There's little doubt that the real estate marketplace in Big Bear and all over California has changed from a Seller's to a Buyer's market. Sale volume has dropped off from where it was at the peak in 2005. The days of quick sales and multiple offers are few and far between.

On top of the change in market conditions, the number of permits that were pulled for new construction in Big Bear has also dropped off considerably from where it was just one year ago.

Here’s the deal.  A Buyer's market in means sellers will have to fight harder to get his cabin in Big Bear sold. With the influx of bank owned, REO properties in Big Bear, the seller needs to pay a lot closer attention to the price that he asks for his cabin.   Here are 10 suggestions that are designed to help you sell your Big Bear cabin.

1.    Go for the junk -- and get rid of it. A house that is  overstuffed and cluttered with junk will look small and cramped.  Get rid of the junk and clutter.  This will open up the cabin and make it feel big and roomy.  If what you want to throw out can have value to others, see if you can help by donating goods to local charities.

2.    Price within reason. If you try to sell your cabin in Big Bear city for $400,000 when cabins similar to yours are selling for $275,000, then you are not starting off very well with the listing. The days of "testing" the market with huge asking prices, just to “see what will happen” are a thing of the past. The idea of pricing it a bit high so you have room to negotiate won’t work in this market.  Overprice your cabin and no one will look at it, let alone bring an offer.

3.    Use the best local broker you can find. This is extremely important.  Don’t be afraid to interview local agents for the job of selling your cabin.  Ask about their experience, their marketing plan and ask them to show you how successful it has been. You want a local Realtor who is experienced, knows the market, and has a solid reputation when you list your property. 

4.    How successful is the Realtor’s market plan? The technique that sells a property down the hill may not be appropriate for your cabin in Big Bear.  Don’t be afraid to ask how they plan to get your cabin sold.  You want to find the approach that's right for you and your property. 

5.    What if the home doesn't have any showings in the first 30 day? You have overpriced your cabin.  If you want to sell the cabin, you need to lower the price immediately.  Agents won’t spend time previewing your cabin if it is overpriced.  If they aren’t sold on the value, then they are not likely to show the property.

6.    Have a home equity line of credit in place.  Even if you don't expect to sell for several years, it is still a good idea to have a HELOC in place. If you find a new cabin that you want to buy, you can do so before you sell the cabin that you’re living in. Just be aware of the risk -- if your current home does not sell in a reasonable period you could face lots of mortgage payments.

7.    Make sure everything works and nothing leaks. After you go into escrow, expect the buyers to have a home inspection done on the property While this is done so the buyer is aware of what he is buying, You need to be prepared to make reasonable repairs if requested. Keep in mind, it may be better to install GFCI receptacles and fix a plumbing leak under the kitchen sink than to look for a new buyer.

8.    Ask Your Agent For Feedback After A Showing.  Find out what potential buyers thought of your place after a showing or open house. Don't take negative comments personally. Look for ideas that can help you make a better impression with the next potential buyer.

9.     Beware of buyers who want you to carry the paper.  At a time when loans are harder to get, some of your less qualified buyers will be asking you to carry the paper.  Think about it, if the bank won’t take the risk, why should you?

10.    Don't get upset with small inconveniences. If a prospect wants to see your cabin with little notice or at an odd hour, don't worry about it. It's better to show the property than to have a home which is both undisturbed and unsold.

When the time comes to buy a property in Big Bear, do you shutter at the thought of dealing with Real Estate Agents?  Have you ever been in escrow on a property and wondered if your agent was really working with your best interests in mind? 

More and more people are turning to the internet to search for their property in Big Bear.  When they think that they have found the perfect property, they still need the assistance of a Real Estate agent in order to view the property.  Even calling to get information on the property can be very frustrating.  Have you ever called the listing office to get the price on a piece of property that you're interested in, only to be told that the agent is not available?  How frustrating is that?  You would think that when you call a Real Estate office to get information, someone should be able to give you the information that you want.

How many times have you been out with a Realtor looking at property and he shows you everything but what you want to see?  Is he really listening to you?  Does he hear what you're telling him? Here's a thought, perhaps the agent has no idea what the current inventory is.  If he did, there should be no problem showing you what you are looking for.

