Philadelphia Real Estate Blog

Being a confessed Real Estate condo junkie in town for 26+ years gives me a lot of credibility with buyers and sellers who come across my website or are referred to my from friends, past buyers, etc. However, there are a few instances when clients look at me like I am blowing smoke up their ass. And often clients will indeed kill the messenger when these truths needs to be said. Here are a few:

1. Suggesting exposed brick is really cool when painted. It is….and every time I show a condo with painted exposed brick- my buyers flip and fall in love. Especially when it is painted something other than white. But the looks I get when I make a suggestion to a buyer or seller that they should paint their exposed brick. You would think I just told them that I was a leper…
2. Staging Really works. It does….but most sellers think I am somehow out to just waste their money. But buyers don’t usually make logical purchases- they make emotional purchases and they much rather buyer the sizzle than the steak. This is pretty much Real Estate 101 though sellers rarely believe me.
3. Letting a buyer know when they need to pay full price for a condo. And this is probably the most difficult for me as well. Sometimes a condo comes on the market that is going to sell THAT DAY- and I know it for a FACT. But getting buyers to believe me is another story. Sometimes they think I am just making that part up when in fact I am telling them the truth. I don’t say it often because 95% of the time, a condo is NOT going to sell that day for full price….but on rare occasions it does happen.
4. Telling a seller that their first offer is their best offer. Almost always the case. But many sellers think there is a better offer just around the corner. In reality, a growing “DOM clock” (days on market) means listings can grow stale and can do so fairly quickly. I can’t tell you how many times a seller has rejected a first offer only to have their unit sit on the market for an extended period of time. More frequent than you might imagine.
5. Telling a buyer that they really are not going to walk as much as they think they are when they move into Center City. It is hard to tell buyers too…most suburban buyers think that they are going to become walking fanatics and never use their car again. But there is no way in hell someone buried deep in Fitler Square is going to walk to the movie houses at 2nd and Walnut. It just isn’t going to happen. Sure- you will walk more than you USED to….but you aren’t going to magically change your life and walk everywhere. I usually try not to tell people this as they take that truth out on me. They do.

So if I say something you don’t want to hear or don’t believe…then take it with a grain of salt. You may then find out for yourself. No hard feelings!(aka- don’t kill the messenger)

I have been interviewing buyers for nearly 27 years concerning their wants and needs. When I do an initial interview with condo buyers, I hear a laundry list of things that are important to them. Here are the most common requested items:

1. Specific Bed/Bath count
2. Parking
3. One level living
4. Move-In condition
5. Pet-Friendly
6. Natural light / Views
7. Walkability to area restaurants and events
8. Den
9. Outside space
10. Pool/Gym

What surprises me the most about a buyer’s initial wish list when compared to what they actually end up buying?  Almost anything on this list can and does fall by the wayside when a buyer sees something they VISUALLY love. Except # 5. If that is on the list, that wish/need does not go away….ever.

There is an old adage that Realtors love to throw around and that is:

“Buyers Are Liars”. No they aren’t- they generally are just not aware of the options that exist in the Center City condo market. And that is where I come in….

I have been lugging buyers around in my car here in town for nearly 27 years now and like snowflakes- no two buyers are the same. However, if I had to generalize and put buyers into categories, here would be the most common types of Center City Condo buying groups:

1) The Returnees – Grew up in Philly, moved elsewhere, and are now returning to their roots. Being close to friends and family is often the draw- or perhaps being close to where they grew up or went to college is often the motivation behind their return to town.

2) The Empty Nesters- Aka- those looking to shed lots of unused house…. They can often be very happy buyers who are starting a new chapter in their lives. I enjoy working with and watching these buyers get excited for a move into town. These buyers are looking to simplify their lives and lessen their responsibility in terms of home ownership. Generally “turn key” buyers who want to do zero work. One level living tends to be a priority as do high rise condos with doormen.

3) The Weekend Warriors- They have done the shore and now spend their weekends in town. Much more common than you think. These buyers generally do not buy townhouses nor do they buy the large 3 and 4 bedroom luxury condos. Usually buy just enough space to have friends over for dinner or overnight.

4) The Kids Who Have Parents Who Have $$ – Very common. Very. Usually here to attend school or start their careers. I find proximity to work or friends plays a heavy hand in where they end up buying. These buyers are also generally turn key buyers who are not interested in doing work to their new condo..move in condition  important.

