Compass’ Phillip Salem Shares Their Path From Style To Actual Property

New markets require new approaches and techniques. Specialists and trade leaders take the stage at Inman Join New York in January to assist navigate the market shift — and put together for the following one. Meet the second and be a part of us. Register right here.

Six years in the past, Compass agent Phillip Salem — lovingly generally known as Agent P — was closing the door to a dream 17 years within the making.

The Ohio native moved to New York Metropolis in 2006 to pursue a level in trend merchandising from the Style Institute of Know-how and shortly earlier than commencement opened their first designer boutique, OWEN. As one of many solely family-owned shops within the metropolis’s well-known Meatpacking District, OWEN gained recognition in Refinery 29, Elle Journal, The New York Occasions and WWD.

Nonetheless, Salem’s trend profession was minimize brief after their landlord bought permission to tear the constructing down and rebuild a brand new business area. Not one to be discouraged for lengthy, Salem took their husband’s recommendation and turned their entrepreneurial power to actual property — ending their licensure in 4 weeks and gaining their footing at Triplemint earlier than shifting to Compass in 2020.

“I say the remaining is historical past, however the remaining is a ton of laborious work, a ton of dedication, a ton of selling and a ton of placing myself on the market for purchasers,” they stated of their transition from trend to actual property.

Forward of their first-ever Inman Join New York look, Salem shared the connection between trend and actual property, the ability of authenticity as a nonbinary particular person and the way they’re serving to consumers and sellers navigate one of many zaniest market shifts in latest historical past.

Earlier than our chat right now, I learn your biography on our ICNY homepage, and also you took an unconventional route from trend to actual property. Inform me extra about what led you to depart the style world and begin promoting houses.

Salem: Proper after I graduated school, I opened up a multi-brand boutique in [New York City’s] Meatpacking District. I’ve at all times had this entrepreneurial spirit, and the shop had a tremendous run for about 4 years. We had been the one family-owned boutique within the District at the moment, however sadly, the owner bought landmark approval to tear down the constructing and construct an eight-story business area. I used to be like, ‘Oh my God, my profession is over. What am I going to do with my life?’

My husband stated, ‘Phillip, you have already got a shopper base. You have got the persona. You have got the spirit. Why don’t you simply promote actual property as an alternative of clothes? As a substitute of promoting clothes, promote a way of life. Promote residences.’ I took his recommendation, and I did the fast-track program. I went in particular person to do my coursework, and in 4 weeks I used to be licensed.

4 weeks?! I don’t suppose I’ve ever spoken to somebody who has gotten their license that shortly. What was that course of like for you? I can think about it could be an enormous shift, particularly whereas coping with the closure of your retailer.

I went to the New York Actual Property Institute. I went day by day, and I used to be devoted to getting my actual property license as quickly as my retailer closed. I feel the wrestle for me was having folks imagine that I used to be an agent. I used to be generally known as trend Phillip; I wasn’t generally known as actual property Phillip. However now that I’ve been within the enterprise for five-and-a-half years, I’ve actually branded myself as ‘Agent P,’ and all people is aware of me now as the actual property go-to person who can also be trendy. I blended all my worlds collectively — my love for trend and my love for actual property and I’m serving to purchasers that used to buy at my retailer.

Let’s contact in your transformation from trend Phillip to actual property Phillip. Branding is a big endeavor for brand new brokers, and it may be difficult to search out your footing, particularly while you’ve spent nearly all of your life being devoted to one thing else. What did it take to make that shift?

After I bought into the enterprise, I noticed how brokers seemed on TV and their perspective, and I used to be the other — I don’t put on a swimsuit and tie. I’m very flamboyant. I don’t actually have a filter. I say what’s on my thoughts. I’m not imply.  I imply, these had been simply the sorts of issues that I used to be seeing. As a nonbinary particular person, I had these insecurities about not becoming in. So, I went to Barneys, and I went to purchase a tie and I went to purchase a swimsuit jacket, and I used to be like, ‘That is how I must be.’ However then I spotted, ‘You recognize what, this isn’t me. This isn’t who I’m, and this isn’t my model.’

So, I began being extra myself and expressing myself by way of trend, the best way that I confirmed homes, the best way that I helped purchasers and I didn’t maintain again my flamboyancy. That actually helped model me as what we are saying, #notyourbasicbroker. It actually helped me actually solidify myself within the enterprise with my trend purchasers in addition to my mates. But it surely isn’t nearly clothes and trend and so forth — it took plenty of laborious work.