Have you ever driven by a property that's for sale and interests you?  You call the office and find out that the office is closed.  Or, you are coming up to Big Bear to view property and you're running late because of traffic.  When you arrive at the Real Estate office, you find it closed.  . I can only imagine how frustrating that must be for you. Heck, I get frustrated when I pick up the phone to call another agent at 8:30 in the morning, and get the answering machine telling me that the office is closed.

It's no wonder that a lot of people would rather see a dentist and have a root canal than get involved with a Real Estate Agent?  I've heard the stories and can understand why people choose to group Realtors into the same category as a used car salesman.  Who wants some guy who claims to be a Realtor calling all the time who doesn't know what he is talking about?

The good news is that not all Realtors do business that way.  There is one Real Estate firm in Big Bear that doesn't work like the normal Real Estate Office.  The Tim Wood Group at Coldwell Banker's Mountain Gallery works as a team of dedicated agents who are here to serve your needs.  These eight agents are proficient in the current inventory as well as proficient in the bank owned, REO inventory.  The group has specialists in all areas of the Big Bear Real Estate market ranging from muti million dollar lakefront properties to small cabins.  If you're interests are in the ban owned, REO market, we have a group of agents who specialize in that area.  If you need to sell your home in Big Bear and it will need to be sold as a short sale, we have a agent who can walk you through the process

When I list a property for sale in Big Bear, everyone in my office knows about it.  If you call in wanting information on one of my listings and I'm not in the office, there will be a qualified agent on the phone answering all of your questions.  If you want to see the property, that agent will meet you at the property as quickly as he can to open it up for you.  If it turns out that the property isn't what you are looking for, that same agent will know of others that fit your needs and will be happy to show them to you as well.

Coldwell Banker's Mountain Gallery Realtors is open every day of the week from 8:00 A.M. until 6 P.M.  More often than not, you will find a licensed Realtor at the office at 7:00 A.M. ready to assist you with your real estate needs in Big Bear.  The next time that you're in the market to buy a cabin in Big Bear, or decide to sell your cabin, The Tim Wood Group at Coldwell Banker's is the place to turn.  You can reach me at the office any time.  If I'm not in the office, you can reach me on my cell phone, or by email.  The office number is 909 866-3481, my cell number is 909 436-8043, and you can always get hold of me by email at tony@tonycard.com

With the change in market conditions my clients are asking me a lot of questions while we're out looking at property in Big Bear.  I've compiled a list of some of the most frequently asked questions and thought I would go over them in this blog.

1)      What is going to be required to write an offer on a property in Big Bear?

Whether it is a bank owned. REO property or privately owned, you are going to need the following if you want your offer to be taken seriously.  In today’s market where money is tight, the first thing you’ll need to do is to be able to put at least 20% down.  Besides a good down payment, you should bring your pre approval letter with you when you write the offer.  Besides being able to prove that you’re qualified and you have the down payment, you should expect to write a check for 3% for your good faith deposit.

2)       What happens to my good faith deposit?  Is the check cashed?

The good faith deposit check that you give me when the offer is written is not cashed until we have a deal and we open escrow.  Until that time arrives, your check is logged in and placed in a file where it sits until we open escrow.  If the deal doesn’t go through, your check is voided and mailed back to you.

3)       How much off the asking price should I offer the seller? 

This is a very good question and one that I get asked a lot here in Big Bear.  My answer to this question is this.  Each and every home in Big Bear is different and you must look at everything when considering making the offer.  Just because a cabin in Big Bear City has been on the market for 270 days, doesn’t mean that it is overpriced.  Many homes start out overpriced and in time, the seller brings the price down to a value that makes the home a great buy at the offered price. 

4)       What is the difference between a Bank Owned, REO property and a “Short Sale”?

While we don’t have as many bank owned, REO listings as other parts of the state, we do have a fair share.  The bank owned, REO property is a property that the bank has taken back through the foreclosure process.  The “Short Sale” is a private owner who is trying to sell his property for less than he owes.  When you make an offer on a bank owned, REO property, the bank normally responds with their counter offer.  Once you accept the counter offer, you enter escrow.  The “Short Sale process works much different.  When you make an offer on a “Short Sale”, the owner of the property is the one who signs off on the offer.  Even though the owner has signed off on the offer, it is still contingent on the bank accepting the offer.  This process can take some time and there is no guarantee that the bank is going to accept the price offered.

5)       How long does the average “Short Sale” take to complete?