5) The Transferee- Maybe came to town via a promotion or transfer and wants to be close to work. Moving to town wasn’t on the radar. Doesn’t matter- he or she is here now and the suburbs generally are not on their radar.

6) The Growing Families- Aka the move-up buyers. It used to be that young adults would get married , get a dog, two kids, a station wagon, and BOOM- off to suburbia they went. No longer the case. They now often represent our move up buyers in Center City and gravitate towards single family living in areas like Queen Village or say Art Museum area (in my opinion).

7) The Investors- Those who know that the city is the place to be and that their investment will provide a handsome return year after year after year. A condo may is usually preferred by such buyers as the lack of maintenance is often a goal.

8) The First Timers- The good ole reliable first time buyer. The backbone of the Center City condo buyer. Always has been and always will be.

Let’s say you have a condo to sell at say The Philadelphian 2401 Pennsylvania Ave. and you strike a deal with a buyer.  You then have to pack up, hire a moving company, etc etc.  That is a lot of work for any seller….and the stress can be equally heavy.  And the one question on your mind is whether or not the deal is going to implode along the way.

It happens- more often than you may think as there are many potential bumps in the road from the home inspection to the mortgage process to the condo doc review period.

How do you know if this is going to happen to your deal or not?

Truth be told…it all comes down to one thing: DOES THIS BUYER REALLY REALLY WANT YOUR CONDO?  Because if he or she does…they will make it happen. They will suffer the perceived injustices of the home inspection. They will roll with the bumps in the road in terms of the mortgage. They will put up the curveballs that inevitably come down the pike. IF they want your condo- they will make it happen.

I see it all the time. Your buyer’s motivation level is the barometer for a successful close to the transaction- If the buyer wants your condo bad enough- he or she WILL make it happen and will put up with everything thrown in their path to ownership of your condo. They will tolerate the fact that your heater is older than expected, your electrical service is a bit out of date, the mortgage company tells them they have to put MORE money down, etc etc.  IF they want it bad enough, they will roll with the punches.

When a great condo at a great price hits the market, there can be some serious competition to buy that condo- at say Penns Landing Square condos. Buyers duking it out with other buyers. Here are my top secret steps to winning a multiple bid situation for my buyers…. if my buyers agree:

1. I make sure I dot my i’s and cross my t’s in the offer itself- sloppy offers beget sloppy responses.
2. I call the listing agent and ask specifics that will fit the seller’s need- Like what would be the perfect date for the seller to settle?
3. I have the buyer write a nice note about how much they love the condo they are in contention for and explain why they are making the offer. Sounds silly- but that little trick goes a long way.
4. In that note (see #3 above) I have the buyer’s explain that they have seen the age of the heater, the age of say the kitchen or the windows and let the seller know that these factors were already taken into account and that the buyer does NOT intend on coming back after the home inspection and attempt to have the seller repair the items that we ALREADY know are potentially deficient.
5. Finally, I find out who the listing agent uses for a mortgage and title company. Then I get a prequalification letter from THAT mortgage company. In essence, it turns my buyer’s offer into a cash offer as listing agent will have NO qualms about my buyer’s ability to qualify for a mortgage. And if we have to use the seller’s title company- then so be it.

One of the biggest hurdles I find for empty nesters moving into Center City is the chore of downsizing. A recent client of mine found a professional downsizer. I was amazed at how he helped her out of her large 5-bedroom home into a smaller two-bedroom condo at 1326 Spruce St. Here is what she had help with:

Some of the things Ed does:

He goes through the house and has me identify any big items like furniture, carpets, etc. that I will take to the condo, measures the items, takes photos to which he adds numbers to identify each item.  He produces a large diagram of the condo and gives me pages with squares, rectangles, etc. indicating each item by the number and representing all the items that I am planning to take, the sizes in proportion to what they would be in the condo.  He then asks me to decide where each numbered item goes.  This is terrific, because you can tell, for example, in what room and where A carpet or chest will fit or realize that an item – like my twin bed on the 3rd floor – will not fit and plan the arrangements accordingly. He identifies an area (like the basement) or a category (like books) that is the focus. He confronts me about stuff, forcing me to make decisions about what I must take, what I am ready to discard, and what I need to think about.  Like a demon, he then organizes everything, packs stuff for the condo with care and with speed – putting on labels indicating where things go, takes anything to be discarded to a thrift shop or similar.

