Ask the Realtor

Darrell Parsons • November 3, 2011

-Dear Darrell:

I recently interviewed a couple of agents about selling my house. Both agents told me about the realtor listing system, the MRIS. That’s the system they use to let other agents know about the sale of property. One thing about it was confusing, though: one agent said that I should put it in the MRIS immediately to get the widest exposure. The other agent suggested marketing it privately for a period of time and then putting it in the MRIS later on if it didn’t sell right away. They explained the advantages of their different approaches. What do you think are the pros and cons?

Carol E.
Woodley Park

Dear Carol:

I definitely come down on the side of listing the property in the MRIS immediately. Here’s why: houses are subject to the same competitive market forces as any other marketable commodity. The buyers are comparing my house to other houses in myriad ways. This will happen with your home, too. Through this process, potential buyers become highly educated about the comparative value of properties. In the end, it is these potential buyers who largely define the market price of a given property. The truth is, none of us knows what a buyer will pay for a house until it is offered for sale. If a seller has underpriced her house, the buyers will bid against each other for the right to buy it. Likewise, if the house is over-priced, buyers will turn away from it in favor of a house they know will be a better value for them. The only way to get this kind of feedback is to disseminate the information about one’s house to the widest possible pool of potential buyers. And nothing comes close to the MRIS in that regard.

There are isolated instances where offering a property as a “private” or “quiet” sale is necessary or desired. But the vast majority of houses benefits by being in the MRIS. One of the supposed appeals of having a private sale is that it seems that one can control who comes to see the property. The downside to this is that it automatically eliminates a wide swath of potential buyers, and regardless of the intent, could be perceived as discriminatory. I recommend opting for the MRIS route so you can get the most exposure and, consequently, the best sale price.

Darrell Parsons is the managing broker of the Georgetown Long and Foster office and abides by Equal Housing Opportunity regulations. Have a real estate question? E-mail him at darrell@lnf.com. He blogs at georgetownrealestatenews.blogspot.com.

Darrell Parsons •

-I want to begin the process of buying a condo, but I don’t know where to begin. I know it is recommended that I find an agent to help me look, but I don’t want to get stuck in some arrangement which I might not like. How do I get started?
— John H., West End

Dear John:
I understand your hesitance to engage the services of a real estate agent. I know it can seem like a commitment you don’t necessarily want to get into, especially at the beginning of your search. At the same time, agents are best situated to know about properties coming on the market, and are a great help in lining up financing and inspections, and helping you work your way through the contract forms, disclosures, etc. Statistics show that around 87 percent of all buyers start their search on the Web. I recommend that to you as a way to get started. As you sift through properties, you will begin to get some idea of prices and neighborhoods, and will likely run across agents who seem to be prominent in given neighborhoods or price ranges. At any point in your search you can contact one of those agents to explore a working relationship.

The second thing I suggest is to go to open houses on Sundays. In that process you will meet many agents, and see many work styles. Invariably one of them will appeal to you, and then you can explore a working relationship with that person.

Finally, the National Association of Realtors (NAR) recently launched www.houselogic.com. This is a free, comprehensive consumer Web site about all aspects of home ownership. It provides timely articles and news, home improvement advice and info about taxes, home finances and insurance. This site would give you a good basic introduction to the world of home ownership. Buying a home is a reasonably complex process, from learning neighborhoods to making offers to negotiating to inspecting. A professional realtor can be invaluable in every facet of that process.

Darrell Parsons is the managing broker of the Georgetown Long and Foster office and abides by Equal Housing Opportunity regulations. Have a real estate question? E-mail him at darrell@lnf.com. He blogs at georgetownrealestatenews.blogspot.com.

