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March 14, 2014
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February 24, 2014
Really? You wanna’ buy that Center City Condo??
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
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January 6, 2014
Dumbass Power Plays in Philly Real Estate
I have been selling real estate in exclusively in downtown Philadelphia for twenty-five years. I have done some stupid things in my career, and I have witnessed many buyers and sellers making equally stupid moves. I often see buyers and sellers either pinching a dime for a dollar, or just doing some absurd moves that are much more trouble than the expected payoff. And I am sure this is not limited to just Center City buyers…I have no doubt the scenarios play out in every real estate community:
Scenario 1: Having the Last Word
Seller asks $499k for a condo
Buyer and Seller go back and forth, and after a few days, buyer say $480,000 is my “Highest and Best” offer for this parcel. And then seller comes back and says $480,001. Really? You really want to be a douche bag and say that? You are pissing the buyer off, and it will probably cost you much much more in terms of anxiety, anguish, and animosity within the transaction as you are locked into a legally binding contract with this buyer for say the next 60-90 days. Perhaps you should just zip your lip and take the freakin’ $480k instead of having to have the last word. Don’t forget, buyers still have to perform a home inspection.
Scenario 2: Can’t See the Forest For the Trees
Seller asks $499k for a condo
This Philadelphia condo is a bank-owned sty that should be selling for $800k if it weren’t so dirty, missing all the appliances, and listed with Susy Bag O’ Donuts out of Erie, Pa. (it happens…bank foreclosures are often listed by those with no connection to the area). And as a buyer, you get the Big-Brain idea to come in at $400k…because after all, the market is slow, weak, and uncertain. OK….you are an idiot. If you can’t recognize such an overtly strong bargain, and see that the huge upside is the fact that the condo is grossly underpriced at $499k….then maybe you need to do a little more homework on prices and values here in Center City.
Scenario 3: Why Aren’t you Using a Magic Wand?
Sellers asks $499k for a condo
As a buyer, you top out at $480,000 and the seller will still not accept your offer. And recent “comps” suggest the seller is correct as no other unit in the building has sold for under $500k. You then turn to your Realtor and complain that you can’t get the property for $480k. And you are relentless. Even in the face of the facts. But you persist. You dump your Realtor because he or she refuses to wave their magic wand and make this deal happen. You then drive down the road, and see your Realtor Singing and Dancing in the middle of the intersection of Broad and Walnut.
No one likes a whiner. Not even in a “slow, weak, and uncertain” market place. There are bargains to be had and deals to be made. Opportunity exists in all market conditions, and the current state of affairs in Center City- which has weathered the overall real estate storm fairly well- should indeed be taken into account when negotiating the purchase or sale of any parcel in Philadelphia. But knowing when you have crossed the line and driven right into Crazy Town Pa. might be helpful when finding the right piece of Center City real estate. And help you negotiate the best possible, realistic terms.
Mark Wade CenterCityCondos.com
I welcome feedback!
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December 16, 2013
Center City Condos And Outside Noise
Some of the most sought after condo buildings here in Center City are on or very close to lively blocks that are full of activity, or they are on or near bus routes, and can have a close proximity to highways. This is very convenient but can be noisy!
Having constant noise outside your dining room or bedroom could be a big problem. So, I devised a kinda’ cool solution that works like a gem. And in the scheme of things, really doesn’t have to cost a lot.
Here’s the solution: Replace your windows (genius, eh?)!
Depending on where you live in downtown Philadelphia, you may have a fairly strong historic association who mandates the type of window replacement you must use. However, this does not preclude you from installing another set of windows INSIDE the historical set.
You can add a double paned, inexpensive vinyl clad INSIDE the outer set of historically approved windows, giving you a total of 3 or 4 panes of glass between you and the noise. This ingenious little set-up demonstrates how you can effectively keep all city noise out of your Philadelphia loft or condo.
You don’t need to live 30 feet from the highway or live in a super luxury condo building to benefit from this idea. Such insulation also provides extra protection from cold, heat loss, and dirt that gets inside of other single paned windows! To Keep the Value in, You Must keep the noise out!
If you’re thinking of buying or selling a Center City condominium and want some more tips, I can help. Give me a call today at 215-521-1523 or drop me an email at Mark@CenterCity.com.
Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Home Services | Fox and Roach REALTORS®
530 Walnut St. Philadelphia, PA 19106
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November 25, 2013
Could you be dealing with a desperate seller? Here are some signs:
1) You see that the condo is vacant, and the front desk tells you they moved
over a year ago.
2) You Google the sellers, and You see that they own multiple properties,
and all of them are for sale.
3) You search the history (in the MLS) of that listing, and see the seller is on
their third listing agent.
4) You walk into the condo, it is vacant, the appliances are gone, and it looks
like the seller left in the middle of the night.
5) You read some unique language in the MLS listing about “seller makes no
warranties”, or “ corporate addendum must accompany…” usually means
corporate owned- aka REO.
These are all possible signs that the condo is ripe for an insulting offer.
Good Luck!
Mark Wade
Berkshire Hathaway Home Services Fox and Roach Realtors
530 Walnut St. #260 Phila., PA 19106
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November 18, 2013
Considering a low rise or brownstone styled loft condo here in town?
Brownstone styled condos are an option in Center City that I find are becoming more popular for many Philadelphia condo shoppers. Known for their low condo fees, and some really groovy features, low rise condos have shown to have good resale over time, and often show up in some of the strongest residential locations in Center City.
The condo associations tend to almost always favor pets, rules can be a bit more lax than a high rise, and many units have either decks, parking, fireplaces, or say an abundance of original detailing. Here are some of my favorite low rise/ Brownstone condo buildings in town- Due to either curb appeal, unit layout, value retention, or just an overwhelmingly serene locale:
1) Roberts Quay: 1035 Spruce – 18 units, a huge variety of layouts, and probably the most handsome building in 19107. Sits on the NE corner of 11th and Spruce.
2) 2100 Delancey: Again, huge curb appeal, an array of unit sizes and wrought with original detail. Many units have fireplaces, ornate windows, and of course a great location.
3) 251 S. 24th St: A very rare loft styled new Center City condo building in Filter Square that few have heard of/know of/have seen. Garage parking, huge windows, and sits in a quiet pocket of Filter Square. High end contemporary finishes throughout each unit.
4) The Clinton: Now here is a stunning building. Sits on the corner of 11th and Clinton St- serene as they come. Some units have parking, and many units have south facing windows- many completely shielded by huge trees. Modest condo fees and attractive pricing. 1023 Clinton St.
5) St. James Court: Hidden between 5th/6th Street, Locust and Walnut sits this enclave of “uppers and lowers”. Rental parking next door at Indep. Place. Great space, quiet location, handsome exteriors, outside space for every unit, and two story living rooms. A great track record of resales / value retention over the past dozen years.
Mark Wade
CenterCityCondos.com
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November 4, 2013
You Are Not Buying The Couch…You Are Buying The Condo- So don’t get so excited
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| Listen, I get it. The visual appeal and the emotional punch that rides on the back of a gorgeous Center City condo can be overwhelmingly attractive. But many buyers are sometimes disheartened when they buy a condo, then go back for the final walk through on the day of settlement and the initial emotional attraction has left the condo along with the owners belongings.
I think it is important to keep a few things in mind:
1) You can easily add the emotion whallop back into the Philadelphia condo. Think a groovy paint color scheme and curtains. If you don’t have the vision to do this yourself, visit to Houzz.com
2) Think about having a new coat of polyurathane put down on your hardwood floors. Usually, this can be done for about $2-$3 per square foot. The presentation of your new floors will generally have a HALO effect over the entire unit. This should be done the day you settle, and at least 48 hours prior to you moving belongings into the condo. Huge visual plus here…
3) A Super duper thorough cleaning can really bring a lifeless condo back to life. Including window cleaning, tile and grout cleaning and carpet cleaning. Stanley Steamer does tile cleaning as well as carpet, and the impact is huge. Like having new tile installed- at a fraction of the cost.
4) And if you are thinking of a few new furniture pieces but don’t have a huge bankroll to deck out the entire condo, try PhillyBusyBee.com where they sell somewhat used model furniture that may have been used in a past life to stage a property- so kinda’ used, but not really.
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October 28, 2013
What’s In Your Condo Docs?
