Real Estate
Why picking the wrong agent can cost you money
There are many kinds of Realtors so be sure to find the right one
Let’s face it, Realtors are portrayed pretty poorly in the media – typically as either a ditzy single mom, a pushy used car salesman type, or someone totally aloof in their own world (I’m looking at you, Phil Dunphy). These stereotypes used to really bother me, because they didn’t reflect the hard-working, dedicated professionals that I typically encounter. We work with some truly excellent agents that make me proud to be a Realtor.
In the last few weeks, the spring market has really started to heat up. Many newly minted “agents” are throwing their hat into the ring to make, what they think, is a quick buck. As a result, we’ve encountered some very interesting situations. Maybe it’s just that I am nine months pregnant and my patience is wearing thin, but I felt the need to educate the public on how picking the wrong agent can cost you. Here is a breakdown of some of the types of agents – and real life encounters we’ve had with them – that are the reason for our embarrassing portrayal in the media. So, please excuse me while I rant.
THE HARD-WORKING, COMPETENT AGENT. As I mentioned above, there are many, many excellent agents out there who go above and beyond for their clients and do a truly fabulous job. While most agents we deal with fall into this category, and I could go on and on about all of the wonderful aspects of those agents, this post is not about those Realtors.
THE LAZY AGENT. This type of agent is probably the most common offender in our profession. They got into real estate because it offered flexibility and they figured they didn’t have to work a 9-5 schedule. Turns out, they were right. Real estate is not 9-5, it is 24/7! As agents, we are available when our clients need us, when other agents need us, when appraisers need us, and when home inspectors are available. We not only must be available 9-5 for the banks and title companies we work with during the work week, but also when our clients are available — usually on the weekends and in the evenings.
Agents who thought they were in for a cushy schedule get a rude awakening. Most eventually adapt to their new “flexible” schedule. However, there are those that cut corners to stay in the industry and try to make it work – to the detriment of their clients and anyone trying to do business with those clients.
Frequently, this type of agent also doesn’t respond to questions or if they do, it takes them hours and the information is incomplete. They usually don’t respond on weekends or evenings and if they get back to you, they act as if it is an inconvenience. This sort of response can cause many buyers to simply move on if they are not getting the information quickly enough or are not satisfied with the information do receive. It’s the spring market — there are lots of listings and many of them have deadlines so buyers need to make quick decisions. Many buyers just say… “Next!”
THE PART-TIME AGENT. On the exact opposite end of the spectrum, there are many agents out there selling real estate “on the side.” They may just work part-time, or it could mean they have a full-time job and they sell real estate only on weekends and evenings. So, they are far from lazy and are often working very hard, but they can be tough to reach and often don’t know the ins and outs of the contract and general “norms” of the industry.
We aren’t knocking people trying to get started in the industry. It’s a tough job to get into as you often don’t get paid for several months (fun fact – we only get paid after a client goes to settlement – so by the time a new agent gets a client, finds them a property or a buyer for their home and then goes to settlement, it’s often six months before the agent gets a check for their work.)
I can understand that many people need to pay their bills. What I cannot understand is agents who will not answer their phones or emails from 9-5. It is completely unacceptable and an enormous disservice to their clients. If you have a listing and someone wants to show it, taking eight hours to get back to that agent might mean the buyers moved on to another property. That means a seller may have missed out on their buyer. If you’re a buyer, same deal. You might have just lost the opportunity to see a hot new listing that could now be under contract.
THE INSINCERE AGENT. Worse than the lazy agent is the insincere agent. Luckily, we don’t come across this type of agent very often. The insincere agent will tell you there is another offer on a property to try to get your clients to improve their offer when in reality, the other offer doesn’t exist. Or, they might selectively choose which of your questions to answer, not replying to you if they answer is something you won’t like. We reserve most of our venom for this type of agent.
THE NON-REALTOR AGENT. Most people don’t know there is a difference between a Realtor and a real estate agent. All Realtors are real estate agents but not all real estate agents are Realtors. Being a Realtor is an additional certification or membership that a real estate agent can obtain. Becoming a Realtor means that, among other things, you must adhere to the Realtors’ code of ethics. This is an important differentiating factor because it holds Realtors responsible for not lying to their clients or fellow agents. If they do, they could be fined and put their license in jeopardy.
