Short Sale Specialist in Philadelphia

A short sale is when your bank agrees to accept a lower payoff than what they are owed in order to approve a sale of the property.

Short sales are becoming increasingly common as the housing crisis has accelerated and many home values have depreciated since an owner purchased. In all these cases, the value of what a house can be sold for is less than what it is worth.
In our Philadelphia real estate market, we have noticed that the average realtor will list a property for way over what it is worth in hoping that it sells. Of course, it rarely does and even if an agreement does come in, chances are it will not appraise. The better solution is to look at the circumstances to determine if the house should be marketed as a short sale candidate.

Without going into too much detailed discussion, the process is extremely complicated and time-consuming. But it can be very beneficial to a seller who is in desperation and does not want their credit ruined as a result of a foreclosure and very beneficial to a buyer who has an opportunity to procure a property below market value. As real estate agents, we have successfully completed many short sales for our clients who were so appreciative of the outcome. In several cases, their properties were even listed with prior realtors (in one case 3 prior realtors) who never even explored the option of doing a short sale.

Typically for a short sale to be approved a seller has to have a level of hardship and is behind on their mortgage. Although we did have one short sale approved for a seller who never missed a payment on her Northern Liberties condo, but had a case of extreme hardship due to her husband passing away.

Are you in a predicament where a short sale may be your best option ? If so, contact Chris and Stephanie Somers at 215-400-2612 or thesomersteam@yahoo.com to discuss further.

Stocks vs Real Estate - The Ongoing Debate

Stocks versus Real Estate - Lessons to be Learned

I think as individual investors we can all come to conclusions which investment classes are most suitable for us as far as meeting our individual goals. Over time, the debate will always continue and sway back and forth over the question "What is the better investment ? The stock market or real estate ? "

In times like this, I think it is pretty simple. Companies like Merril Lynch, Lehman Brothers (LEH), Washington Mutual (WM), AIG, Wachovia to name a few are down 60 to 70 to 80 percent in the last 1 year ! Lehman brothers is down close to 90 percent ! These are all investments that the average stockbroker or investment banker would have promoted as "conservative" or a vital part of a stock portfolio. This list does not even include a Fannie Mae (FNM) or a Freddie Mac (FRE).

The risk here is even with a 5 stock portfolio, just having one of these equities would have destroyed a portfolio. Now some will say, these companies do not represent the whole market.

True.... so lets see what the market has done.

In the last year, the Dow Jones Industrial Average is down approximately 21 percent - see 1 year chart .
The Nasdaq is down 15.4 percent in the last 12 months - see 1 year chart .
Conversely, Toll Brothers is up 20 percent over the same periord !!! Who would have thought ? - see 1 year chart .

Either way, outside of California, Florida, Arizona, and Nevada, how many individual brick and mortar homes lost 60 to 80 percent of their value like a Washington Mutual, Lehman Brothers and so forth ? Further, the average real estate investment property generates cash flow from the rent received. Are the stock market companies paying dividends that can match the rent received ? No !!!

I met with a client yesterday who is pulling out $90,000 in the stock market to buy an investment property in Old Kensington (Philadelphia Real Estate). He told me, "Chris the stock market just has not been my friend in the last 10 years." I agree, it has not been mine either. He elaborated by saying he will put the $90,000 (he is paying cash) in this property as the investment will be in his control. He can touch it, see it, improve it, rent it and so forth. He can see the neighborhood improving around him. He knows the average comparable property sells for around $130,000 so he knows he is getting built in equity off the bat. Can the stock market provide that ? No !!! He does not have to worry about, of the $90,000, that his broker will not place more money in the likes of Fannie Mae preferred stock which lost pretty much all of its value one day last week ! Ouch !!!

This will certainly be a topic to discuss more. I know diversification is always key. But over the long term, real estate certainly has to be a sizeable percentage of an investment portfolio.

Philadelphia Real Estate The Philadelphia Real Estate Blog

Are you excited to sell this house ?

Philadelphia Real Estate

We had a listing appointment on Monday where everything was going great. I had great rapport with the potential sellers, a fantastic Q&A session answering all the questions regarding pricing, strategy, marketing, advertising, our experience and so forth. I was on fire ! Then a final question was asked by the husband: Are you excited to sell my house ?

I almost froze on the question and thought "Oh my God - am I excited ? Am I not excited ?" I have not froze on a question on a listing appointment in years !! But I took a moment and smiled. I remembered that this is what it is all about. Helping people accomplish their goals, being part of their lives, and really being excited and feeling honor and pride that you are the one that they are choosing to help them with one of the most important decisions in their lives ! This process will net them the most amount of proceeds and help them move foward in their lives and you are a part of it !

I found myself thinking for a moment, wow... I have been caught up in the details, some of the drainers and being drained in the tough real estate market. Sometimes I worry about all the things that could go wrong or look at the fact of why did we not get a certain listing... Instead of focusing on all the positive things which they are numerous. It really is all about perspective and gratitude.

I answered his question, "Yes I am pumped up to sell your property ! " That is what we do !!!
We just listed the property last night and we look foward to selling it for them. It makes me happy to be able to see the big picture and not get totally lost in all the clouds and confusion of the tough real estate market. Remember when you first started and got your first listing ? Or your second ? Or closed your first deal ? Or had your first settlement ? Or accomplished that first milestone ?

It is important to maintain that energy and excitement - that attidue of excellence and vibrancy. It shows and it is important not only to success, but to ones inner soul as well.
Are you excited to sell your client's house today ?

