an email with the entire contract signed by the bank representative. Whew! My clients could finally stop holding their breath. So I thought.

It took the bank another five days to open the escrow.

The moral of my story is not to avoid bank owned properties and short sales, it is to show you that the banks (during a short sale or REO deal) expect you to jump when they say jump but they are going to move at their own pace. Which is often similar to a snail.

So what can you do about it? Not much, just be prepared and realize that this is the market we are in and make sure your agent is on the ball. Your agent should be following up with you and guiding you through the process. Even if nothing has changed since the last update.

It makes a world of difference knowing that someone is watching out for your best interests. That is why it is so important to use an agent that has experience in dealing with whatever type of property you decide to buy. Whether it is a short sale, bank owned or probate, pre-qualify your potential agents so you are confident you can put your trust in them.

Are the transactions more stressful? Without a doubt. Is it worth getting emotional and worked up over? Not if you go into the deal realizing that it is the nature of the beast and just do your part to make it a smooth deal.

Of course all banks are different and you might not have to wait for anything, but it never hurts to be prepared for what’s coming at you.

It’s an easy mistake to make.

With so much information available online, you might just wonder why you need a Realtor. You might be thinking, I will know a good deal when I see one. You might be thinking, Real Estate people are going to try to sell me something I don’t want to buy. You might even think that the only reason you need a Realtor is to give you the price of the home and let you inside to look. You will probably end up working with the agent that has the listing.

The problem with this is that you shopped for a house, and ended up with an agent. The listing agent has a fiduciary responsibility to represent the seller’s interests first. Why not pick a Realtor that has a history of providing excellent service?

Make a conscious choice and pick a Realtor before you pick a home to buy. Don’t be afraid to shop for the Realtor that possesses the qualities you expect. Honesty, integrity, inventory knowledge, Real Estate contract knowledge, the ability to listen and communicate effectively, patience, hard work, and fast response to your questions and concerns. It won’t take long to know if you are with one of these agents. It’s pretty easy to see when you are not.

Don’t make the mistake of driving around Big Bear hoping that a house that fits your needs and price will magically appear in front of you.

An experienced agent that knows the market can direct you to the homes that fit your criteria and eliminate the need to look at the homes that don’t. I can tell you why I didn’t show you a house as quickly as why I did show you another. I really think about the time we spend looking at homes. I listen to your wants and needs and then put my past visits to the areas and properties to work.

Unless your looking for a “For Sale by Owner” FSBO, this service costs you nothing.

When a seller lists their home with a broker, they agree to pay commission. This cost does not decrease because the buyer doesn’t use an agent. The seller will more than likely still pay the full commission, just to the broker that listed the house. A good Realtor will save you money, find the best home, and protect your interests during the transaction. Why not have a Realtor represent you and your interests in the transaction?

A good out of the area Realtor will not be the best agent to use in Big Bear.

I won’t tell you that you can’t use your sister or neighbor that is a trusted friend to represent you in Big Bear for the purchase of your second home, but I can tell you that you won’t get the best service. I often see buyer’s asking for information about a house in Big Bear that they are interested in. They will ask me to open the house up and tell them about it, but then they let me know that they will be using their agent from off the hill.

If your agent doesn’t live and work the Big Bear Real Estate market, how can they provide you with proper representation?

Can they tell you the recent sales in the area? Can they tell you the areas that are in a flood zone? Will they be able to describe the procedure for winterizing your second home? Do they know the difference between a stop and waste valve and a water meter? Does your out of the area agent know the utility carriers for the home? Can the agent drive you through the neighborhood without getting lost?

Get a local Real Estate professional and then go look for a home, it will save you time and money.

Steve Hirschler

These are the quick stats for the week -

36 new residential listings for the week - 7 bank owned (19%), 5 short sales (14%), and 24 organic (67%).

33 new residential pending sales for the week - 6 bank owned (18%), 6 short sales (18%), and 21 organic (64%).