THE INEXPERIENCED OR JUST FLAT OUT BAD AGENT. While this type of agent isn’t devious and is often well-meaning, it can be one of the most dangerous types of agents to work with as a client. The problem is – they don’t know what they don’t know. Even worse, their clients usually don’t know what their agent doesn’t know.
We once had an agent tell us that she and her client are not currently on speaking terms so she couldn’t get back to us on our offer. I mean, where to even begin!? Long story short, we moved on. That house is still on the market and to be honest, I would be shocked if it sold anytime soon.
Another agent recently told us proudly that they will turn away any offer that is not full price. This property was priced significantly higher than the comps. It, too, is still on the market. Granted, this agent’s client should take a lot of the blame for this, but the agent shouldn’t get a free pass.
Part of our job as Realtors is to educate our clients into the appropriate pricing for the property and at least encourage a “conversation” between buyer and seller through counter-offering.
Even if an offer starts out low, many times the seller can still get the buyer up to a price that is acceptable with a few rounds of countering The fact is, once a buyer is mentally invested in a property, they often will come up higher than they originally anticipated. But, you won’t know this as a seller unless you engage them with a counter. It is highly ill advised to reject any offer, no matter how low it is. We had a listing where the original offer was over $100,000 under the list price – we ended up ratifying a contract on the property at a price that was significantly higher than the first offer and perfectly acceptable to both buyer and seller.
Sometimes, the agent doesn’t even know how to put together an offer and we’ve had to draft the offer for their client – or re-write it completely. An agent who recently wrote an offer on one of our listings did not know he needed to include a certain contingency that his client definitely required. We nicely let him know that he probably meant to include it. Omitting this contingency could have been a major issue for his client.
Another example of how an inexperienced agent can blow a deal is by not understanding the “norms” of how an offer process works or not taking the time to find out how an agent is handling a multiple offer situation. If the listing agent doesn’t set an appropriate deadline, or doesn’t get back to buyer agents, buyers agents won’t know how to proceed.
As a result, a seller could miss out on additional offers that would have escalated in price, leaving tens of thousands of dollars on the table for the seller.
We had a recent situation where a client was ready to accept a full price offer on their property over the weekend. However, we could tell based on the interest we were getting that by waiting until Monday and setting a deadline time that all agents were made aware of, that they would get more money. By waiting, we were able to get them an additional $30,000 with no home inspection negotiation (saving them from having to make repairs) and no appraisal contingency. Knowing the pulse of the market, we got a much better deal for our client.
Similarly, if a buyer agent doesn’t know enough to let the listing agent know that their clients have interest, they could miss out on the property. Time and again, we’ve had buyer agents call us weeks after our listings go under contract letting us know that their clients were interested, even though they had never been in touch. Inexperienced buyer agents can be detrimental if they don’t know how to find out about properties before they hit the active marker, to pull the appropriate comps, to best present the offer in multiple offer scenarios, or which types of inspections to schedule. There is a lot that an inexperienced agent just doesn’t know.
THE BOTTOM LINE. Picking a real estate agent is a major decision. It can directly affect both your bottom line and your ability to buy or sell a house in the time and manner that works for you. As we’ve shown, there are a wide variety of agents in the business. Most are wonderful to work with, but there are still many – and especially in the spring market – that put their clients in tough situations that could cost them money. Often, the client doesn’t even know it. It’s critical to carefully think through who you are working with to buy or sell.
Allison Goodhart DuShuttle is lead agent for The Goodhart Group, Alexandria’s and McEnearney Associates’ top producing real estate team. In 2015, she was nationally recognized by Realtor Magazine, being named to its “30 Under 30” club. Allison can be reached at 703-362-3221 or [email protected].