Georgetowner •

-Dear Darrell: I am going to be putting my house up for sale pretty soon, and I know it could use some sprucing up. What improvements will bring me the best payback on the cost of the work? (I’m planning on doing most of the work myself.) -Norma T., Tenleytown

Dear Norma: I know you didn’t ask, but I’ll give you an answer anyway: if there is any way you can swing it, don’t do the work yourself, unless you are particularly skilled at what you will be doing. Nothing turns off a buyer faster than going through a house and seeing that repair and touch up work has been done by an amateur. Not only does the work not look as appealing, it also raises questions in the buyer’s mind (and that of the buyer agent) as to what unseen things might be problematic in the house. Even if the buyer can’t quite put his or her finger on the uncertainty about the property, a succession of even small issues accumulates into major doubt about buying the property.

So to your actual question: there is no hard and fast rule about what things bring the best return when fixing up a property, but these are the most likely areas: kitchens, bathrooms, decks (or the like), paint, landscaping. You might say to yourself, “I can paint! I’ll go to the store, get some paint and brushes and have a painting party.” Hopefully you would respond with, “Didn’t you read Darrell’s advice above?” (Of course, if you find yourself talking to yourself, you may be under a lot of stress, and this may not be the best time in your life to sell a property!) In any case, yes you could have a painting party, and the walls would get covered in paint, but the finer points of a paint job would be missing. And most prospective buyers would notice. This is not to mention someone stepping in the paint tray and tracking paint on your hardwood floors, the drips on your toe molding, the purchasing and cleanup time, and so on. If you are going to do it yourself, it’s important to select a neutral but appealing color (not all white, or all tan), and apply it very carefully, giving attention to the details. Only you will know if you have the patience for that.

If you can hang in there for another week, I’ll write more about the other fix-ups I mentioned above. Good luck!

Dear Darrell: My house in Northwest has been on the market for a long time — three months — and no one has even made an offer. It’s in a great location and it’s in great condition. The problem is that it is an unusual design. I keep thinking there is something I should be doing to it to make someone like it. -Maureen S., Cleveland Park

Dear Maureen: First of all, three months is not so unusual these days, depending on the price of your property. I’m assuming yours is towards the upper end of the price range in D.C. Secondly, once you have dealt with location and condition, the only other thing to do (besides renovating) is to take a hard look at the price. Third, one of the things which makes our area so appealing is the variety of choices the buyers have. Think of a piece of music. It’s made up of many different notes, e.g. eighth, quarter, half, whole. If a symphony had only whole notes or only quarter notes it would be pretty boring. As one of the notes in the symphony known as D.C., your property may be one that jazzes us up a bit. That may not appeal to the majority of buyers, but there will be a buyer who will resonate with your “note.” Of course, if all else fails, reduce the price!

Dear Darrell: I’m thinking of putting my house on the market. I’ve talked to a number of friends about it, and have gotten a variety of responses about how their process was, and about agents they know of. How do I know if an agent is going to be the “right” one for my house? -Michael C., Glover Park

Dear Michael: I think you are on the right track by talking with friends who have had recent experience with this. It’s a great place to start. If you haven’t already done so, I suggest you visit several different Sunday open houses so you can get a feel for the style of the particular agent at the open house. For instance, is the agent quiet, dramatic, intense, laid-back, funny, seemingly uninterested, etc.? I suggest this approach because you and your chosen agent will be spending a lot of time together. Style is a very important part of the success of that relationship. The experience of friends is good information, because it puts potential listing agents in a known context. But it’s also important for you to experience the agent for yourself. As I mentioned, open houses is a good way to do that.

Next, I would focus on “substance.” Is the agent knowledgeable, responsive, skillful, creative, thoughtful, energetic, confident, smart, communicative?

Finally, I would talk with them about their track record. I don’t put this first on the list, because I don’t think it is the most important aspect of the process. Insofar as agents can point to success in the past, it is a measure of their skill. But you are presumably interviewing several skilled agents, each of which is likely to have a different style. The better your communication with your listing agent, the easier it will be for you to trust one another, be open with one another, and make the sale of your property a team effort.

Darrell Parsons is the managing broker of the Georgetown Long and Foster office and abides by Equal Housing Opportunity regulations. Have a real estate question? E-mail him at darrell@lnf.com. He blogs at georgetownrealestatenews.blogspot.com.