1100 Vine Street, The Grandview is a 12 story condominium building at the corner of 11th and Vine here in Center City Philadelphia. The building is made up of mostly 1 bedrooms under 600 square feet, some nice 2 bedrooms, and a few penthouses. The Grandview has a close proximity to Jefferson.
What is so wise about this Philly condo? The condo association has limited the number of rentals allowed at any given time within this building. Fannie Mae will not lend on a unit in a building where the owner-occupancy is out of whack. This makes it exceedingly difficult to preserve value in a building that has more rentals than owner-occupants. So, the Grandview has a rule written into their condo documents limiting their rentals to around 30%. Genius!
In the buildings with more renters than owners, it is extremely difficult for a new buyer to obtain financing. Occasionally you can find a lender to do it, but you better have at least a 25-30% down payment. Which most first time home buyers here in Center City do not have. Let’s face it, these buyers are “job-rich and cash-poor”. They just started working their first great job, but they have nothing in savings and are buried in students loan payments.
Sales will begin to come to a halt in buildings that are not finance-able. Sellers will begin to compete with each other lowering prices and the value of the building will be a stake. Due to the preemptive strike at the Grandview, condos there are still selling, and selling well. Their value has been preserved. First time buyers can go in with as little as 5% down.
On the flip side, another building here in town has lost a lot of value when the condo board sued the developer. Whether their reason to sue was right or wrong is not for me to decide. But unfortunately, as a result of a lawsuit within the condominium, lenders will not lend. Sales in the building have ceased. After 3 or 4 years of no sales, the building has become filled with renters and anxious sellers lowering prices, and lowering prices some more, hoping for a cash buyer to come along.
The worst part is that when it’s all said and done, due to this short-sighted lawsuit, the owners of the building will never get back what they have lost in value. Let’s say there are 100 units, and let’s say they win the lawsuit. Even if they win something like $1,000,000, when you split that up among the units, they end up with around $5000 each. It’s like they cut off their noses to spite their own faces. They have lost a lot more than $5,000 in value per unit. Whatever they may win, it will not be enough to override fact that they lost so much value.
Back to a more positive note, I hear another building in Old City also considering the same thing as the Grandview-limiting rentals. Great move! Keep buildings valuable by keeping them mortgage-able.
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19106
Every Philadelphia condo association has its own set of rules and regulations in regards to cats, dogs, giraffes, and other miscellaneous pets. The general rule of thumb is as follows:
1) Low Rise and/or Brownstone Style condominiums
Almost ALL of these small associations allow dogs and cats. I dunno’ about giraffes. Rarely are size, or breed restrictions in place. Such is the case at The Garden Condominiums on the 1600 block of Spruce Street. No elevator, and limited common space generally mean more relaxed pet policies. However, there may be a nuisance clause inserted into the condo docs, should your pet be continually yappy, or prone to biting the neighbors.
2) High Rise Condos
All Pre-War buildings on Rittenhouse Square allow dogs and cats. Breed restriction or weight limits may apply. It has been my experience that smaller high rise (and high-end) buildings with limited number of occupants do allow pets- Like 1900 Rittenhouse Square. High rise Philly condo buildings with large populations (Academy House) generally will not allow dogs.
Large condo associations looking to rethink their restrictive pet policies can implement size and breed restrictions to keep disruptions and the “fear factor” out of the common areas of any given association. This idea will probably gain in popularity as associations look for ways to attract, instead of repel potential buyers. In my 20+ year real estate career here in Center City Philadelphia, I have realized that the buying public is about 50 times more likely to purchase a condo with a relaxed pet policy. Most buyers will give up their first choice of condo buildings, before they will give up their beloved pet. I wouldn’t dream of giving away my dog to live in any specific building here in Center City. Would you?
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Usually accented by very large windows and high ceilings, exposed brick walls bring casual comfort to many Old City lofts and other Center City Condominiums. But the look of those walls need not stay the same again and again.
One option is to varnish, or apply polyurethane to the brick, which controls the brick dust accumulation, and gives the brick a bit of a shine, sort of similar to shiny hardwood flooring.
Another choice, which I personally prefer, is to painted the brick. Though I can rarely convince others to paint their exposed brick, some of the coolest and most hip looks are achieved by painting interior exposed brick finishes.
Of course, once you paint an exposed brick wall, you are kinda’ stuck with the look, unless you go and have the walls sandblasted. Not a process I would wish upon my worst enemy! Messy, to say the very least.
Looking for a cool and hip condo? Let’s take a look at some units together? Maybe a Fitler Square Condo? Give me a call at 215.521.1523 or email me at Mark@CenterCity.com.
Mark Wade www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Technically, in the State of Pennsylvania, if you do not obtain mortgage financing, no one is going to force you to buy title insurance on your new Old City or Rittenhouse Square condominium. But as your Realtor, with your best interest in mind, I am going to rant and rave until you agree to buy it.
A mere title search doesn’t always reveal all the flaws that could potentially be a part of the chain of title. And title searches are not free. Not to mention you will need to pay an attorney or title company closing fees and notary fees to complete your transaction if you do not purchase title insurance from them. Closing fees and search fees are usually waived if you purchase the title policy. Since you will need to put out several hundred dollars for these services if you waive title insurance anyway, you might as well pay the difference and protect yourself against the unthinkable.
