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

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

Six years in the past, Compass agent Phillip Salem — lovingly referred to 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 style merchandising from the Trend Institute of Expertise 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 Instances and WWD. 

Nevertheless, Salem’s style profession was lower brief after their landlord bought permission to tear the constructing down and rebuild a brand new industrial house. 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 transferring to Compass in 2020.

“I say the remaining is historical past, however the remaining is a ton of arduous 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 style to actual property.

Forward of their first-ever Inman Connect New York look, Salem shared the connection between style 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 current historical past.

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

Salem: Proper after I graduated faculty, 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 an incredible run for about 4 years. We have 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 industrial house. 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 will have the persona. You will have 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 assume 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 a large shift, particularly whereas coping with the closure of your retailer.

I went to the New York Actual Property Institute. I went on daily basis, 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 consider that I used to be an agent. I used to be referred to as style Phillip; I wasn’t referred to 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 everyone is aware of me now as the true property go-to person who can also be modern. I combined all my worlds collectively — my love for style 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 style Phillip to actual property Phillip. Branding is a big enterprise for brand spanking new brokers, and it may be difficult to seek out your footing, particularly once 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 regarded on TV and their angle, and I used to be the other — I don’t put on a go well with 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 have 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 go well with jacket, and I used to be like, ‘That is how I needs to be.’ However then I noticed, ‘ 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 style, the way in which that I confirmed homes, the way in which 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 style purchasers in addition to my pals. However it isn’t nearly clothes and style and so forth — it took lots of arduous work.

I began taking any deal that I may 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 may, and I began posting all the pieces that I presumably may to indicate those 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 creating 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. Patrons and sellers are at all times in search of 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 12 months. It was what brokers thought it was going to be — the benchmark of how the whole 12 months would play out, however we have been clearly improper. I had listings that have been unique on Compass that didn’t even make it to the general public market and had three gives inside two hours. The shift positively began as soon as the [Federal Reserve] began rising the rates of interest round Could and June. That’s when lots of sellers observed the listings weren’t as busy and gives weren’t being made the primary weekend. Then issues began getting somewhat 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 knowledge, as a result of lots of knowledge on the market casts such a large web. However once you’re talking about New York Metropolis, every neighborhood, every block and actually every constructing is actually a metropolis of its personal. So once you’re speaking about days on market and listings not promoting, I like to coach my consumers about how we will method placing a aggressive supply on a list.

Numerous consumers, they’re seeing information [about the shift], they usually assume 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 lots of outside house, excessive ceilings, is not too long ago renovated and is on an incredible block. So it’s about educating consumers and actually strategizing with them on crafting the suitable supply.

It’s additionally crucial to set expectations for sellers. If they’re priced too excessive, they’re not going to get gives. I at all times advocate pricing on the market or beneath the market to attract consideration. However, lots of sellers are very unrealistic proper now as a result of they’re considering 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 lots of common data when what they actually need is hyperlocal perception. What sorts of knowledge are you counting on to assist purchasers?

It’s tremendous hyperlocal in New York Metropolis. It’s even down to love the constructing ground. You may have a list that’s offered on the eighth ground for $2 million after which a list on the ninth ground 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 course of the residence on the ground that makes the distinction.

The way in which that I present knowledge to each consumers and sellers is so necessary 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 offered. 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] have been all money, what number of have been financing. Getting as a lot knowledge as attainable in entrance of your consumers and sellers is extraordinarily necessary.

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

We’re just a few weeks into 2023, however what are your predictions for NYC actual property this 12 months? 

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

Fascinating residences in New York is not going to have a troublesome time promoting and after I say fascinating, I nonetheless assume lots of the new neighborhoods in Brooklyn, like Cobble Hill, Fort Greene, Brooklyn Heights, Williamsburg and Greenpoint. In lots of the newer developments which have many listings, like over 50 to 60 listings in them, sponsors and sellers must begin being somewhat bit extra real looking and giving extra value reductions and negotiability suppliers.

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

E-mail Marian McPherson