Philadelphia Real Estate Blog

…Have Sh*tty Resale Prices- If they sell at all.

 
Come on, you would have to be from the moon to believe all condo buildings here in Center City are created equal in terms of
demand, cache, and resale ability (in terms of price and “days on market”). There are some buildings in downtown Philly that just really suck, in terms of their investment value. And there are a handful of buildings that basically cannot resale at all.
 
Some of the signs to be aware of-
 
1) A lot of units on the market, and very few sold in the past 12 months
2) A high number of REO’s/Foreclosures/Short Sales
3) A low owner-occupancy ratio in the building
4) Poorly managed exterior and common area condition
 
Unless you are buying a short sale or a foreclosure in the building, or are in the mood to just piss your money away, I would suggest we talk prior to you buying in certain buildings.. Some Center City condominium buildings aren’t worth a look, much less an offer.

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

I am at a standoff between a buyer and a seller on a particular condo in Center City.

This is routine. What makes this an interesting case is that after 5 days of initial offer presentation, the seller is at (say) $815k, after some price reductions, and negotiating…and the buyer is stuck at $810k, after a few counter offers.

So who is going to budge?

If I pester the other agent to hammer his or her buyer to take my seller’s offer of $815k…does that not show a sign of weakness?  I think it does. It is a game of chicken at this point, and the first party to flinch, or show weakness in the negotiating process by being too impatient, may well indeed be the loser and may have to cave to make up the $5,000 difference in this case.
 
I am advising my seller to sit tight, and put on their best poker face.
 
We will see….stay tuned.
 
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

Of course our Philadelphia condo market is not moving at the pace it was back in say 2006/2007. But are you looking a gift-horse in the mouth when a condo is clearly undervalued (say a foreclosure), and you want to offer 60% of the asking price?

    
Lets say a condo you adore once sold for $500,000, and has gone through the foreclosure process, and is now asking $400,000. You want to offer $240,000 although the comparable valid comps suggest it is worth every penny of the $400,000. Sure, you are probably going to get it for less than asking, but is a $240,000 offer really valid and/or realistic? Probably not.

Though each seller has their own level of motivation, I would suggest that buyers need to look at condos realistically. Don’t you think that IF the seller were going to take $240,000, that there would be a line out the door, and around the block to buy that Philly condo?  What, are you the only big-brained, know-it-all who is clever enough to come up with a plan to buy a condo at an unrealistic price? Perhaps you are new to this planet.
 
Again, YES…the market is not as strong as it once was in terms of sale prices. But ask yourself- are you being realistic, or are you looking a gift-horse in the the mouth?

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

In real estate lingo, it simply means “Real Estate Owned”….as in usually owned by a non-emotional third party, out-of-state, corporation or bank.

It also can mean a well priced condo deal for those looking to hopefully hit it “big” in the game of real estate. For instance, lets say a Rittenhouse Square condo goes through a foreclosure process. Often, a large bank will contract with a local real estate company to sell that condo- and usually at a discount.  Along comes Billy the Buyer.

One of Billy’s main priorities is to NOT OVERPAY for a condo here in town. All other wants and needs fall lower on Billy’s priority list. And though every situation is different, I would venture to suggest that REO properties are often priced at a discount. Something Billy is going to like.

Billy has already let me know that he is looking for a deal. So I find this REO property in the MLS, and I call Billy. “Hey Billy…get your can over here and take a look at this great deal”.

IF Billy can negotiate a great deal, Billy could be in for a great great property at a great deal. I have sold MANY an REO in my day here selling Center City Real Estate, and they all seem to have one thing in common- a great asking price!

Lets chat if you have something in common with Billy.

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

1) Clean the grout in your bathtub and shower.

2) Declutter your closets and countertops.

3) Clean your windows- Inside and Outside if possible.

4) Have carpets professionally cleaned.

5) Clean out your storage area- if applicable.
 
No one wants to inherit your dirty, cluttered lifestyle, if applicable. There is a reason why model homes are so emotionally appealling- they make buyers believe that they will live such a clean, unfettered, uncluttered lifestyle, should they buy that condo. Yeah, it is sometimes a bit “Smoke and Mirrors”…but an emotional kick to a condo cannot be underestimated. I HEREBY DECLARE THAT A GORGEOUSLY CLEAN, DECORATED CONDO WILL THROW THE VALUE OF SAID CONDO UP AS MUCH AS 10%…over an identical, dirty, smelly, ugly looking condo in Philly.

Don’t believe me? Then let me show you two identical Philadelphia condos on both ends of the emotional spectrum. I will make you a believer in no time flat!

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

I have submitted an offer on a Center City Condo (on behalf of my buyers) only to have the offer repeatedly sent back to me by the lawyer for the seller.

 
Here is my take:
-Who cares if the Agreement of Sale paperwork has crossed out changes, has been through the fax machine twice, and the signatures aren’t witnessed?
-And do I really give a crap that the initial to the changes aren’t dated?  Not really.
-Perhaps this lawyer needs something to do, because he is really grinding fine on the details that do not make or break this deal, or prevent our agreement from being legally binding.
 
Here is that Lawyers Take:
-Stupid Realtor can’t take the time to dot his i’s and cross his t’s. What an idiot. I’ll show him how a contract should
be correctly executed.
-This is what I learned in law school, and why should I be soft on this contract, and not possibly protect my clients interest?
 
