Christopher's Blog

Every Dog Has His Day, Whether it be Slumdog Millionaire or Mickey Rourke's chihuahua

Christopher Craddock (McKinzie Nielsen Real Estate) — Thu, 15 Jan 2009 03:48:52 -0600

Did anyone see the Golden Globes last Sunday, January 11th, 2009?

I was watching and I thought it was a pretty entertaining show--not trying to be a show, but just a lot of celebrities having fun. There were a lot of emotional moments, and lots of drinking, so there was a certain sense of anything could happen--let your hair down. Jennifer Lopez wore the most outragious dress: gold and the only thing covering her back was husband Marc Antony. Megan Fox was pretty outrageous mouth-wise on the red carpet. Maybe she was upset that boyfriend Brian Austin Green wasn't there. A somber moment when Heath Ledger won best supporting actor posthumously for "The Dark Knight." Kate Winslet won for both "The Reader" and "Revolutionary Road" and was beside herself. "Slumdog Millionaire" won the most awards--including best picture--really great if you were rooting for the underdog. Tina Fey and Alec Baldwin both won for "30 Rock."

"I'd like to thank all my dogs, the ones that are here, the ones that aren't here anymore, because sometimes when a man's alone, all you've got is your dog--and they meant the world to me."

Now, I am happy for Kate Winslet but I wish that Anne Hathaway and Marisa Tomei could have won instead.

List of Winners

More Golden Globe News

Every Dog Has Its Day at The Golden Globes--Even Slumdog Millionaire and Mickey Rourke's chihuahua

Christopher Craddock (McKinzie Nielsen Real Estate) — Wed, 14 Jan 2009 22:51:02 -0600

Did anyone see the Golden Globes last Sunday, January 11th, 2009?

My favorite moment was when Mickey Rourke--not when they blacked out the screen, no I mean when he thanked his dog. When he won Best Actor for "The Wrestler" he thanked his dogs, and gave the impression that when he was in his darkest moment, dogs were the only ones who stood by him. The story of a wrestler making a comeback paralleled his own story of a washed up actor making a comeback. What a tale of redemption.
"I'd like to thank all my dogs, the ones that are here, the ones that aren't here anymore, because sometimes when a man's alone, all you've got is your dog--and they meant the world to me."

Now, I am happy for Kate Winslet but I wish that Anne Hathaway and Marisa Tomei could have won instead.

List of Winners

More Golden Globe News

Is Bakersfield a Buyer's or a Seller's Market Now?

Christopher Craddock (McKinzie Nielsen Real Estate) — Wed, 08 Oct 2008 12:54:01 -0500

As a Real Estate Agent in Bakersfield, California I am interested in spotting trends, both nationwide and locally. One good test of whether we are in a Buyer's or a Seller's market is called the Absorption Rate. That means looking at the inventory of homes, seeing how many sold in the past month, then dividing the total inventory by the amount sold. This gives you an idea of how many months it would take to sell off all the houses at the current pace of sales if no new homes went on the market. Though the numbers are constantly changing, and this model is a simplification of what is going on, it can nevertheless give you a really good idea of what is going on. The tipping point between a Buyer's or a Seller's Market is 6 months. If it would take longer than 6 months to sell off all the available houses, then the market is saturated, and that favors the Buyer. Sellers are the Supply, and Buyers are the Demand. If it would take less than 6 months, then the Sellers have an advantage, according to the Law of Supply and Demand.

In a Buyer's Market, if you find a motivated Seller, who really wants to Sell, or has to Sell, you can make low ball offers and have a good chance of being accepted. But once the tipping point of 6 months or less absorption rate is reached then you might find lots of Buyer's trying to get the same property, and the bidding becomes competitive and you might have to offer more to out bid the others. The lower the absorption rate, the more it favors the Seller.

Let's take a look at the numbers: Right now there are 3,301 homes for sale in Bakersfield in the MLS, and of those 3,301 there are 1,151 Traditional Homes, 1,208 REO, or Bank Owned, foreclosure properties, and 942 Short Sales. The Short Sales are homes that are offered for less than what is owed on the mortgage, and they require the lender's approval. REO's have already been foreclosed and the banks are trying to sell them to recover as much of the money as possible, but Short Sales require the lenders to let the Buyers off the hook and write off the loss.

So, of the 3,301 homes for sale right now in Bakersfield 35% are Traditional Sales, 37% are REO, and 28% are Short Sale offerings. From September 1st to October 1st, 2008 there where 604 Sales in Bakersfield, California. That translates to a 5.48 month absorption rate. Of the 604 sales in September, 161 were traditional sales, 378 where REO sales, and 65 were Short Sales. That means 27% Traditional Sales, 63% REO Sales, and only 10% Short Sales.

If we break up Bakersfield by zip code, then we get different numbers. For an example, I will use the 93312 zip code, which is the zip code for where my office is located in Northwest Bakersfield. There are 352 homes for sale in 93312, with 133 being Traditional Sales, 86 being REO, and 133 being homes offered as Short Sales. That's 38% Traditional, 24% REO, and 38% Short Sale.

104 homes were sold in 93312 zip code from September 1st to October 1st. That is a 3.38 month absorption rate. 93312 is even more of a Seller's Market than Bakersfield as a whole. Of the 104 homes that sold in September, 35 or 34% were Traditional Sales, 51 or 49% were REO's, and 18 or 17% were Short Sales.

Habitat for Humanity

Christopher Craddock (McKinzie Nielsen Real Estate) — Thu, 04 Sep 2008 15:54:16 -0500

On Tuesday, September 2nd, in lieu of our usual sales meeting, a lot of agents from McKinzie Nielsen Real Estate helped build a house for Habitat for Humanity. We had a great time, and it was a great cause. Rosario, the person who will get to live in the house once it is finished, was also there helping. She is very excited and grateful to be getting a house. It was so nice to be appreciated.

We got a lot done, though we only worked until 11:00, which is the standard operating proceedure for Habitat for Humanity during the week. You get quite a sense of accomplishment. For me this was my first time volunteering for HFH, and it won't be my last!

