Philadelphia Real Estate Blog

There are a lot of well managed, well run Philadelphia condo buildings here in town, and there are a lot of crappy, hard to resell, impossible to finance, and just all around disasters-  In terms of being an awful investment.

Here are some things that I suggest buyers keep in mind when determining the strength of a Center City condo purchase (unless of course, they outright just steal the condo in terms of a killer price-

1) Owner- Occupancy Ratios: The more owners in a building, generally the better for resale. Under 30% tenants is a fine number. 90% tenants ain’t so great.

2) Delinquincy Ratios on Condo Fees- Some buildings are filled with deadbeats. Sorry. If over 15% of owners are late on their monthly dues- building becomes non fanne mae warrantable, and financing the condos in the building is remarkably difficult. Leads to depressed values real quick.

3) Condo buildings with appallingly low monthly fees. That could mean the building is going to hell in a handbag. Buildings need to be maintained regularly.

4) Buildings that clearly are in need of an assessment- yet owners won’t approve deferred, much needed upkeep and repairs- either internal or exterior.

5) Overall Ugly Buildings. In an alley. Next to a dumpster. Puke on the sidewalks. And urine. Yeah, not a big fan.

You want me to name name’s? Call me. Let’s chat.

If you’re thinking of moving to Philadelphia, or already live here but are in the market for new digs, your neighborhood will make a huge difference in your enjoyment of the city. Even in Center City, there are various personalities in different blocks. Depending on you, your budget, and where you are in life, you’ll probably have a pretty strong opinion about what you’re looking for.

For example, if you’re a single income w/no kids, you probably don’t care much about the quality of schools in the district. On the other hand, if you’re buying a home as an investment and not renting, the school quality will matter because it impacts the value of the property. Here are a few of the best neighborhoods in Philly to consider.

Avenue of the Arts
Located on Broad Street, this barrio is just what it sounds like. The Theater District is nestled here, close to City Hall, and there are a number of galleries and cultural sites nearby. The general vibe is creative.It runs from Broad and Locust to Broad and Lombard and hosts many of the area’s theaters. If you’re looking for some inspiration and a neighborhood that likely won’t diminish in value, this is it.

Old City
Close to Delaware River, Old City is a historical downtown niche. Independence Hall is located here as well as the Betsy Ross House, Elfreth’s Alley and a number of other historical sites. It’s bordered by Vine and Walnut streets and is favorite area for history buffs or those who prefer a peppering of culture in their lives. After work hours, it’s known for having some of the best nightlife, lounges, dive bars and mom and pop restaurants in the city.

Society Hill
Society Hill is an architecture lover’s dream realized. There are more original buildings constructed in the the18 and 19 century than anywhere else in the U.S. It boasts cobblestone streets, a charming vibe and row homes bound by Front and 7th Streets. Federal and Georgian style reign supreme here.

Midtown Village                                                                                                                                                                                                                                                                                                  A new neighborhood that’s part of Washington Square West, Midtown Village is highly desirable, trendy, and full of boutiques and shops. Antique Row is here and both medical and educational institutions are abundant, and it’s a popular area for those looking for the best in life (and homes).

There are many personalities in Philadelphia, so make sure you consider them all. Just like car and mouse trap reviews, you want to make sure you do your research before you start home hunting. Are you more Old City or Midtown Village? Only you can decide.

 Michelle Rebecca

Michelle is an aspiring writer with a passion for blogging. She enjoys writing about a vast variety of topics and loves that blogging gives her the opportunity to publicly voice her thoughts and share advice with an unlimited audience.

I always find it interesting when developers or REALTORS advertise a spring 2013 delivery for Center City condos and the project has yet to break ground. I’m thinking, it’s summer 2013 and your project isn’t even started!

Or, how about those large signs in the ground announcing a new development that got axed nine months ago? Look around town, you can see a few.

I don’t know why delivery dates for new construction Philadelphia condos are so wrong sometimes but I do have my theories.

Perhaps these developers are unaware of what it takes to get Philadelphia condos approved and built. Maybe its a bit of wishful thinking on the part of the REALTOR: will and early delivery date increase the traffic through their site?

More likely, it’s a bit of both.

Any buyer looking at pre-construction projects should be told of the inherent delays in new construction. Buyers must be aware of the countless pieces of the puzzle that need to fit into place in order for a project to come together. And they must be told the truth- that often, developers have zero control of the puzzle pieces. (Think city and state permit requirements for example.)

I think it would be difficult in most cases to adequately predict, some nine months in advance, an exact settlement date for your new condo. To me, promising a delivery date that clearly isn’t within range is a mistake. REALTORS and developers of new Philadelphia condos lose credibility when they do this.