22 new residential closed sales for the week - 6 bank owned (27%), 1 short sales (5%), and 15 organic (68%).

Another strong week for organic sales, the third in a row. For several months, bank owned properties were dominating what was selling.  I think two things happened to change that - 1. the banks started holding off on foreclosures and putting their properties on the market, and 2. organic sellers started getting the point that if they want to sell, they had better price it right.

Sure, they are some random organic sellers who are getting lucky (read:overvalue) in this market, but the odds are stacked heavily against the traditional, organic seller.

See last week’s Big Bear real estate market numbers.

Big Bear Foreclosure Update For The Week

There were 9 properties that went back to the bank last week, 6 less that the week previous.

The median price that each property went back to the bank was a whopping 48%!  Big discounts at these Trustee sales.

Below are the Big Bear properties that are set up to be sold by trustee’s sale in the next week. There are 51 total, 23 more than last week.  This is one of the biggest weeks we have seen for Trustee sales.  If just half of them go to sale, that is potentially 25 new bank owned properties in Big Bear in one week!

A few of my best picks below - 440 Windsong in Castle Glen and 169 Stony Creek in Eagle Mountain.  Both of these are prestigious Fox Farm locations.

The properties above represent a good sampling of Big Bear, with nearly every area in Big Bear represented, including Erwin Lake, Baldwin Lake, Sugarloaf, Moonridge, Fox Farm, Big Bear City, and Big Bear Lake.

The best way to buy one of these properties at a Trustee’s sale is to know about it months in advance. We can help with that if you are interested.

Be sure to check back here every Monday for your Big Bear Market Update or sign up to get this emailed to you every week.

* Information updated weekly, courtesy of the Big Bear MLS. This update includes MLS data from areas including Big Bear Lake, Big Bear City, Moonridge, Fox Farm, Sugarloaf, Erwin Lake, Fawnskin & Baldwin Lake. It does not include data from areas in the Big Bear MLS that are located outside of the Big Bear area or data on properties in Big Bear that are listed in other MLS systems.

Big Bear Market Stats

We’re halfway through 2009 so I figured it would be helpful to give you an update on the activity over the first two quarters of the year.  I’ve broken down some data for the different areas of Big Bear and here’s what stands out in my opinion.

Big Bear Lake Sales- 19 out of 57 buyers paid cash so far this year in Big Bear Lake.  This includes Lakefront Sales.  19 were Bank Owned (REO) properties.  Average Days on Market was 139.  Average Price per Square Foot was $241.14/ft.  As of today, there are 208 homes for sale in the Big Bear Lake area with prices ranging from $59,000 to $4,775,000.

• Lakefront Sales- 8 out of 10 buyers paid cash so far this year along the lake.  2 sales were Bank Owned (REO) properties.  Average Days on Market was 166.  Average Price per Square Foot was $516.10/ft along the lake.  Sales bordering the water have been selling within 5 percent of the asking price with an average sales price of $1,385,020.  As of today, there are 34 homes currently listed on the Lake.  The only statistic that skews the numbers is the fact that one buyer bought 3 out of the 10 properties….so the activity isn’t as strong as it looks.   Prices currently range from $400,000 to $4,775,000 on Big Bear Lake.

Big Bear City Sales- 22 out of the 70 buyers paid cash so far in 2009 in this area.  39 sales were Bank Owned (REO) properties.  Average Days on Market was 120.  Average Price per Square Foot was $146.30/ft.  Sales in this area have been selling within 5 percent of the asking price with an average sales price of $182,900.  As of today, there are 179 homes for sale in the Big Bear City area.  62 out of the 70 sales were under $300,000 and nothing has sold over $400,000 so far this year in Big Bear City.  Prices currently range from $74,999 to $1,799,000.