The time that it takes to complete the “Short Sale” can vary from bank to bank.  I’ve been involved with some “Short Sales” where the entire process is completed in 45 days.  But, more common than not, this process can carry on for 60 and 90 days.

6)       When I make an offer, does the seller have to conclude all negotiations with me before looking at another offer?

The seller can look at any and all offers when they are presented to him. He isn’t locked into any one offer until all of the paperwork has been signed and returned to the buyers.  The seller could actually rescind a counter offer that he sent out if a better offer came in and he wanted to take that offer instead of the counter offer that he sent out to you.

If you would like more information on property for sale in the Big Bear area, please contact me at either my email, tony@tonycard.com or my cell phone, 909 436-8043

If you would like more information on property for sale in the Big Bear area, please contact me at either my email, tony@tonycard.com or my cell phone, 909 436-8043

As I sit in the office this morning where it is warm and dry, I know that just outside the building we are experiencing blizzard conditions.  The much anticipated storm has arrived in Big Bear and the snow is falling faster than it can be cleared. 

It goes without saying that with all of this snow falling, there are going to be plenty of accidents on the roads, and plenty of frozen pipes.  As you think about your little cabin in Big Bear, ask yourself this question.  Did I winterize the cabin before I left it after my last visit?    Let's hope that the answer is yes.  If you forgot to winterize the cabin, you could have broken pipes and water damage when you come back to Big Bear.

Every time I sell a cabin in Big Bear, I talk to my clients about the winterizing process.  I don't go into a lot of detail at that point, but let them know a little about it.   Just before the close, we normally do a walk through and it is at that point that I spend more time with my clients talking about how to winterize the cabin.   I have found that this process, while easy to do, is foreign to many of my buyers.  Most people that buy a cabin from me in Big Bear have never heard of a stop and waste valve, let alone how or when to use it.  One thing is for sure.  If you own a cabin in Big Bear, or any of the mountain communities, you need to make sure that you winterize your cabin.

When Do I Winterize

My clients will ask me when they should I winterize the cabin.  My response to that question is that you want to winterize  at the end of summer.  You may be leaving the cabin in the middle of September when the weather is still warm, with plans to return in early October.  If, for some reason you don't make it back up when you thought you would, you now have a cabin that is vulnerable.  So, to be safe.   Anytime that you're going to be away from the cabin for more than 24 hours after September 30th, I would winterize.

How to Winterize

To take the guess work out of how to winterize you Big Bear cabin, use the handy check list below:

Outdoor Sprinklers & Landscaping

This year we shut off the outside watering system in September-just before the freeze hit. I usually shut off the sprinkler controls and then turn off the water at the house (not the meter).     We make sure to open all the spigots to drain the sprinkling system.

Indoor Plumbing

Most people shut the water off at the stop and waste valve which bleeds the cold water lines.  If you have a hot water drain, you want to drain the hot water lines as well.   You can protect sink, bathtub, and shower drain traps by pouring about 1 cup of biodegradable antifreeze down each drain.  If you have a washing machine, add a cup of anti freeze to the washing machine.  Once you have added the anti freeze, quickly start and stop the machine.  This will suck the anti freeze into the pump and prevent the washing machine from freezing.

Some people leave the water on but they winterize all pipes that are exposed to the weather with insulation or heating tape to prevent freezing.

Electricity

Some people turn off the circuits to their home. It is not a  good idea to unplug your refrigerator. Other electrical appliances may be unplugged because while may not be running, they still draw electricity.

Air Conditioning

Most of the older homes up in Big Bear do not have central air conditioning but I am seeing more and more homes with it. If you have air conditioning, make sure to cover the outside condenser.  More common in Big Bear are the window air conditioning window units.   If you use a window air conditioning unit be sure to  weatherize it with insulation and plastic

Roofing:
 
Unclogging any rain gutters before the winter is a good idea so that they will work well and any melt will run off.

As long as I've been selling Real Estate in the Big Bear Valley, we've had out of area agent's call us for help.  For starters, unless an agent is a member of the local Multiple listing Service, his or her lock box key won't work in our lock boxes.  I often wonder what their clients think of their competence when they arrive in Big Bear only to find out that their real estate agent can't open the properties that they came to see.