I began taking any deal that I might take. I used to be doing $1,400 rental offers in Queens and $1,800 rental offers up in North Harlem. I used to be taking something I might, and I began posting every little thing that I presumably might to point out folks that I used to be in actual property. That credibility simply constructed and constructed and constructed till I began doing larger gross sales, and I simply had no disgrace in publicly displaying my accolades and publicly displaying my success. As a result of, to me, success means much more than the cash that I make or the offers that I shut.

It was exhibiting myself that as a queer particular person, I used to be worthy of getting a spot on this enterprise, and I used to be worthy of constructing my footprint within the sand.

Thanks for sharing that with me. One factor I’ve discovered over time from brokers is that authenticity at all times wins in the long term, and I can think about that has helped you navigate this market shift. Consumers and sellers are at all times on the lookout for somebody they will belief. With that in thoughts, what was 2022 like for you? How did NYC actual property change?

The start of 2022 was an epic yr. It was what brokers thought it was going to be — the benchmark of how your entire yr would play out, however we had been clearly unsuitable. I had listings that had been unique on Compass that didn’t even make it to the general public market and had three gives inside two hours. The shift undoubtedly began as soon as the [Federal Reserve] began rising the rates of interest round Could and June. That’s when plenty of sellers seen the listings weren’t as busy and gives weren’t being made the primary weekend. Then issues began getting a little bit bit extra dry towards October, November and December and issues began staying available on the market for much longer.

So clearly, it began shifting right into a consumers’ market. One of many issues that I do for my consumers is present them information, as a result of plenty of information on the market casts such a large internet. However while you’re talking about New York Metropolis, every neighborhood, every block and actually every constructing is actually a metropolis of its personal. So while you’re speaking about days on market and listings not promoting, I like to coach my consumers about how we will strategy placing a aggressive supply on an inventory.

Quite a lot of consumers, they’re seeing information [about the shift]they usually suppose they will get large reductions, however that’s not at all times the case. A fascinating itemizing will at all times promote, and a fascinating itemizing in New York has plenty of outside area, excessive ceilings, is lately renovated and is on a terrific block. So it’s about educating consumers and actually strategizing with them on crafting the suitable supply.

It’s additionally essential to set expectations for sellers. If they’re priced too excessive, they’re not going to get gives. I at all times suggest pricing on the market or beneath the market to attract consideration. However, plenty of sellers are very unrealistic proper now as a result of they’re pondering they’re going to get a value from a comp from 12 months in the past. That’s simply not the case.

Setting expectations is a recurring theme, and as you stated, consumers and sellers are coming into transactions with plenty of basic data when what they really want is hyperlocal perception. What varieties of information are you counting on to assist purchasers?

It’s tremendous hyperlocal in New York Metropolis. It’s even down to love the constructing flooring. You possibly can have an inventory that’s bought on the eighth flooring for $2 million after which an inventory on the ninth flooring being listed for $2.5 million as a result of it clears the opposite constructing, and you’ve got a full view of the waterfront beneath. Typically it’s simply even the route of the condominium on the ground that makes the distinction.

The best way that I present information to each consumers and sellers is so vital and making it very clear and straightforward for them to learn. I make it simple for them to see photos, see finishes and see the date that it was bought. And I even go so far as getting feedback from itemizing brokers on how the exercise was, what number of gives they’d, how many individuals bid over, what number of [offers] had been all money, what number of had been financing. Getting as a lot information as attainable in entrance of your consumers and sellers is extraordinarily vital.

And know what you’re speaking about — don’t BS your manner by way of issues as a result of consumers and sellers know while you’re faking it. So my largest recommendation is, don’t faux it, get the info offered in real-time, and don’t beat across the bush. Say it how it’s.

We’re only some weeks into 2023, however what are your predictions for NYC actual property this yr?

I at all times inform my purchasers, each consumers and sellers, if I had a crystal ball I might be a billionaire. However, simply taking a look at my very own information and experiences, clearly, the market is shifting right into a consumers’ market. I do imagine that sellers who don’t have to promote are going to carry on to their property. I do imagine that sellers who do have to promote due to work or household planning, will promote.

Fascinating residences in New York won’t have a troublesome time promoting and once I say fascinating, I nonetheless suppose plenty of the new neighborhoods in Brooklyn, like Cobble Hill, Fort Greene, Brooklyn Heights, Williamsburg and Greenpoint. In plenty of the newer developments which have many listings, like over 50 to 60 listings in them, sponsors and sellers should begin being a little bit bit extra practical and giving extra value reductions and negotiability suppliers.

General, we’re not going to see such exercise as we did initially of 2020 and mid-2022. I feel it’s going to be a little bit bit slower. I feel consumers are going to be extra weary and if sellers don’t have to promote they’re not going to promote.

E mail Marian McPherson

Leave a Comment