I started thinking about all this remembering a mistake I made. (I know, I know. I, of all people should know better!) When I was moving I actually messed up my calculations on a new construction piece. I ended up in corporate housing for six months. (You can imagine what a pain in the ass that was. Two extra moves…)

If you’re considering Philadelphia condos in a new construction project, be wary of the advertised delivery date. Allow for some grace time with your lease. Don’t make completely firm plans with your moving company. You’ll avoid a lot of headaches brought on by unforeseen construction delays.

Stop trying to comprehend today’s complex real estate market all alone. Give me a call today at 215-521-1523 or drop me an email at mark@centercity.com. Together, we’ll find your perfect Center City Condo or sell your Philadelphia condo… and ave fun doing it!

And has dirty orange shag carpeting. And faded purple painted walls. Really!

I have been preaching this mantra for some eighteen years now here in Center City Philadelphia. And it has worked! Our little group of seven REALTORS (www.centercitycondos.com) at Prudential Fox & Roach REALTORS sell over 160 Philadelphia condos and Philadelphia townhouses every year to very happy owners.

One distinction that we can brag about is the fairly sizable profits a lot of our buyers make when they call us a number of years later to resell their Center City condos. Now granted, a lot of that has to do with the market conditions, and the fact that Philadelphia real estate has been on an upswing for the past dozen or so years. But, a significant reason many of our Philadelphia condo buyers make money is because we guide them to properties that are diamonds in the rough.

Buyers are probably going to find the smelly, ugly Center City condos severely discounted (disproportionately) lower than one might expect… because few other buyers are emotionally attracted to these “dogs”.  My goal is to get buyers to see past the simple outdated or unattractive cosmetics that are inherent in a number of downtown Philadelphia lofts, condos, and townhomes.

I feign deafness when I hear a buyer tell me that the “place is perfect, except I don’t like the carpeting”. Or that the appliances are old and the inside of the refrigerator smells like the inside of their gym bag. Those issues are what I call PHONE CALL UPGRADES. You pick up the telephone, you dial the local Home Depot or Lowes and you set an appointment for them to cone out and replace the appliances and carpet. You place one call to a painter who repaints all the faded purple colored walls. These are one step-one call upgrades. This isn’t brain surgery. We are not moving the kitchen which would involve moving gas line, water lines, replacing flooring, redoing baseboard moldings on and on and on. Simple stuff…”One Phone Call” Stuff.

And that is where many buyers see a huge increase in their resale price: simple, light cosmetic work. The kind of work that takes a pee smelling, dirty orange shag carpeted piece of ick, and adds significant emotional value through the use of good decorating skills, cleanliness, and minor cosmetic upgrades that are readily visible to the eye.

Buy ugly. Buy smell. And sell oohs and aahs… Then sing and dance all the way to the bank.

Ready to discover your own diamond in the rough? Give me a call today at 215-521-1523 or drop me and email at mark@centercity.com. We’ll smell out those “dogs” and find you a real ooh and aah buy!

Personal circumstances such as your job, family and lifestyle preferences determine whether or not city life is a good fit but for many, the center of Philadelphia is the place to be.  The City of Brotherly Love, a big city with a small town feel, is known for its friendly residents and if you love the vibrant life in cities Philly condos have a lot to offer. Trees and parks offer a refreshing contrast to its museums and shopping centers. Philadelphia is, quite literally, the best of both worlds. Decide for yourself if it’s right for you.

Less Reliance on Automobiles
Philly has a terrific public transportation system. It runs in a timely manner and can get you almost anywhere you want to go in the city or the surrounding areas. Commutes are quick and, if you prefer walking, almost anything is within reach. Shopping, entertainment and a wide variety of restaurants are within reasonable walking distance. In the suburbs, you will likely have to run a car, adding significant expense to your monthly budget and never mind the time spent commuting.

Wide-Ranging Culture
Philadelphia is known for its vibrant art scene. It’s not uncommon to see used forklifts moving sculptures, paintings and other pieces of art into a building. Museums, the zoo, and popular sports teams also bring entertainment to the city. If you’re a shopaholic, you’ll enjoy a large variety of boutiques, larger department stores and small specialty shops.
Even better, Philadelphia is one of America’s oldest cities and is full of historical significance. Its architecture is second to none. You can find a multitude of different cuisines; the city has many ethnic restaurants if you’re up for new experiences. There are diverse neighborhoods and Center City condos with distinct cultural offerings, so you’re never bored and without something to do.
Philadelphia is also home to some prestigious educational institutions, such as the University of Pennsylvania, which add to the vigor and excitement of one of America’s favorite cities. All of this can be right outside your door.

