Philadelphia Real Estate Blog

Let’s say a home is asking $500,000 and a buyer makes an opening offer of $475,000. Here are a few things that are typical under this scenario:

1. The eventual price is probably going to be $487,500- split between asking and initial offer
2. That price will often be renegotiated as a result of a home inspection
3. The buyer is going to submit his offer via docu-sign and the seller will respond initially to the offer verbally. The buyer will counter verbally as well. Until a price is agreed upon- everything is done verbally.
4. Once a “meeting of the minds” occur- the offer is sent back to the buyer with all changes initialed that the offer can be presented to seller in a fully executed format. Seller will then sign via docu-sign as well. Seller may continue to show the house, but may not enter into another contract unless the first contract is dissolved.
5. Seller signs. Once this happens- the contract is fully executed and THAT is the day in which the “clock” starts in terms of when the 2nd deposit is due, and when the home inspection needs to be done, etc
6. Although a seller may negotiate an “AS-IS” clause into the contract- that does NOT prohibit buyer from having a home inspection and cancelling the deal if they so choose (of course IF done within the time frame allotted to complete inspections)
7. NO terms of the contract are valid or enforceable unless in writing. Period.

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)

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.

I reserve one right when I am working with a buyer…To tell a buyer when they are eyeballing a horrible piece of crap. Either in terms of value retention, the asking price, or the weakness of the condo association. Though one thing you will rarely hear me warn you against is interior condition IF the condo is priced accordingly. I may show very little concern if you don’t like the color of the walls or say the age of the appliances. Those are easily changed.

So if we are working together and you see me do cartwheel over the ugliest condo you have seen to date- there is a reason for those acrobatics. And it all gets back to value.

Mick Jagger once said “It is OK to let yourself go, as long as you can get yourself back”. And that adage would be true in terms of condos- If you are buying a very very strong VALUE at say some mid-rise condo in town- then I will probably turn a deaf ear about your disdain for the color of the carpet in the guest bedroom, or the fact that the condo shows like crap.  Yes, I will be on your side in the deal…but at the same time, If I spot a really really strong value, or a grossly underpriced condos- give me some space because I am about ready to do some cartwheels in the living room. Cosmetics are easy to change and can increase value in a heartbeat. So let yourself go a bit if values are strong and look past that ugly green worn out shag carpeting in the bedrooms. You can thank me later when you go to sell….

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.