It sold in Fishtown - not an easy settlement !!!
This week we had one of those excruciating deals finally settle !! This deal was on the brink of blowing up on several occassions and was even put back on the market briefly, but with the right people involved - the buyers agent, the mortgage professional, the title company, the buyer and seller of course, and lastly ourselves - the listing agent, we made it work.
What is amazing and important to remember is that I really believe without the expertise and the right people to be involved in a successful sales transaction, many deals would never EVER make it to a settlement table. This is another major reason that illustrates the importance of having a professional and experienced reator represent buyers and sellers. I believe that gone are the days that a consumer will go to a a friend, a friend of the family, or a discount broker as in this real estate market, there are too many landmines and pitfalls that can occur. It is too risky for a consumer to go with an inexperienced agent in this difficult market climate.
Recently, I have seen many listings expire and withdrawn from less experienced agents or discount brokers and be relisted with a more established, experienced professional. In fact, that is how we picked up this listing as the seller had it listed with a "friend of the family" for about a year prior to us getting involved.
In this case, we had many obstacles for the Fishtown property that included some of the following:
1. A unique property - Property is a single family residential property but has a studio or "in-law suite" in the back. The property was vacant but the studio had been tenant occupied for close to 10 years. This trips up a lot of mortgage companies as is it a single family or a multi-family ? The property had been used like this for decades and is common on this block and in this area. Some properties are considered "illegal multi-families" but in this case, no one was trying to hide anything and the property was builit like this decades ago.
Well, sure enough, the buyers first mortgage company could not get the loan through so the buyer had to switch mortgage companies. The buyers agent called around and referred her client to an experiened mortgage professional in Philadelphia. Fortunately, we knew this person very well - knew his experience and expertise - and felt comfortable recommending to the seller to grant an extension on the deal based on this knowledge.
2. Estate Sale - Estate sales can always bring up title issues - was the estate handled correctly ? Any estate tax due ? Inheritance tax due ?
3. "Stubborn tenant" - The tenant at the property could not vacate by the settlement date. Her rent is way below market value. These situations always require some delicate communication with the parties and the tenant, notice given and the agents finding a solution that benefit and protect both buyer and seller.
4. Repairs - Being an older property, this property required over $8,000 worth of work prior to settlement which is always risky as after the work gets done, what happens if the deal blows up and who is going to pay the contractors ? Or the risk that the buyer might not be happy with the work ? We took that risk ourselves as this was an important aspect of going to settlment.
5. Tough market - Being a tough market, it can make a buyer and a seller more stubborn in negotiations due to the leverage that each might have. It is critical to have the right agents involved to communicate with the clients to explain the benefits and lead them to the settlement table...
6. Willingness of agents - It is a last resort for agents to help out towards a settlement but when deals get really difficult, out of goodwill agents can go a little extra to aid in a settlement. In this case, it was a pleasure to deal with the buyers agent as she agreed, based on the situation, that her and I would help out where we could to contribute toward the deal that would mutually benefit both of our clients. The way I look at it is receiving the marjority of the real estate compensation is much better than zero !
To not let this post go to long (there were other nuances), I can summarize by saying it was a great goal accomplished for this settlement to be achieved. And again, without the right people involved to handle and navigate through the above 6 items, it probably would not have happened at all !
Chris and Stephanie Somers - Philadelphia Real Estate
The Philadelphia Real Estate Blog
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