Real Estate
Boosting your rental property’s curb appeal
Affordable upgrades to attract and keep tenants happy
In the District of Columbia, the rental market tends to open up significantly during the springtime for several reasons. First, spring brings about a sense of renewal and change, prompting many individuals and families to seek new living arrangements or embark on relocations. Additionally, the warmer weather and longer daylight hours make it more conducive for people to explore housing options, attend viewings, and make decisions about moving. Furthermore, spring often coincides with the end of academic terms, leading to an influx of students and young professionals entering the rental market.
Landlords and property managers also tend to schedule lease renewals or list new vacancies during this time, capitalizing on the increased demand and ensuring a steady turnover of tenants. In the competitive world of rental properties, attracting and retaining quality tenants can be challenging. However, with some strategic upgrades, property owners can significantly enhance their units’ appeal without breaking the bank. From enhancing curb appeal to interior upgrades, here are some practical and cost-effective ideas to make your rental property stand out in the market.
Curb appeal
First impressions matter, and curb appeal plays a crucial role in attracting potential tenants. Simple enhancements like freshening up the exterior paint, adding potted plants or flowers, and ensuring a well-maintained lawn can instantly elevate the property’s appearance. Installing outdoor lighting not only adds charm but also enhances safety and security.
Interior upgrades
Upgrade the kitchen and bathroom fixtures to modern, energy-efficient options. Consider replacing outdated appliances with newer models, which not only appeal to tenants but also contribute to energy savings. Fresh paint and updated flooring can transform the look of a space without a hefty investment. Additionally, replacing worn-out carpets with hardwood or laminate flooring can make the unit more attractive and easier to maintain.
Enhance storage
Maximize storage options by installing built-in shelves, cabinets, or closet organizers. Tenants appreciate ample storage space to keep their belongings organized, contributing to a clutter-free living environment.
Improve lighting
Brighten up the interiors by adding more lighting fixtures or replacing old bulbs with energy-efficient LED lights. Well-lit spaces appear more inviting and spacious, enhancing the overall ambiance of the rental unit.
Upgrade window treatments
Replace outdated curtains or blinds with modern window treatments that allow natural light to filter in while offering privacy. Opt for neutral colors and versatile styles that appeal to a wide range of tastes.
Focus on security
Invest in security features such as deadbolts, window locks, and a reliable alarm system to ensure the safety of your tenants. Feeling secure in their home is a top priority for renters, and these upgrades can provide meaningful, genuine peace of mind.
Enhance outdoor spaces
If your rental property includes outdoor areas like a patio or balcony, consider sprucing them up with comfortable seating, outdoor rugs, and potted plants. Creating inviting outdoor spaces expands the living area and adds value to the rental property.
As landlords, investing in the enhancement of your rental properties is not merely about improving aesthetics; it’s about investing in the satisfaction and well-being of your tenants, and ultimately, in the success of your investment. By implementing these practical and affordable upgrades, you’re not only increasing the desirability of your units but also demonstrating your commitment to providing a high-quality living experience.
These efforts translate into higher tenant retention rates, reduced vacancy periods, and ultimately, a healthier bottom line. Moreover, by prioritizing the comfort, safety, and happiness of your tenants, you’re fostering a sense of community and trust that can lead to long-term relationships and positive referrals. So, let’s embark on this journey of transformation together, turning rental properties into cherished homes and landlords into valued partners in creating exceptional living spaces.
Scott Bloom is owner and Senior Property Manager of Columbia Property Management. For more information and resources, visit ColumbiaPM.com.
Real Estate
Real estate agents work hard for that commission
Despite recent headlines, buyers and sellers benefit from our expertise
With there being a lot of noise in the media lately as I am sure you have read and heard headlines like “Gone are the days of the 6% commission” and “End of the good days of Realtors,” etc., I wanted to re-run a very short article of the long laundry list of things that well versed real estate agents bring to the table to earn that seldom 6% commission. It’s typically split in half and it has always been negotiable).