If you want to volunteer, contact Habitat for Humanity in Bakersfield. Here is the info:

Golden Empire, HFH -
PO Box 3267
Bakersfield, CA 93385-3267

Phone: (661) 861-8449
Fax: (661) 861-8145

Email: habitatbakersfield@sbcglobal.net

Or visit their website, especially if you want to find a Habitat for Humanity in your area:

www.habitat.org

Bakersfield Real Estate Caravan, Northwest

Christopher Craddock (McKinzie Nielsen Real Estate) — Sat, 22 Mar 2008 01:46:02 -0500

Today, Friday March 21st, we had a Real Estate Caravan, and who should arrive but The Easter Bunny? Somehow, I never see The Easter Bunny and Sheryl Gallion of Ticor Title in the same place, and this has been going on since 1984?!?!?!

The Bakersfield Real Estate Caravan looked at houses in Northwest Bakersfield today, between Allen and Coffee, North of Rosedale Highway.

In other news, I found out that the LA Times only posts articles on the public website for a week, so all the links I have been putting in my Bakersfield Real Estate blog are getting broken. I am going to rethink my strategy. Also, I think my blog about taking Local Honey to stave off hay fever has had an effect, because when I went back to the store, all of the Sage and Orange Blossom Kern Honey was sold, and only the Buchwheat Honey was left. One of our agents claimed he heard a rumor about Local Honey having a beneficial effect on allergies, and I can claim full credit for spreading that rumor.

Have a Good Friday, and a good weekend.

www.ChrisCraddockRealtor.com

When the Buyers, like the swallows of Capistrano, return to Bakersfield

Christopher Craddock (McKinzie Nielsen Real Estate) — Fri, 21 Mar 2008 06:00:53 -0500

March 17th, St Patrick's Day, and then two days later, the swallows return to Capistrano. Someone I know has a birthday on March 19th, so I incorporated a little of the Capistrano legend and lore into a birthday greeting. Did you know that the swallows fly all the way from Argentina? Legend has it that they carried twigs in their beaks, so they could rest in the water, using the twigs as little life rafts. Saw a great blog from the Real Estate agents of San Juan Capistrano, who tied the story into their observation that the buyers seemed to be returning along with the swallows. Though the evidence is anecdotal, and may even be apocryphal, here it is:

When the Buyers Return to Capistrano

The next day I went to the luncheon sponsored by REPERs (Real Estate Professional's Educational Resource) and The Bakersfield chapter of The Women's Council of Realtors at the Stockdale Country Club:

WCR Bakersfield (They haven't updated their website in a while. I wonder if they would let me in to their events for free in exchange for updating their website?)

The speaker was Liz Callihan, and she brought her Texas-sized wisdom and common sense to the subject of technology in Real Estate. Smart Phones, Texting, Blogging, Tablet Lap Tops, Mobile Printers, Miniature Digital Voice Recorders, Mobile Scanners, and 500 gigabyte back-up units were just a few of the devices she demonstrated.

Want to scan receipts on-the-go, and have the information automatically entered into your accounting software? Try this neat receipt scanner:

http://www.neatreceipts.com/

Use a digital voice recorder to capture ideas--or even write the Great American Novel. Then you can use Dragon Naturally Speaking software to type it up:

http://www.dragontalk.com/

Want to have a FREE phone number where you can receive faxes and have them sent to your email? Sign up for eFax:

http://www.efax.com/

Want the latest tech info, and also great how-to videos that show you how to set up and use all these great gadgets? Try cNet:

http://www.cnet.com/

Liz Callihan had many great tips and tricks that would benefit any Real Estate Agent, business person, or entrepreneur. She recommends that you put lanyards on your keys, and all of these gadgets, so you won't lose them. For smart phones, get ones with big keyboards, and big buttons. Not only are they easier to press the buttons without hitting the one next to it, you can also see them better.

The iPhone? More like iCandy--it looks good, but you can't really use it for business.

And Vista? When you buy a new computer they try to force it on you, but they've had so many returns and complaints that you can now demand Windows XP, and Microsoft has backed off and is now committed to supporting XP for at least 2 more years.

If your computer is slow and locks up if you try to run more than 2 or 3 programs at the same time, check your RAM (Random Access Memory). Right click on the My Computer icon, and then choose Properties. It will show you how much RAM memory you have. You might have a gazillion gigs of memory on your hard drive, but then you skimped on RAM memory. Liz compared the hard drive memory to a storage unit, and the RAM was a truck. When you want to use a program, it is loaded into RAM much like a truck picks up your stuff from the storage unit. If you have tons of stuff, but then try to move it with a little tiny truck, there is a bottleneck. You need a BIG RIG!!! 2 gigabytes of RAM memory will dramatically increase your computer's speed.

Liz Callihan dropped by our office after the luncheon to talk tech (minus the geek speak) with our sales manager, Nancy Harper, and I. She really has a gift for explaining how to use technology in plain English. Her engagement for the WCR is an annual event. Here is Liz Callihan's web site:

http://www.pfmgurus.com/

Another National Speaker on useful technology is Dick Betts. His website has a lot of useful information as well:

http://www.dickbetts.com/

Remember, The Key to Bakersfield Real Estate is Chris Craddock, Realtor.

http://www.chriscraddockrealtor.com/

Home Tours, Mortgages, and Auctions

Christopher Craddock (McKinzie Nielsen Real Estate) — Thu, 20 Mar 2008 02:49:31 -0500

Home Tours

http://www.bakersfield.com/137/story/388543.html

In the Bakersfield Californian, there was a story about home tours. That is where an agent rents a bus or van and then takes a group of buyers out to look at houses. I have noticed a lot of activity lately, with buyers out there looking for bargains. Some are waiting to see when the market hits the bottom, but others are out there now, getting great deals, and having a lot of options to choose from, with so many houses on the market now.

I am reminded of the joke about, "No one goes downtown anymore. It's too crowded." We are seeing multiple offers now, mostly on aggresively priced REOs, but still. Multiple offers. There is a lot of demand in the $200-$250 range, and I would expect that is because they are first time home buyers who don't have to worry about selling their own house first. I wouldn't be surprised if the low listing price was used as a strategy. It looks like a great deal, so it gets multiple offers, and the price gets bid up, much like what happens in an auction. They end up paying more for the house than other houses that were originally listed higher.

