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February 14, 2017
Looking to just put your condo on the market and NOT actually sell it?
Here are some great tips:
1) Put a tenant in your condo who actually doesn’t want to move and therefore never cleans, never confirms an appointment, or locks the deadbolt to prevent Realtors from showing your condo. His pile of dirty socks strewn about the living room floor is a real plus as well.
2) Don’t bother to clean. The new owner can do that- right?
3) Be home and give the tour yourself. That always goes over well with a buyer and his or her agent.
4) Don’t declutter and for heaven sake- don’t stage! Because you think buyers can look past that superficial stuff.
5) Make sure you get the “last word” in on every part of the negotiating process. Forego the old rule of “bird in the hand.”
However there is one tool that you can use to overcome these obstacles- Price your condo so low that a buyer just can’t resist. All joking aside, there is a fine line between serving up bad ideas and giving your condo away. Listing your condo for sale is like negotiating any contract- there has to be some give and take on both sides. Much like any good marriage where you give 60% and take 40% and you call it a day. That is pretty much how the Real Estate world turns.
February 2, 2017
There are a number of buildings in town whose tax abatements have run their course and an even bigger pile whose abatements expire over the next few years. The net effect on resale values and demand comes into question for many buyers. Here is my opinion:
Buildings such as The Phoenix at 1600 Arch St. and Dockside at 717 S. Columbus Blvd. have expired abatements. Buildings like York Square, WaterFront Sq (in the Peninsula and Regatta towers),many Naval Square units-as well as many other buildings erected here in town in the mid-2000’s are soon to expire. I have heard (though I certainly am usually not one to speak on behalf of city hall) that the tax rate for condos will be 1.34% of assessed value when abatements expire. If we look at the sales data from buildings whose abatement has expired over time, the net effect of an expired tax abatement is almost nil when looking at resale prices, demand and values. I have not seen any instance of value dropped solely based upon the expiration of a tax abatement. Why, you ask? Here is what I gather from my many condo buyers in town:
Lee Iococca adopted a theory he called “The Equality Of Sacrifice” – which I interpret to mean that as long as everyone is in the same boat (of an unabated tax bill) – then any fears of inequity are diminished. And I believe that to be true. FULL ten-year tax abatement offers are few and far between in town these days
…. Except for maybe the last three units at WaterFront Square in the Reef building and a smattering of smaller new construction projects here and there.
I think that buyers generally do not expect to see a “game changing” benefit from the balance of any tax abatement. The entire market is rapidly aging in the expiration of the abatements and therefore I believe that any partial abatement period is kinda’ icing on the cake. It certainly can sweeten a deal for many, but I don’t think this is the end all, be all determining factor if a buyer buys “this unit or that”. But again, it certainly does not hurt to inherit the balance of an abatement 🙂
Center City is more attractive than any abatement. We’re growing in size and popularity and the expiration of abatements and almost certainly isn’t going to keep anyone out of town or out of any specific building in town.
February 1, 2017
You’re out of your mind if you think you
are going to know who lives on your floor…
I live in a high rise and besides the elderly couple who live next door and
often ask if I can help them with miscellaneous computer issues,
I truly have no idea of anyone else’s name on my floor. And we have
been here for FIVE years.
And that is pretty much where the familiarity begins and ends.
Not that I don’t want to get to know them- I think they are all very aware
of the communal living aspect that condo living affords and seem like great people.
But unlike a suburban house with windows and a yard- there are no windows that look out onto my hallway. I have no idea who is coming or going and I rarely see them. It is not like I put a lawn chair in the hallway like Kramer from Seinfeld. So where they work, what kind of car they drive, when they leave in the morning- I don’t have a clue.
And that is OK with me.
And don’t even think of asking who lives above or below me because
I have never seen them in my life. They could be from another planet for all I know.
If I want to socialize, I will go to one of the parties or hang around the lobby and
chit chat with past clients or those I see at the dog park.
You can “blend” in a high rise if you choose, or you can be the head of the social committee. The choice is yours. But neither is mandatory.
January 30, 2017
One way to ostracize yourself fairly quickly in your new condo building would be to get on the wrong side of the staff. If you want your packages and your guests to come and go without being tortured or be put through a lengthy inquiry, then perhaps you should listen up.