As a real estate professional you will go on listing appointments and buyer meetings to not only attempt to gain business but in doing so you also educate the general public on what it is that we as real estate professionals do. I know what you’re thinking – and if you’ve seen my photo before you wouldn’t be wrong to assume that I am cast in “Selling DC” as the lead villain. I am just waiting for that phone call! But in all seriousness, when I sit down to come up with a list of things to prove to prospective clients the value in working with me as their real estate professional, I am pretty blown away at the items and qualities that a trusted professional representing you in a real estate transaction is responsible for managing a myriad of tasks, including but not limiting to the following:
• Have a pulse on the marketplace to truly understand exactly what is happening from a buying and selling standpoint while also understanding the economic side of things – not just looking at interest rates. Why are rates where they are? What employers are laying off and could cause an influx of inventory? What are the trends for individuals moving IN or OUT of an area looking like? Forecasting the marketplace of all things that truly affect real estate is vital.
• Soft Skills – these are the skills often considered as customer service skills. The ability to be approachable by all types of people and ensure that you are open to receive information. Also – when telling you bad news – it’s important to ensure that it is done in a manner in which you, the receiver, will be pleasantly receptive.
• Pre-market vendors – not only are real estate professionals expected to market your home for sale or locate a home for you to purchase, we are also expected to have a list of pre-market vendors to which you can use for your lending needs, home inspection, title work, any fluffing and buffing needed pre market for the sale of your home such as a contractor, painter, landscaper etc. We have a book of extremely well vetted vendors that either I personally have used or past clients have used that can assist with your needs. This beats Googling for hours and accidentally choosing the wrong contractor. Section A of the pre-market vendor list includes those in which we real estate professionals use for marketing materials for your property – we will use the best photographers, have floor plans drawn for your property, video, staging, catering for brokers opens and the list goes on. Again – this is a well vetted list that we have worked on for years and done all of the heavy lifting and had those uncomfortable conversations when things are not properly executed – so you don’t have to.
• On Market Tasks – these are the tasks that most clients are unaware that we do. Oftentimes when a listing is on market – folks think that I am just cruising around in my convertible buying nice things. However I am in fact going around checking each listing on market to ensure that they are clean, the booties are replaced, marketing materials are stocked, light bulbs are all working, staging looks crisp and the list truly goes on. That of course, doesn’t include the tasks we do to properly market the property such as weekly email blasts, reaching out several times to follow up with showing agents to get their feedback, check the market to see what our competition looks like, what’s under contract and why, and again…..I could go on. Needless to say the most important and time consuming tasks are those that are done when the property is on market.
• “Contract to close” management – the term contract to close is pretty much what it sounds like – it’s what happens from the time we go under contract until we reach the closing finish line and you have those keys. Once a trusted real estate professional has fiercely negotiated on your behalf as a buyer, the fun starts. Again pops up this vendor list – helping guide you though selection of a home inspector, termite inspector, etc. for the inspections. A title attorney is needed (depending on your jurisdiction) and any other vendors for quotes like renovations, etc., that you might want done to the property. Once the inspection is completed and we go through possible re-negotiations then we must ensure that the lender has the documents needed from you completed in order to have the appraisal done to prove the value of the home you are under contract for. Now we are getting into the weeds – but once we are on the other side of things and the appraisal comes back at value and the loan is clear to close then we are at the finish line to your new home.
A similar story can be told if you are selling your home. The appraisal is a very important part of the checklist as that is the value in which your home is worth. The appraiser is a third party that neither the buyer, seller, lender or myself have any allegiance to. I do, however, have the duty to educate said appraiser on why I chose the listing price and how I came up with that value.
• Post-market vendors. As mentioned before, a real estate professional should have a book of well vetted vendors from which to choose. Looking at the list of vendors now that we are on the other side of the table – I can provide a cleaning person, HVAC contractor, someone to repair the sprinkler system, a dog walker, the best caterers and bakery in town. Further down the road I am able to provide a wonderful wealth manager who can tell you what to do with that piece of real estate you purchased some time ago and we could go on for days.
While you are fully entitled to not use a real estate agent during your real estate transaction, I do believe that it is well within the realm of possibilities to say that without one there would be loose ends not completely tied up, things mismanaged and possible delays that could cost real cash. All of that aside, it is also such a truly wonderful experience to work alongside a trusted professional that at the end of the transaction becomes a new friend and family member. Real estate professionals love what they do, they love real estate and people and sheepherding you through the home buying or selling process is what it’s all about to us.
