Philadelphia Real Estate Blog

…what about the fees??

So, you found a mortgage company…say, “Joe Bag O’ Donuts Mortgage Company” on the internet, and they are offering you a rate .25% LESS than what you can find with perhaps someone who might appear to be more reputable, or well known. Congrats. But did get that mortgage persons FEES in writing??????? You better! Low teaser rates are often accompanied by some of the dumbest fees I have ever seen…I am not making these up, and I have seen some of these attached by a lender on many condos in Philly (PAID BY THE BORROWER)-

Origination points
Discount points
Application Fee
Inspection Fee
Final Inspection Fee
E-mail Fees
Flood Certification Fee
Warehouse Admin Fee
Subordination Agreement Fee
Require Fee
Processing Fee
Administration Fee
Settlement/Closing Fee
Commitment Fee
Tax Service Fee
Reinspection Fee
Attorney Fees
Document Preparation Fees
Mortgage Insurance Premium
VA Funding Fee
 
Moral of the story- If the rate looks too good to be true….it may well be. Don’t be a goof. Get interest rate quotes AND fees in writing before submitting a mortgage application.       

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

We received this useful bit of information here in Center City Philadelphia this month from Prudential Fox and Roach’s Research Division. The numbers indicate that Philadelphia sellers need to be very cautious when pricing their homes andcondos for sale in the current market and they may experience somewhat longer than expected marketing time. Month’s supply of inventory refers to how many months it would take to sell the inventory (homes for sale) based on the rate of sales (homes sold).

Month’s Supply of Inventory by Price Range, July 2007-July 2009:

Price Range                 July 2007          July 2008          July 2009          % Change 07-09

All Price Points                7.3                     9.4                    9.8                     34.4

$1,000,000+                    23.7                    26.9                 43.4                    83.6 

$1,000,000-$750,000       12.4                    17.2                 24.2                    95.1 

$750,000-$500,000            9.3                     12.4                18.0                    92.9 

$500,000-$300,000           7.9                     10.1                  12.0                   51.6 

$300,000-0                       6.5                     8.6                     8.1                   25.5  
————————————————————————————

Philadelphia Buyers on the other hand, have a larger inventory from which to select their home and interest rates remain at a very low, affordable level. First time home buyers also have until November 30 to take advantage of the $8000 tax credit.

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

Is it worth the time and effort?
 
If you know anything about Center City condos, you know that within the same (older style/exisitng) condo building, there can be two identical units in size, shape, and layout. One is priced 40% MORE than the other. The costlier unit has been fully rehabbed, and the cheaper unit is still in original conditon.

So what does it cost to cosmetically rehab a condo here in town? Well, the prices can vary of course depending upon who you use, materials used, and if you plan on replacing existing elements, or reinventing the wheel, so to speak. It has been my general experience that to simply upgrade kitchen, baths, floors, walls, closets, etc (not including heating/AC, or MOVING water supplies, etc.) is going to cost you somewhere around $50 per square foot. So if you have a 1000 sq ft condo that you wish to make gorgeous, you should plan on spending $50,000.  And if done right, with a good eye to detail, without getting to jaded or one-sided in your new “look”, the increase in value to your condo is going to exceed the $50,000 you just spent.

Now these rules are very general, and I would suggest you call me to chat prior to making any decision if you are concerned about return on your investment. I have rehabbed soooo many condos in Philly that hopefully I can be of help to you and your rehabbing dreams.

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

Your front Center City Condo doorman is kinda’ rude, he has no real training, and your management company is charging your buyer $200 to answer routine questions that should be listed in your condo docs, or on your resale certificate. Oh, and there is a dirty mop bucket inside one of your broken elevators which sits wide open in the lobby, with the lights off.  WAY TO MAKE A GREAT IMPRESSION ON POTENTIAL BUYERS!

Oh, and did I mention that your management company rep won’t return my phone calls, and takes 3 weeks to get me condo docs?? And your common hallways smell icky, and they need cleaning (my buyers parents can see the dust accumulation on the hallway baseboards from about a mile away). Oh, and in addition to charging your future potential buyer money to ask questions, they are going to charge him or her $300 to assemble a standard set of paperwork that is required for you to sell your Philadelphia condo. Then they have to pay a $250 move-in fee. AND YOU DON’T HAVE A CLUE.

Perhaps you need to look into this. Then do something about it. Because my buyer isn’t made of money, but it appears your management company is making money hand over fist. Oh, and the lack of training of your doorman? BLAME YOUR MGMT COMPANY.

Then blame your condo board for not objecting to this shortcoming! If you think my buyers aren’t going to notice…you are WRONG.

