Philadelphia Real Estate Blog

Think your condo board and management companies don’t play a role in your value retention?

  

The old adage “Buyers Are Liars” is repeated often in many Real Estate circles. I think the line is a crock of sh*t….The line should be “Realtors don’t spend the time to get to know their Buyers.”

The key to selling condos in Philadelphia. Find out as soon as possible what trigger is going to make any given condo work for a given buyer. Oh, and make sure you know everything about almost every condo in town and be able to discuss that condo at length, at the drop of a hat.

Here is a list of things that I find buyers really key into when shopping for a condo here in town:

1) Walkability
2) A Side of parking
3) Proximity to a given Point Of Interest
4) Areas in which they already are familiar
5) Curb Appeal / Interior Condition

Which one of those blows the others out of the water?
That would be # 5…

I hear it all the time- “I want this area”, “I must have parking”, or I want to be able to walk around town”.  But many of those MUST HAVES fly out the window the minute the majority of buyers walk into a Philadelphia condo and fall in love with what they are seeing…usually quite a different story than what originally comes out of their mouths. NOTHING wrong with knowing what you like….I too am very visual.
Gone is the need for a study, or a 2nd bedroom, that large kitchen buyers have always wanted. Visually stunning condos here in Center City Philly are always in demand- regardless of most market conditions. Believe you me….and NEVER underestimate the fact –
IF IT SHOWS WELL, IT WILL SELL WELL

…and floor height isn’t the only factor affecting values within the same buildings.

Probably the most overlooked effect on value to high rise condominium is the view that any particular piece of Philadelphia Real Estate has to offer. And not all views are created equal. Let compare and contrast a few different scenarios. All are based on my opinion, as a fairly seasoned Realtor who specializes in condo sales I have learned a great deal about the effect on value that particular views may or may not have, and any given buyer’s perception of how that view might affect their desire to purchase.

1) It is possible for a posh condo to nearly double in value if it has a highly coveted view. Think Central Park.

2) In some buildings, the highest values have been posted not only on the highest floors, but also on what we call “treetop” view. A very nice view of the treetops, say on the 5Th floor of a high rise condo can be very appealing to a number of buyers

3) A condo on a high Floor does not always warrant a higher sales price. IS there a benefit to looking directly into a neighboring high rise condo building- from the 27Th vs the 8Th floor?

4) I personally have found few buyers to discriminate between an East vs West view. However, a number of condo values are greatly affected by a North Vs South view.

5) Not all views from the 16Th floor of various buildings are the same. Think about ceiling height, and windows that run floor to ceiling. The building itself can manipulate either the view, or the feeling that the view offers, and this in turn will affect resale value and overall appeal.

At times, the need for a good view can be bypassed if a condominium has great light. There are many Rittenhouse Square condos that offer tremendous natural light, be it north or south, east or west, that don’t necessarily have great visuals. I find a lot of buyers will fore-go a great view if the natural light is strong. Conversely, I find that a great view will not overcome the weakness of a dark condominium. I would suggest that natural light is a stronger motivator than a great view- at least in terms of resale ability.
So know that it has been my experience that view does indeed affect resale price and the time it may take to sell any given Philadelphia condominium. Though direct “park views” are the most desirable, there are compensating factors, and issues that can compensate for a lovely tree lined view of say, Washington Square. One needs to consider the window size, ceiling height, amount of natural light, and of course floor height. All factors should be considered when determining the resale ability of any given Philadelphia condo.

Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Home Services Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19106

Some Philly Condos Appreciate and some Depreciate Like people in a swimming pool, some float, and some sink. The question is why.

Obvious factors are the showing ability and emotional impact that a particular condo unit does or does not possess: cleanliness, natural light, wall color, furniture, even the smell of a condo can add or subtract from the emotional beauty, and leads to a huge impact on a condos value. In my twenty years of selling real estate, I have never had a buyer tell me to find him the dirtiest, or the worst decorated condo available. Easily, as much a ten percent difference in value depending upon showing ability. And of course interior condition can also have a major impact on value. Beige bathtubs and appliances can crimp value fairly quickly in a lot of cases. 

In addition, the physical characteristics of any given unit can help or hurt the units value (think- huge closets, a tax abatement, high ceilings,etc). Styles, like appliances and carpeting have a tendency to age, and that is usually accompanied by a slower rate of appreciation. Clearly, more recently rehabbed, say, Rittenhouse Square condos are going to retain their value better than a unit in a state of disrepair or decline in its finishes. Also prohibitive condominium association rules and policies can deter many buyers from specific buildings. A host of factors can cause units to sit on the market longer than normal, and almost always guaranteeing a lessened resale value.

Location is also a huge factor to the rate of either appreciation or depreciation. Stronger locations in town have a tendency to be a bit more elastic- they are the first neighborhoods to see a drop in inventory with any influx of buyers to the market. That’s a good thing. Recall the principles of supply and demand. I would argue that a strong location is going to depreciate less -because IF in a weakened marketplace, the first condos to remain unsold are in the weaker locations. (The flip side is that you might be able to strike a significantly improved deal, should you be looking away from an “A” location.)

I am just brushing the surface here, but know that not all Center City condos in town will appreciate or depreciate at the same rate. Or sell within the same given time frame. The best tools you have to insure your value remains intact is twofold:

1) Buy it at the right price in the first place and/or

2) Keep your unit looking like it just jumped off the pages of Town and Country Magazine.

