Philadelphia Real Estate Blog

I came across this great article the other day.  Tom Acitelli of The New York Observer had this to say about the new trend of New Yorkers relocating to Philadelphia:

"Since 2001, 8,334 New Yorkers have moved to Philadelphia and stayed. Most—3,957—moved from Brooklyn. After Brooklyn, most émigrés hailed from Queens (2,160); and the Bronx, Manhattan and Staten Island, respectively.

What makes Philly so attractive? The Rocky statue atop the art museum steps? That’s been moved. No: It likely comes down to real estate.

Although exact numbers are difficult to find, Philadelphia home prices, generally, are absurdly low compared to almost any area in New York." 

The rest of Tom’s article can be read here.

As a realtor for 19 years here in Center City Philadelphia as well as an owner of an Old City Condominium, I’d have to say that I agree with these New Yorkers that Philadelphia is a great place to live! So, when you are ready to head down the turnpike and look for a great loft or condo here in Center City Philadelphia, give me a call at 215.521.1523 or drop me an email at Mark@CenterCityCondos.com.

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

Most buyers are unaware that buying a condo in Center City will not cost them much of anything. The way the system generally works is that the seller pays the realtors fees (the listing and the selling agent) and that buyers may contact a realtor, and not have to pay him or her for their services.

The possible exception to that rule may be a $275 administration fee. At least that is the case with myself, and Prudential Fox and Roach Realtors. My fees, as your realtor, are paid for by the seller. You can use me, my knowledge, insight, and I will not charge you for my services. And I don’t charge you the $275, nor do I benefit from that fee-it is a fee that my agency charges. I hate that fee. I think it is stupid.

I will shuttle you around from Center City condo building to condo building, and sometimes even spring for coffee at the local Wawa. I will put money in the parking meters, or park illegally on the street and risk being towed. I might even pick you up at your place of residence, and drop you off there as well when we are done with our tour. All for free!

Now that doesn’t mean that there are not costs associated with buying a condo-on the contrary, as there are closing costs when you buy a Philadelphia condominium. It is just that my services are not charged directly to you.
So, if you are in a “Ready, willing, and able” state of buying your new Philadelphia condo…let’s roll!

Looking to hop into a car, and start your Center City condo shopping? I am ready when you are! Just drop me a note, and let’s chat! And let’s go look at some condos, and have some of that good Wawa coffee in the middle of our tour!

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

I live in a low rise Old City condominium building, and really enjoy the lifestyle.  I have all the modern conveniences one could reasonably expect in a three year old restoration of an old warehouse building.

But I can’t figure out how to program my thermostat. I have been living with this computer like device on my living room wall for a number of years now, and I still don’t have a clue how it works. It is supposed to save me money. For the life of me, I can’t figure out how it works.  Ditto for the TV and the DVD player.  I know how to turn it on, and I know how to record a program on my On-Demand feature.  But heaven help me on the days that the remotes are sitting on the couch, and the dog inadvertently steps on the buttons on the remote. Then I am totally screwed. I don’t know how that thing operates….for crying out loud…there are a total of four remotes, and I don’t have a clue, the time, or any inclination to become familiar with all that crap. I have better things to do. Like sit on my can and watch Seinfeld reruns.

Am I the only one? Is it possible that I am the biggest moron in this town? Some things are just too complicated for their own good. And I know I am not the only one who doesn’t know how to program their thermostat.  In my opinion, some things are better left idiot-proof.  Like the old thermostats, that you simply turn either left or right to control. And don’t let me chew your ear off about the TV remotes either.

If you are shopping for components for your new Philadelphia condo, don’t get in over your head. Keep it simple. You never know when a moron like me is going to be your next buyer, and just might be scared off by your hi-tech know-how. I like my condos user-friendly and simple. Like me.

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

I am not a tax expert, nor do I pretend to be. In fact, the issues of a 1031 exchange kinda’ confuse me. However, I have been in MANY transactions where either the buyer or the seller have participated in such an exchange. The exchange is all done via paperwork, prior to, and at the settlement table. It does seem like a nice way to basically defer taxes due on the sale of a piece of real estate. If you are looking to sell and buy another piece of real estate in Philadelphia, or elsewhere, you might want to consider what a 1031 exchange can offer. Here is a little info on the topic, garnered from www.1031.org:

In a typical transaction, the property owner is taxed on any gain realized from the sale. However, through a Section 1031 Exchange, the tax on the gain is deferred until some future date.
For more information, please visit www.1031.org, and find out if a “1031 exchange” is right for you and your Philadelphia condominium!

Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of “like-kind”, while deferring the payment of federal income taxes and some state taxes on the transaction.

The theory behind Section 1031 is that when a property owner has reinvested the sale proceeds into another property, the economic gain has not been realized in a way that generates funds to pay any tax. In other words, the taxpayer’s investment is still the same, only the form has changed (e.g. vacant land exchanged for apartment building). Therefore, it would be unfair to force the taxpayer to pay tax on a “paper” gain.

