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October 20, 2014
For Sellers:
Keep the temperature of your condo comfy for showings
Make sure ALL keys work before giving to Realtor
Disclose ALL defects..but keep your feeling about your neighbor mum if you simply have an ax to grind
Deliver your Center City condo CLEAN and free of debris prior to settlement
Keep appliance manuals for your new buyer
Give buyers the name of the paint but throw away old paint cans
Leave a note in your condo about any quirks that the buyer may find
helpful such as trash day, neighbor contact info, mgmt info, etc.
For Buyers:
Be on time for your scheduled appointments
Eat and use restrooms prior to your condo tour with your Realtor
Keep sassy comments to yourself UNTIL we exit the condo…then
we can talk trash about what we have seen
Furniture and other unattractive decor items aren’t included.
You are not buying the sofa….So don’t be too judgmental
Know that the property will NOT be delivered in a state of cleanliness
that is up to your standards. A hint of forgiveness goes a long way.
IF you ask to see a specific condo…don’t change your mind
when you pull up to the building and think you want to “pass” on it…
For Open Houses:
Never allow any agent to pressure you to sign in…ever.
Be on time…and don’t show up 5 minutes after scheduled
open house closes
Keep your dog at home. NEVER bring a dog to an open house
If you are a curious looky-loo- no problem…just don’t try to monopolize an agent’s time – let them concentrate on the real lookers
Best not to be talking trash about what you are seeing
while still inside the condo. Zip it…
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Listen…I get it. Sometimes nice polite folks run afoul of the more general accepted practices in real estate…sh*t happens.
But do your best to play by the rules as emotions do end up playing a huge
part in any real estate transaction.
Trust me…I’ve got 25 years of witnessing hurt feelings
every now and again
and no one wants to feel like a goof when big money
is exchanging hands…
Tags: Center City condo, center city condos, Center City Real Estate, condos for sale in center city philadelphia pa, condos in Philadelphia
September 29, 2014
1) 2301 Cherry St– The condos are selling at a pace I haven’t seen in a decade at Rivers Edge. Major assessments are helping and you just can’t find these values in 19103 with parking in a doorman building.
2)1352 South St. Condos– Began a new marketing campaign earlier this year. When that is over and the building sells out- I would look for prices to spike as the current $/sf is very competitive.
3) Low Rise Condos in 19107 – The overall lack of inventory and “DOM” (days on market) for this set shows a trend for potential future growth. One key is proximity to Jefferson Medical.
4) The Rittenhouse Hotel and Condominiums – Recent sales have primarily been original condition units which have artificially set the bar at a low point in terms of resale prices. Once that inventory gets soaked up- Prices are going to jump in the building in my estimation. The competition just isn’t there for such a fine building on the Square.
5) Center City One Condos– 1326 Spruce St. The lines have already started- buyers looking for a two bedroom two bath unit here will compete with each other for the next unit to appear. A new benchmark will be set…that is pretty clear to anyone who has kept their eye on the Center City condo market. I mean…even a blind man knows when the sun is shining 🙂
Oh, and of course 1706 Rittenhouse!
Tags: Center City condo, center city philadelphia condo, condominiums, condos in Philadelphia
September 15, 2014
Listen, I get it…everyone’s favorite punching bag is his or her condo board. Often maligned, and more often than not, the criticism is not just or warranted. It is a thankless job- just be happy someone is doing it, and doing it for free. Here is what I would make sure is happening in order to preserve my value as a Center City condo owner, and member of the association, just in case. These are huge. You might want to take notes:
1) Make Sure The Building Stays At Least say 66% Owner Occupied
by restricting an over abundance of rentals. 75% is even better.
2) Make Sure The Building is FHA Approved- this is easy and shouldn’t be overlooked. I am amazed when I see how many condos around town AREN’T FHA approved…(FHA approved condos really open up the building to first time buyers who may not have the usual 10% down or more needed to buy a condo).
3) Put 10% of monthly condo fees into a reserve for improvements beyond
just the day to day and month to month expenditures.
4) Make Sure the Building is being maintained. Do not hesitate to spend. Spending on cleanliness of the building will provide your best return. Think…exterior paint, hallways, foyer, etc., especially for smaller associations.
Visual presentation is HUGE for resale.
