CASE STUDY #1 | First-Time Homebuyers in East Kensington

Goals + Challenges | Discuss Wants + Needs

Goal 1 | Affordability

• Sarah and Mark had saved for a down payment but were working with a budget of around $350,000.

• They wanted to stay within the city but knew they most likely wouldn't find what they were looking for in Northern Liberties based on their budget, and that they needed to explore emerging, more affordable neighborhoods for a balance of affordability and long-term investment potential.

Goal 2 | Space + Flexibility

• As Sarah works from home, the couple needed a flexible space with a home office or studio.

• They wanted at least 2 bedrooms and 1.5 bathrooms, with a small outdoor space for their dog, Milkshake. 

Challenge | Fast-Moving Market

• With the Philadelphia real estate market remaining competitive throughout 2023, especially in up-and-coming neighborhoods like East Kensington, homes were selling quickly, often above the asking price. The couple needed to act fast and make strong offers.

The Search Process | Creating a plan

Search Criteria:

• Based on the plan we made together, I curated a few different home tours in NE Philadelphia- East Kensington, Port Richmond, Olde Kensington and Olde Richmond, and encouraged them to spend some time exploring the neighborhoods to get a better feel for the vibe of each. After the first tour, Sarah and Mark decided they wanted to look deeper into East Kensington and target recently renovated row homes that offered a balance of modern amenities and lower maintenance costs.

• After we explored several homes in each of these neighborhoods, Sarah and Mark found one that they liked. We put in a comfortable offer that fit their budget, but they ended up being outbid (It went for over the asking price by quite a bit). A few days after that, they had another chat with our amazing lending team, regrouped and refocused on finding a place they could see themselves in for the long term and could afford comfortably. 

Solution | East Kensington

Neighborhood Selection:

• We made a plan based on their wants and needs in a home.

• The search was narrowed down to a few different neighborhoods in North Philly.

• East Kensington, located just north of Fishtown, was one of the neighborhoods I recommended due to its mix of affordability, proximity to amenities, and potential for future growth. Since it has become a hotspot for young professionals and artists, the draw to its industrial charm, growing restaurant scene, with easy access to Center City via public transportation, like the Market-Frankford Line. 

• The area still offered homes in their price range, but competition was heating up as more and more buyers have discovered the neighborhood’s unique value.

The Home They Purchased:

• Location: A renovated row home on Coral Street in East Kensington.

• Price: $340,000 (listed at $335,000, secured by offering slightly above asking).

• Specs: 3 bedrooms, 1.5 bathrooms, 1,100 square feet, and a small backyard for Milkshake. 

• Features: Modern finishes, open floor plan, home office space, and energy-efficient appliances.

The Purchase Process | An Experienced Team 

Financing + Offer Strategy:

• Sarah and Mark were pre-approved for a mortgage through Peter at Good Cents, which allowed them to move quickly when the right property came along.

• After losing their first bid on a home, they learned the importance of offering slightly above asking in a competitive market. With a pre-approval letter in hand, we made a strategic plan for the offer they submitted on the Coral Street property, offering $5,000 over asking with a 5% down, and a shorter inspection and closing window, to make their offer stronger. 

Inspection + Negotiation:

• During the inspection, a few minor repairs were flagged, including some issues with the HVAC system. The couple negotiated a $3,000 seller credit toward closing costs to cover these potential repairs.

Closing:

• The couple closed in less than 30 days of making the offer, with the entire process running smoothly thanks to their preparation and the help of the entire team we put together, including the mortgage lender and title company, and an agent well-versed in the East Kensington market.

The Results | Thriving in East Kensington

Investment Potential:

• East Kensington is rapidly developing, and property values have been steadily increasing. Sarah and Mark are confident their home will continue to appreciate as more amenities and development come to the area.

Quality of Life:

• The Bennetts are thrilled with their new home and love the vibrant, creative energy of the neighborhood. Sarah now has a dedicated home office, and they both enjoy walking Milkshake around the neighborhood to all of the parks and coffee shops within walking distance. 

Future Plans:

• They are already thinking about minor improvements they can make to the home over the next few years to increase its value further. Mark and Sarah plan to stay in East Kensington for at least the next five to seven years, enjoying the neighborhood’s growth and the equity they’re building in their first home.

Key Takeaways | First-Time Homebuyers:

• Explore Up-and-Coming Neighborhoods: Emerging areas like East Kensington, Olde Richmond, Port Richmond and Olde Kensington can offer affordability while still positioning buyers for long-term investment growth.

• Be Ready to Act Quickly: In competitive markets, having pre-approval from a mortgage lender you trust, and making a strong initial offer can make all the difference.

• Consider Future Resale Value: Buying in a neighborhood that is on the rise can be a great way to build equity while enjoying a dynamic lifestyle.