Philadelphia Real Estate Blog

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.

I get many calls from a variety of buyers wanting to go see condos in town and am always happy when a buyer puts their trust in me. Here are a few things to know when we begin shopping for your new condo:

1. You are going to need to be on time. Most of the condos we will see have a window of time in which the seller has allowed us access. And sometimes we have to meet other agents, or the alarm will be off for a specific time frame. You can’t be late for our appointments. I like to say that I do a lot of things in Real Estate and late is not one of them 🙂
2. Plan on parking your car somewhere- like in a parking lot so that If we are out for more than two hours- we won’t need to swing back to add money to your parking meter. I will be driving us from say The Hopkinson House to the The National in Old City.
3. Our first appointment will probably be our shortest. I will be showing you a wide variety of condos in different price ranges, locations, and styles (contemporary or traditional). And I will try to show you a variety of interior conditions. The point is for me to watch and listen to you as you experience a variety of condos.
4. After our first tour- I am going to know exactly what to show you and what NOT to show you on our upcoming tours. So the first tour is really a learning experience as you get an introduction to the market and I get an idea of your wants and needs.
5. Lastly- After you are home and have had a little time to digest what we have seen- Send me an email telling me what you liked and disliked about each condo. This feedback is going to be HUGE in helping me cut all the BS (condos you don’t want) for our next tour!

Thanks…and I look forward to working with you to find your next home!

I get the shivers when I think of people investing in new Philadelphia Condos that are still on the drawing board. Do these people have some kind of condominium ESP I lack?