5) Larger associations should have a website that highlights the building, amenities, and give as much info as possible to the buying public. They have nothing to hide…so highlight the information for perspective buyers. Take a look at Society Hill Towers website…a great example.
Value retention is an elusive trait in the hands of amateurs. And I am not aware of any qualifications needed to sit on a condo board- beyond basic ownership in a given building. Most associations around town do a fairly good job, but some fall prey to the pitfalls that can lead to a fairly rapid decline in condominium values in specific buildings. Best to keep your eye on the signs that may point to a downward spiral in condo values within your building. The above list is written as a guide, one that it may be advantageous to follow. I am not suggesting that your values are going to spiral if one of these points is ignored…rather a combo
of events can lead to downward values.
Here is what I have seen in simplified terms:
Condo board runs amok of rules that keeps the building easy to finance (FANNIE MAE WARRANT-ABLE). New buyers have to then put 30% down or more to buy. This cuts the resale market in MANY buildings. Units then don’t sell, sellers start to compete with each other, prices fall, and more owners begin to rent their condo out. This downward spiral is difficult to reverse. By having a board aware of these pitfalls, your building should easily be able to remain warrantable and easy to finance. And IF your building has a fair share of condos that might sell under $420,000 then there is NO excuse for the building not being FHA approved.
So here is the moral of this story:
It is indeed your money- You paid for the condo, and that investment is just that- an investment. You should be standing up and saying something if you see your board veering off the course of a clear path to value and value retention.
Invite me to your next condo board meeting-
I’ll give them the “what for”
Or if you are a board member of your association,
give me a call and let’s chat about how you can
implement some of these guidelines if you like…
Tags: Center City Real Estate, condos in Philadelphia, philadelphia
August 25, 2014
-Dranoff is holding a VIP Realtor Sneak Peek on 9/3/15
for his new condos in Fitler Square named “One Riverside”
to be built at 25th and Locust.Watch these condos fly off the shelf
~
-The Hopkinson House is getting ready to do some pretty
heavy cosmetic changes to its lobby starting any month now
~
-Center City One Condos at 1326 Spruce continues to beautify
its premises with the completion of hallways- And are giving
owners the option of changing out their windows- fabulous!
~
-A plethora of small low rise condo buildings around Old City have sprung
up recently including 109-11 Church St. and 142 N. 2nd St- Nice infill
into a nicely established neighborhood.
~
-220 W. Rittenhouse – Once mentioned by Philly Mag as the least
attractive lobby on Rittenhouse Sq. is in the midst of adding
substantial visual appeal to its lobby area.
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-Resale values at Ten Rittenhouse have shown to be strong in terms of value growth
over the past 3-4 years since first becoming occupied
~
-The Ritz-Carlton is selling like crazy. I mean really well….
~
-In my opinion, the most difficult segment in terms of little or no inventory
would be a two bedroom in 19103 under $600k. Hell, even
a really sweet one bedroom under $500k for that matter.
~
over the next year as sales have spiked as the building has been
assessing and upgrading. Bravo.
Tags: center city condos, Center City Real Estate, condos in Philadelphia, Philadelphia condominiums
August 18, 2014
Like haircuts and waist size, many things have a tendency to change over time. Here are some notable changes I have seen to the Center City condo market over the past 25 years- 1) The Disbursement of Wealth – In the mid 1980’s, if you had a million dollars to buy a condo, you landed on Rittenhouse Sq. and probably in 1820 or 1830 Rittenhouse. Today- your imagination and money can take you to far away exotic places like- Old City, Bella Vista, and the Loft District. Large high-end condos have spread around town to almost all neighborhoods.
2) The introduction of “High End Low-Rise/Brownstone” styled condos- The defeat of many a high end brownstones over the years was the lack of an elevator. Anyone looking to buy high end in a brownstone probably isn’t going to be fond of stairs. From 1030-2 Spruce (Knightsbridge Condos) to the lovely 1904 Spruce and 2138 Lombard, the high-end market is finding its way into groovy Brownstone and soft loft conversions- with elevators.
3) No trend in Co-op growth- No new ones since before the mid-1980’s. They fly well in NYC, but never really caught on here in town in terms of their growth in numbers. 1901 Walnut is the premier co-op building in town…a lovely pre-war on the north side of the square. Very handsome building…and I fail to see how the fact that it is a co-op has diminished its value.