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

It is easy to add a kinda’ lofty rough hewn look to a loft styled condo. You can add this look to a main, or an accent wall. Perhaps one side of a long hallway you have, or one side of a guest bedroom wall?  I have done it myself, and the results were quite good! First, find a solid wall- preferably one that is cement, plaster, or cinderblock. Apply wire mesh. Coat with a morter mix. While the morter mix is setting up, take a $5 pointing tool, and scar lines in the drying morter/cement mix to resemble bricks- approx. 6″ by 2.5″. You needn’t be perfect here- remember, you are going for an imperfect, old exposed brick kinda’ look. Now paint your new creation your favorite color. Since this is a faux process, you have to paint the look (it will look like dried, scarred cement if you don’t).

Viola’…..a lofty look for your new Old City condo!

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

Here is what I suggest you do for all resale properties- get a home inspection. Yeah, even for a Rittenhouse Square condo, or an Old City loft.

Generally speaking, you can at least ask the seller to fix something…even if that something is about the same cost as the home inspection- like a one year home warranty.

When I buy a property, I look for two things- safety issues (which are almost always electrical in nature) and structural items. I am well aware that the hot water tank is going to go on the fritz in the next 5 years. Yeah, I also know the heater needs to be serviced to run optimally.

What I don’t want is for the total of the needed major defects to be so great that it impacts my perception of the value of my purchase of any variety of new Philadelphia condos.

Owning a piece of Philadelphia real estate is like owning a car. You have to regularly change the oil, tune it up, get it detailed, and shampoo the carpets to maintain value.

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

No, it is personal property:  

Yes, It is included in the sale:

 
 
This question, often asked, is really simple to answer. In the state of PA., IF a window air conditioner is simply sitting in a window, it is defined as chattel (personal property), and is not included in the sale of a home unless specifically listed as included in the sale.

However, if a special cut-out or pass-thru has been made in a wall for that unit, then it is included in the agreement of sale without mention. This question does arise in some lowrise/Brownstone condos in Philly.
 
Question? Call me…lets chat!

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

…can best be described as thorough.

 
It is no secret I love showing and selling Philadelphia real estate. The hallmark of the 2009 Philadelphia buyer is one of complete and utter thoroughness.

Though they are buying, and doing in fairly good numbers, there is no sense of urgency, and they want to see everything. Everything. If I had a dollar for every property I showed in the spring of 2009, I would go buy a new Lexus. Or perhaps take a cruise and drink a lot.

Such behavior is actually a good thing for an old timer like myself. I get to see sooo many places, that it really does add to my already stuffed brain. I know the size of the kitchen in unit 1902 at the xxx building. I am familiar with the condition of the 2nd Floor Front condo at 19xx Spruce St., and I see for myself why the condos at XXX and Bainbridge aren’t selling so well.

The equation here is a simple one:

Buyer Market- no sense of urgency- they can look at 18 other places, and come back to this particular unit they liked

Sellers Market- Hurry and buy. If you don’t, the unit you loved may be gone. Perhaps it already is gone.
 
The Philadelphia housing market is in a bit of a buyers market in 2009. I will let you know when that equation changes.

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

…that are pointless in a Philly High Rise Condo.

I love it when some dumbass developer takes up a large chunk of a 20th floor condo with a huge soaking tub.  Always good for a laugh. Pointing out the foilbles of some newbie condo builder is one of my favorite pasttimes. Under the theory of “When In Rome….” fireplaces and those giant soaking tubs are soooo out of place in a high rise Philly condominium.

I know of NO ONE who actually uses those giant oversized tubs. I am not talking about a regular bathtub….I am referring to those big dumb soaking tubs that can fit an army of regular sized people. NOTE TO DEVELOPER- grow a brain. Such an amenity is a huge waste of space. I always point to them and tell my buyers- You will use this on the first day you move in, then you will never use it again. They ALWAYS agree.
And wood burning fireplaces here in  Rittenhouse Square 19103 condominiums? Now where the heck is my buyer going to store the wood needed to fuel such a spectacle? Better question- where the hell is he going to get the firewood? It is not like there is some lumber jack who lives at 9th and Spruce Street who chops down trees and sells split wood.

Developers installing such amenities are spending money, and taking up valuable space for items that are really a negative to many Philadelphia condominium buyers. Trust me, this ain’t suburbia. This is urban downtown Philly, and such amentities don’t fly with the condo buying set.

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

 
 
Simply put, a water table is a very old architectural element found on many historic homes throughout the east coast, and in Center City Philadelphia, is most prevalent in many of the Society Hill area townhomes. A water table can best be viewed as an old fashion method of keeping water away from the foundation. Water, and lots of it- pouring down around a foundation is not a good thing. You don’t want your soil being loosened, and allowing your foundation to slip or move. Yeah, that would be bad.

The idea of a water table is to essential push or direct water away from the foundation. As water would pour down the (say) facade of a home, the angled brick would guide water out and away from a foundation. So if you ever even noticed such a thing, now you know why “it is what it is”.

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