Real Affordability
Compared to living in some cities like New York and Chicago, living in Philadelphia is quite affordable. Rent is cheaper and because public transportation is plentiful, saving on getting to and from work is easy. Cars require maintenance and upkeep; you don’t have to worry about those costs if you live in the city center. Even purchasing a home is more affordable in Philly than it is in comparable cities in the United States.

If you’re looking to move to Philly, don’t just settle on the suburbs. Instead, think about everything the City of Brotherly Love has to offer you and your family.

Michelle is an aspiring writer with a passion for blogging. She enjoys writing about a vast variety of topics and loves that blogging gives her the opportunity to publicly voice her thoughts and share advice with an unlimited audience.

A LOT of  the recent talk in Center City Real Estate circles has been about the number of multiple offers on various parcels, and how some places are sitting on the market for a only a week, and being sold in short order. This is clearly a change from the previous four years. Maybe not be true in all segments, but certainly becoming more and more common this year.

I think what most buyers in the Philadelphia Real Estate market have to come to terms with is that they may need to make their offer as attractive as possible on those homes that are in short supply, and in heavy demand.  Even a gradual shift from a buyers market to a sellers market is difficult for buyers to grasp. Those in the know are going to fare much better than those who perhaps think they can come in at super low offers like perhaps that might have done in 2009.

As demand increases, and supply decreases, we will see the gradual escalation of values here in town. But remember, Philadelphia Real Estate values generally don’t skyrocket…they meander up or down depending upon market conditions. This certainly lends  strength to the fact that
“All in All”, the Philadelphia housing market is relatively stable…relatively speaking.

We have not seen the peaks that perhaps NYC, Miami, or parts of Southern California have seen over the years, and in turn, we are not seeing the loss in value as many other big cities have seen over the years.

Be happy you live in Philadelphia.

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

Not all fluctuations in value have a direct correlation to one particular quality of any given Philadelphia condominium. Rather, a Philadelphia condominium’s value, and the rate of change therein, is really a product of a host of factors.

Obvious factors are the showing ability and the condo’s emotion: cleanliness, natural light, wall color, furniture, even the smell of a condo can add or subtract from the emotional beauty, and leads to a huge impact on a condos value. In my twenty-one years of selling real estate, I have never had a buyer tell me to find him the dirtiest, or the worst decorated condo available. Interior condition can also have a major impact on value. Beige bathtubs and appliances can crimp value fairly quickly in a lot of cases.  And of course the physical characteristics of any given unit can help or hurt the units value (think- huge closets, a tax abatement, high ceilings,etc). Styles, like appliances and carpeting have a tendency to age, and that is usually accompanied by a slower rate of appreciation. Clearly, more recently rehabbed, say, Rittenhouse Square condos are going to retain their value better than a unit in a state of disrepair.

Location is a huge factor to the rate of either appreciation or depreciation too. Stronger locations in town have a tendency to be a bit more elastic- they are the first neighborhoods to see a drop in inventory with any influx of buyers to the market. That’s a good thing. Recall the principles of supply and demand. I would argue that a strong location is going to depreciate less -because IF in a weakened marketplace, the first condos to remain unsold are in the weaker locations. (The flip side is that you might be able to strike a significantly improved deal, should you be looking away from an “A” location.)

I am just brushing the surface here, but know that not all condos in town will appreciate or depreciate at the same rate. Or sell within the same given time frame. The best tools you have to insure your value remains intact is twofold:

1) Buy it at the right price in the first place and/or

2) Keep your unit looking like it just jumped off the pages of Town and Country Magazine.

Easier said than done, I am aware!

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

Did your addiction start back in the late 1980’s with the Sunday morning infomercials like “Fox and Lazo’s Parade of Homes”?
 
Do you search sites like www.Trulia.com and www.Zillow.com, just to see what is on the market in your area? Has your need compelled you to chat about Philadelphia real estate at cocktail parties, and intimate gatherings? And do you usually look through the real estate section of the Sunday paper…like, every Sunday? I thought so.

    
My particular need for R.E. (real estate) was first exposed to all at the age of 19. I used to sit down with a red pen, and circle properties in the weekend paper that I thought our family might drive past, after seeing those on the aforementioned Parade of Homes. Anyway, I am a realtor now for the past 21 years here in downtown Philadelphia. I know your type. You notice every “for sale” sign in your neighborhood. Akin to there being a metal plate in your head that pings whenever you drive past a “for sale” sign you have also probably spoken to or emailed a Philly realtor to get some more info on a home that you planned on neither buying nor selling. And Open Houses? Forget…you have been to them all, and you usually make a B-Line for the photos on the walls of those homes.
    
Go ahead, admit it. You are a Real Estate Junkie. Start with the phrase, “My name is _______________, and I am a real estate junkie. You will feel much better in no time.

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