This morning we had a call from an out of area agent who wanted keys to one of our listings.  As is our practice, we tell them to come by the office, leave us a business card and pick up a key.  From where he told us he was, he should have been at the office in less than 3 minutes.  About ten minutes later the phone rang and it was this agent who we were waiting for.  He couldn't find the office and ended up at the airport!  Now let me say this.  Our office is not some hole in the wall office that if you blink, you'll miss.  Our office is a two story Tudor style building with a rather large Coldwell Banker sign out front.  The office is not tucked away on some side street.  The Coldwell Banker Building sits on the main road and is very hard to miss.

This little episode, while somewhat insignificant, got me thinking about the competency of these out of area agents.  Whenever I'm out showing property I get asked a lot of questions about the area.  This is only natural for a potential buyer. As they want to learn as much about Big Bear as they can. 

I'm just curious, if you are an out of area agent and you aren't familiar with the Big Bear Valley, How are you going to answer these questions?

SNOW ISSUES

1. How much snow does Big Bear get?
2. What part of the Big Bear valley gets the most snow,  East, or West?
3. Where can the kids go to play in the snow with their snow sleds?
4. I see these snow play areas.  Can we bring our own snow toys?
5. I have a 4 wheel drive vehicle.  Do I need to carry chains?
6. When should I install my chains
7. What wheels should I be installing my chains on?
8. What do they mean by R-2 Chain Restrictions?
9. When I go to buy chains, how do I know what size to buy?
10. I see the lake has frozen over.  Can we play on the ice?
11. What is the difference between Snow Summit and Bear Mountain?

LAKE ISSUES

1. How deep is Big Bear Lake?
2. Can you swim in Big Bear Lake?
3. Do I have to own lakefront property in order to use the Big Bear Lake
4. How much does a dock cost to buy?
5. Do you have to buy a permit if I own a dock?
6. Do you need a permit to use a boat on Big Bear Lake?
7. What is the fee to launch my boat into Big Bear Lake?
8. Can I rent or buy a dock?  If so, where?
9. Can I leave my boat in Big Bear Lake year round?

SCHOOL QUESTIONS

1. How are the schools in the Big Bear Valley?
2. Where is the High School?
3. How many children attend Big Bear High School?
4. How many elementary schools does the school district have in Big Bear?
5. Where is the middle School?
6. How do they determine if there will be school after a good snow storm?
7. Does Big Bear have a pre-school?

GENERAL QUESTIONS ABOUT THE BIG BEAR VALLEY

1. Are there any areas in the Big Bear Valley that do better with Vacation Rentals?
2. Does the city of Big Bear Lake regulate the Vacation Rental industry?
3. Are there any good hiking trails?
4. Do I need an adventure pass if I drive around on the forest roads?
5. Can I go into the forest and collect firewood?
6. How many roads enter and exit Big Bear?
7. Are there lakes in Baldwin Lake and Erwin Lake?
8. Are there any areas that are still on septic systems?
9. Can I drill my own well?
10. What are the setbacks on the land that I'm looking at?
11. Is the county building dept. easier to work with than the city of Big Bear Lake?
12. Where does the city limits end and what parts of the valley or in the county?

REAL ESTATE ISSUES

1. I plan on renting my cabin out after it closes escrow.  How much do you think I can get for it?
2. What areas are going to bring me the best rental numbers?
3. Can you recomend a Property Management Company to handle the rental?
4. How much do the Property Management Companies charge to handle my rental?
5. Are there any restrictions that I need to know about when renting my cabin?
6. What kind of rental activity will I get in Erwin Lake?
7. What are the building set backs on the property that I'm looking at?
8. How much money do I need to put down as a good faith deposit?  Will $1,000.00 be enough?
9. Can I buy a lake front property for under $500,000.00?
10. Can you recommend a good local home inspector?
11. What companies provide utilities for this area?

In my opinion, an agent who doesn't have  enough knowledge of the Big Bear Valley and is unable to  answer these basic questions, has no business representing a buyer in Big Bear.  How can you represent your client's best interests when you don't know anything about the area.  If you really care about your clients interests, you would seek out a qualified Realtor in Big Bear and refer the client out. 

More and more buyers are calling into my office and asking about bank owned, REO properties for sale in the Big Bear Valley.  While the number of bank owned properties for sale in Big Bear has increased, in the last few months, that number is still way below the 10% mark.

Below is a list of ank owned, REO properties for sale in the Big Bear valley as of December, 10, 2008.  Please feel free to contact me if you have any questions regarding any real estate issue within the Big Bear Valley.