4) Lower Than Expected Conversion Projects- Yes…we saw the Grande, The Ellington, The Phoenix and a smattering of other re-used office buildings. But with the inventory and location advantages some of these older places have- I am surprised we haven’t seen more conversions. I would look for more conversion projects in the next wave of construction.
5) Zeroing in on condos near Jefferson and U of Penn- The growth of small and large size condominium buildings around Jefferson Medical for example has proven to be one of the easiest, sure-fire ways for many condos to find buyers. Like shootin’ fish in a barrel. Ditto for U of Penn area. Builders are filling a market need, and there are some smart buys in both areas. Huge growth segment.
Mark Wade
Berkshire Hathaway Home Services
Fox & Roach
530 Walnut St. Suite 260
Philadelphia, Pa. 19106
Mark@CenterCity.com
Tags: center city condo for sale, condominiums, Philadelphia condo
July 29, 2014
Remember the olden days when the Sunday paper would arrive and you would get out your red felt tipped marker, then circle the open houses you wanted to see?
That was so 1997….Those days are all but gone- having been replaced by the advances in internet marketing for condos. Additionally, more and more Center City Condos are forbidding agents to hold Open Houses- ever.
It is said in Real Estate circles that open houses are NOT for sellers- they are for agents trying to pick up buyers. To a degree, I agree. More so with the fact that videos, virtual tours, podcasts, blogs, multiple photos, etc are easily found with a quick Google search. And most Realtors’ websites can give you a lot more than you can learn at an open house- think neighborhood stats, crime reports, etc., not to mention the gossip and dirt you can pick up on your neighbor’s house. If someone is seriously in the market for a condo, they are going to view your listing if they are interested- Open House or not.
I usually find that Open Houses tend to cut down on the weekly traffic- the more people who see it at an open, the fewer weekly appointments one will find in terms of buyer traffic. And of course, we are all aware that Open Houses usually beget nosy neighbors, passersby, and the like. With overall traffic down on Open Houses over the past decade (in my experience)- how long before Open Houses will go the way of land lines and flip phones? Probably not long.
FYI-Center City Open Houses are usually ONE hour only- Get in, then get out. Suburban agents can spend 3-4 hours at one open house. How utterly boring. I think I’d rather drink bathwater than to sit in a house on a Sunday for four hours.
Tags: Center City condo, condos in Philadelphia, philadelphia realtor
July 21, 2014
Here are 10 things NOT to overlook…
1) Buyers today appreciate security, but is an alarm system necessary? Probably not. Try installing a “dropcam” styled camera inside the front door of each unit- And owners can get an instant email IF and WHEN someone enters their unit- day or night, even if owners are on the other side of the planet.
2) Recharging Stations- How about a little shelf by the front door of each unit that will recharge cell phones and devices by simply placing the devices on that shelf? Any buyer with a cell phone could get very excited about such a feature.
3) Pet Policies- I would suggest your building needs to be pet friendly- but not for tenants. Breed restrictions and size restrictions may also be in the overall best interest of the buying public.
4) Two Month Capital Contribution- New buyers need to add to the “kitty”…very common and a great way to jump start the reserves. This practice is now standard in Center City Condos around town.
5) Virtual Doorman- Looking to keep condo fees in check? Try a virtual doorman- Activity can be monitored offsite but still give the sense of security to the condo owners. Many newer buildings are going this route to save on condo fees.
6) Electric Automobiles Plug In Bays. One day soon, this will be a must for all new buildings. And don’t forget to save at least one parking spot for car sharing purposes. Bike sharing might not be a bad idea on your property as well.
7) Be as Transparent As Possible- Post the true sale prices of each unit- not just asking prices. Shove the info into the faces of potential buyers. They will without a doubt appreciate your candor and transparency. Shady is not going to work for you…trust me on that one.
8) Don’t Forget The WOW Factor- Let’s face it, unless you are buying at the Ritz Carlton, or some other “A” building, chances are the finishes and model units are not going to as appealing as they possibly can be. Change that. I am begging you….Nothing sells better than stunning visual finishes! Get a little crazy because no other developer will dare to do so…
9) Parking- Important for larger units, but if the location is fairly central, will probably not be important to studio, one bedroom, or even smaller two bedroom condos.