Stock Market Tumble

http://www.latimes.com/business/la-fi-world18mar18,0,5869457.story

Here is an article from the LA Times about the stock market tumble, I think as a reaction to the news about Bear & Stearns being sold at fire sale prices. The stock market is up, then down, then back up. It is like a roller coaster. Same thing with the mortgage rates. For the most part, the rates if graphed would be a soft curve, but lately, it looks like a roller coaster. Up and down, a jagged lightning bolt--some days they couldn't even set a rate, it was all in a state of flux. This is a highly unusual market.

Sub-prime mortgage watchdogs kept on leash

http://www.latimes.com/business/la-fi-subprime17mar17,1,1725852.story

Here is another story from the LA Times, about the sub-prime watchdogs. It seems that the lenders weren't interested in hearing about potential problems coming down the pipeline. No wonder we are in such a mess now. This is a pretty good article if you are interested in hearing about how we have gotten ourselves into this situation.

Notes from a foreclosure auction

http://latimesblogs.latimes.com/laland/2008/03/notes-from-a-fo.html

Here is a blog from the LA Times about what goes on at a foreclosure auction. Some of our REO listings are offered at these auctions, but I have heard that you might win the auction, and think you have a house, but the banks won't approve it, and will counter offer. This doesn't seem fair, if they only sell the houses that are market value or over bid. The whole point of an auction is to get a great deal.

A lot of the REO listings that went to these auctions didn't sell, and were back on the market a month later. Also, if they did sell at the auction, the commission paid to the sales agent was so small that it wouldn't be worth it. But that isn't a concern to the sort of person looking for a deal at one of these auctions. Just don't expect a Real Estate Agent to help you with it. You might think I am just talking it down because of self interest, but while sitting an open house for one of these auction properties, an investor came and told me that he had put in a low bid, the highest bid, so he should have gotten it, but then the bank backed out. Now, if he had gone overboard, swept up in "auction fever" and bid too much, they would have held him to it. In the case I was told about, it was a bid of $100,000 on a property that was listed at $160,000.

Bidding for a bargain on the foreclosure auction block

http://www.latimes.com/business/la-fi-auction17mar17,1,2340922.story

Here is a related story in the LA Times about the old auction block.

Finally, I just want to say that FHA Loans are looking better these days. Some lenders don't like to do them because of the extra work involved, but they offer a lot of advantages to the borrower. FHA loans have changed, and a lot of the reasons why people disliked them are no longer true.

If your credit score is not so high, and if you have a high debt to income ratio, and if you need some assistance with the down payment, then FHA might be the loan for you. Anyway, consider it as an option, and if your lender bad mouths it, it could be because they are not set up to do FHA loans. There is still some extra work and forms required, but if you get a lender who knows how to do FHA loans, they could have a lot of benefits for you, the borrower.

There are also some great VA loans out there for you veterans!

Financial Forecast

Christopher Craddock (McKinzie Nielsen Real Estate) — Wed, 12 Mar 2008 02:54:19 -0500

I am constantly scanning the media, looking for signs about which direction our economy is going, and wondering how that will affect the housing market. They say that Economics is "the dismal science" but I find it exciting--especially when you translate all the numbers, graphs, and trends into cold, hard cash. It's all about the Benjamin's (as in Benjamin Franklin, the face on the $100).

Here are a few articles I have found, and not all the news is bad.

Playing the Housing Slump:
Is It Time to Make Your Move?

The article in the Wall Street Journal actually says that NOW is a good time to buy a house. But not so good to sell a house. It is a buyer's market, but if you must first sell your current house before you can buy, then it is a little harder to take advantage of the housing slump. But if you want to trade up to a bigger and better house, now is still a good time. Though you would lose a bit on the sale of your current house, you would make up for it on the other end. Or if you want to buy a second house as a vacation home, now is also good. Finally, if you want to help your kids get their first home, now would be a great time.

UCLA experts don't buy recession

Those whacky, contrarian economists over at UCLA are saying that 2008 will be disappointing, but not a recession. They claim that they predicted the last recession, when the conventional wisdom was that we weren't headed for one. If they are right again, that could be good news. Read all about it in the LA Times.
Bernanke Seeks to Avert Deeper Slump by Accepting Mortgage Debt

Bloomberg reports on that other Benjamin, Bernanke, and his vigorous efforts to shore up our economy. Again, it's all about the Benjamins.

Stocks Rise on Fed Lifeline to Wall St.

This is a related story about the same thing, the Benjamins, i.e. Bernanke and the feds. This time it is from NPR (National Public Radio) instead of Bloomberg.

Credit Proves Tough Even for Good Borrowers

For people who don't like to read that much, this is a pod cast from NPR's Morning Edition of March 11th, 2008: Renee Montagne gets a firsthand account of the paralysis in the credit markets with Hugh Johnson, chief investment strategist at Johnson Illington Advisors. Johnson says borrowers are reluctant to make loans these days even to people with good credit.

Charming and Clean Mobile in 55+ Park by Kern River

Christopher Craddock (McKinzie Nielsen Real Estate) — Mon, 10 Mar 2008 21:07:16 -0500

I am still a little young for this, but wouldn't it be nice to just get a mobile home out in Kernville by the Kern River?

There's the South San Joaquin where the seeds of the dustbowl are found.
And there's a place called Mount Whitney where the mighty Kern River comes down.
It's not deep nor wide but it's a mean piece o' water, my friend.
I might cross on the highway, but I'll never swim Kern River again . . .

~Merle Haggard

Leap Day for Bakersfield Real Estate Caravan

Christopher Craddock (McKinzie Nielsen Real Estate) — Fri, 29 Feb 2008 21:34:43 -0600

On Leap Day, The Bakersfield Real Estate Caravan leaped from Thursday to Friday, and from Hometown Buffett to the Bakersfield Association of Realtors.

We looked at nine properties South of Ming Avenue, between Hwy 99 and Gosford Avenue. We call this Area 52, or Southwest Bakersfield.