Here are a few things that you may not have known are pretty standard in condo docs in Center City:
1) Almost all associations charge 2 months capital contribution- means you pay 2 months condo fees to the association- not the owner, but the association- Helps build the kitty.
2) You better check the pet policy- A few years back a young woman bought a Philadelphia condo at Locust Point, then had to sell because she ignored the pet policy- her dog was too big. And she of course wasn’t parting with the dog, so she parted with the condo.
3) Rental Restrictions- Becoming more and more common in condo docs and their rules and regs- which can be a huge value-preserving tool for the association.
4) Future Assessments- Will tell you if any assessments have been approved for the future. Not “discussing assessments” but real approved assessments. There is a difference.
5) The Budget- This is a biggie. You may want to see how much $$ is on hand for future improvements- should correspond to building size and age. New buildings have little reserve- and often, they don’t need them- there is no differed maintenance beyond cosmetic often.
In the state of PA., you have 5 days or 15 days to review your condo docs depending upon the type of Center City condo you are buying- used or new.
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October 7, 2013
Ask the Big Brain Realtor …questions I get most often
1) Have you ever walked into a condo and found someone naked?
Sleeping, drunk, passed out, in the shower, in the tub, having “relations” behind in a locked bedroom -Yes. But naked- no
2) What is the Value of a parking spot in town?
Up to $150,000 in the hottest, most densely packed parts of Center City Philly. Though rarely available
3) Should I Buy Or Should I Rent?
What do I look like? That’s your call. What I believe is that values have bottomed out, and demand is rising.
4) What do you think of this or that area?
I think you need to look at your priorities, and your desired lifestyle. Rittenhouse and Society Hill have vastly different appeal- one more hustle and bustle, the other more quiet and a hint more suburban. Neither being a negative- you just have to decide what is right for you.
5) When will the Market Improve?
In many segments, it already has- multiple offer bidding, condos selling in a matter of a few days- being seen once again in the 2012 Center City Condo market. Scarcity is going to be the key word in 2012 for many segments.
6) You seem to badmouth a lot of condos… Do people often get pissed at you?
Yes. I was once asked to leave a Brokers Open House when I commented that the owner had a better chance of seeing god than he did of getting his asking price. Listing agent wasn’t happy. She’s been mad at my for like 19 years now. Whatever. I was right. It sat on the market for over 2 years. I will champion the cause of any well priced Philadelphia condo…but I will call ’em as I see ’em in terms of the junky overpriced listings around town.
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August 26, 2013
Minimizing Risk in a Condo Purchase
Mick Jagger once said “It’s alright letting yourself go, as long as you can get yourself back”. I like that…and think the phrase is apt when considering a condo purchase. I bought in a building that was perceived to have a hint of risk (in terms of value retention)-
but I snagged the condo at such a great price, I know that if I ever want to move to the moon– I can sell my condo without losing money.
But you do have to be wary of the units I call the “HOTEL CALIFORNIA” condos- meaning you can check out anytime you like, but you can never leave- because you simply can resell the damned thing.
Here are 5 things to consider when determining the risk of a condo purchase:
1) The Cost of the Condo- If you buy a Center City condo at half the price similar condos are selling for- then most of the risk is removed. It gets back to one issue- NOT OVERPAYING.
2) Owner Occupancy Ratios can be an issue in SOME buildings- as a lack of Fannie Mae Warrant-ability can be a sign of a risky condo purchase. BUT by no means is this the only factor- it may just be a factor in assessing the risk.
3) Reputation and Resale History- There are buildings in town where NO CONDO has resold for 5 years. Not as rare as you might think. If no one else is buying in the building- you need to start asking me questions as to why.
4) Deferred Maintenance– I can name two buildings off the top of my head that need HUNDREDS OF THOUSANDS of dollars of repair, upkeep and maintenance work just to put them on par with their competition. I generally would avoid, unless of course you can just steal the condo outright (at a killer price). Otherwise, future assessments may wreak havoc on your investment dollars in that Philadelphia condo.
5) Buying within the Price Frames of the building- Buying a $2M condo in a building where the average price is $250,000 and is overwhelmingly populated with say studios may not be in your best financial interest, and may be a risky purchase.
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