Folks who live in doorman buildings quickly learn that the way to get anything done through the building is through the doorman. From allowing your guests access through the front door to helping you with you packages, a great relationship with staff can certainly make your living arrangements more enjoyable. And from fetching your car, to walking your dog- doormen can make your life easy and they often will go the extra mile for Philly condo owners who are friendly. And being greeted with a smile each time you come home is a nice thing. Having a doorman who doesn’t like you is not a walk in the park. Believe me, I learned the hard way back in the late 1980’s by being rude and pushy. I no longer live in that building, and I now treat doormen with respect. You should too. Your life will be made much easier if you never piss off your doorman. They are great for learning of building gossip too…they seem to know everything. Oh, and tipping is generally done at the holiday season either via a pooled fund which is collected by the building, or done individually. I would suggest you get yourself a stack of $20 bills and pass them out like Halloween Candy. This is not the time or place to be stingy 🙂
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January 24, 2017
 
Almost any Center City condominium with a smattering of exposed brick may attempt to pass itself off as a loft. Often sought after as an expression of one’s own style, loft living has taken off in downtown Philadelphia. Lofts vary in look, layout, and location throughout Center City. Some loft condos impress mightily while others are cheap imitations of highly unique urban treasures hidden in pockets of Old City, Bella Vista, and The Loft District around 13th and Vine Streets. The best example of a hard loft in Center City might be The Old Shoe Factory at 314 N. 12th St. From an unadorned cavernous lobby area, up to the eighth floor via a converted oversize warehouse lift, the units are characterized by huge windows, exposed brick, minimalist kitchens and bedrooms that are open to the living area. Fantastic city views, high ceilings and a few units with polished cement floors. Minimal at best, these condos truly tag at the definition of a live/work open space where room size is valued over room count.
A fair example of a soft loft might be BridgeView Place at 315 New St. in Old City. With the prerequisite high ceilings and touches of exposed brick these condos have been compartmentalized to include bedrooms, walled off kitchen areas and walk-in closets. Some units at BridgeView do indeed have a loft bed perched above the living space but those units are few and far between. The conversion to condominiums in the mid 1980’s at 315 New St. is a good example of a reasonable living space with a bit of “lofty” flair. A Center City Philadelphia loft can come in a variety of sizes, styles, and locations throughout downtown. Some more true to their “lofty roots” than others and loft living of all proportions is gaining popularity among the empty-nester set moving into town from the suburbs and elsewhere. Many of the available loft condos today didn’t exist in the early 1990’s when the very first empty nester/baby boomer began trickling into Center City. And judging from the success of many loft and loft-like sales throughout the area, buyers are finding individuality can be expressed through the (loft) style in which they choose to live.
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January 18, 2017
Having sold over a dozen units in the building, I can say for certain that I am a fan of the Phoenix condos. And here is the inside skinny as I know it-
The Phoenix was an existing office building when it was converted to apartments just over fourteen years ago…say around 2002. Then around 2006, the usage was altered to be condominiums. The Phoenix performed fairly well at its introduction to the public and is fully sold out. The building has a great mix of one, two and three bedroom condos- though the 3 bed units are rare, as are a handful of studio units in the building. A fair number of one bed plus den styled units…around 1100 sq ft (the den is a bedroom, but doesn’t have any direct sunlight or windows..but the size of the den is similar to the bedroom). Values can be contingent upon which direction a condo faces, but in reality- interior condition is king. The costliest views are east and north…and resale prices are reflective of such. The building has valet parking- condo owners could have either purchased a rental license or were given the option to rent a parking spot. The tax abatement for the building expired in 2013 and I do NOT think that values have been affected in any way by that fact. The condos at the Phoenix provide direct access to the train station (you don’t have to walk outside to catch a train to say NYC). The front desk staff is very friendly and have never given me any crap….and I can see that the residents of the building like them as well. There is a Starbucks and a restaurant down the first floor corridor which is nice for owners and residents.
The building kinda’ sits close to Jefferson Medical, U of Penn and Hannemann which draws from those three crowds…almost like a “built-in resale market.” The Phoenix at 1600 Arch has the best and largest common roof deck of any condo building in Philadelphia and has lounge areas as well as a BBQ station which is nice. There is also a fairly good sized gym and conference rooms. The common areas are done nicely and retain a fair amount of their pre-war grandeur, but the interior units don’t reflect that fact. The top floor condos at the Phoenix are unique in that they preserved some of the original detail of the building and incorporated it into the condo units. The condominiums are pet friendly and I am unaware of any rental restrictions for owners.
And my clients should feel free to email me if they would like to chat with someone who lives in the building in order to get their two cents on the Phoenix condos at 1600 Arch St. I recently sold a unit to a lovely couple at the Phoenix and their condo is NOTHING short of stunning and is magazine quality (I mean you Joan).
January 9, 2017
Some buyers know it all. Good for them. For the rest of you…here is what you may not know:
1) Two bedroom units are a better investment than a one bedroom-
Unless you live at the beach and plan on having guests every weekend. Otherwise, I don’t see that argument holding much water.
2) That unit comes with deeded parking-
Not always. Usually a parking license that gives you the right to park, but you don’t have a separate tax bill.
3) Those are hard wood floors-
Or maybe they are laminate, or a composite, or a soft wood like pine. Though it may make no difference to anyone, many floors are called hardwood but actually are not.
4) I can rent my unit out anytime I choose-
Not unless the condo docs say otherwise. Read your docs.
5) A higher floor always means a higher value-
In older buildings, I think the guiding light of value is not floor height, rather interior condition. Though a high floor has never hurt value.
6) A friend told me to stay away from that building-
It is hard to turn a deaf ear to a friend. But sometimes doing your own homework and asking questions can be an equally good idea.