Easier said than done, I am aware!

Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

I have been selling real estate in exclusively in downtown Philadelphia for twenty-five years. I have done some stupid things in my career, and I have witnessed many buyers and sellers making equally stupid moves.  I often see buyers and sellers either pinching a dime for a dollar, or just doing some absurd moves that are much more trouble than the expected payoff. And I am sure this is not limited to just Center City buyers…I have no doubt the scenarios play out in every real estate community:

Scenario 1:  Having the Last Word
Seller asks $499k for a condo
Buyer and Seller go back and forth, and after a few days, buyer say $480,000 is my “Highest and Best” offer for this parcel. And then seller comes back and says $480,001. Really? You really want to be a douche bag and say that? You are pissing the buyer off, and it will probably  cost you much much more in terms of anxiety, anguish, and animosity within the transaction as you are locked into a legally binding contract with this buyer for say the next 60-90 days. Perhaps you should just zip your lip and take the freakin’ $480k instead of having to have the last word. Don’t forget, buyers still have to perform a home inspection.

Scenario 2: Can’t See the Forest For the Trees
Seller asks $499k for a condo
This Philadelphia condo  is a bank-owned sty that should be selling for $800k if it weren’t so dirty, missing all the appliances, and listed with Susy Bag O’ Donuts out of Erie, Pa. (it happens…bank foreclosures are often listed by those with no connection to the area). And as a buyer, you get the Big-Brain idea to come in at $400k…because after all, the market is slow, weak, and uncertain.  OK….you are an idiot. If you can’t recognize such an overtly strong bargain, and see that the huge upside is the fact that the condo is grossly underpriced at $499k….then maybe you need to do a little more homework on prices and values here in Center City.

Scenario 3: Why Aren’t you Using a Magic Wand?
Sellers asks $499k for a condo
As a buyer, you top out at $480,000 and the seller will still not accept your offer. And recent “comps” suggest the seller is correct as no other unit in the building has sold for under $500k. You then turn to your Realtor and complain that you can’t get the property for $480k. And you are relentless. Even in the face of the facts. But you persist. You dump your Realtor because he or she refuses to wave their magic wand and make this deal happen. You then drive down the road, and see your Realtor Singing and Dancing in the middle of the intersection of Broad and Walnut.

No one likes a whiner. Not even in a “slow, weak, and uncertain” market place. There are bargains to be had and deals to be made. Opportunity exists in all market conditions, and the current state of affairs in Center City- which has weathered the overall real estate storm fairly well- should indeed be taken into account when negotiating the purchase or sale of any parcel in Philadelphia. But knowing when you have crossed the line and driven right into Crazy Town Pa. might be helpful when finding the right piece of Center City real estate. And help you negotiate the best possible, realistic terms. 

Mark Wade CenterCityCondos.com

I welcome feedback!

Real estate trends are not unlike those in fashion, technology, and fad diets: there’s always an “it” characteristic that buyers and renters have to have, and those “it” descriptors go as quickly as they come. However, like the staple pieces in a wardrobe, there are some criteria that are always in demand. In Philadelphia real estate, everybody seems to want their condo to have a pool.

It’s easy to see why: pools are great for exercising, relaxing, and entertaining. If you’ve got a pool while living smack in the middle of, say, Rittenhouse Square, you’re living the life. Here of some of Philly’s favorite condos that offer pools.

Residences at the Ritz Carlton, Rittenhouse Square

Don’t be fooled by the fact that the Residences at the Ritz Carlton stand at the location of the old Meridian Tower — these condos are as modern as they come. The Ritz Carlton is one of Philadelphia’s most luxurious buildings, offering all the bells and whistles when it comes to amenities: valet parking, a gym, and, of course, a 60 feet pool, complemented by a hot tub. Just outside, residents can enjoy a gated garden in Girard Park as well as a public park area from which you can admire the 48-story-tall building’s distinct blue glass architecture.

The Murano, Logan Square

One of the most easily-identified buildings in Center City, The Murano Condominium building stands at 42 stories high and has condos to offer with up to three bedrooms. The swimming pool is located on the 6th floor and surrounded by both indoor and outdoor deck areas, making it ideal for relaxing. However, residents seem most impressed by the in-house gym, which is arguably one of the best in the city. Each unit offers a breathtaking view of the city, a unique floor plan, and a modern design.

Symphony House, Avenue of the Arts

Whether a buyer is looking for a one-bedroom condo or a huge penthouse, it’s an option at Symphony House. It’s been somewhat recently introduced to the Philadelphia skyline and makes a great addition for anyone who would enjoy living in the cultural hub of the city. Residents get to enjoy the on-site pool as well as other conveniences like a gym and a 24-hour concierge. Perhaps its most attractive feature, however, is the fact that many of the units are heavily customizable.

Academy House, Rittenhouse Square

Another Rittenhouse high-riser, Academy House condos are a smart buy. Conveniently, nearly all the unit’s utility costs are built-in to the condo fees. Many of the units are newly made over or in the process of being renovated, which adds to their value — though former residents will tell you that the resell record of these units is fantastic. With balconies, an on-site pool, an on-site gym, and rental parking, Academy House units are economical while meeting many buyers’ criteria.

If you’re perusing the retail market for a building with a pool, you won’t be hard-pressed to find one in Philadelphia. In fact, you’ll have to narrow down your search by deciding upon neighborhood, customizations, and other amenities.