Prices ranged from $176,000 to $317,000, and there were Short Sales, REOs, Resale, and New Construction.

Houses were on Chesire Dr, Westporte Ct, Half Moon, Plaquemines, Rio Viejo Dr, Whitegate Ave, Domingo St, Brazil Ave, and Trentino Ave.

Brian Tracy $ales $eminar in Fresno on Valentine's Day 2008

Christopher Craddock (McKinzie Nielsen Real Estate) — Thu, 14 Feb 2008 22:01:29 -0600

Armed with only an overhead projector, some water based felt pens, and a few transparenceys, Brian Tracy gave an excellent sales seminar at the Raddison Hotel in Fresno, California on Valentine's Day 2008.

Chris Craddock, Realtor, of Bakersfield, California attended and was inspired to stay until the bitter end, picking up lots of great sales techniques. Closing sales is the one topic that Mr Craddock is going to focus on, and he hopes to show major improvement by August 8, 2008, or 8-8-08!!!! That is just under 6 months away.

Bakersfield Real Estate, Miami Condo Vultures, & Magical Misery Tour of Stockton

Christopher Craddock (McKinzie Nielsen Real Estate) — Sat, 15 Dec 2007 05:10:09 -0600

Recently, I saw a segment on Nightline that got me thinking. It was called "Condo Vultures" and it aired on November 14^th, 2007: Condo Vultures Zero in on a Dwindling Market, by Jeffrey Kofman and Howard Rosenberg.

What I liked about it was the dramatic skyline of Miami, like you see on CSI: Miami, with a lot of high rise condominiums shooting up to the sky, construction going all gangbusters-but then the market peaked in October 2005, and all the investors hoping to flip the condos were stuck with upside down mortgages. In the Miami area, speculators predict that 24,000 new condos will be completed in the next two years. Against the dramatic skyline suddenly there appear vultures. Actual vultures flying over the condos. You couldn't ask for a better metaphor of what was going on, with people seeking to capitalize on the glut of condos, the market correction, and the incredible deals they were sure to get when the market hits bottom.

Is the glass half empty, or half full? When you're handed a lemon, make lemonade. The agent in this story couldn't have been better cast if he had been culled from central casting, for a remake, update of Glengarry GlenRoss. Caffeine-fueled quick talker Real Estate Agent Peter Zalewski was opening up his lemonade stand, big time. A baseball statistic fanatic, he developed software to track just how desperate the sellers were-like if a property has been on the market for over 100 days and has had a price reduction of $100,000 or 10%. In one scene he is shown explaining to a potential buyer that the unfinished floor is a sign that the owner is in trouble-he has run out of money to finish the project and just wants to get out of Dodge, pronto.

Another article along similar lines was in the L.A. Times on December 13^th, 2007. This one centered on Stockton, California, which is the leading city for foreclosures, according to some analysts. If you think it is bad in Bakersfield, Stockton is actually in worse shape. This article was entitled "The Magical Misery Tour," by Los Angeles Times staff writer Steve Chawkins, and it told of how real estate agent Cesar Dias leads a weekly Repo Home Tour, filling two 18-seat buses with prospective buyers eager to see foreclosed houses that can be snagged at dramatically reduced prices.

Dias, a native of Stockton, said that when he started the free tour in September, some residents criticized it as a tasteless marketing gimmick. But as headlines announce record foreclosures and lawns dry up in the yards of abandoned homes, their tune has changed.

"We're bringing in homeowners to get the grass green again," he was quoted in the article. I guess the grass is always greener on the other side, but in Stockton, the pools are greener, and the lawns are browner.

Back in Bakersfield, I checked the Multiple Listing Service and found over 800 REO listings in Kern County. At our office, McKinzie Nielsen Real Estate, we have three agents listing REO, bank-owned foreclosure properties: Linda Banales, Ron Sullivan, and Dennis Fox. Mr. Fox is in the top three agents of Bakersfield REO agents. We have all noticed a lot of floor calls from buyers looking for bargains, and asking for foreclosure properties. Dave Nielsen asked me to put the REOs on his website, which I was able to do. Check out his web site to see most of the Bakersfield Real Estate that is bank-owned.

www.DaveNielsenHomes.com

Who knows? You might receive an incredible deal, and find that every cloud does have a silver lining.

The Rise and Fall of the BLS

Christopher Craddock (McKinzie Nielsen Real Estate) — Fri, 14 Dec 2007 21:17:20 -0600

For those of you who don't live in Bakersfield, this story might still be of interest because it shows what happened when a privately owned Multiple Listing Service was created to try and compete with the already existing one.

The Bakersfield Association of Realtors has been around a long time, for more than a century. Since early on they have had a Multiple Listing Service, where all of the various Real Estate offices and agents would list all of the houses currently for sale. Before computers, this list would be printed out in big binders, and the agents would sift through the information manually. Once computers came about, all that changed. Now, available houses could be searched online, and digital images, Virtual Tours, and YouTube vignettes can be included as part of the information about the house for sale.

The Multiple Listing Service was almost synonymous with the Bakersfield Association of Realtors. They were actually separate entities, intertwined, intimately blended, yet distinct. By belonging to the Association, you were also bound by the rules of the Association, and one of those rules was that you stated how much commission would be paid to the Buyer's Agent in the MLS, and you abided by that agreement.

That was how it was in 2001, when I first began working in Bakersfield Real Estate. I worked at Watson, which was one of the biggest and best known offices in Bakersfield. It had a long history in Bakersfield, and the national chains and franchises that opened up had a hard time establishing themselves in its formidable shadow. It was a happy place to work, and I have many fond memories. But lots of agents grew unhappy and started opening up their own offices. This exodus of agents coincided with a Real Estate Boom the likes of which Bakersfield had never seen before. The more the money flowed in, the greedier people got. It was an insane time, in a lot of ways.

New construction was booming. There were massive construction companies, corporate entities with offices far away, and also smaller builders, thriving in places like the Northwest. The demand for new houses was so sharp that the supply couldn't keep up. Builders would make customers line up like rock fans, camping out and sleeping overnight in lines so they would be there first thing in the morning. Builders wouldn't cooperate with Real Estate Agents, wouldn't pay the Buyer's Agent any commission. If you had been showing a buyer houses and he decided to buy new construction, it meant that all of that time you had worked finding them a house was completely wasted. You would not be getting paid.