What is fair, and what is reality? Probably somewhere in the middle. Point is, ya’ gotta’ roll with the punches. And yes, even I need to brush up on dotting my i’s and crossing my t’s. Perhaps, in the long run, the longer road taken is the shortest possible road.

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

By now, we have all heard hundreds of times that the Home Buyer Tax Credit has been extended and expanded by Congress. If you are a buyer who might be actively looking for a Philadelphia Condo, or even if you are sitting on the fence, here are some facts you should know:

1. Time is running out! In order to qualify for the tax credit, you must be under contract by April 30, 2010. You also need to complete a successful settlement no later than July 1. Which means you probably should not plan to settle ON July 1. Plan to settle a few days in advance. It would be such a shame to miss out on such an amazing deal because of a last minute postponement (none of us hope for them, but unfortunately sometimes, they do happen). 

2. If you are a first-time home buyer, which means you or your spouse have not owned a home within the last 3 years, you qualify for $8000. If you are a “long-term resident” and you are selling or vacating your primary residence that you have lived in for 5 consecutive years to purchase a new primary residence, you qualify for $6500.  A primary residence can include any single-family home, townhouse, condominium, or co-op.

3. If you settle before the April 15 tax deadline, you can even apply the credit to your 2009 tax return! Not a bad deal! If you miss it, you will of course apply it to your 2010 return. Still not bad!

4. The income limits have also been raised. The credit will now be available to single taxpayers with gross incomes up to $125,000 and joint filers who earn up to $225,000. You may even qualify for a reduced credit if you earn up to $145,000 or $245,000 for joint filers.

The clock is ticking on this once in a lifetime deal. If you have questions and are looking to buy here in Philadelphia, feel free to drop me an email at Mark@CenterCity.com or give me a call at 215.521.1523. 

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

Lets be honest here- most  Philadelphia real estate transactions leave buyers feeling that perhaps they may have overpaid, and sellers left feeling like their home was worth a bit more than was reflected in the agreed upon sale price. And it usually doesn’t matter if it is a buyers market, or a sellers market.  Similar to the notion that those driving slower than you are slugs, and those driving faster than you are maniacs. Sound familiar?
    
As a veteran Philadelphia Realtor, I am aware that there is a fair deal of perceived bleeding in most transactions. I personally have never sold a home for what I thought it was worth. In my brain, I always end up getting screwed.  And that is really, in my humble opinion, what buying and selling is all about. You get what you can, you give what you can, and hopefully an agreement is reached. But please don’t think there isn’t going to be a little pain, and a little bleeding.
    
The idea is to keep the bleeding to a minimum as no to warrant anything more than a band-aid. Certainly no one wants to walk away from a deal with war-sized wounds. But a little bleeding is to be expected in most transactions. I always tell my buyers that I can get them 9 out of ten things on their wish list. And the same holds true during negotiations- hopefully I can get you 90% of the way there.
    
At that point, perhaps if the deal is right (for you), you are going to have to cough up that list nickle. And I am aware, it is that last nickle that is the toughest to part with!

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

Philly condos offer a wide variety of parking options. From on-site rental, to deeded parking, many Center City condo buildings do offer an array of possibilities.

Rental parking- Most buyers will tell me that AS LONG AS there is guaranteed rental parking on the block, then this option is an acceptable substitute for actually owning a Philadelphia parking spot. I like the flexibility here, and such an approach will GREATLY add to the number of options you have when we are searching for your new condo.

Deeded Parking- If available, this arrangement has you purchasing a physical piece on property in which you have the rights to park. Means you have a separate tax bill as well. Usually you may buy or sell this parking spot with or without an accompanying condominium unit

Assigned Parking: You pay for this too, but you do not get a deed. You are basically granted the rights to the use and enjoyment of a parking spot, usually located on-site. You may not separate this parking spot from your condominium unit, and such assignment is recorded somewhere in either the condo docs, or your deed.

Street Parking- For approx. $35 a year, you can purchase a Street Parking Sticker, and then be able to NOT have to feed parking meters, or move your car every two hours for the AREA in which your parking sticker is valid. IF you get one for the Old city area, because you live in Old City, this will not give the ability to park for free around Rittenhouse Square. I guarantee you that.

Parking does play a role in the value and desirability differently in almost every condo buying situation here in Center City.

Call me at 215.521.1523, and let’s discuss how parking may affect you!

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

…that no developer will offer, but you may request!

So you buy a new Philly condo, and the developer gives you options for carpeting, tile work in the bathroom, and selection of kitchen cabinets. However, here are my top five suggestions for things you might want to request. With a good offer, you may just be able to tweak your new condo with the right touches!

1) Back-splash in the kitchen. Almost never included in new construction. Be prepared, and bring a sample with you when doing up your offer.

2) The “edge finish” to your new granite. Most offer a simple “bull nose” finish. But how about an “Ogi” edge? Can really put a nice spin on your granite?

3) A tile or granite threshold into your bathrooms. A simple 4″ wide piece of granite where the carpeting or wood floors meet your tile bath could be nice.

4) A door sweep to your front door. This will help seal the gap between your units front door, and the hallway. Reduced intake of dust and possible pests.

5) Shelving in your laundry area. Never included, but always helpful for storing detergent, etc. Maybe even a cabinet would be nice here too.

Little tweaks here and there can really put a nice looking finish on many new condos in Philadelphia. And under the rule that you don’t get if you don’t ask…why not ask?

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