Philadelphia Real Estate Blog

Based upon what my buyers have been showing me for years, I would suggest that there are about ten Characteristics that can limit top dollar resale amounts for condominiums in Center City Philadelphia (not in any specific order) :

1 ) Units in buildings with low owner occupancy ratios
2 ) Tri-Level unit condos with corkscrew styled staircases

3 ) Units on the 2nd floor just above the dumpster area (in high rise condos)
4 ) Units directly over noisy bar

5 ) Units with a significant amount of living space in the basement
6 ) Units without direct light into living room area
7 ) Units located on the first floor

8 ) Units with disproportionately high condo fees
9 ) Units that are fifth floor walk-ups
10 ) Units in an “alley” that has pubs on either ends

Not to say that such units are not sellable, it is just that in many cases, units with some of the above characteristics are often times discounted below the sale prices of units without such conditions. If you can find a Philadelphia condo with one or more of the above attributes, you may find that you will get a bit more square feet for the money!

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

Tell Me about your Center City Condo…..

Do you own a Center City Condo? I would love to feature your condo on my blog, as an example of what potential buyers can expect to find when they begin shopping for a condo in Philadelphia.

Your condo may or may not be for sale, and that’s OK.

Give me a brief description of your condo, what you like MOST about your unit, some interesting facts or local landmarks in your neighborhood that you favor, and be sure to send me some photos!

I would love to feature your unit for the 7000+ visitors that visit www.CenterCityCondos.com each month!

Thanks!

Mark Wade
http://blog.centercitycondos.com
Prudential Fox and Roach Realtors

Wouldn’t it be a good idea of the architects of many of the Center City condo projects here in town, consulted an experienced Philadelphia condominium specialist, when laying out the floor plans for their new Center City condo project?

I have seen some screwy ideas that have been implemented in the Philly condo market, and many of buyers are like….”what the hell?? ”   For example, one prominent building, which I think quite highly of, has the exact kitchen in the studio, as they do the jumbo penthouse units. This kitchen is ample for the penthouse, but takes up about 55% of the living area of the studio. 

 
Way to think things out, Columbo.  Studio units target 22 year olds (on the whole). I don’t know a 22 year old that owns more than two pans, a cookie sheet, and a measuring cup. So this huge kitchen detracts from the value of this particular Center City condo unit. 

Next up is a personal favorite, the popular $700,000 two bedroom Philly skyscraper unit (roughly 1250 sq ft) with no closet space. If my buyers can afford the unit, they are not interested in stuffing their Prada in an armoire.  It appears that if I compare/contrast the various floor plans of many new Philadelphia condos, I find an excessive amount of square footage used for hallways.

 Hallway space can easily be converted to walk-in closet space, with minor adjustments to floor plan, or “flow” of the unit. My buyers will tell you to shove the hallway, and give them a good walk-in closet or two!    

The point of this post is to always remember to give the buyers what they want. And who would know better about what specific buyers want, than an experienced realtor?

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 

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