Builders got very greedy, and as the prices began to rise steeply, they got even greedier. Upset that the prices they had agreed upon when the project started, perhaps 6 months ago, were now obsolete, hopelessly low. Builders had ingenious ways to break their sales contracts so that they could offer the houses on the current market. If you showed up at a building site, and so much as set foot on the property, they would tear up your contract due to your trespassing. One buyer complained and threatened to sue, and when he said he was a lawyer, the builder tore up the contract because he didn't like lawyers. He had a rule that he would sell houses to lawyers. The lawyer, of course, tried to sue, but the judge ruled that you could discriminate against lawyers, as it was neither a race, religion nor creed, and was NOT protected. Another scam was putting the cabinets upside down. If you got mad, and yelled at the builder, he would escalate the tension, and get you madder. If you got mad enough, you yelled that you didn't even want the house. You would think the builder was stupid, and worry about the slipshod way the house had been thrown together, and wonder what else he had done wrong. But he would be laughing at you, because he played you like a Stradivarius.

New construction was booming, but resale residential home sales were also exploding. The demand was so great that listing a house and receiving multiple offers on the first day was the norm. The rapid appreciation led to lots of investors speculating on Real Estate. This drove the prices even higher. In this climate, the discount brokers thrived. Why pay high commissions when the houses practically sold themselves? Lots of companies sprang up that cut out all the frills, all the service, and just did the bare minimum, at a greatly reduced rate. Truth be told, there was hardly time to do any work before the house was sold.

Just after I left Watson was when I heard that they were starting their own Multiple Listing Service, which they named the Bakersfield Listing Service, the BLS for short. 5 big Real Estate companies: Watson, GMAC Stroope, Coldwell Banker Preferred, Coldwell Banker America West, and KW Associates, cooked up this bright idea. They claimed that they were doing it because they were dissatisfied with the MLS, and the BLS was touted as being technically superior. To other Real Estate Agents they claimed they did it to cut back on the amount of discount brokers, and out-of-town agents. But there were two reasons why they actually did it:

1. They thought it would give them a strategic advantage.

2. It would be run as a private business, with the profits accruing to them.

The BLS had a large fee that had to be paid by the broker for an office to join it. This favored the larger companies, because only large offices could afford to pay this fee. If you only had one or two agents, you still had to pay this big per office fee. They also had a larger agent fee to belong. The fee paid by each agent individually to belong to the BLS was much more. The MLS really didn't charge very much. Out-of-Town Agents could afford to join just to make a single deal. But the BLS cost a lot more. You also had to buy new lockboxes. This was a technical innovation that the MLS hadn't embraced yet, but perhaps in response to the BLS, the MLS converted to the newer lockboxes.

When the BLS was announced, nobody else liked the idea, except for one notable exception. A town hall meeting was called, and a lot of impassioned speeches were given denouncing the BLS. Don Cohen was then the incoming President of the Association of Realtors, and he gave the most memorable speech. He and others spoke as if we were being attacked by the BLS, and that it might be a long fight, but in the end, justice would prevail.

Another Broker of a medium sized company (he had one of the first Real Estate cable television programs) thought that the BLS might prevail. The MLS was hampered by the fact that it was just an association, but the MLS could make executive decisions, plus they had a huge budget that they could spend at their own discretion, on advertising, promotion, and whatever else it would take to reach the tipping point in their favor. His strategy was going to be to join both, and then advertise that as an advantage. I felt that he was selling out, and was angry that he was going to pay their dues, give them money, and help them grow stronger-but in the end, we all ended up following his strategy.

A reporter from the Bakersfield Californian was there, but nothing of substance was ever reported about the BLS in the Bakersfield Californian, because the Bakersfield Californian was a partner in the BLS. The Bakersfield Californian had a deal to post the BLS listings on its website. The view of most Realtors who opposed the BLS was never given voice in the paper, as the Bakersfield Californian had a stake in their success. Though the owners of the paper and the journalists who wrote for the paper were supposed to be independent, truth was that any negative views of the BLS were either censored by the powers that be, or the journalists merely self censored, in fear of reprisals. The Bakersfield Californian betrayed the Real Estate community, plain and simple.

The previously mentioned notable exception who liked the idea was Touchstone. They served champagne at a BLS unveiling, and right from the beginning joined the BLS as enthusiastic partners. Touchstone was formed from new construction profits. They billed themselves as "Doing Real Estate Different" and seemed to grow like mushrooms overnight. Their billboards were everywhere, it seemed.

For the non-BLS Agents, the BLS was a major hassle. If you wanted to show one of their properties, you had to go to the office and get keys, then after showing houses, you would have to drive all the way back and return them. If you had to get keys from several offices, and then the houses were on the other side of town, you were talking about a tremendous amount of time and gasoline. Also, I remember returning keys, but the receptionist would forget to log it in, or lose the key, and they would keep calling you back, asking for the key, over and over.

The other hassle, an even bigger one, it turned out, was that BLS offices started claiming that they wouldn't pay commissions to non-BLS agents. This threat was carried out, a few times that I know of, by the BLS companies. The first one I heard of was KW Associates, which stood for Karen Wass Associates. One of her agents paid only 1.5% to the Buyer's agent, which was much less than the commission promised in the BLS. KW Associates were later bought out by Prudential, but I mention this in passing only, as the sale of the company wasn't affected by the BLS.

The other deal I heard about, where they refused to pay the commission to the Buyer's Agent, was Watson. Of course, once KW and Watson had tried this tactic, someone did it to them. A loan officer I know happened to be in the office when Ken Carter, President of Watson, and Scott Tobias, then Sales Manager, learned of this. They didn't care for it, and were quite upset. They could dish it out, but they couldn't take it.