Justin Noble is a Realtor with Sotheby’s international Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware Beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin is a well-versed agent, highly regarded, and provides white glove service at every price point. Reach him at 202-503-4243, [email protected] or BurnsandNoble.com.
Real Estate
Do you need title insurance?
Facilitating smoother and more efficient real estate transactions
A title search is an examination of public records to determine the legal ownership of a property and identify any claims or liens against it. This comprehensive investigation delves into deeds, mortgages, court records, tax records, and other documents related to the property’s history. The objective is to verify that the seller has the legal right to transfer ownership of the property and that there are no undisclosed issues that could cloud the title.
I would surmise that most buyers have never read their title report or policy and I confess that I was one of them until 2005, when I bought a house in San Diego. While I was “in escrow,” my agent presented me with a title report. My first reaction was, “What do I do with this?” He replied, “review it and sign indicating that it is acceptable.” I had no idea what to look for, since I had always had title companies to rely on for interpreting the results. Thankfully, it was a clean report with no liens on it other than the mortgage the seller would be paying off at settlement.
Here, only if anything is amiss will the title attorney notify the agents and advise what the parties need to do to satisfy any conditions that could prevent them from closing. Otherwise, you won’t see the report up front.
Why are title searches important?
- They verify the seller’s legal right to transfer ownership of the property, providing assurance to the buyer that they are purchasing a legitimate asset.
- They identify any outstanding liens, mortgages, or other encumbrances that could affect the property’s value or the buyer’s ability to obtain financing.
- A title insurance policy provides coverage for losses arising from title defects such as disputes, undisclosed easements, forgery, or fraud, offering peace of mind to both buyers and lenders.
The process starts with the retrieval of documents from various sources, including county clerk offices, tax assessor’s offices, and court records.
The records are then inspected to trace the chain of ownership and identify any potential issues. The title examiner verifies the accuracy of legal descriptions, checks for inconsistencies or errors, and identifies any red flags that may indicate title defects.
If found, resolution of issues or discrepancies, such as unpaid taxes, outstanding liens, or boundary disputes must be addressed before the transaction can proceed. This may involve negotiating with creditors to satisfy outstanding debts, requesting more information from sellers, and resolving legal disputes.
Once complete, the firm will issue a title report on which to base a title policy. The buyers will receive a copy at settlement. The report provides a detailed summary of the property’s ownership history, any encumbrances or defects found during the search, and recommendations for mitigating risks.
Title insurance for the lender is required, but buyers often ask whether they need owner’s title insurance coverage too. I always recommend buying an owner’s policy. If a buyer chooses not to, then only the lender is protected from any claims revealed after the issuance of the title report. For a one-time fee, an owner’s policy protects your interest in the property and that of any heirs from future claims until the house is ultimately sold.
For example, I attended a settlement with a buyer who was purchasing a rowhouse. A woman who had power of attorney to sign for the seller was also there and, because he was overseas, the actual seller was on speaker phone to address his concerns or ask any questions.
The closing agent began reading the settlement statement aloud to indicate what was being deducted from the seller’s proceeds. The seller was fine with the amount shown for the remainder of his first mortgage, but when she read out the amount of the second mortgage, the seller, now agitated, asked, “What second mortgage?”
It then became clear that the woman, the owner’s former fiancée, had used her power of attorney to obtain a second mortgage after the title search had been done. Thanks to the title companies’ involvement, the seller was able to post a bond for the missing funds to allow settlement to proceed while he took on a legal battle with his former fiancée. Don’t try this at home, kids.
By uncovering potential issues early in the process, title searches help facilitate smoother and more efficient real estate transactions by resolving issues upfront, ensuring a seamless transfer of property ownership. But nobody knows when great Uncle Bob or your former tenant may show up with a claim to the house. You’ll need your owner’s title policy to have someone on your side.
Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate / @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.
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