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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 17, 2014
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Take location and amenities out of the valuation
equation and you are pretty much left with reputation
Reputation is the elusive building quality that can garner some high end sale prices for certain buildings in Center City. Every building has a reputation which is built on a plethora of factors- some of which may not be visible to the naked eye. Factors such as: location, curb appeal, overall quality of fit & finish, upkeep and maintenance, and amenities/services that are offered. Some of the more subtle qualities of a good building reputation might be clues to the building’s finances, the size and composition of the condo units, monthly dues, friendliness of staff and management responsiveness.
The one factor that I notice buyers pay attention to is the friendliness of the staff. This is BEYOND HUGE. And such a simple factor that can easily be affected. If your doorman is anything but courteous and helpful- my buyers are going to pick that up pretty quickly and it will sour their impression of your building. York Square in Old City used to have a really pissy front desk staff and a fair number of my clients would comment on that attribute. And the comments from my buyers weren’t nice. First impressions are huge…we all know that.
The reality is that you cannot single out location as being the only driving force of value in a Center City Condo. Just look around town and try to compare building’s based on location alone- then try to determine the buildings value based solely on location. You would pretty much have to be a goof….you follow me? Building reputation and the attributes associated with reputation can indeed dictate value and really be a driving force of those values. |
Tags: Center City condo, Center City Real Estate, condos in Philadelphia
March 14, 2014
Click here to check out our new listing at 1035 Spruce Street Unit LL1
Tags: philadelphia real estate
March 12, 2014
March 10, 2014
-The Plaza is done with their lobby work and they made one of the best common foyers in town even better. Now exterior work to begin on the balconies.
-I have heard that the planned new construction at 25th and Locust is going to be a Philadelphia condo building- and not rentals. Don’t bet on it-just a rumor.
-The Murano is getting a make-over to their community room. No offense as I love the Murano, but…yippee. -The lobby of the Warwick has been completed..and this ain’t no rumor- it is fabulous! Really…next time you walk past- stick your head inside the lobby at 1701 Locust St.
-I just implemented a new menu button on my site “The Newest 50 Condos In Center City.” That info will of course be updated daily for my condo junkies that love to stay on top of everything here in town.
-I just got my first “Multiple Bid” situation for the Spring 2014 selling season- A sign of the impending “sellers market” (watch prices rise this year pretty much across the board). The spring market is starting real early this year- and will run through say mid-July.
-I just saw one of the most jaw-dropping condos I have seen in town- At 1352 South St. A super duper stunning corner unit- the likes of which I have never seen in Center City. This is the only one like it in the building.
Asking under $800k. I was like, damn…..
-Center City One at 1326 Spruce St. has completed (most if not all) of their common hallway repairs and they look stunning. Building is so well run and they are now offering options for folks to replace their own exterior windows and doors. Touche.
-I heard that the southwest corner of 5th and Walnut was recently purchased by a large Center City developer and will be turned into a fairly dramatic new condo high-rise building. I overheard that little noodle from a big wig in the company who was in good spirits when he started singing like a canary.
-The Former Shirt Corner (NE corner 3rd & Market) is adding a CVS and 59 units…not sure if condos or apartments.
Tags: Center City condo, condominiums, Philadelphia condos
March 3, 2014
Think your condo board and management companies don’t play a role in your value retention?
Center City condominium buildings are like a business and should be run as such. From maintenance to condo association policy, seems many folks have a hand in the determination of your resale value. Value within any given building is a moving target, and if I were King of the World, I would suggest that any association would want to evaluate their policies considering:
1) Pets- A hot button item. Buildings are often overlooked by potential buyers based upon the buildings’ pet policies. Buyers often request a pet- friendly building, but never have I had a buyer express to me that a pet-free building is on their wish list. Associations may want to limit pets based upon breed, size and allow such freedoms to only the owner occupants and not tenants.