At one point there was talk of the BLS and MLS merging, or both co-existing in mutual harmony, but this was one of the points of disagreement. Another one was the issue of who owns listing data. The BLS stripped all the data from the MLS and fed it into the BLS-but they didn't post it on the Bakersfield Californian website. So, the public, searching their listings online, would never find any MLS listings, only the BLS. The BLS Agents could see both MLS and BLS listings. This was the issue that the MLS sued the BLS over, but the MLS lost, when the BLS folded the point became moot.

Meanwhile MLS only Agents couldn't see BLS listings, but most of the ones I knew just got a password from a BLS Agent and hacked in.

The Five BLS offices, the ones who started it, made all of their agents drop out of the MLS. This was their big mistake. Now they were at a strategic disadvantage-they were left out in the cold, the way everyone else had been when they started. Touchstone and some other independents remained in the MLS. To be in both was still a hassle, but at least you didn't have to drive all over town, getting and returning keys. It was a major expense, though, paying both MLS and BLS dues, and having to have two keypads, one to open BLS and one to open MLS lockboxes, and two lockboxes for every listing, one BLS and one MLS. The lockboxes were incompatible, although they were the exact same thing, but programmed different. You had to label which one was which, since they looked exactly alike.

Anyway, the strategy of joining the BLS to kill it was working. When the BLS offices forced their agents to drop out of the MLS a lot of disgruntled agents left their companies. Also, home owners wouldn't want to list with them once they found out that they would only list it in the BLS, only market it to BLS members. In spite of the money the BLS was bringing in, it was also probably costing a lot, what with all the cutting edge technology that most agents couldn't use, and that often didn't work, and the lawsuits, and all the Agents who were leaving, and clients who chose MLS or MLS/BLS.

The BLS quietly shut its doors, and Agents throughout Bakersfield sighed in relief. A lot of bad blood had poisoned the waters, but since the whole BLS fiasco had backfired on its perpetrators, most were content to let the poisoned water be water under the bridge.

The recent merger of Touchstone and Watson, now called Watson Touchstone, is bittersweet irony. The champagne they toasted the BLS with seems all the more poignant, as they were toasting the thing that would eventually drag Watson down to their level, to the point that they could merge as more-or-less equal partners. Touchstone had joined the BLS to kill the BLS, and the BLS had nearly killed Watson.

Caravan for September 6, 2007

Christopher Craddock (McKinzie Nielsen Real Estate) — Mon, 10 Sep 2007 17:15:17 -0500

The Bakersfield Caravan went to the following houses on September 6th, 2007, and made the following guesses about what the houses would sell for:

2902 Eagle Valley Pl Bakersfield, CA 93313, Listing Agent: Robert Dobbs. DOM: 88. BD: 4. BA: 2.75. Sq Ft: 2091. Listing Price: $323,900. Sale Price Gue$$timates. Joan Johnson: $299,000, Helen Martinez: $299,000, Kandie Miller: $299,000, Lucia Hewitt: $289,000, Chris Craddock: $299,123, Marge Fredenburg: $315,000, Lana Churchwell: $315,000, Average: $302,160.

3300 Charlotte St Bakersfield, CA 93313, Listing Agent: Lucia M Hewitt. DOM: 7. BD: 3. BA: 1.75. Sq Ft: 1305. Listing Price: $229,000. Sale Price Gue$$timates. Joan Johnson: $215,000, Helen Martinez: $215,000, Kandie Miller: $210,000, Lucia Hewitt: $210,000, Chris Craddock: $211,111, Marge Fredenburg: $220,000, Lana Churchwell: $220,000, Average: $214,444.

4316 Thatch Ave Bakersfield, CA 93313, Listing Agent: Kandie M Miller. DOM: 124. BD: 3. BA: 2. Sq Ft: 1554. Listing Price: $269,500. Sale Price Gue$$timates. Joan Johnson: $259,000, Helen Martinez: $269,500, Kandie Miller: $259,000, Lucia Hewitt: $259,500, Chris Craddock: $255,555, Marge Fredenburg: $250,000, Lana Churchwell: $250,000, Average: $257,508.

5311 White Pine Bakersfield, CA 93313, Listing Agent: Marvin Bush. DOM: 16. BD: 3. BA: 2. Sq Ft: 1113. Listing Price: $220,000. Sale Price Gue$$timates. Joan Johnson: $199,000, Helen Martinez: $220,000, Kandie Miller: $205,000, Lucia Hewitt: $210,000, Chris Craddock: $198,000, Marge Fredenburg: $199,000, Lana Churchwell: $200,000, Average: $204,429.

6900 Seapines Dr #1 Bakersfield, CA 93309-4348, Listing Agent: Charles R Dawson. DOM: 130. BD: 3. BA: 2. Sq Ft: 1903. Listing Price: $280,000. Sale Price Gue$$timates. Joan Johnson: $225,000, Helen Martinez: $250,000, Kandie Miller: $260,000, Lucia Hewitt: $229,000, Chris Craddock: $222,000, Marge Fredenburg: $269,000, Lana Churchwell: $270,000, Average: $246,429.

7110 Rogue River Dr Bakersfield, CA, Listing Agent: Nance Fillmore. DOM: 255. BD: 3. BA: 1.75. Sq Ft: 1498. Listing Price: $251,000. Sale Price Gue$$timates. Joan Johnson: $235,900, Helen Martinez: $220,000, Kandie Miller: $235,000, Lucia Hewitt: $230,000, Chris Craddock: $230,000, Marge Fredenburg: $230,000, Lana Churchwell: $220,000, Average: $228,700.

2604 Chesire Dr Bakersfield, CA, Listing Agent: Jon Busby. DOM: 142. BD: 4. BA: 1.75. Sq Ft: 1882. Listing Price: $275,000. Sale Price Gue$$timates. Joan Johnson: $245,000, Helen Martinez: $270,000, Kandie Miller: $269,000, Lucia Hewitt: $259,000, Chris Craddock: $255,555, Marge Fredenburg: $269,000, Lana Churchwell: $270,000, Average: $262,508.

Bakersfield Caravan Report, August 30th, 2007

Christopher Craddock (McKinzie Nielsen Real Estate) — Wed, 05 Sep 2007 21:02:07 -0500

We have a Caravan every Thursday, which is where agents Caravan to a group of houses and view them. Some of the agents play a game, called Bakersfield, Come On Down, where we try to guess what the houses will sell for. When it sells, we check and see who had the best guess. Here are the houses we looked at and the sale price guesses.

