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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
May 12, 2014
When the market hits a rough patch, the outlying areas are the first to notice the change in terms of demand and therefore pricing. Those “B” areas are usually the last to rebound in terms of demand and prices when the market picks up speed. There are exceptions to that rule of course, but anyone would have a tough time arguing that Rittenhouse Square has the fluctuations in demand during the high and low parts of the Center City condo market when compared to our “B & C” inventory. There is indeed something to be said about the “location, location, location” saying.
But when the market is in full swing as it is today and buyers outnumber sellers, we see the “B” inventory pull up the rear with a real sense of urgency and demand. There are no less than a half dozen condo buildings around town that have had some exceedingly impressive sales….sales where no prior sales have occurred for the past say two years. As the core of our Center City condo market strengthens, so does our outlying areas and with that, our “B” inventory.
Once overlooked, now being looked over
The resale prices in some of our “B” locations is striking as we see values “stair-stepping”,where one sale builds upon the one prior and prices stair-step up in clear and rapid fashion. We can see that trend throughout the Center City condo market and many buildings that had no traction even a year ago are seeing wonderful attention in today’s market.
I find the lack of talk in the general Real Estate community concerning the eastern portion of 19123 and the northern portion of 19107 to be surprising, to say the least. Proportionally, these are our newest growth areas in terms of value.
Believe me. I’m not making this stuff up.
Tags: Center City condo, Philadelphia condo, real estate philadelphia condos
April 8, 2014
I hear a lot of talk about the up’s and down’s of today’s Center City condo market. And what most Realtors are witnessing is multiple offers, properties selling at or above asking price and a decreased “days on market” statistic.
For the majority of the Center City condo market, there are more buyers than available inventory and the shift in that relationship will give rise to actions that we see more of today than we would have even six months ago- such as multiple offer bidding. I just encountered three offers on the same condo in one day and that condo had sat idle for almost two months.
Also becoming common are full asking price offers or even over asking price offers. I think it makes sense (many buyers see the time as being right to snag a condo out of the clutches of others and are therefore willing to put their best foot forward). I am now telling my buyers that IF they see a condo they want- do not hesitate to go in quick and strong.
Because nothing is more painful than a bidding war. Good for sellers, not so much for buyers.
Lastly, Realtors I speak with also confirm that they are seeing a decrease in the “days on market” calculations. Many Center City condos are selling within days, even hours after being listed for sale. I know of one unit at the Philadelphian that was listed in the MLS in the AM, and under agreement about 4 hours later. Not common, but certainly not unheard of.
Tags: Center City condo, condos in Philadelphia, philadelphia
March 31, 2014
You don’t get if you don’t ask….but there are times when I have to say NO to a buyer’s request. I just can’t….Sorry
1) Getting condo docs in advance of your offer- Condo docs are ordered by the seller and can cost up to $300. No seller orders prior to a sale in my experience.
2) Make an offer on two Center City condos simultaneously- Sorry, but you have to make up your mind. You need to approach an offer in good faith…and like dating, you really can only do so one at a time. You may want to two time…but you really can’t.
3) Move In Prior To Settlement- Perhaps if you rub a lamp, this wish could come true. It ain’t going to happen. You can move in when you own the condo. Period.
4) Expect the Owner to Leave The Condo Spic & Span- Yeah….that ain’t going to happen. The contract calls for “Broom Swept Clean” condition.
5) Expecting there not to be nail holes in walls where pictures once hung- Pictures do not magically float or levitate onto walls. They are put there via nails and screws. Expect that holes to remain once the pictures are gone. Shocking, right?
Tags: Center City condo, condos in Philadelphia, real estate philadelphia condos
March 14, 2014
Click here to check out our new listing at 1035 Spruce Street Unit LL1
Tags: philadelphia real estate
February 24, 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 Real Estate, Philadelphia condos
February 17, 2014
Of course I get tons and tons of folks emailing me looking to move into a Center City condo…no surprise there. But you might be surprised by who is actually buying in town. Here are some common groups of buyers who I see buying condos in Center City. Certainly others exist, but this is a generalization of what I see:
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1) The Returnees – Grew up in Philly, moved elsewhere, and now returning. Being close to friends and family is often the draw.
2) The Empty Nesters- Shedding themselves of 75,000 pounds of unused house. They can often be very happy happy buyers who are starting a new chapter in their lives. I enjoy working with and watching them get excited for a move into town.
3) The Weekend Warriors- They have done the shore, now they spend their weekends in town. Much more common than you think.
4) The Kids Who Have Parents Who Have $$ – Very common. Very.
5) The Transferee- Maybe came to town via a promotion- and wants to be close to work. Moving to town wasn’t on the radar. Doesn’t matter- he or she is here now.
6) The Growing Families- It used to be that young adults would get married , and 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.
7) The Investors- Who know that the city is the place to be, and that their investment will provide a handsome return year after year after year. Unless say Univ. of Penn moves to say the moon…a condo may easily be a magnet for a tenant.
8) The First Timers- The good ole reliable first time buyer. The backbone of the Center City condo market- always has been, probably always will be.
Tags: center city condos, condominiums, philadelphia real estate
January 27, 2014
I am often asked by condo owners to offer tips on getting their condo to “Show Well”. Here are the 3 quick easy tips for maximizing the showing ability of your Philadelphia condominium:
1) Go to Ikea, and buy a floor to ceiling curtain and hang it from ceiling height, in front of your bathtub. This is not going to take the place of your shower curtain, it is simply going to add some dramatic effect to the bathroom. It is quick, cheap, and has a powerful punch in terms of the emotional appeal of your Center City condo.
2) Paint an accent wall. Preferably, one that is opposite the entryway to any given room. I like to see fireplace walls accented in somewhat neutral, yet enticing colors too. Like a chalky blue, or green. Painting an accent wall will give a hint of flavor to a room, without overpowering the room with massive color.
3) Replace the knobs on the doors and drawers in your kitchen and bathroom. And don’t buy the 99 cents knobs either. Go to Pottery Barn, or Restoration Hardware, and spend a few dollars. Believe me when I tell you, they will help even a somewhat tired kitchen look a bit refreshed.
That’s it. Three quick easy steps for maximizing the interior “curb appeal” to your Center City Condo!
Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106
Tags: Center City condo, Center City Real Estate, Philadelphia condominiums
January 6, 2014
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!
Tags: Center City condo, Center City Real Estate, condominiums, condos in Philadelphia
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