Philadelphia Real Estate Blog

Alan J. Heavens, Philly.com’s Real estate writer says, “The city of Philadelphia is officially a sellers’ real estate market, as a continued shortage of inventory has pushed up prices for properties listed for sale.”

Economist Kevin Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation, said the second quarter of 2016, which ended June 30, saw median prices 13 percent higher than April-through-June 2015.

…Gillen isn’t exactly sure why homeowners aren’t rushing to list their houses, but Mark Wade, an agent with Berkshire Hathaway Home Services Fox & Roach Realtors, cites several factors.

Mostly, it is “because many buyers in town over the last few decades have been empty nesters who believe they have made their final move and don’t need to downsize or adjust their living quarters to match their future needs,” Wade said.

The “flip side of rising house prices is decreased housing affordability,” Gillen said.

“Prices are now rising faster than household incomes, which implies that home buyers must now sacrifice a greater portion of their wealth to buy a home than they would otherwise, or else must defer the purchase of a home altogether,” he said.

Click here to read the full article on Philly.com.

Mark Wade
www.CenterCityCondos.com
BHHS Fox & Roach Realtors
Mark@CenterCity.com ~ 215.521.1523

In terms of value retention, resale ability and livability…Here are my latest top ten picks:

1) 1706 Rittenhouse at 1706 Rittenhouse St. – – There can be little doubt that the building shines in terms of value growth and demand. The highest of high end here in Center City. Buyers line up for these units- Who wouldn’t want to live at 1706 ??

2) Kahn Park Place at 1119-25 Pine St.– Parking, roof decks and nice interior space…at prices that I think are undervalued. Homerun! Location is key here as well. Interior condition drives the wide range of values here.

3) Washington Square West Condos on the 12xx Block of South St. – Solid investments in a high growth area. Oh, and all have parking and two bedrooms! You can’t beat these simple yet value driven condos. Boom!

4) St. James Court in Society Hill – 40 years old condos with interiors that clearly stand the test of time. Undervalued and best deals in the 19106 zip code. Most units are off street and quiet. Interior courtyard is picture perfect. You can’t beat the prices in this segment in my opinion.

5) The Coronado at 2201 Chestnut St.– Improvements to the building make the investment here a solid one in terms of value growth. And in the 19103 zip code to boot.

6) The Lenox at 250 S. 13th St.– Not unlike 2201 Chestnut Street in the fact that it is a pre-war styled condo building that has undergone many recent upgrades and improvements. Since the Parker across the street closed- are values poised for a significant bounce upwards? Probably.

7) Center City One at 1326 Spruce St. – If I had millions of dollars, I would probably spend most of them inside this building if I wanted to make money.
Try to beat the location and the floor plan of the two bed, two bath units.
No supply here.

8) The Philadelphian at 2401 Pennsylvania Ave. – Values for the larger units bounced higher and faster than any other segment in Center City. Many reasons which can be attributed to the association…and lack of supply didn’t hurt either.

9) Low Rise Condos in 19103 and 19107– Perpetual demand leads to a shortened “days on market” for many in this segment. Solid purchases and solid returns. And those near Jefferson and U of Penn have a double good whammy- which is huge rent-ability.

10) 2200 Arch St. Condos at 2200 Arch St. – Probably the quickest sales in the loft like segment here in town. Parking, close to jogging trail and in the 19103 zip code. This place is firing on all cylinders.

Honorable Mention:  The Reef Building at WaterFront Square 901 N. Penn St. – Just about 6 units remain and the values are climbing faster than most other buildings around town. Expect another bump in values when the building completely sells out. Philadelphian’s are warming to the idea of living in this lovely gated community. Though I am biased…We own and live here.

Mark Wade
BHHS Fox & Roach Realtors
www.CenterCityCondos.com
215.521.1523 | Mark@CenterCity.com

“Once you decide on a location, the next step in your search for housing is determining whether to rent or buy.” Philly.com Real Estate Writer, Alan J. Heavens then said, “If you decide to buy, the next question is what.  A growing number of Americans are choosing condominiums, especially in urban areas.”