Caravan for August 30^th, 2007:

4709 Stancliff Ct Bakersfield, CA 93307, Listing Agent: Bradley J Reese Jr.. DOM: 5. BD: 3. BA: 2. Sq Ft: 1218. Listing Price: $249,000. Sale Price Gue$$timates. Helen Martinez: $239,000, Chris Craddock: $239,000, Kyle Wigley: $219,000, Marge Fredenburg: $235,000, Pattyann Grubbs: $215,000, Average: $229,400.

2707 El Caballo Ave Bakersfield, CA 93304, Listing Agent: Luz Mayorga. DOM: 7. BD: 5. BA: 2.75. Sq Ft: 2230. Listing Price: $435,000. Sale Price Gue$$timates. Helen Martinez: $375,000, Chris Craddock: $399,000, Kyle Wigley: $389,500, Marge Fredenburg: $385,000, Pattyann Grubbs: $315,000, Average: $372,700.

3016 Dell Ave Bakersfield, CA 93304, Listing Agent: Marge Fredenburg. DOM: 257. BD: 3. BA: 2.75. Sq Ft: 1500. Listing Price: $249,950. Sale Price Gue$$timates. Helen Martinez: $239,000, Chris Craddock: $244,000, Kyle Wigley: $220,000, Marge Fredenburg: $239,000, Pattyann Grubbs: $225,000, Average: $233,400.

2320 Belvedere Bakersfield, CA 93304, Listing Agent: Nila Starr. DOM: 28. BD: 3. BA: 1.75. Sq Ft: 1520. Listing Price: $240,000. Sale Price Gue$$timates. Helen Martinez: $235,000, Chris Craddock: $222,000, Kyle Wigley: $200,000, Marge Fredenburg: $229,000, Pattyann Grubbs: $215,000, Average: $220,200.

209 Pine St Bakersfield, CA 93301, Listing Agent: Denise A Wigley. DOM: 36. BD: 3. BA: 1. Sq Ft: 1036. Listing Price: $235,000. Sale Price Gue$$timates. Chris Craddock: $221,000, Marge Fredenburg: $219,000, Pattyann Grubbs: $189,000, Average: $209,667.

2636 Beech St, Listing Agent: Desi Neville. BD: 4. Listing Price: $325,000. Sale Price Gue$$timates. Helen Martinez: $305,000, Chris Craddock: $299,000, Marge Fredenburg: $305,000, Pattyann Grubbs: $300,000, Average: $302,250.

3700 N Q St #102 Bakersfield, CA 93301, Listing Agent: John C Stone. DOM: 44. BD: 1. BA: 1. Sq Ft: . Listing Price: $139,950. Sale Price Gue$$timates. Helen Martinez: $139,950, Chris Craddock: $136,000, Marge Fredenburg: $139,950, Average: $138,633.

4116 Charter Oaks Ave Bakersfield, CA 93309, Listing Agent: Laora J Norcross. DOM: 2. BD: 3. BA: 1.75. Sq Ft: 1461. Listing Price: $274,000. Sale Price Gue$$timates. Helen Martinez: $249,000, Chris Craddock: $269,000, Kyle Wigley: $220,000, Marge Fredenburg: $259,000, Pattyann Grubbs: $230,000, Average: $245,400.

619 Hewlett St Bakersfield, CA 93309, Listing Agent: Wanda Allen. DOM: 21. BD: 3. BA: 2. Sq Ft: 1942. Listing Price: $339,950. Sale Price Gue$$timates. Helen Martinez: $299,000, Chris Craddock: $303,000, Kyle Wigley: $299,950, Marge Fredenburg: $299,000, Pattyann Grubbs: $300,000, Average: $300,190.

421 Montalvo Dr Bakersfield, CA 93309, Listing Agent: Shannan L Taylor. DOM: 40. BD: 4. BA: 2.75. Sq Ft: 2805. Listing Price: $449,000. Sale Price Gue$$timates. Helen Martinez: $425,000, Chris Craddock: $411,000, Kyle Wigley: $419,000, Marge Fredenburg: $427,000, Pattyann Grubbs: $400,000, Average: $416,400.

Told You So

Christopher Craddock (McKinzie Nielsen Real Estate) — Sun, 26 Aug 2007 01:39:10 -0500

I mentioned a rumor in a previous blog, and it has indeed come to pass. It was the merging of Watson and Touchstone.

Now that it has happened, I think I will tell my version of the Rise and Fall of the BLS, and the role that it played in weakening Watson, and strengthening Touchstone. I think this story has not been told, especially since the Bakersfield Californian was involved in the BLS, and there was never anything written about it in the newspaper that wasn't totally biased propaganda.

The BLS was an alternative to the MLS, the Multiple Listing Service, but it was owned by the 5 biggest (at that time, anyway) Real Estate companies in Bakersfield.

But that story will have to wait just a little while longer.

This Week in Bakersfield Real Estate

Christopher Craddock (McKinzie Nielsen Real Estate) — Mon, 20 Aug 2007 00:59:16 -0500

This past week in Real Estate in Bakersfield, Nationally, the story is the rumors that Countrywide might go bankrupt, and the effect those rumors, and uncertainties about credit, affected Wall Street, and the other Real Estate story is about the song parody that was posted, broadcasted, and emailed to practically everyone in town. Some thought it was funny, and others, such as Ralph Baily, thought it might be grounds for a libel suit. But he was only saying that to stir up controversy of his own, trying to get people to tune in to his show.

My take on it is that it doesn't say any specific name, and the things it does say are things that we know to be true. It should be easy enough for any reasonably intelligent person to figure out who they are talking about, but by avoiding saying who it is directly, then it avoids being slander or libel. I found the whole phenomenon to be interesting mostly for the way the file spread so quickly on the internet. Viral video is the term, although this was not a video, but an audio mp3 file. I guezz the video is next, when someone lip syncs it while dancing on treadmills through cascading fountains of Mentos and Pepsi.

