Philadelphia Real Estate Blog

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Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Home Services Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19103
215.521.1523  Mark@CenterCity.com

So we hear all the time about the glut of condos on the market. But that is not always true in specific segments of the Philadelphia condo market. For instance, if we look at four very popular existing condo buildings here in downtown Philadelphia we see that the opposite is the case.

According to TrendMLS, on September 20, 2011 there are only three (3) active condominiums for sale in the following buildings:

-The Dorchester at 226 W. Rittenhouse Square

–The Hopkinson House at 604 S. Washington Square

-Independence Place (Buildings I AND II) at 233 and 241 S. 6th St.

-The Wanamaker House at 2020 Walnut St.

So out of nearly 2000 possible available units, there are 3 units for sale. Go figure.

Mark Wade
www.CenterCityCondos.com
Mark@CenterCity.com
Berkshire Hathaway Home Services Fox and Roach Realtors

There was an article last week in the Philadelphia Inquirer that suggests more Philadelphia Condos are being rented.  Here is an excerpt from the article:

Because the focus of residential construction during the boom times was on for-sale housing rather than rentals, there aren’t enough high-end apartments to go around now.

“We are finding the high-end rentals to be almost nonexistent, as they rent fairly quickly,” said real estate agent Mark Wade, of Prudential Fox & Roach.

Condos near the University of Pennsylvania and Thomas Jefferson University “have a built-in demand for rentals, and we have seen that equation play out year after year,” Wade said.

Read more here:

http://articles.philly.com/2011-06-01/news/29608739_1_rental-apartments-rental-units-center-city-district/2

Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19106

If you plan to put your Philadelphia Condo or Home on the market, you have to check out Drew Callaghan Photography. He does great work that will go a long way at showing off your Condo’s Showing Ability! Here are a few of his amazing photos:

You can contact Drew at Drew@DrewCallaghanPhotography.com or 215.431.3384.

See more at: http://www.DrewCallaghanPhotography.com/

Mark Wade
Prudential Fox and Roach Realtors
www.CenterCityCondos.com
530 Walnut St. #260 Philadelphia, PA 19106

Here are some tips for making your offer on your potential new Philly  Condo as attractive to the seller it can be:

1) Get a pre-approval from the mortgage company that the LISTING agent uses most.
This will allow the listing agent, who will be presenting your offer to the seller, to be comfortable with your financing arrangements.

2) Narrow your contingency periods to ten (10) days. Not business days either. Make sure you can clear your schedule to do all your inspections on a timely basis. Nothing sours a seller like “15 business days” to do a home inspection.

3) If you are flexible in the dates you can settle, give the seller the option to pick the settlement date. You can write a contract that gives the seller the right to choose your settlement date within a specific period of time, like “ from 30 to 45 days from execution of the contract”..seller to decide.

4) If the seller is buying another home, and doing so locally, consider allowing his or her title company to do your title work. Title rates are standard, and you (generally speaking) will not incur more costs by having your title work done by a company you or your Realtor chooses.

5) Write a nice note to the seller, to be presented with your offer telling him or her why you love their Center City home, and why you want to buy it. If it evokes a special emotion out of you, let the seller know. Every seller wants their home to be “loved”….let them know you love their home!

These tips may give you an edge in a competitive offer situation, or may just save you a couple of dollars when it comes time to negotiate with the seller! Good Luck, and know that the dollar amount you are offering is NOT the only factor your seller may consider when looking at your offer!

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

Technically, in the State of Pennsylvania, if you do not obtain mortgage financing, no one is going to force you to buy title insurance on your new Old City or Rittenhouse Square condominium.  But as your Realtor, with your best interest in mind, I am going to rant and rave until you agree to buy it.

A mere title search doesn’t always reveal all the flaws that could potentially be a part of the chain of title. And title searches are not free. Not to mention you will need to pay an attorney or title company closing fees and notary fees to complete your transaction if you do not purchase title insurance from them.  Closing fees and search fees are usually waived if you purchase the title policy. Since you will need to put out several hundred dollars for these services if you waive title insurance anyway, you might as well pay the difference and protect yourself against the unthinkable.

Here are a just a few scenarios you could encounter without the protection of title insurance:

– Forgery or Fraud in connection with the execution of previously recorded documents
– Incorrect representation of marital status of grantors
– Undisclosed or missing heirs
– Wills that have not been properly probated
– Mistaken interpretation of wills and trusts
– Incorrect legal descriptions
– Unsatisfied mortgages, liens, or judgments not shown on the record
– Deeds executed under expired or false power of attorneys
– Confusion due to similar or identical names

– Unknown rights of ex-spouses or former owners
– Clerical errors in recording legal documents
– Incorrect filing of condominium declarations

Some of these things sound crazy I know. But in my 21 years of selling Philadelphia Real Estate I have come across more than a few of the above situations.  So think of it this way:

Paying for a title search and other closing fees to buy your condo without the protection of title insurance – Around $800

Paying for the same search and closing fees including title insurance protection on your $300,000 condo – Around $1600

The peace of mind of having your title company to call and not having to deal with an old lien or back taxes that suddenly show up on your title – priceless!

