Philadelphia Real Estate Blog

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 🙂

Ok…so you bought a condo and you have had a home inspection and you now have an 18 page report in front of you telling you that the condo you bought is a real hell-hole. You start to freak out- that simply means you are human. Don’t sweat it. I usually tell my buyers (when making an offer) to look at the interior condition of the condo and make your offer accordingly. It is usually difficult to ask a seller to make repairs on items that were visually OBVIOUS when you first bought the condo (like in a brownstone condo- if you can see the windows are very old and need some repair- it is going to be difficult for me to get you a credit for things you reasonable knew were not up to snuff. However- It can be more difficult for a buyer to estimate the age of a heater or the age of specific wiring and that can usually be a lot easier to get a credit to upgrade. But know that usually the seller will not give you a full credit…the number is generally negotiated.

And IF you have the option for a credit or a repair from the seller- Get a credit. Because if the seller makes the repair and you don’t like HOW they made the repair- then we are all up sh*t creek without a paddle. And finally, know that many Philly Highrise buildings supply your heat, your electric and AC so you have no recourse to ask the seller to affect those as the seller does not own those elements.

1.) Do I need a lawyer?  Legally, no you do not. However, I suggest you hire a REAL ESTATE attorney as they can be helpful. What I do NOT suggest is that you hire your brothers neighbors cousin who lives in Bum-f*ck Iowa and is a personal injury lawyer. That could really do more harm than good, in my opinion. Get a REAL ESTATE lawyer.

2.) Can I move in prior to settlement ? Uh…no. Never. Sorry.

3.) Can I change settlement time or date at the last minute?  Usually not. The title company, the seller, the mortgage company, the listing agent, along with my team of helpers all would need to clear with their schedule. Best to decide early upon a settlement time and date and STICK WITH THAT PLAN. Honest.

4.) Why do I have to pay a Capital Contribution and what is it?  Yes you do, IF your condo association require you to do so. It is usually two months of condo fees that you pay the condo association upfront at time of closing. This does not go to the seller. This helps add to the “kitty” of your condo association. You are more or less paying yourself, in my opinion. So buildings like 1830 Rittenhouse Square condos do  not require one…but that is rare. In order to raise money for special projects at 1830- they simply assess as needed.

5.) Can I move into my building at any time, or do I need to plan ahead? You indeed need to plan ahead, especially in larger buildings like say The Hopkinson House condominiums where you would need to reserve the elevator and such. Those details will be available in your condo docs and or resale package. Best to read them!

6.) May I BBQ on my patio or deck?  99% of the time, the answer is NO. Per condo rules.

7.)Does the seller have to repair nail holes in walls where his/her artwork once hung? Great question…I believe the answer is no. You bought the condo with the holes already in the walls. Unless you believed the artwork magically floated and hung via a magic spell- you can assume there are nail holes and they transfer with title 🙂

8.) Which utility companies do I need to call?  Depends upon your condo association. Usually just PECO and maybe gas company. IF water is included in your condo fees…do NOT call the water company. Ditto for Comcast.

9.) What is transfer tax and why do I have to pay it? Because the city says so. You pay 2% of the sale price and the seller pays 2%. Transfer tax is split between buyer and seller and both pay 2%.
10.) Do I have to have a home inspection? The legal answer is no. The smart answer is yes…do it IF for no other reason than to learn how your condo functions and operates. A good way to become more familiar with the strengths and weaknesses of your condo.

Condo fees are based upon ONE thing- Square footage. The larger your condo, the more fees you have to pay.  However- there is going to be a HUGE variation in the amount of fees you pay from building to building. For instance, condo fees at the Philadelphian (2401 Pennsylvania Ave.) are going to be hugely different from say the identical sized unit at say Roberts Quay condos at 1035 Spruce St.

The reasoning is simple- The Philadelphian is an all-inclusive condo building…meaning the doorman, the heat, electric, and the shuttle bus are all included in your monthly fees. You pay for none of those items if you buy at 1035 Spruce.  The amount of services the building offers is the weighted factor that accounts for the varying fees from building to building. I know of no elevators that run on magic pixie dust, nor am I familiar with any doorman who works for free. If you want those amenities in your condo building- you have to pay for them. Period.

You pretty much just sit and wait. Wait for the mortgage company to ask you for things you have already supplied to them 🙂  And know that there are many things going on in the background of which you may be unaware- We (my team) will be procuring the title report and clearing the title for the closing, ordering the “City Cert” (which is required for all closing in the City of Philadelphia for all condos ranging from the Rittenhouse Hotel at 210 W. Rittenhouse to Waterfront Square Condos), ordering the payoff statements for the seller, ordering the condo docs from the association/mgmt. company, and preparing your final settlement sheet (The HUD-1) in order to have a smooth closing. At this time, you will want to call the electric company and possibly gas company. If you need to have a street blocked off for a moving van- then you will want to call the streets department and get that set up as well. We will be doing a pre-settlement walk-through usually an hour before settlement to make sure the home is in the same condition it was when you put the condo under agreement.  So sit tight, enjoy the ride and start planning on your move into the city!

This is a simple blog post….

Expect any and all mortgage folks to torture the sh*t out of you. Period. And I don’t care if you are using someone who you know or have used in the past. The torture part is unavoidable as rules and regs have changed considerably even in the past few years. Even well established condos like say 1830 Rittenhouse Square are going to require heavy scrutinization (buildings get scrutinized as well as buyers).

Remember the banking meltdown we had in 2008? Well- the result of that is higher standards and much much more paperwork that is expected from all buyers. There is no escaping that fact. Will you dislike your mortgage person a bit after you get put through the wringer? Perhaps.

Best to expect the worst and know that “Rome wasn’t built in a day”. Patience and understanding go a long way in smoothing out the bumps in the road that you are sure to encounter when procuring a mortgage.

When buying a condo- there really isn’t a whole lot that can be wrong with the unit. I say that because in a condo- you don’t own the roof. You don’t own the foundation. You don’t own the exterior….you only own a portion of those elements in most buildings around town like Naval Square condos. So that leaves things like a dishwasher, electrical outlets and a few other miscellaneous elements throughout the condo.

And know that a seller CAN NOT affect repairs to a common element. So let’s say you are buying a Brownstone styled condo and the inspector finds that the roof is older than normal. You can not ask the seller to repair that roof because the seller does not own that roof and rules and regs of the condo docs state that any individual may not affect any repairs to a common element.

Know that condo home inspections generally last about an hour and cost around $350- depending really upon the size of the condo. Some inspections cost more and some take longer, but it has been my experience that an hour and $350 about does it.  You needn’t attend if you like (though I suggest you do) and you will get an 18 page report back telling you about the “hell hole” you have just purchased 🙂   Inspection reports can be daunting….but I suggest we go through the report to put things into perspective and decide the best course of action for your needs.

I do have a list of home inspectors I know and trust, or you can choose one of your own. Just know that per terms of the contract, we will have a window of opportunity to have the inspection performed and send results to the seller- so time is of the essence.