MLS Number	Price	Address	Area		Number of Bedrooms	Baths	Square Footage
273042	$70,000	45375 4TH ST	Baldwin Lake		2	1	768
280180	$74,900	45385 3RD AVE	Baldwin Lake		2	1	816
281775	$129,900	45941 PARKWAY	Baldwin Lake		3	2	1448
281776	$129,900	45935 PARKWAY	Baldwin Lake		3	2	1448
282258	$154,900	1903 BALDWIN LAKE	Baldwin Lake		3	2	1246
273377	$174,900	1837 BALDWIN LAKE	Baldwin Lake		2	2	1050
282703	$259,000	45451 FOURTH	Baldwin Lake		3	2	1365
282344	$300,900	1345 BALDWIN LAKE	Baldwin Lake		3	4.5	3250
281759	$75,750	130 W COUNTRY CLUB	Big Bear City		2	1	656
282552	$107,900	824 W SHERWOOD	Big Bear City		2	1	570
282650	$122,500	1024 GREENWAY	Big Bear City		2	1	960
281994	$132,900	506 ELYSIAN	Big Bear City		2	1	848
282677	$135,000	304 E SHERWOOD	Big Bear City		2	1	816
280514	$139,900	512 E BIG BEAR	Big Bear City		4	2	1600
282654	$143,900	335 W MEADOW	Big Bear City		3	2	1376
282705	$154,900	1113 GREENWAY	Big Bear City		3	1.75	1295
282206	$166,963	1128 W COUNTRY CLUB	Big Bear City		2	1	870
280821	$167,700	1001 AEROPLANE	Big Bear City		4	2	1690
282660	$189,900	824 W RAINBOW	Big Bear City		2	1.75	1510
282663	$194,500	204 DIVISION	Big Bear City		3	2	1450
282657	$199,900	109 DAWN	Big Bear City		2	2.5	840
282671	$209,900	39977 GLENVIEW	Big Bear City		1	1	810
282239	$219,900	574 PINEWOOD	Big Bear City		3	2	1152
281659	$222,900	331 W MEADOW	Big Bear City		5	3	2059
282625	$237,500	117 GREENSPOT	Big Bear City		4	2	1704
282617	$239,900	1572 MALABAR	Big Bear City		4	3	2448
282224	$261,300	324 MONTCLAIR	Big Bear City		3	2	1590
282154	$302,047	501 COUNTRY CLUB	Big Bear City		3	2	1508
282364	$306,000	1817 SHAY	Big Bear City		3	2.5	2409
282273	$322,500	1110 MOUNTAIN	Big Bear City		3	2	1520
282382	$371,900	1237 KAYAH DRIVE	Big Bear City		4	2	2749
282624	$399,950	1618 MALABAR	Big Bear City		3	2.5	1910
281190	$130,000	40197 MILLCREEK	Big Bear Lake		0	2	600
281077	$135,000	479 TENNESSEE	Big Bear Lake		1	1	612
282676	$149,900	453 BOYD TRAIL	Big Bear Lake		2	1	950
282616	$179,900	355 CANVAS BACK	Big Bear Lake		2	1	944
282226	$188,352	438 BOYD TRAIL	Big Bear Lake		2	2	1102
282643	$189,900	40078 HILLCREST	Big Bear Lake		2	1	1080
282718	$343,900	646 SPRUCE	Big Bear Lake		5	4.75	2248
282352	$470,250	869 CAMERON	Big Bear Lake		4	2.5	2881
282347	$1,200,000	149 LAGUNITA LANE	Big Bear Lake		5	3.5	2390
282711	$329,900	41682 PARK AVENUE	Big Bear Lake		3	2	1863
282535	$799,000	717 JEFFRIES RD	Big Bear Lake		6	9	5304
280942	$76,900	960 HEMLOCK	Erwin Lake		2	1	976
282712	$114,900	2233 JUNIPER LANE	Erwin Lake		2	1	1000
282644	$139,000	879 PINE LANE	Erwin Lake		2	1	784
280718	$154,900	901 E LANE	Erwin Lake		2	2	891
282298	$169,000	2077 WOODLAND	Erwin Lake		3	1.5	1536
282431	$178,900	2076 MAHOGANY LANE	Erwin Lake		2	2	1227
282683	$194,500	824 B LANE	Erwin Lake		3	1.75	1360
282614	$749,900	1508 APPALOOSA TRAIL	Erwin Lake		4	3.5	4014
282277	$134,900	39243 CEDAR DELL	Fawnskin		2	1	748
281921	$198,000	1136 BRUIN TRAIL	Fawnskin		3	2	1280
281071	$262,500	39164 MOHAWK	Fawnskin		3	2	1854
282351	$274,900	1044 CHEROKEE	Fawnskin		3	2	1914
282415	$311,480	420 CRYSTAL LAKE	Fox Farm		3	2	1040
282649	$345,900	42745 JUNIPER	Fox Farm		3	2	1951
282363	$189,900	46807 SKYVIEW DRIVE	Lake Williams		3	2	2198
282195	$154,900	42584 COUGAR RD	Moonridge		1	1	504
282196	$159,900	1111 ALTA VISTA	Moonridge		2	1	896
282396	$189,525	43332 BOW CANYON RD.	Moonridge		2	1	875
281894	$229,900	1736 COLUMBINE	Moonridge		3	2	1296
282126	$280,000	588 VILLA GROVE	Moonridge		3	2	1902
282302	$337,900	43618 RIDGECREST	Moonridge		2	2	1930
281464	$388,455	1185 ALAMEDA	Moonridge		3	2	1760
282658	$475,000	1194 CLUBVIEW	Moonridge		3	2.5	2179
282510	$499,900	1164 ALAMEDA	Moonridge		5	4.5	3642
282555	$59,900	192 VISTA	Sugarloaf		1	1	456
282412	$84,900	538 HOLMES LANE	Sugarloaf		2	1	844
282620	$92,900	165 IMPERIAL	Sugarloaf		2	1	608
282519	$94,500	573 MAPLE	Sugarloaf		2	2	792
282155	$109,900	213 SANTA BARBARA	Sugarloaf		2	1	840
282509	$129,900	143 MAPLE LANE	Sugarloaf		2	1.5	804
282444	$133,000	516 LOS ANGELES AVE	Sugarloaf		3	1	1086
282679	$154,900	727 VICTORIA LANE	Sugarloaf		2	1.5	1024
281718	$162,900	128 SUNSET LANE	Sugarloaf		4	2	1428
282244	$229,900	826 SANTA BARBARA	Sugarloaf		3	2.5	1824
281420	$239,900	1103 CHIMNEY PEAK	Whispering Forest		3	1.5	1320
282275	$362,960	1031 MOUNT WHITNEY	Whispering Forest		4	1.75	2422