Here are a just a few scenarios you could encounter without the protection of title insurance:
– Forgery or Fraud in connection with the execution of previously recorded documents
– Incorrect representation of marital status of grantors
– Undisclosed or missing heirs
– Wills that have not been properly probated
– Mistaken interpretation of wills and trusts
– Incorrect legal descriptions
– Unsatisfied mortgages, liens, or judgments not shown on the record
– Deeds executed under expired or false power of attorneys
– Confusion due to similar or identical names
– Unknown rights of ex-spouses or former owners
– Clerical errors in recording legal documents
– Incorrect filing of condominium declarations
Some of these things sound crazy I know. But in my 21 years of selling Philadelphia Real Estate I have come across more than a few of the above situations. So think of it this way:
Paying for a title search and other closing fees to buy your condo without the protection of title insurance – Around $800
Paying for the same search and closing fees including title insurance protection on your $300,000 condo – Around $1600
The peace of mind of having your title company to call and not having to deal with an old lien or back taxes that suddenly show up on your title – priceless!
Mark Wade www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
As a longtime Philly Realtor, I see the value in a good appearance of a given, say Old City Condominium, and a good first impression. One that does not include dirt!
It is one thing if your kitchen has white appliances and Formica counter tops. Buyers can look past that. Most folks can even get passed your vanilla bathroom and maybe even the lack of good natural light. But your dusty brown futon from your college days? Your clear lack of ownership in a vacuum, or a mop? More than any home improvement, if you are looking to increase the value of your condo in Philly, get yourself some Clorox, and get cleaning.
Most buyers are not interested in having your dirt and grime included with the sale. Unless of course, you are looking to kill your resale value.
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Old City Philadelphia: the neighborhood that was once blighted with unattractive and massive warehouses is now the place to be for many searching for a hip and groovy Philadelphia Condos. Once referred to as the “Warehouse district”, Old City has become the hip urban neighborhood that is much in demand!
Converted factories and lofts dominate the Old City condo set. Though few townhouses are located within Old City, many buyers find the attraction to the variety of loft space a real draw. Old City Condos in the area are many and varied. From studios to larger rambling spaces, the historic fabric and eclectic visuals make Old City a popular buying destination for Philadelphia’s residential condo buyers. 108 Arch, The Moravian condominiums, York Square, Bridgeview Place condos, Wireworks condos, and the National in Old City are some of the big name condos in the area. All of Old City falls within the 19106 zip code. Area boundaries for Old City Philly are: Front St. to the east, 5th St. to the west, and Walnut St. to the south, and Wood St. to the north.
I personally have lived in Old City for 17 out of my 20 years here in downtown Philadelphia, and really enjoy the neighborhood. The charm, history, and area shopping proximity are just a few bonuses to my Old City condo!
Not all fluctuations in value have a direct correlation to one particular quality of any given Philadelphia condominium. Rather, a Philadelphia condominium’s value, and the rate of change therein, is really a product of a host of factors.
Obvious factors are the showing ability and the condo’s emotion: 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-one years of selling real estate, I have never had a buyer tell me to find him the dirtiest, or the worst decorated condo available. Interior condition can also have a major impact on value. Beige bathtubs and appliances can crimp value fairly quickly in a lot of cases. And of course 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.
Location is a huge factor to the rate of either appreciation or depreciation too. 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 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
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Get this….23 S. 23rd St- A two bed, two and a half bath condo asking $439,900 Listed by a good friend who sells a lot of Fannie Mae Foreclosures…I just have to tell all my blog readers about this unit….
High end cherry kitchen, with Sub Zero and Viking appliances, Hardwood flooring, high ceiling, close to Penn, and very very cheap rental parking in the building. Doorman building!
97% Financing Available for Owner Occupants!
Curious…Call me! 267.237.3404
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Whether you live or work here in Center City Philadelphia, you know all about The Parking Authority! Here is a short video about how to easily avoid them.
So from avoiding “No Parking” zones in front of the driveway of any given Center City Home, to making sure you do not exceed twenty minutes in the “loading zone” in front of that Philly Condo Building, you can greatly cut your chances of getting a ticket, or even worse, getting towed.
Watch your time in meter spots. The meter folks are only doing their jobs, so be nice to them. Always look out for temporary regulations and read the signs to make sure parking on any given street isn’t cut off after a certain time of day. For example, you can only park on the 600 block of Walnut Street until 3:30PM so they can clear the road for rush hour traffic, which does everyone a lot of good. They will tow you if you are blocking the traffic!
Some streets offer free 2 hour parking, but if you don’t live in a Philly Loft or Home in that neighborhood (with a sticker on your window to prove it), you will be ticketed if you exceed the 2 hour limit OR if you try to sneak back to the same block later in the day. Your license plate number is in the system, so they have no idea if you left and came back. You get 2 hours free on each block each day if you are an out-of-towner! There are tons of lots in Center City if you need to stay longer.
Lastly, don’t park in a Handicap Spot if you don’t have a Handicap plate. It WILL cost you! Follow this simple advice, so you don’t end up featured on the next episode of Parking Wars!
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
If you are doing work around your Philadelphia home, why not donate your Used items to Impact Services of Philadelphia?
Here is why you should:
1) They will take used appliances, faucets, cabinetry, doors, sinks- even furniture -THEY TAKE THEM AWAY FOR FREE!
2) You are helping the community, as the donations you make will be sold quite inexpensively to those in need
3) You get a tax deduction
4) Did I mention that they will come into your Philadelphia condo or home and remove said fixtures?
So let’s review. You save money from not having to dispose of a variety of items, free removal, tax deduction, and you are helping the city.
A few rules:
-All appliances must be in good working order, and a maximum of 10 years old
-All other fixtures must be in good working order/good condition
-They do not take mattresses
You can call Impact Services at 215.423.3613 Monday-Friday 8am-4:30pm. Their schedule is done on Mondays for the week. So schedule your pick up accordingly. And know that the staff is always very friendly!
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