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

Everyone thought Bob and Suzie were nuts to abandon their beautiful suburban oasis, replete with ducks flying to and from the pond, for a 17 foot wide row home in Philadelphia in 1992. A row house with no parking and no more than a small square slab of cement to call a back yard and four stories from basement to top floor.  Their move signaled a shift in the residential paradigm. Their parents left the city after World War II, and come hell or high water, they weren’t coming back. But Bob and Suzie think of themselves as far to cool and hip to spend their days in a five bedroom ranch house with a half acre of land, and a basement full of tools and half used accouterments. Remember, they are the generation that said words like “groovy”, and “right on”. The idea of never owning a lawnmower, or a garage full of half used brooms and shovels, appeals to many empty nesters. No more yard work, no more owning more than one car, and no more having to repair the roof. The thought of new surroundings, in a new luxury condominium, with much less responsibility (and therefore more freedom) is again very appealling.

Baby boomers, becoming empty nesters provided the fuel needed for many new projects that have recently been added to Center City’s skyline. Buyers of many luxury Philadelphia condominiums have made wonderful gains in the last twenty years, with respect to their real estate investments. Without the burden of private schools for the kids, the kids, and often during prime earning years it is the Empty Nesters’ turn to treat themselves, and the developers of many condominiums have positioned themselves to take advantage of that market.

The perception that downtown Philadelphia has really come a long way over the past twenty years.  Our City is cleaner, safer, and culturally more adept -are all reasons that contribute to the lure of the empty nesters. From friends who have also made the move, to museums, restaurants, shopping, and the bike trails up the Schuylkill river, Philadelphia is shaping up to be a fine residential attraction, and empty nesters have taken notice. And to think that Northern Liberties is now the place to see and be seen. Who would have thought?

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

There are clearly a number of condos for sale in Philadelphia. Duh. But what about the unmentioned “Shadow Inventory” that might be creeping up on us all? Shadow inventory, in my mind, are the condos that are part of some non-performing new developments here in town. There are a number of buildings with a hefty amount of inventory that has been sitting for quite a while, and is not selling. And the bulk of it is high rise condominiums – in generally what most buyers term as “B” locations.

IF A BUILDING HAS NOT BEEN ABLE TO SELL 70% OF ITS UNITS IN SAY 3 YEARS- THE PRICES ON THOSE AVAILABLE UNITS AREN’T GOING TO RISE ANYTIME SOON.

Prices  have a tendency to come down in such situations. Sometimes a new buyer will come in and buy the inventory in bulk, sometimes a condo auction will reset the pricing structure, and sometimes the buildings become glorified rental buildings- which simply postpones the inevitable price restructuring in the building (Delay and Pray).

Will Center City’s Shadow Inventory Come back to Haunt the Pricing Structure for Condos in this Segment? Will Philadelphia Condo Buildings that are viewed as substitutes for this shadow inventory suffer as well?

Stay Tuned..I’ll tell you what I think.

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

I recently sold an Old City condo to a physician. Great guy who knew what he wanted, and finding him the right condo was not an issue. We had fun, and he found something he really loved. And let me tell you- this condo rocked. All Good!

However, he wanted to do some Cock-a-mamie type of loan that I was sure would fall flat and go nowhere. Oh yes, my big-brain was sure this deal was going to suck.

However, I was proven wrong, and the deal actually was quite smooth. He applied for what is known as a Physician Loan, and was able to get a JUMBO mortgage (one over $500,000) with just 5% down- you heard me 🙂

Here are the basics that were offered by John P. Wagner, Sr. Loan Consultant from Tower Mortgage Corporation – 1.800.918.5400 – and he was great by the way.

He can offer zero down to Physicians with no PMI –
FYI, zero down to $500K, 5% down $500-650K, 10% down $650-850K, 15% down to $1M

The theory is that since they went to school for sooo long, and have a very LOW default rate, there are lenders that will bank on them with little down.

So if you are a doctor, give me a call, and lets find you the perfect Philadelphia Condo with little down!

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

In the current real estate climate, getting a buyer and seller to agree on a price is tough enough. But that isn’t the toughest part of real estate today. I find that the most difficult aspect of my job as a Center City Real Estate agent is getting the deal done in terms of jumping through the hoops set forth by the mortgage company.

First the appraisal, which is becoming difficult, as I see very few lenders willing to be anything close to generous with the numbers they conclude to be the value of any given condo. I am not going to argue who is right and who is wrong here- suffice to say that hitting the needed number to make the appraisal work is more difficult than in the “Good Ole’ days”…..
Next, the condo has to fit the mold that the mortgage companies seem to favor- and just to list a few of those attributes:

1) Does the condo have enough owner-occupants as opposed to tenants?
2) Does the original developer hold more than, say 10% of the unsold unit?
3) Is there a reserve fund set up to put some money aside within the budget of the condo assn?
4) Has the association been turned over to the owners, and for a minimum of two years?

These are just a few of the hoops that not only YOU, but the condo you are buying MUST jump through in order to be approved for a mortgage. And this is just the tip of the iceberg.

Looking for help in determining your best strategy for obtaining financing for a Philadelphia condo you may find in the Center City condo market? Lets chat about some of the pitfalls and hoops!

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