On his own, he zoomed through the basement, sorting through everything in a flash.  You would not believe how quick he is and how EMPTY the basement now looks. This is an invaluable help.   A great find. Here is his contact info:

Mischa Greenberg

President

Serving Philadelphia, and the Tri State Area

mischa@moves-made-ez.com

Sometimes, I know what condo is best for any given buyer. Honest…26+ years selling in this town gives me that unique ability. Not always…but sometimes I do. And sometimes I know when a buyer should act with haste and BUY THAT CONDO TODAY. And in the same vein, I know when to tell a buyer to run like hell AWAY from any given condo. That last part is easy to vocalize.

But in all honesty, that is the most difficult part of my job- Telling a buyer what to offer and that he

or she may need to jump on it ASAP in order to ward other potential buyers off. I sometimes feel like a buyer may think I am bullsh*tting them into a deal. That really isn’t ever the case. I am not interested in resting my reputation on any given sale. I sell a LOT OF CONDOS year after year after year and the ability to do so is really based upon reputation. Risking my reputation so that you buy a condo “real fast” isn’t how I operate. And if you ever think that is the case- you should abandon me ASAP and never take another one of my calls. But most of the time, buyers do not know just HOW GOOD any given condo is priced, nor have any clue to the fact that it may be grossly undervalued. That is when I try to gingerly try to prove my point. More often than not, buyers heed that advice…though not always and of course that is OK.

But sometime when my clients and I do stumble upon a gem of a gem – I do want to find the nearest mountaintop and shout “SHUT THE F UP AND JUST BUY THAT CONDO”….

Which is easier said than done 🙂 The condos at Waterfront Square that were bank owned come to mind in this situation..

You can choose your Realtor

You can choose which condo you want to buy (duh)

You can choose your mortgage company

You can choose your title company

You can choose which inspections you want

You can choose what day you want to settle

You can choose certain terms and conditions within the contract

But what if you are unsure about your options? That is where I come in to help.

I usually tell my buyers: “Plan the fly, then fly the plan”.

So when we meet and chat, we are going to put together a plan of attack to best suit

your needs based upon your wants and needs. And know that I will throw in my two

cents to help you navigate the buying process based upon my 26+ years experience- regardless of whether you are buying a brownstone condo, or a high-rise unit..

You may listen to my advice or go out on your own for your options. Probably a mix of the

two works best for most of my clients.    Now let’s get started with the condo hunting….

Listen- I get it. Sometimes you don’t mesh with the Realtor you found at an open house, on-line, or via your neighbor’s recommendation. And sometimes that Realtor is ME. No surprise there.

And most Realtors will try to get you to sign an exclusive contract so if and when you do buy- you have to use them as your Realtor. Personally, I do not do that. I want to earn a buyer’s trust and keep them as a client based upon merit. However, if you do sign an exclusive contract with another agent- I usually can not help you- unless you have put a date on that other contract which has since expired.

But sometimes I do put people in my car who don’t like me. Or vice versa. In that case- it is best to be upfront with that Realtor and tell them you have decided to go in another direction. No biggie.

I usually find that most Realtors are not A-Holes, rather they do silly things that buyers don’t like. For instance, not listening to a buyer’s wants and needs can be harmful to the relationship…. I have heard many buyers come my way saying their old Realtor was showing them condos WAY outside their price range. Like when a buyer wants a two bedroom with a $500,000 budget and the Realtor takes them to say 1820 Rittenhouse Sq. condos.

So if you coming to me from another Realtor- I welcome you. If you are leaving me for another Realtor- then I wish you good fortune and tidings. No hurt feelings. Honest.

This isn’t rocket science here folks. You need to do 3 very easy things. 3 very easy things that numbskull sellers refuse to do:

1. Clean your condo
2. De-clutter your condo
3. Spend $1000 to do minimal work to your condo (see below)

That $1000 should be used for simple projects like re-caulking your bathtub, re-hang the closet doors that are off the tracks, shampoo the carpets and touch up paint throughout. You would be simply amazed at how many sellers refuse this simple advice…it is astounding. This minimal effort is going to have a MULTIPLIER effect on the value of your condo. Almost every condo I see needs these three steps done to increase value. And the value increase is sometimes TEN FOLD

(if you do the above and spend $1,000 – I can usually get you an additional $10k for your condo).
Selling your condo requires effort. From me and from you. And yes, I have folks whom you can hire to do some of that minimal work. So get on it 🙂