Philadelphia Real Estate Blog

…Have Sh*tty Resale Prices- If they sell at all.

 
Come on, you would have to be from the moon to believe all condo buildings here in Center City are created equal in terms of
demand, cache, and resale ability (in terms of price and “days on market”). There are some buildings in downtown Philly that just really suck, in terms of their investment value. And there are a handful of buildings that basically cannot resale at all.
 
Some of the signs to be aware of-
 
1) A lot of units on the market, and very few sold in the past 12 months
2) A high number of REO’s/Foreclosures/Short Sales
3) A low owner-occupancy ratio in the building
4) Poorly managed exterior and common area condition
 
Unless you are buying a short sale or a foreclosure in the building, or are in the mood to just piss your money away, I would suggest we talk prior to you buying in certain buildings.. Some Center City condominium buildings aren’t worth a look, much less an offer.

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

I am at a standoff between a buyer and a seller on a particular condo in Center City.

This is routine. What makes this an interesting case is that after 5 days of initial offer presentation, the seller is at (say) $815k, after some price reductions, and negotiating…and the buyer is stuck at $810k, after a few counter offers.

So who is going to budge?

If I pester the other agent to hammer his or her buyer to take my seller’s offer of $815k…does that not show a sign of weakness?  I think it does. It is a game of chicken at this point, and the first party to flinch, or show weakness in the negotiating process by being too impatient, may well indeed be the loser and may have to cave to make up the $5,000 difference in this case.
 
I am advising my seller to sit tight, and put on their best poker face.
 
We will see….stay tuned.
 
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

1) Locust Point

2) 815 Arch St

3) Naval Square

4) York Square

5) The National at Old City

Based upon the fact that these buildings are sold out, (or in the case of Naval Square which continues to add new buildings as demand dictates), I would suggest that these five Philly condo buildings have fared the best in Center City since the onslaught of new construction in Philadelphia started taking shape. There are also a handful of buildings that have just a few remaining units left- Ayer, Symphony House, and Western Union Building to name a few. And of course, there are buildings here in Center City in which a small fraction of sales have happened, even after a four to five year marketing period. We won’t mention those pieces here.

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

1) Why no…the elevator runs on magic pixie dust…it doesn’t need electricity to operate.

2) Of course not…the doorman here works for free.

3) Not in this building….the hallways, windows, and lobby magically clean themselves.

…it is a miracle of course, but that is how things happen at this Philadelphia Condominium.

If there are common elements (the definition of a condo) then they have to be maintained by the members of the condo association. If your condo makes up say 2% of the building, then you are responsible for 2% of the cost to run the building. Plain and simple! 🙂

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

Giant Soaking Tubs, Formal Dining Rooms, and Bidets…All left Center City a while ago.

Real Estate advertising in the late 1980’s in Center City went like this:
Secure condo with wall to wall plush sculptured carpeting,  Corian counter-tops, and mirrored closet doors north of Society Hill.  Whirlpool bath soaking tub (Maroon color), bidet, and formal dining room.  Just FABULOUS!  Asking $199,000
 
Today’s Center City Condo Real Estate Ads read:
Stainless and Granite kitchen, tumbled marble back-splash, Walk-in Shower, Open Liv/Din room combo- Fab Loft style in Old City With Exposed brick, Sub-Zero and Viking appliances- $599,000

 
Personally, I don’t remember the “good ol’ days” in many Philadelphia condominiums. A whole lot of them were builder grade crap. Buyers are certainly expecting more these days in terms of interior improvements, and sometimes the best applicable adage is that of Condition, Condition, Condition.

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

The third auction in the Center City condo segment of the market to occur. I would deem it a success. Here is what I understand folks paid.

 
Here is the breakdown of the prices.  These prices are the winning bid prices and do not include the 10%  auction premium on each winning bid.
 