Baldwin Lake Sales- 4 out of the 8 buyers paid cash in 2009 in this area.  5 sales were Bank Owned (REO) properties.  Average Days on Market was 226.  Average Price per Square Foot was $116.44/ft in Baldwin Lake.  Sales in this area have been selling within 14% of the asking price (more negotiable out here) with an average sales price of $135,912.  As of today, there are 38 homes for sale in the Baldwin Lake area.  The highest sale in this neighborhood so far this year was at $241,000.   Prices currently range from $115,000 to $1,950,000.

Erwin Lake Sales- 4 out of the 23 buyers paid cash so far in 2009 in this area.  12 sales were Bank Owned (REO) properties.  Average Days on Market was 114.  Average Price per Square Foot was $142.29/ft.  Sales in this area have been selling within 3% of the asking price with an average sales price of$259,752.  There should be an asterisk on these numbers also.  18 of the 23 sales were below $250,000 but there are acreage parcels in the area as well which skew the numbers…3 sales were over $700,000.  As of today, there are 86 homes for sale in the Erwin Lake area.  Prices currently range from $83,049 to $2,799,000.

Fawnskin Sales- 2 out of the 10 buyers paid cash so far in 2009 in this area.  4 sales were Bank Owned (REO) properties.  Average Days on Market was 214.  Average Price per Square Foot was $220.82/ft.  Sales in this area have been selling within 8% of the asking price with an average sales price of $411,570.  The asterisk on this stat is a lakefront home that just closed escrow for $1,575,000…which skews the average sales price quite a bit.  Everything else that has sold has been below $400,000.  As of today, there are 33 homes for sale in the Fawnskin area.  Prices currently range from $189,000 to $4,200,000.

Fox Farm Sales- 5 out of 17 buyers paid cash so far in 2009 in this area.  6 sales were Bank Owned (REO) properties.  Average Days on Market was 198.  Average Price per Square Foot was $193.31.  Sales in this area have been selling within 6% of the asking rice with an average sales price of $459,338.  As of today, there are 76 homes for sale in the Fox Farm area.  Prices currently range from $199,000 to $6,600,000.

Lake Williams Sales- No cash sales so far in this area, but there’s only been 3 sales so far this year.  1 Bank owned (REO) sale.  Average Days on Market was 93.  Average Price per Square Foot was $117.81/ft in Lake Williams.  With only 3 sales, the sales price to list price ratio doesn’t truly depict our market (100%).  As of today, there are 7 homes for sale ranging from $164,900 to $650,000.

Moonridge Sales- 14 out of 54 buyers paid cash so far in 2009 in this area.  19 sales were Bank Owned (REO) properties.  Average Days on Market was 154.  Average Price per Square Foot was $202.61/ft in Moonridge.  Sales in this area have been selling within 7 percent of the asking price with an average sales price of $314,870.  As of today, there are 152 homes currently for sale in the Moonridge area.  51 out of the 54 sales were below $500,000.  Prices currently range from $119,000 to $6,499,000.

Sugarloaf Sales- 16 out of 49 buyers paid cash so far in 2009 in this area.  27 sales were Bank Owned (REO) properties.  Average Days on Market was 99.  Average Price per Square Foot was $128.27/ft.  Sales in this area have been selling within 5 percent of the asking price with an average sales price of $138,017.  As of today, there are 105 homes for sale in the Sugarloaf area.  One last stat that I thought was interesting for this area:  36 out of he 49 sales were under $200,000 in this area.  Prices currently range from $40,000 to $395,000.

Whispering Forest Sales- 0 cash sales out of the 7 closed sales so far this year in Whispering Forest.  Only 1 Bank Owned (REO) property.  Average Days on Market was 117.  Average Price per Square Foot was $167.32/ft.  Sales in this area have been selling within 5 percent of the asking price with an average sales price of $256,450.  As of today, there are 17 properties for sale in the Whispering Forest area with prices ranging from $189,900 to $499,900.

What can you Takeaway from All of This?