I have the file in question, just the audio for now, and will gladly email it to anyone who asks. It is actually crude and amateurish, but entertaining, nevertheless. Very entertaining, nevertheless.

Ciao, Bakersfield

The Rise and Fall of the BLS

Christopher Craddock (McKinzie Nielsen Real Estate) — Fri, 03 Aug 2007 15:03:37 -0500

I just heard a tantalizing rumor, and if confirmed, it would provide a great ending for an article on the rise and fall of the BLS. The BLS was the Bakersfield Listing Service, a privately owned and operated MLS that tried to compete with the existing MLS.

I will keep you posted as events unfold.

Caravan

Christopher Craddock (McKinzie Nielsen Real Estate) — Thu, 12 Jul 2007 01:00:06 -0500

I am at the office at 11:00 PM working on a list of all the houses we will visit on our Caravan tomorrow. I just wanted to write a test blog, so I appologize to anyone reading this. It isn't a very interesting blog, but I hope you don't stop reading future blog entries, because I will be doing some very interesting ones soon.

The Caravan project I am doing is a lot of work. I collect data sheets and it has price guesses for all of the houses that we visit on the Caravan. I post them online, and then when the property sells, we see who had the closest guess. In the meantime, it provides valubale feedback to the agents and their sellers. The prices should be close because they will be tring to guess what it sells for, not just say what the seller wishes it would sell for, and then hope for a price reduction when it doesn't sell.

Adios, muchachos

Future Blog Topics Regarding Bakersfield Real Estate

Christopher Craddock (McKinzie Nielsen Real Estate) — Tue, 10 Jul 2007 16:24:02 -0500

Here are a few topics I was thinking about blogging about. Some of them are mostly dealing with local issues, while a few might be related to Real Estate in General.

The Bad Image of Real Estate Agents in Film, Television, and the Minds of Average Citizens

When did Real Estate Agents fall below Lawyers? Examples would be Desperate Housewives, American Beautry, Girlfriends, just off the top of my head.

The Rise and Fall of the BLS (Bakersfield Listing Service)

For a while we had 2 Multiple Listing Services in Bakersfield. The BLS, which was the new one, owned and operated by 5 Real Estate companies, has ceased operations. What happened?

The Pros and Cons of using a Real Estate Agent to buy New Construction

During the recent boom, most new construction wouldn't cooperate with Real Estate Agents. Now that homes are taking longer to sell, they are much more open.

The Caravan

Once a week Real Estate agents meet and view up to 15 homes in a Caravan. The areas covered rotate every six weeks, so it gives agents an opportunity to see what is available all over Bakersfield.

The GEAR logo branding fiasco

The Bakersfield Association of Realtors spent a lot of time and money developing a brand and logo that would reflect the emergance of outlying cities, but when it was put to a vote, it was voted down. What happened to the Golden Empire Association of Realtors GEAR, and what are they going to do with all the hats, websites, and other paraphenalia already made with the logo on it?

What is Happening with all the Sub Prime loans?

The Sub Prime Loan, as it existed in the recent past, is no more. Tighter loan restrictions are now in place. What went wrong, and why are there so many foreclosures now? What about ARMs? What about Pre Payment Penalties? Who will help these people now?

How about these new web sites that will give you a value for your home?

There is quite a bit of information available on the web these days. You can even get a value for your home. How accurate are their results, and how do these companies make money? Where can I try them out?

RSS

Christopher Craddock (McKinzie Nielsen Real Estate) — Fri, 01 Jun 2007 04:37:36 -0500

I am interested in learning more about RSS newsfeeds. I know that it stands for Really Simple Syndication, and that it uses XML. I see that there is a toolbar available from C.A.R. (California Association of Realtors) and I have it. It has a place for RSS newsfeeds. One of the available newsfeeds is Inman news. I used to work for Brad Inman at a company called HomeGain. Now, my brother Kevin, who is an agent with Coldwell Banker in Sebastopol, is doing some construction work for Brad. They have a party in San Francisco every year, and my brother is going to crash it. Actually, he is invited, but still it seems a fortuitous coincidence.

The universe has aligned itself to tell me to learn about RSS and put links to newsfeeds on my website. Maybe my blog can be available as an RSS newsfeed.

Stay tuned for further developments.

Embedded Virtual Tour

Christopher Craddock (McKinzie Nielsen Real Estate) — Thu, 31 May 2007 17:30:42 -0500

I just wanted to see whether I could embed a virtual tour into my blog. This is not my listing, but it is for our office, McKinzie Nielsen. I do a lot of the web marketing for all of the agents, and this would be a neat feature.

OK, that is all for now, but I have a lot to blog about. Look for news and gossip about the GEAR Caravan, The GEAR Logo voting, the last REPERs class about connecting with Gen X, and maybe even a bit about a certain Gen X agent who was cruising in style, but now faces 8 foreclosures. He is burning to a crisp. Ciao, bella Christopher Craddock

Dancing About Architecture

Christopher Craddock (McKinzie Nielsen Real Estate) — Wed, 21 Mar 2007 16:16:05 -0500

I named my BLOG Dancing About Architecture from a quote by Elvis Costello. He was talking about music critics, and he said, to paraphrase: "Writing about music, that's like dancing about architecture!!!!" Though I think that music criticism has its place, I can empthize with Mr Costello's feelings. Still, just to take it in a totally new direction, why not dance about architecture? As a Real Estate Agent, it is sometimes hard to contain my emotions when I see a really well designed building. Though I won't actually dance about architecture, I will share my enthusiasm about a really beautiful home or property that I have listed or helped someone purchase.

And in my spare time, I like to review music and post my reviews on Amazon. So, not only am I dancing about architecture, I am also writing about music as well. Besides writing about music, I also like to play music, and I play guitar, saxophone, trumpet, piano, and bass clarinet. I have a BA degree in Creative Writing from SFSU.

As for Real Estate in Bakersfield, we were suprised to hear that McMillan has suddenly closed their office in Bakersfield. We had several agents stopping by, looking for a new office. If they come to McKinzie Nielsen, they will be able to keep the first 2 letters of their logo.