The like-kind exchange under Section 1031 is tax-deferred, not tax-free. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

Q – What are the benefits of exchanging v. selling?

• A Section 1031 exchange is one of the few techniques available to postpone or potentially eliminate taxes due on the sale of qualifying properties.

• By deferring the tax, you have more money available to invest in another property. In effect, you receive an interest free loan from the federal government, in the amount you would have paid in taxes.

• Any gain from depreciation recapture is postponed.

• You can acquire and dispose of properties to reallocate your investment portfolio without paying tax on any gain.

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

Of course each condominium association here in Center City sets their own condo fees. These fees are contingent upon a number of items, generally encompassing the amount of services provided- doorman, elevator, parking garage, roof deck, utilities, etc. I am often asked if any given Center City condo building/association can lower their fees. And the answer is a resounding maybe. Here is what I would do if I were sitting on your condo board, and wanted to see if fees could be lowered:

So there you have it. Yes, you can probably lower your condo fees, and probably make some enemies in the condo association at the same time, as most of these ideas are going to be “shot down” by the masses at any given condo association meeting. Leave me a comment and let me know how everything works out.  Good luck with that….

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

In my opinion, with respect to a high-rise Center City condo, the answer to the question is an obvious one:  The higher the floor, the better the view, and generally the higher the price. On a clear day you can see forever. You can even see, with binoculars, the high rises in Atlantic City.  Heck, from Liberty Two (50 S. 16th St.) you can even see the Nuclear power plant in Limerick. Although the upper floors do command higher prices, there is a segment of the Philadelphia condo buyer who enjoys, and actually prefers a tree top view, somewhere around the fourth or fifth floors. Provided of course, the view is actually of trees and treetops, and not rooftops of neighboring buildings.

In a low-rise Center City condo building, my opinion is that the value of the floor height is usually determined by the presence or absence of an elevator.  If you have an elevator, top floors are preferred.  However, know that in MANY cases, the higher the floor (in a low-rise condo) will mean a lower ceiling height.  The first floor generally has the highest ceiling height in almost all low rise condos in Philadelphia. But there is some opposition to being on the first floor by some Center City condo buyers.  The perception is safety, or the lack thereof. That perception can be balanced….as there are many $2,000,000 townhouses here in town that of course have a lot of living space on the first floor. It is kinda’ a “part and parcel” issue. It is how the city is built. If you live in a low-rise say, Fitler Square condo, I would suggest to you that resale wise, the second floor is generally going to be most desirable. Especially second floor front. Think about it. There are many reasons why a 2nd floor front unit is going to be the most desirable in the building…given that all other issues are equal within that building.

I would love to hear feedback on my points.  Leave a comment or drop me an email sometime.  Mark@CenterCity.com  Tell me what you think!

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

Having watched buyers and sellers in all kinds of real estate markets here in Philadelphia – both a buyer’s market, and a seller’s market, I would like to cough up my two cents on what I see is happening now in the Philadelphia condo market as we start the new year (2008).

Let’s begin with the obvious. Buyers believe that sellers are nuts, and sellers believe that buyers are just plain crazy. And realtors are lunatics. I can see that. Buyers will react to what they believe to be a weakened market in a number of ways. Not only will they tend to “low ball”, but their behavior as far as location and condition are altered as well.

1) Low-ball offers become the norm: No big surprise here. The days of multiple offers on the same property have passed. Not only are there fewer buyers in the market, but the motivation levels of those buyers are not as prevalent.  We just don’t see that wide-eyed frenzy of “Gotta’ have it”. Buyers will often question how long a property has been on the market, and bid accordingly. Sellers should be less offended and less surprised by such behavior.

2) Condition Rule: Buyers become much greedier in their desire for something that shows well, and is in move-in condition. Why should they settle for something that needs work, when possibly they can now move up into something newer that shows really well for what they believe to be the same price? Rittenhouse Square condos, say, that do not feature a strong showing ability may be looked over. There is more product on the market, and a lot more substitutability, so those units that are a bit worn, are going to have to be priced really well to garner an offer.

3) Location becomes more important: I witnessed this firsthand back in the early 1990’s. In a perceptually weakened market, the “lesser” locations will be the first to drop off as far as prices and traffic are concerned. A buyer’s desire to “pioneer” an area will lessen as he or she may believe such a tactic is more risky in a less “demand saturated” market.

Condos in Philadelphia may be perceptually “off”, as far as sales and demand is concerned. Sellers need to be aware of this new view that buyers hold, and act accordingly. Waiting for the multiple offer situation to come knocking on their door might be best invoked by rubbing a lamp. However, what doesn’t require one to “rub a lamp” is the notion that a Philadelphia condo that shows well, and is priced well, will still sell well. Take that to the bank.www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106 

Mark Wade

As a veteran Center City realtor, I am often cornered at parties, and asked, “What is the best buy in the Philadelphia condominium market?” The answer is not always easy, and depending on your priorities, can be varied, and alterable.