2) Common Area Presentation – The death knell for many buildings in town in terms of value retention. Often, buyers refuse to walk into a Philadelphia condo unit after being walked through the common building foyer and through the halls. Some hallways smell- and haven’t been painted or had any new lighting in 20 years. I would have to suggest you rid your association of anyone who could be responsible for such lack of attention. The cost is SO MINIMAL to improve common area elements that it really makes no sense not to keep your common areas in tip top shape. This is where the “Investment Multiplier” comes into effect- for every dollar you put in, you get two back. Simple math here folks.
3) Transparent and Open Communications – There is a reason why Society Hill Tower, Hopkinson House, and The Washington Square West Condos at 12xx South St. are known to be very well run. I would suggest it has to do with the accessibility and transparency of the condo associations and or management companies. From condo docs, to board minutes – THINGS BUYERS WANT TO KNOW- Are but a click away on but a handful of condo sites. The surreptitious and somewhat mysterious ways that associations fail to hold out the information to scrutiny can be a serious concern for many buyers. And making a buyer wait up to 4 weeks to get condo docs – REALLY? That is a great way to piss off a new buyer and possibly a new member of the condo association.
4) Rentals- It is fairly standard for a building to allow a certain percentage of the condominiums in the association to be rented out. But having NO policy which addresses rentals can be a real disaster. Fannie Mae has rules about owner-occupancy ratios. A lack of adherence to those rules can lead to the need for buyers to put more money down AND pay a higher interest rate.
Which of course can reduce demand for your building, raise inventory levels, and ultimately lower your values. Ain’t no rocket science involved in that equation….
Below is a fantastic site with some great information. If you are a board member of an association here in town, you might want to bookmark this website:
Tags: Center City Real Estate, Philadelphia condo, Philadelphia condos
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
February 10, 2014
…and floor height isn’t the only factor affecting values within the same buildings.
Probably the most overlooked effect on value to high rise condominium is the view that any particular piece of Philadelphia Real Estate has to offer. And not all views are created equal. Let compare and contrast a few different scenarios. All are based on my opinion, as a fairly seasoned Realtor who specializes in condo sales I have learned a great deal about the effect on value that particular views may or may not have, and any given buyer’s perception of how that view might affect their desire to purchase.
1) It is possible for a posh condo to nearly double in value if it has a highly coveted view. Think Central Park.
2) In some buildings, the highest values have been posted not only on the highest floors, but also on what we call “treetop” view. A very nice view of the treetops, say on the 5Th floor of a high rise condo can be very appealing to a number of buyers
3) A condo on a high Floor does not always warrant a higher sales price. IS there a benefit to looking directly into a neighboring high rise condo building- from the 27Th vs the 8Th floor?
4) I personally have found few buyers to discriminate between an East vs West view. However, a number of condo values are greatly affected by a North Vs South view.
5) Not all views from the 16Th floor of various buildings are the same. Think about ceiling height, and windows that run floor to ceiling. The building itself can manipulate either the view, or the feeling that the view offers, and this in turn will affect resale value and overall appeal.
At times, the need for a good view can be bypassed if a condominium has great light. There are many Rittenhouse Square condos that offer tremendous natural light, be it north or south, east or west, that don’t necessarily have great visuals. I find a lot of buyers will fore-go a great view if the natural light is strong. Conversely, I find that a great view will not overcome the weakness of a dark condominium. I would suggest that natural light is a stronger motivator than a great view- at least in terms of resale ability.
So know that it has been my experience that view does indeed affect resale price and the time it may take to sell any given Philadelphia condominium. Though direct “park views” are the most desirable, there are compensating factors, and issues that can compensate for a lovely tree lined view of say, Washington Square. One needs to consider the window size, ceiling height, amount of natural light, and of course floor height. All factors should be considered when determining the resale ability of any given Philadelphia condo.
Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Home Services Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19106
Tags: Center City condo, condominiums, condos in Philadelphia, condos philadelphia
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