1.  $615,000 Unit 601E
2.  $600,000 Unit 601W
3.  $470,000 Unit 401W
4.  $495,000 501E
5.  $485,000 501W
6.  $455,000 301E
7.  $455,000 401E
8.  $445,000 201E
9.  $435,000 301W
 
And if you think this is the last Center City Condo auction that is going to take place, I would suggest you are wrong! Keep your eyes open for more future auctions! Call or email me if you want me to comment on these prices!  215.521.1523
  
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

So here’s the scoop – The developer took a run down apartment building, added Granite and Stainless, and refinished the cabs of the elevators, and said “See…New Philly Condos“!

Well…. what about the heating, electric, plumbing, roof, exterior brick, heating systems, central air, exhaust stacks, risers, fire alarms and suppression systems,not to mention the exterior pointing, caulking, window frames, elevator structure and mechanical, and the cockroach problem?
 
Not all rehabs are created equal. Some really suck. Are you going to be the dope who gets fooled by a pretty face? I hope not. Some condo buildings have an inferior set of systems- be it mechanical, financial, or just unchecked age.
 
Look before you leap. Ask me questions about any Philadelphia Condo.  Ask me if I would live in that building you have your eye on. I promise to not hold back.

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

Real estate is a funny business. Seems everyone knows more than I do about buying and selling.

 
I must confess, I know little about this world we live in…… but Real Estate, especially Philly Real Estate? I know Real Estate.

Today I met a buyer who clearly knew more than I did on everything from the agreement of sale, to the bidding process, to the cause of a water stain in the basement. He professed to know the age of the roof, the correct value of the condo in today’s market, and even was schooled in the area of kitchen cabinetry. Or at least in his brain he was. Sure as there are clouds in the sky, I could add nothing of value to his amazing grasp on the Center City condo market. It was clear my 21  years of selling a huge chunk of the Center City condo market amounted to a hill of beans. I wish him luck in his hunt for a condo. I have no interest in talking with him again.
 
I certainly don’t want to come off as some asshole, but my strength is my knowledge of the Center City condo market. If you don’t need my help, then call someone else. I would rather spend my time with someone who wants to learn, and make an intelligent decision in the Philadelphia real estate market.

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

Do yourself a favor- and don’t try to settle on that day!
 

 
For some reason, all Realtors seem to want their clients to settle on the last day of the month. I don’t suggest such a thing.

Here is the scoop- since mortgage payments are made in “arrears”…..IF you settle say May 31st., your first monthly payment isn’t due until July 1st- and you need less monies out of your pocket to settle (its a complicated equation).  But if you settle June 1st- your first payment isn’t due until August 1st- but you need to pay all the interest for the month of June at the settlement table.  Either way….you gotta’ pay the piper.

The last day of the month is busy at all title companies and if your stuff is packed up on a truck, circling the block, awaiting for you to settle on your new Philly condo– the day can be a mess. Why complicate it even further by trying to settle on a day when the title companies are jammed and fully booked? Do yourself a favor…always settle mid-month. You may not understand why, but I do 🙂

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

Of course our Philadelphia condo market is not moving at the pace it was back in say 2006/2007. But are you looking a gift-horse in the mouth when a condo is clearly undervalued (say a foreclosure), and you want to offer 60% of the asking price?

    
Lets say a condo you adore once sold for $500,000, and has gone through the foreclosure process, and is now asking $400,000. You want to offer $240,000 although the comparable valid comps suggest it is worth every penny of the $400,000. Sure, you are probably going to get it for less than asking, but is a $240,000 offer really valid and/or realistic? Probably not.

Though each seller has their own level of motivation, I would suggest that buyers need to look at condos realistically. Don’t you think that IF the seller were going to take $240,000, that there would be a line out the door, and around the block to buy that Philly condo?  What, are you the only big-brained, know-it-all who is clever enough to come up with a plan to buy a condo at an unrealistic price? Perhaps you are new to this planet.
 
Again, YES…the market is not as strong as it once was in terms of sale prices. But ask yourself- are you being realistic, or are you looking a gift-horse in the the mouth?

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