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Ask Adam: ‘Million Dollar Listing’ vs. Real Life

By WTOP Staff

Editor’s Note: This periodic sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty. The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com. Please submit follow-up questions in the comments section or via email.

How similar is the TV show Million Dollar Listing to real estate in Arlington?

Probably not that much more similar than your life is to the Real Housewives franchise. The shows are crafted for entertainment, featuring plenty of showboating and drama.

My favorite scenes are the face to face negotiations. They’re a great way to breed drama. In contrast, almost every real estate offer in Arlington is presented over the phone and then transmitted via email. I’ve only ever had one agent deliver an offer in person, but the negotiation had already taken place.

What’s also interesting is that they negotiate verbally without anything in writing. As a listing agent, you’re not going to get me to present anything to a seller without all the terms written out and signed by the buyer. There’s way too much that could go wrong and there are a lot more variables involved than price.

The broker open houses are much more fabulous on TV. The nicer broker open houses in Arlington usually consist of a catered lunch and maybe a drawing for a $50 gift card. In reality they are probably just as effective as the lavish events you have seen in Million Dollar Listing. In my opinion, brokers opens are as much about educating the realtor community about a home as they are about creating buzz. Education is especially important with some of the high performance green homes being built.

One practice some of us share in common with the agents on TV is staging . I’m sure this sounds like a waste of money to some of you, but I can tell you from experience that how a home shows goes a long way towards how it sells. According to the staging company I use, 94.9% of their staged homes sell in 45 days or less.

Though the guys on TV drive around in Porsches, wear $25,000 watches and strut around town in Gucci loafers, this is not how we roll in Arlington. Maybe there is a little of that in Great Falls, but I don’t see it around here. I should point out that far less than 1% of realtors earn the level of income that these guys on TV are making. According to CNBC.com 12 Most Overrated Jobs, the average annual income of a realtor is $40,357. That’s a respectable income, but it doesn’t get you far in Arlington and it sure doesn’t look anything like the $594,000 commission I just saw Ryan earn on Million Dollar Listing New York.

So how many million dollar listings actually sell in Arlington? Thus far in 2012, 63 homes have sold for $1,000,000 or more. The two most expensive homes sold in Arlington this year, went for $3,100,000 and $4,200,000. The latter is a penthouse condo at Turnberry Towers.

I have to give Bravo TV a lot of credit. If they can make real estate look cool or at least entertaining, then they are good at what they do. Today I had a walkthrough, closing, home inspection to negotiate and emails to respond to leading up to writing this article. Trust me, it had very low entertainment value.

Continue to send your real estate-related questions to: adam@arbourrealty.com


Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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