After spending time with your Realtor in Big Bear looking at property,  You find what you were looking for.  Your Realtor takes you to a perfect 3 bedroom, 2 bath cabin backing to the ski slopes in your price range.  You and the wife fall in love with it, so you make an offer. A few days after writing the offer, you are informed that the sellers accepted your offer and it is now time to open escrow.

Whenever you buy a home, in Big Bear or anywhere else for that matter, you're going to find out that many trees have lost their lives because of the volume of paper that is sent back and forth throughout the transaction.  Nine out of ten homes have at least one computer in the house and email is used as the preferred method of communication.  A lot of the paperwork is now sent electronically as it saves time.  But no matter how the paperwork arrives,  it still needs to be read and understood before signing it.

The most important piece of paper that you are going to get is the deed to the house. The deed, as defined by the First American Title is "an instrument, of various forms, by which title to real estate is conveyed from one party to another."

There are several ways you can hold title to your cabin in Big Bear. Just like the title on a car, you must also have a title to land or a cabin that you have purchased. There are several ways in which you can take ownership of your property. You need to understand the differences between them in order for you to decide which way to hold title is best for you.  Each state governs how property can be held within its boundaries, so there may be other ways to hold title than just the three that we will discuss in this blog.

The three ways to hold title that we are going to discuss are as follows.

• Joint Tenants
• Tenants in Common
• Tenancy by the entirety

You ask yourself, which is best? Well, they each offer advantages and disadvantages, depending on your particular situation,  and how you want the property to pass if you die, if you sell it,  or if you get a divorce.   After the transaction is completed, the title company records this transfer of the deed at the county courthouse.  Once recorded, you are now the rightful owner of the property.  First American Title defines these different ways of holding title as follows.