10) Make Sure Your Sales Office Is Realtor Friendly-
Offer free parking, allow Realtors easy access without the mandatory one hour tour. Scrap the stupid rules and long info forms buyers and agents must fill out that most . NOTHING CAN KILL SALES FASTER than pissing off the Real Estate Community.
Want to learn more about how to make your
new condos fly off the shelf?
Let’s chat…..
Tags: Center City condo, Philadelphia condo, philadelphia realtor
July 1, 2014
The old adage “Buyers Are Liars” is repeated often in many Real Estate circles. I think the line is a crock of sh*t….The line should be “Realtors don’t spend the time to get to know their Buyers.”
And there you have it….
The key to selling condos in Philadelphia. Find out as soon as possible what trigger is going to make any given condo work for a given buyer. Oh, and make sure you know everything about almost every condo in town and be able to discuss that condo at length, at the drop of a hat.
Here is a list of things that I find buyers really key into when shopping for a condo here in town:
1) Walkability
2) A Side of parking
3) Proximity to a given Point Of Interest
4) Areas in which they already are familiar
5) Curb Appeal / Interior Condition
Which one of those blows the others out of the water?
That would be # 5…
I hear it all the time- “I want this area”, “I must have parking”, or I want to be able to walk around town”. But many of those MUST HAVES fly out the window the minute the majority of buyers walk into a Philadelphia condo and fall in love with what they are seeing…usually quite a different story than what originally comes out of their mouths. NOTHING wrong with knowing what you like….I too am very visual.
Gone is the need for a study, or a 2nd bedroom, that large kitchen buyers have always wanted. Visually stunning condos here in Center City Philly are always in demand- regardless of most market conditions. Believe you me….and NEVER underestimate the fact –
IF IT SHOWS WELL, IT WILL SELL WELL
Tags: Center City condo, center city philadelphia condominiums, condos in Philadelphia
June 23, 2014
Not all 1500 sq ft condos are created equal-
Even within the same building and same time frame
There are so many factors which affect value in a Center City condo that “comps” may not always tell the entire story.
Many buyers try to justify their low offers with square footage calculations….which CAN be horribly erroneous. How best to compare apples to apples?
1) Ask to see EVERY sale in the building in the past 2 years. Ask for the public records and MLS records.
2) Find a map of the building, and see which units face “The Park” and which overlook the DUMPSTERS – Positioning within a Center City condo building plays a role in value!
3) Inquire as to seller concessions that may have resulted in a higher recorded sales price for comps in newer buildings. And ask “did that unit include any extras like free parking?” If it did, it is going to distort the comps.
4) Floor height value- may or may not play a part in comps/ comp value. Newer Philadelphia condos are GREATLY based upon floor height.
5) Know that ALL pictures in the MLS look good- they don’t show dirt, clutter, or a poor showing ability (generally speaking). And know that “Fact Sheets” and MLS sheets are like Resume’s- full of bullsh** and dog doo. Never take that info for granted- you must confirm!
6) AND THE BIGGEST factor to warp comps- Interior condition. Hugely huge in comp valuation. Here is a good example of “Not All Space Being Created Equally”…Equally sized two bed units IN THE SAME BUILDING can vary in price from $400k- $700k. Condition, and view have huge impacts on value and pricing.
Clearly Center City condo comps can be deceiving – if you don’t know…ask me.
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Tags: center city condos, condos in Philadelphia, Philadelphia condominiums
May 19, 2014
We Will Remember 2014 As The
Year Of No Inventory
In my opinion, the cause is easy to pinpoint.
We are just now coming to a time in the market where prices have begun to rise. However, they have not risen to a point where many sellers have a ton of equity into their Center City condos. As a result, they either choose not to sell or simply cannot sell because they do not have the equity to move into a new home. This creates a bottleneck of demand- buyers are buying but there is not enough product on the market to meet that demand.
We see this phenomenon once every 7 years or so when the market shifts from a buyers market to a sellers market.
Look for the situation to change next fall as more sellers gain the equity needed to move into a new home and list their current properties.
Although I don’t mean to be the “big brain”….
We do have a fairly sizable amount of the
Center City Condo inventory for our buyers….
Tags: Center City condo, philadelphia, philly condos
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