7) I will walk everywhere when I move into town-
That’s great. But few will walk from say Naval Sq. to The Ritz movies in Old City. Of course you will walk more. Walk everywhere? Doubt it…Get the Uber app on your cell phone and be done with it.
8) I need three full bedrooms-
Most buyers can do with two beds and a den. Think about that as the number of three bedroom condos under say $1m is exceedingly limited.
9) I am going to find a condo where I don’t have to pay condo fees-
Good luck with that. Elevators don’t run on magic fairy dust and doormen do not work for free. Fees are a reflection of what the building offers and how much it costs to operate.
10) I need to have gas cooking-
I sold a condo to a sous chef from Le Bec Fin back in the day. He bought a condo with an electric stove. He said it didn’t matter…rather a huge misconception with the part time home chefs. Sorry.
January 3, 2017
When normal everyday people board
the crazy train…
Listen- I get it. Buying a condo can easily cause BPS (big purchase syndrome). Normal everyday people can go a little nuts over small bumps in the road or small wrinkles that inevitably come down the pike when buying a home. And catching BPS crosses all lines- whether you are buying a small little one bedroom condo or a large penthouse. Happens to many buyers of all ages and sizes regardless of the price range or experience of the buyer.
I don’t judge people when they board the crazy train in a real estate transaction. Sh*t happens and BPS is more common than one might think. And it happens to me every time I buy or sell a condo. It just does.
So don’t feel bad if you call me out on some silly detail or freak out over a little bump in the road. I understand that buying a condo has much more to do with emotions and feelings than actually owning a condo in Center City.
Almost all of my favorite buyers go bat-sh*t crazy at least once during a deal. It is part and parcel. The true crazies here are the folks who can and do take everything in stride 🙂
December 5, 2016
The strength of any condo association in town is usually a reflection of how much money they have in the kitty and it is the responsibility of EVERY condo association to cut costs wherever waste is identified. There is a company in town who has been doing audits for some larger buildings around town and helping them assess their energy needs and areas for efficiency improvements.
No Capital outlay
Lower operating costs; now and in the future
Make long term energy efficient building improvements
Lower maintenance cost by replacing aging equipment
Improve resident and guest experience
Utility company Cash Incentives available in many states
Tony Lepre may be able to help your condo association save money:
November 8, 2016
1) The Philadelphian at 2401 Pennsylvania Ave. is the largest condo building in the state of PA. Over 700 units. Very cool mid-century feel to the place.
2) Buyers AND Sellers often nit-pick themselves right out of a deal. They focus on minute details and the other party gets fatigued and the deal falls apart. Most deals fall apart over the SMALLEST details and usually based upon emotion and not $$.
3) Buyers usually don’t buy the bricks and mortar. They buy feelings and emotions. (See #2 above).
4) I encourage buyers to bring family members on a tour of condos. But not friends. Family members support and encourage. Friends are the ultimate deal killer who bad mouth EVERY condo we see- almost always.
5) I do not believe that expiring tax abatements on any given condo building equates to lower future values. I have watched many buildings with expired abatements and I haven’t seen a correlation.
6) Like automobiles, popular condo units (when first offered/built) have a tendency to remain popular units throughout their life span. Like all the “01” units at The Murano or the “G” units at Society Hill Towers.
7) Condo fees are like a person’s age. They go up nominally almost every year. It is a fact of life…it just is.
8) Waterfront Sq. at 901 N. Penn just got their Energy Star Rating- To earn the ENERGY STAR, the apartments in a new multifamily building must be built to meet strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency. An apartment unit that has earned the ENERGY STAR label has undergone a rigorous process of third-party testing and verification to ensure it delivers better quality, comfort, and value.
9) When I settle on a property, that buyer or seller is out of my life for the foreseeable future. This often is a letdown as I have grown to know my clients and I won’t get to continue to interact with them.
10) Sloppy offers usually garner sloppy responses. If you want your offer to be presented in the best light, then dot your i’s and cross your t’s. And that often means getting a pre-qual from the lender that the LISTING AGENT knows best. This can easily remove doubt as to your qualification for a mortgage.
11) No, you can’t bring your dog on our tour of condos. I love dogs. I love my dog too, but you won’t see her on our tour. Leave your dog at home. Seriously.
12) Every home inspector says you need a pan under your washer/dryer. If there is not one there now, then you most likely aren’t getting one. This is the #1 thing on any inspection report that I cannot successfully negotiate for you. (If there is not drain, then a pan will do you no good and very few buildings have drains under their W/D units).
13) Mortgage companies torture everyone equally. You will not be able to circumvent this fact EVEN if you are super-duper rich or if you have an existing account with your lender. Trust me. I know.
14) More and more high rise buildings are not renewing their FHA approvals. Not sure why- but the Reef building at Waterfront Sq. just did so.
Mark Wade
www.CenterCityCondos.com
BHHS Fox & Roach Realtors
Mark@CenterCity.com ~ 215.521.1523
Tags: center city condos, Philadelphia condos, Rhilly realtors
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