Philadelphia Real Estate Philadelphia Real Estate Blog

Northern Liberties Listing - 122 W Laurel St - from The Somers Team - Philadelphia Real Estate

This is a completely rebuit 3 story, bright, and sunny corner row property in the heart of Northern Liberties with 3 bedroom and 2.5 baths. The large finished basement has ceramic tile flooring and 2 windows for plenty of light plus a storage area. Bamboo hard wood flooring runs through the entire home !

The 1st floor offers a spacious living room with open dining area, a beautiful eat in kitchen, deep set sunken windows, a laundry room, powder room and access to the fenced in rear patio. There is exposed brick on each floor. The 2nd level offers 2 bedrooms with a master bath and hall bath and the 3rd floor is one room with 2 bright dormer windows. There is plenty of closet space throughout.

Everything is new from the custom cabinets, granite counters, HVAC system, electric, roof, and alarm system. Exquisite details and craftmanship throughout. There is a 10 yr tax abatement. Enjoy all the restaurants, coffee shops and Liberty Lands Park just one block away ! House across the stree just sold for $450,000 !!!

If intereted in this property or are thinking of buying or selling a property in the Northern Liberties area or in Philadelphia, please contact Chris and Stephanie Somers at thesomersteam@yahoo.com or at 215-400-2612. Please see Northern Liberties Listing and Info page on our site as well.

The Somers Team The Philadelphia Real Estate Blog

737 N 2nd St - Unit 1 from The Somers

Welcome to this wonderful 1st floor, 2 bedroom, 1 bath condo in the best location in Northern Liberties, the corner of 2nd and Brown! The condo is the entire first floor of a three story building, with its own private entrance. The condo was originally known as a garment factory (Garden Looms) and it is zoned for live and work.



This space has 10.5 foot ceilings, exposed duct work and a very modern feel. Since it is a corner building, there are many windows providing tons of natural light. The kitchen has modern stainless steel appliances and solid wood cabinets. There are honey colored bamboo floors throughout, with the exception of the tiled bathroom. The condo is 1125 square feet, with generously sized rooms and an open floor plan.


The master bedroom has a walk-in closet. Additionally there is an enormous 500 square foot private basement, which is unfinished but is heated/AC. The unit also features a full sized washer and dryer. The condo fee is only 160/mo! Agent: Easy to show. Vacant on lock box. Please leave feedback. More photos on http://www.2ndandbrown.com/ !

For more information on this listing or other Northern Liberties listings, please email us at thesomersteam@yahoo.com or call at 215-400-2612.
Also, please view our Northern Liberties listings and info page .
Philadelphia Real Estate The Philadelphia Real Estate Blog

How to choose the right investment property ? Part 1

Almost every day, we will receive a call or an email from an investor looking to pick up an investment property or a homeowner looking for a property that "needs work". Often times, they will ask "what about foreclosures ? " "what about HUD homes ? " and the like ?

The good news is that there are plenty of opportunities out there and always will be in my opinion, in both sellers markets and buyers markets.

The strategy is to know what you are doing from the beginning before getting your feet wet. We have met with countless sellers who made in their opinion "a great investment" and when we go to meet with them, unfortunately we may have to tell them that their investment was not so great, either because they overpaid, they did not understand the comparable sales, they were mislead, they underestimated the costs of rennovations...etc.

On the flipside, we have helped so many investors be very succesful on the investment properties they have bought and sold or continue to own and are collecting rents each month. Some of those testimonials can be seen at our homepage - testimonials .

Below is a short checklist of items to consider. I WILL TAKE EACH POINT AND EXPAND ON THEM IN LATER POSTS:

1. Know your goals - Is your goal resale ? Long term buy and hold ? Immediate cash flow ? Income ?

2. Selecting a property - know your local market or work with an expert who does.

3. Purchase price - Your money is made when you purchase, not when you sell. We typically look to buy investment properties for 15 to 20 percent below market.

4. Financing - have your financing ready to go if you are not paying cash. This is critical especially in today's market where financing is tight. It will also be critical to know to look at how the financing relates to the cash flow and the investment value of the property.

5. Rennovation - get a qualified contractor who can give you an honest assesment of what your rennovation costs will be.

6. Plan for Problems - allow a 10 percent cushion for any unforeseen problems. That way if a problem does arise, you will handle it with veins of ice and calmness.

7. Always keep an open-mind and be willing to learn - The more you do, the more you learn. Learn from your mistakes and from your successes. Do not be afraid to fail.

8. Reevaluate and reassess - Examine your goals and your investment properties periodically as what you can do to improve the property or adjust your plan for the next one !

If interested in buying or selling investment properties in the Philadelphia area, feel free to contact Chris and Stephanie Somers at thesomersteam@yahoo.com and visit our site The Somers Team - Philadelphia Real Estate .

The Philadelphia Real Estate Blog

Northern Liberties is a Great Place to Live !

Today when my wife Stephanie and I were on way back from hosting open houses in Port Richmond and Old City, we were driving in to our condo parking lot in our Northern Liberties home at 2nd and Poplar and saw the mural at the end of the street (Newmarket St) being worked on by two local artists. The mural has become quite a sight - it is a reminder of how great of a neighborhood we live in - in Northern Liberties !!

We spoke with the 2 local artists - le Josh and Erica. le Josh invited us to his art show which will be in Old City tomorrow night so we might stop by. Both artists were smiling and having fun and did not mind us talking to them and let us take their picture while they were painting.
One of the photos we really like is the mural (which is painted on the side of I-95) with the new construction Waterfront Square (see above) that can be seen in the background. It shows a picture of art and development mixed together which from our perspective, is pretty darn cool.
After taking the photos and talking to the artists, on our stroll back to our condo Stephanie said "We live in a great neighborhood". I could not agree more !

Northern Liberties Listings
Philadelphia Realtors - Chris and Stephanie Somers Philadelphia Real Estate Blog