Generally, I have always believed the best buy is a good combination of location and condition. The former being strong, and the latter being weak. Buy an ugly Old City loft in a strong location, and make the emotional improvements yourself. Or buy a dated Rittenhouse Square condominium that needs work, and watch your investment skyrocket with a good dose of elbow grease.

I began selling real estate in Philadelphia nineteen years ago, when the market was very depressed. It was not uncommon for sellers to have to bring money to the settlement table in order for them to sell their condos. That is probably why I think it is ultimately important to buy “ugly”. If you read my blog regularly, or listen to my podcasts, I am sure I am beginning to sound like a nag. But take the point. Or at least consider it. Do not allow someone’s dirty condo to interfere with your perception of the true value of that particular Society Hill condo, or Fitler Square condominium. The power of dirt to chase other buyers out the door, and ultimately result in a lower sale price should not be diminished. One of the first articles I wrote for publication on the net was titled, “I hope I sell you a condo that smells like dog pee”. You can pretty much surmise the story by the title.

So the next time you see me at a party, perhaps getting all liquored up, and rambling on and on about Philadelphia real estate, you can be sure some of the ramblings are going to center around buying a crappy Art Museum area loft, or a smelly Society Hill condo.

And I mean it lovingly. Nothing spells value like the aroma of someone else’s dog pee.

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

It seems “The Donald” is coming to town, and bringing a big band of trumpet blowers with him. I am hearing all kinds of noise about his plans on adding to our waterfront. Trump Tower Philadelphia is his plan to add 45 stories, and 225 residences to our fair city. To which I say, “Have at it”.

I have seen the plans, and been to the sales presentation. Now I am rarely impressed with developers. Especially those from New York, who along with their New York city big- brained consultants tell us what we need, and how we need it. The principle they never seem to get is the “When in Rome” theory of life. And let me tell you, this ain’t Rome. This is Philadelphia. Not all issues, factors, desires, and sales trends translate across the wide expanse of New Jersey (from NYC to Philly).

But I gotta’ say…..I think someone at the Trump organization must have correctly read some tea leafs or perhaps they looked into a crystal ball on the Jersey turnpike on their way down here from NYC. From what I see, this building is not only gorgeous, but appropriately sized (in terms of unit mix, size, and number of units in total), and the amenity package seems to be spot on for what this town really needs to make the waterfront area a really desirable destination for residency. The new Trump Tower Philadelphia, looks to be its own “Private Idaho”, in terms of the amenities and the recreational facilities onboard. I can see the Jersey shore becoming less a draw for those who might live in the new Trump Tower Philadelphia….

What do you think?  Leave me a comment and give me your thoughts or send me an email at Mark@CenterCity.com.  www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106 

Mark Wade

I have been working with buyers in the Philadelphia condo market for some time now.  Since 1989 I have been shuttling around buyers in my car, on foot, and a few times, via bikes. I enjoy myself, and really like selling real estate. Call me nuts. I don’t care, but I do enjoy it.

But what I really don’t like are buyers who won’t give me any guidance or feedback. What Am I, a mind reader? I need you to talk to me. Tell me that you hate that condo on Lombard Street, or tell me you love that loft at 3rd and Arch streets. Just talk to me. Tell me why. I don’t own that condo, and I am not going to get offended by your dislike of dirty orange shag carpeting.  

Every buyer has a rank of priorities when they look at Philadelphia condos. Some value location, some condition, some value ceiling height and natural light above all else, and some Rittenhouse Square condo buyers value the prestige a certain building may or may not exude. I don’t care what your particular  priorities are, or how you value them….I just care that you adequately verbalize these wants and needs to me, so I can incorporate them into our next tour.  Otherwise, I am going to continue to show you a bunch of stuff you are not interested in seeing. God knows there is enough inventory on the Philadelphia condominium market to keep both of us looking until the year 2012, especially with the Changing Skyline that Inga Saffron, the Architecture critic for the Philadelphia Inquirer has been writing about. If you don’t have help me rule out some of the flats and lofts you are NOT interested in seeing, we are just going to spin our wheels.

My favorite buyers are the ones with opinions. Realistic opinions. Penthouse condos in prestigious buildings don’t sell for $139,000, nor can I get you EVERYTHING on your wish list. But I can hit a pretty high percentage of your wants and needs, if you just speak up and tell me why you liked the condo at 2nd and Spruce Street, or why you think you need three bedrooms, instead of two bedrooms and a den. Communication is the key, so don’t be shy!  Again, I don’t own these condos,  I just show these condos, so when you are ready to start talkin’ to me, give me a call at 215.521.1523 or drop me an email at Mark@CenterCity.com.  I am on your side!

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