JOINT TENANTS

Two or more persons who hold title to real estate jointly, with equal rights to share in its enjoyment during their respective lives with the provision that upon the death of a joint tenant, his share in the property passes to the surviving tenants, and so on, until the full title is vested in the last survivor. A joint tenant cannot legally sell or encumber his interest without the consent of all of the other joint tenants.

TENANTS IN COMMON 

Two or more persons in whom title to a single piece of real estate is vested in such a manner that they have a common or equal right to possession and enjoyment of the property, but each holds a separate individual interest or estate in the property. Each owner may sell or encumber his respective interest or dispose of it by will, and if he dies without leaving a will, his heirs inherit his undivided.

ESTATE BY ENTIRETIES

An estate or interest in real estate predicated upon the legal fiction that a husband and wife are one person. A conveyance or devise to them (unless contrary intent is expressed) vests title in them as one person. Upon the death of either husband or wife, full title passes to the survivor."

Tenancy by the entirety may only be possible when the joint owners are husband and wife. This type of title provides for a common law right of survivorship, which means property goes automatically to the surviving spouse. No will, probate or other legal action is necessary, thus one spouse cannot use a will to leave an interest to someone else.

This form of title follows the ancient legal theory that a married couple is one entity. Conveyance of the property must be done together and the property cannot be divided without the other. If a divorce occurs, tenancy by the entirety automatically converts to tenants in common.

When you are in escrow and asked to declare how you plan to take title, you need to be sure that you understand what you are doing.  Your Realtor can explain to you what these different terms mean, but he or she can not give you legal advice.  If you are not sure of which form of holding title is best for you, I urge you to seek advice from a qualified individual.

Tony Card is a Realtor with Coldwell Banker's Mountain Gallery Realtors in Big Bear Lake, CA.  Tony specializes in the sale of REOproperties and Short Sales.  If you have any questions regarding Real Estate in the Big Bear Valley, or if you would like a list of homes for sale, email him at tony@tonycard.com or call him at the office.  That number is 909 866-3481

I chose to write this blog because of an issue that has come up in one of my escrows.  I really didn't give this any thought, until I heard another agent in our office having the same issue.  As it appears that this is not a isolated incident, I felt it was worth discussing in my REO Blog.

My clients found the home of their dreams, a REO property in Big Bear City, and after some negotiations with the bank, got an agreement and we went to escrow.  As with so many REO's this house needed some repair work.  We really didn't know the extent of the work needed until after the home inspection.  The repair list wasn't to bad and my clients are still moving towards the close.

Unbeknown to me,  the lender asked my client to send them a copy of the home inspection, and it was then that things got a little more complicated.  As I mentioned, the home needed some work, work that my clients planned to do once the escrow closed.  The lender had other plans.  They told me that because this was an REO property, they wanted certain things taken care of through escrow.  Knowing that we can't do any work on the property until escrow closes, the lender has asked for bids from licensed contractors to make repairs.  They plan on having my client bring in to escrow 1.5 times the amount of these bids.  Once escrow closes, they will be asking the contractors to go in and complete the repairs within 30 days.  Once the work is complete, any extra funds will be refunded to the buyer.

I understand their thought process in dealing with an REO property, but this is going to cause some other issues.  The biggest problem we are going to have to work through is that the cabin needs a roof.  Normally, that's not a big issue.  You call the roofer and he comes out and replaces the roof.  But, when you live in Big Bear, you have to watch the weather reports, especially once we hit October 1st.  So, the escrow is set to close on October 10th and the roofer is going to have 30 days to tear the old roof off and install a new one.  Roofers don't work when it snows and anytime after October 1st, we can have snow.

The second issue that this has caused is this.  My clients knew that the REO that they are buying is going to need work.  This is work that they plan to do once the escrow closed and before they move into it.  The work that needs to be done is work that my client says he can do.  So, why should he have to pay a contractor to do the work that he is qualified to do.

It doesn't matter if you are a buyers agent or a buyer.  I think this is something that you need to know and consider when you buy a REO property.  Not all lenders are the same and they might not all be asking for money to be held in escrow for repairs.  But again, please keep it in mind when you are ready to purchase a REOproperty and be prepared for it.

As your Big Bear REO Specialist, I can assist you with the purchase of any REO home in Big Bear.  For more information on REO properties in Big Bear, please give me a call at 909 436-8043 or send me an email is tony@tonycard.com.