Friday, August 24, 2007

Survival mode

Its time to go into survival mode in the local real estate market. I am hearing of realtors, mortgage brokers, etc.. leaving in droves. I am also hearing of other local business which are outside of real estate who are now hurting due to this downturn.

What about all the building on the Stockdale Highway and Coffee Road corridors that has been built to house these real estate related entities? I am glad I am not building in these areas because it is going to get ugly.

From the Bakersfield Californian:

Two of Bakersfield’s biggest residential real estate companies, Touchstone Real Estate Group and Watson Realty ERA, have merged, the firms announced Friday.

The newly formed Watson Touchstone Real Estate will be a Goliath, with about 300 agents and control of 19.2 percent of the listing volume on the Bakersfield Multiple Listing Service, the program used to list and track homes for sale.

“It’s an opportunity to take two market leaders, combine their assets, at a time when the market is really lacking a lot of positive direction,” said Watson Realty ERA’s broker, Ken Carter.

From Ichabod:

Watson Truxtun had a super big meeting today. Watson Truxtun is closing and all agents are moving into Touchstone's big building. New company name is Watson Touchstone. I assume they will be keeping ERA, so it will actually be Watson Touchstone ERA! What a mouthful! All Watson agents are moving in and "not very productive" Touchstone agents are being told to utilize "the home office." Some
Touchstone agents are losing their offices supposedly to make room for Watson
big guns. Some agents are NOT happy with the merge!


wholesale lender said...

I heard from a friend of the owner of Cafe Med, business has slowed down significantly due to all the real estate agents and loan officers not doing as many deals as last year. there are a lot of restaurants losing business in this market, It hurts everybody.

Bakersfield Bubble said...

One of the owners got out and now he is...

selling commerical real estate.

I wish I could tell the number of business I have heard who are hurting from this.

However, if you are in oil or ag - times are still very good. Eventhough some of the commodities like almonds and pistachios have seen their prices reduced by 25-50% things are still good.

Ichabod said...

Real estate business is great, if you want to work!

We have lost 1000+ agents who want to sit around all day and get paid- great! Get out of my way!

Several real estate companies have closed or merged- great! Get out of my way!


Bakersfield Bubble said...


Since there are a number of potentional buyers on this site. Where have you seen deals at? If any.

Agree, if you hustle there are opportunities out there. Many folks got into the because they wanted to drive a fancy car and wear nice suits and get drunk in LV every weeeknd. Those days are gone. The business will slow down a lot between now and next March. Those fancy suits make good firewood for the long selling winter.

Charan said...

I hope someone went to the auction today by williams group. They sold a house on clara for 175k close to what most houses are in the area plus the house needed repairs approx 50k. the other house was a kicker on sonoma vine ct it went for 375k when the house down the road was offered at 350k and they were willing to do a short sale on top of that. i think we need to watch these auction houses as most things that happened at that auction today made no sense at all.

Bubblewatcher said...

This reminds me of the mid 80's when inetrest rates were over 10%. I was trying to sell RE and our company kept buying other companies and moving and merging and cutting costs.
The trickle down will hurt everyone and if you dont think we are heading to a recession think again..

Realestateslasher said...

ichabod...Looks like the time has come for all Good Agents to get busy selling or get busy going broke::::I say to all good Agents when the going gets (TOUGH) A (TOUGH) well trained agent gets tougher


Ichabod said...

When I entered real estate, I saw some friends at a restaurant who also just entered real estate. I told them the good news (I was trying for my license long before them, couldn't pass the test, practically gave up), and they couldn't stop telling me how hard the job was. It is so difficult! It is so hard! It's so expensive! You aren't going to make it! You need at least 6 months living expenses saved up (I had none). I stoodthere cordially and listened. I walked away nicely, ate my dinner, and was lit up mad! Now what? A little over a year later, he's out, never made a single deal or a listing, she's of and on, no business, no listings. I have listings up the wazoo, working with buyers like crazy, advertising, trying everything, learning, working on multi-million dollar deals! Sure it's hard, I'm still in debt and until more deals go through I'm living paycheck to paycheck. But stop whining about it not working and GO MAKE IT WORK! You want to tell someone how hard it is, tell someone else. I'm tired of these whiny agents crying that it's hard. It's sales! Men used to walk door to door lugging a vacumm and a brief case from sun up to sun down with no car and no breaks until 7 pm! Whoever said this would be easy! Get to work man!

Ichabod said...

Bakersfield Bubble said...

Since there are a number of potentional buyers on this site. Where have you seen deals at? If any.


What'cha want? I'll find it for you. Houses are on the market for less than $150 per square foot. Some around $120 (good condition houses, too). There's some land, too, man, I wish I had spare cash in my pocket right now, some of the land for sale is a veritable gold mine if you could wait three years (that's not long in land real estate, some people wait decades for value)!

Bakersfield Bubble said...

I own a home now and the entity I do business with only has commerical property right now, but give me a till early 2009 I (we) will be ready to move.


Ichabod said...

Bakersfield Bubble said...
I own a home now and the entity I do business with only has commerical property right now, but give me a till early 2009 I (we) will be ready to move.



I hope it's ok to say this here, but I'd gladly help anybody buy or sell real estate! It is especially a buyer's market. But, also, it's a competitive seller's market.

Realestateslasher said...

All for the love of Realestate
up or down love what I do
can you only think what we could say after 55 years of realestate

(All for the love of Realestate)

Raynor said...

RE types on here:

Your profession is not an easy one.

Lousy hours (heard of OPM? How about OPH? Other People's Hours).

Putting up with idiots. Then they don't close.

Lenders who qual wrong amount, etc.

Aud Infinitum...........

And then someone like dipsh*t Crisp comes along and trashes what little good will and good rep for RE Agents you have been able to build.

I wish they would bring back the "Tar & Feather and Run Him Out on a Rail" ethic and let all the Bako RE Agents loose on the boy!