• The numbers vary from area to area…ie, The price per square foot on the lake is averaging $516/ft whereas property in Baldwin Lake averages $116/ft.  Make sure you’re comparing apples to apples when looking at the data.  Big Bear is very non-conforming and combines quite an eclectic choice of properties to choose from.
• Some areas have been affected more by distressed sales than others….ie, over 50% of the sales in Big Bear City, Baldwin Lake, Erwin Lake, and Sugarloaf in 2009 were bank owned sales.  Knowing the statistics of each area will help you regardless of what side of the transaction you’re on (buying or selling).
• The sales price to list price ratio hasn’t changed too much over the past couple years.  If it’s priced right, it will still sell within 5-7% of the asking price.  If you’re looking to “steal a property” you might still have to pay close to asking price, but if it’s priced aggressively you shouldn’t mind paying close to asking price if you see the value in it.

If you have questions regarding any of these areas or if I can help you with your mountain home search contact me.  I’m here to help.

Mike Wochner

Mr. Clean

Recently, it seems like every property that I write up has at least two other offers that I have to compete with. While the market is still not where it was, there seem to be plenty of buyers going after the best deals. If you are a buyer who is planning on getting a ” deal “, you need to write your offer as clean as possible if you are to have any chance at success.

By ” clean “, I mean nothing extraneous. If something doesn’t have to be there, cut it out. When you are in direct competition with other buyers, the extras could make all the difference. For instance, don’t ask for a home warranty in your offer. Home warranties only cost around $300.00, aren’t that useful, and are not worth losing a property over.

Make sure that you offer 3% as a deposit. Anything less will make the seller doubt your commitment to buying to property. If you are not willing to put 3% at risk, why would a seller feel comfortable choosing your offer over one that does? The seller needs to feel like you are willing to go the distance and see this transaction through to the end.

If possible, don’t ask for a lengthy escrow period. Anything over 30 days makes it appear as though you don’t have everything in order. It also makes it seem like there is a greater chance for the escrow to fall through. Keep in mind that the market is still declining and taking a property off the market for two months may cause it to fall further in value. If you are using an FHA , VA, or other government program, you probably don’t have any choice but to ask for at least 45 days on the escrow. In that case, tell them it will be 45 days or less.

Last but not least, do not ask for anything that is not offered with the house. For instance, the home is filled with some nice furniture but, it is not offered in the listing details. Don’t ask for it in your offer. If somebody else is trying to get the furniture and you aren’t, that will make your offer look that much better. This is especially true if the items you are thinking about asking for appear to be things that might have sentimental value to the sellers. Asking for the teddy bear in guest room that the sellers Grandma gave her in 1965 is not going to weigh in your favor.

If you do everything in your power to keep your offer simple, clean, and straight forward, you will have a much better chance of getting the property you are attempting to buy. So many buyers get caught up in the belief that they need to get everything they possibly can out of a seller that they miss the boat on some great deals. I hope this has been helpful and if you want any more information or I can help you in any way, please don’t hesitate to contact me at izzy@thetimwoodgroup.com.

Izzy Barden

Home sales in Big Bear took a hit in May 2009, falling nearly 14% from May 2008 numbers - 65 in May 2008 vs. 56 in May 2009. This is the first month in 2009 where the monthly home sales were less than the same month last year.  A sign of things to come?

Compared to the April 2009 home sales, they were down just about 8% (61 vs. 56).

Year to date, sales are are still up about 23% from 2008, but that number is rapidly decreasing (231 vs. 285).  Keep in mind, sales in 2009 were close to 50% stronger after the first 3 months of this year.

14, or 25%, of the 56 home sales in Big Bear were bank owned. That is about half of what is was last month. 4, or 7%, were short sales. That means 38, or 68%, of the sales in May 2009 were “organic”, or traditional sellers.  This is good news for these sellers, as it is the first month in nearly 6 months that they have made up a majority of what is selling.