Mark Wade, of Berkshire Hathaway Home Services Fox & Roach Realtors in Center City, said there are three main reasons buyers give when opting to buy a condominium: “one-level living – absence of stairs; a lack of maintenance requirements; and the security of a 24-hour front doorman.”

“Many younger buyers are attracted to condos because they are so consumed with their careers that they simply don’t have the time or energy for the needs of a single-family home,” he said.

Many empty-nesters are looking to rid themselves of the upkeep that a larger single-family home may require, Wade said.

“The trade-off between a single-family home and a condo is usually location and size,” he said.

Condo living affords buyers the opportunity “to lose up to a few thousand square feet of unused, unwanted space, or perhaps three unused bedrooms – quite a weight lifted for those looking to simplify their lives.”

Click here to read the full article on Philly.com.

Mark Wade
CenterCityCondos.com
BHHS Fox & Roach Realtors
215.521.1523

No. You should clean your house like you have the plague and pretend a decontamination/haz-mat team needs to help. That is what you should do to present a house to a potential buyer. THAT is the key to selling a house…that and a fair price.

And there you have it- My 27 years of inside knowledge to the real estate market summed up

in one brief sentence. Clean your house, then do it again. Then do it one more time just to make sure your home looks like it did the day it was built. And that is how you maximize your resale price

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.

I have been interviewing buyers for nearly 27 years concerning their wants and needs. When I do an initial interview with condo buyers, I hear a laundry list of things that are important to them. Here are the most common requested items:

1. Specific Bed/Bath count
2. Parking
3. One level living
4. Move-In condition
5. Pet-Friendly
6. Natural light / Views
7. Walkability to area restaurants and events
8. Den
9. Outside space
10. Pool/Gym

What surprises me the most about a buyer’s initial wish list when compared to what they actually end up buying?  Almost anything on this list can and does fall by the wayside when a buyer sees something they VISUALLY love. Except # 5. If that is on the list, that wish/need does not go away….ever.

There is an old adage that Realtors love to throw around and that is:

“Buyers Are Liars”. No they aren’t- they generally are just not aware of the options that exist in the Center City condo market. And that is where I come in….

I have been lugging buyers around in my car here in town for nearly 27 years now and like snowflakes- no two buyers are the same. However, if I had to generalize and put buyers into categories, here would be the most common types of Center City Condo buying groups:

1) The Returnees – Grew up in Philly, moved elsewhere, and are now returning to their roots. Being close to friends and family is often the draw- or perhaps being close to where they grew up or went to college is often the motivation behind their return to town.

2) The Empty Nesters- Aka- those looking to shed lots of unused house…. They can often be very happy buyers who are starting a new chapter in their lives. I enjoy working with and watching these buyers get excited for a move into town. These buyers are looking to simplify their lives and lessen their responsibility in terms of home ownership. Generally “turn key” buyers who want to do zero work. One level living tends to be a priority as do high rise condos with doormen.

3) The Weekend Warriors- They have done the shore and now spend their weekends in town. Much more common than you think. These buyers generally do not buy townhouses nor do they buy the large 3 and 4 bedroom luxury condos. Usually buy just enough space to have friends over for dinner or overnight.

4) The Kids Who Have Parents Who Have $$ – Very common. Very. Usually here to attend school or start their careers. I find proximity to work or friends plays a heavy hand in where they end up buying. These buyers are also generally turn key buyers who are not interested in doing work to their new condo..move in condition  important.

5) The Transferee- Maybe came to town via a promotion or transfer and wants to be close to work. Moving to town wasn’t on the radar. Doesn’t matter- he or she is here now and the suburbs generally are not on their radar.

6) The Growing Families- Aka the move-up buyers. It used to be that young adults would get married , get a dog, two kids, a station wagon, and BOOM- off to suburbia they went. No longer the case. They now often represent our move up buyers in Center City and gravitate towards single family living in areas like Queen Village or say Art Museum area (in my opinion).

7) The Investors- Those who know that the city is the place to be and that their investment will provide a handsome return year after year after year. A condo may is usually preferred by such buyers as the lack of maintenance is often a goal.

8) The First Timers- The good ole reliable first time buyer. The backbone of the Center City condo buyer. Always has been and always will be.

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.