Unfortunately, I expect the bank owned & short sale properties to make up 50% or more of the sales throughout the year as there are going to be more & more coming on the market for sale.

Big Bear Home Prices

For the second straight month, the median sales price in Big Bear has gone up.

While the median price for the homes sold was down nearly 19% from the May 2008 median sales price, it was up nearly 15% from the median price in April 2009. This number tends to fluctuate a bit given the limited number of sales, but any increase is better than a consistent decrease.  This will be an important number to keep an eye on.  (See the chart below for the historical median prices).

If it starts to level off like this, that could mean a market bottom, but with all the foreclosures still coming up, along with the job losses, I remain skeptical.

There is still a $86,000 difference between the median asking price of $316,000 and the median selling price of $235,000.

Some “organic” sellers are starting to understand that if they want to sell, they need to be priced very aggressively.  Many times this comes after being on the market for many months - a hard lesson.

The median asking price for bank owned & short sales properties in Big Bear is $225,000, $10,000 under the median selling price. More importantly, it is $91,000, or 29%, below the median asking price for “organic” sellers.

Homes Currently on the Market.

The number of properties on the market for sale in Big Bear continues to hover around 900.  It has been there for the 6 months but I’d expect this number to get closer to the 1200-1300 range by late summer.  The summer selling season is when most of the homes in Big Bear sell so sellers try to take advantage of this time.  Add to the those the bank owned properties that are coming up and it should increase pretty rapidly.

Big Bear Home Sales - Thru May 2009

Year To Date Comparison (1/1- 5/31)

As mentioned above, home sales for the year are up 23% from 2008.

The median & average sales price for 2009 are down 30% & 26% respectively. Prices remain in the 2003 to 2004 levels.

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* Note: The charts above will be updated on a monthly basis. It represents single family home sales in the Big Bear area, including Big Bear Lake, Big Bear City, Moonridge, Fox Farm, Sugarloaf, Erwin Lake, & Fawnskin. Data courtesy of the Big Bear MLS. These numbers do not include raw land or condos nor does not include homes in the Big Bear MLS that are located out of the Big Bear area.

Related Articles

Big Bear Home Sales For April 2009

Bank Owned & Short Sale Homes Taking Market Share In Big Bear

If you are one of the home owners that has been on the market for over 6 months and your listing has expired (at least once), you are probably frustrated with the situation. You’re probably wondering why your agent doesn’t hold an open house. You might be asking about the photos on the property fliers and wondering if a better photo would have brought a buyer.

You may be considering offering an additional commission to the first agent that can sell your overpriced home. You might be wondering why your agent hasn’t called since the last time you expired. You’re probably tired of hearing your listing agent telling you that the market is still falling. You’re probably hoping that something miraculous happens and prices start climbing. You might be hoping the new President will some how bail you out.

Maybe you’re saying, “I don’t need to sell”.  Maybe you’re saying, “I’ll just wait for the right buyer”.

You might have better luck holding your breath in this market.

Maybe you are ignoring what the reality is. Maybe you think that a few cosmetic improvements that you’ve made to your home will give you a huge return on your investment.  Maybe you don’t understand that properties are still selling, just not the overpriced ones. Maybe you didn’t hear about the record number of defaults that will be hitting the market in the next 12 months.

Today’s buyers are brutal.

These buyers are sitting on the fence ready to jump on any wounded prey. They are ready with their pre-approved loan or cash. They know the market and have been waiting for all of the conditions that we currently have. They haven’t bought an overpriced home yet, and I don’t believe they will.

If there is one thing I need to make sure you understand, it is that this market is being driven by the bank owned, REO, foreclosure and short sale properties. Your home will not sell until you are priced to compete with these homes. We are seeing homes that are priced at market value selling within 7 days, with multiple offers.

Your home is worth more today than it will be tomorrow, so the sooner you get it priced correctly, the better.

Steve Hirschler