Philadelphia Real Estate Blog

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

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We hear all kinds of national news stories about the country’s current real estate market. Below is a simple breakdown of the number of showings that have taken place at Prudential Fox and Roach’s Center City Philadelphia Listings over the past 9 months. The figures are broken down by price ranges. There does not appear to be a lack of folks looking to buy and as usual, very early spring seems to produce the most Center City Condo buyers with traffic slowing mid-summer as many people leave for vacations.   

Leave a comment, or shoot me an email at Mark@CenterCity.com. I’d live to hear your thoughts on this “inside” Center City Real Estate report. Spring Market 2011 is just around the corner!

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

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…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

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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

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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

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In real estate lingo, it simply means “Real Estate Owned”….as in usually owned by a non-emotional third party, out-of-state, corporation or bank.

It also can mean a well priced condo deal for those looking to hopefully hit it “big” in the game of real estate. For instance, lets say a Rittenhouse Square condo goes through a foreclosure process. Often, a large bank will contract with a local real estate company to sell that condo- and usually at a discount.  Along comes Billy the Buyer. 
    
One of Billy’s main priorities is to NOT OVERPAY for a condo here in town. All other wants and needs fall lower on Billy’s priority list. And though every situation is different, I would venture to suggest that REO properties are often priced at a discount. Something Billy is going to like.

Billy has already let me know that he is looking for a deal. So I find this REO property in the MLS, and I call Billy. “Hey Billy…get your can over here and take a look at this great deal”.
   
IF Billy can negotiate a great deal, Billy could be in for a great great property at a great deal. I have sold MANY an REO in my day here selling Center City Real Estate, and they all seem to have one thing in common- a great asking price!

Lets chat if you have something in common with Billy.
 
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

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1) Clean the grout in your bathtub and shower.

2) Declutter your closets and countertops.

3) Clean your windows- Inside and Outside if possible.

4) Have carpets professionally cleaned.

5) Clean out your storage area- if applicable.
 
No one wants to inherit your dirty, cluttered lifestyle, if applicable. There is a reason why model homes are so emotionally appealling- they make buyers believe that they will live such a clean, unfettered, uncluttered lifestyle, should they buy that condo. Yeah, it is sometimes a bit “Smoke and Mirrors”…but an emotional kick to a condo cannot be underestimated. I HEREBY DECLARE THAT A GORGEOUSLY CLEAN, DECORATED CONDO WILL THROW THE VALUE OF SAID CONDO UP AS MUCH AS 10%…over an identical, dirty, smelly, ugly looking condo in Philly.

Don’t believe me? Then let me show you two identical Philadelphia condos on both ends of the emotional spectrum. I will make you a believer in no time flat!

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

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I have submitted an offer on a Center City Condo (on behalf of my buyers) only to have the offer repeatedly sent back to me by the lawyer for the seller.

 
Here is my take:
-Who cares if the Agreement of Sale paperwork has crossed out changes, has been through the fax machine twice, and the signatures aren’t witnessed?
-And do I really give a crap that the initial to the changes aren’t dated?  Not really.
-Perhaps this lawyer needs something to do, because he is really grinding fine on the details that do not make or break this deal, or prevent our agreement from being legally binding.
 
Here is that Lawyers Take:
-Stupid Realtor can’t take the time to dot his i’s and cross his t’s. What an idiot. I’ll show him how a contract should
be correctly executed.
-This is what I learned in law school, and why should I be soft on this contract, and not possibly protect my clients interest?
 
What is fair, and what is reality? Probably somewhere in the middle. Point is, ya’ gotta’ roll with the punches. And yes, even I need to brush up on dotting my i’s and crossing my t’s. Perhaps, in the long run, the longer road taken is the shortest possible road.

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

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Various segments are performing better than others in today’s marketplace.

In a time of transition, where no one is quite sure if it is a buyer’s market, or the start of a new seller’s market. I would argue that it depends on what market segment we are talking about.  For instance, there are so few two bedroom Fitler Square condo units west of 22ND st. between Market and South St., that those coming on the market are going to sell fairly well. Not the case for say a $675,000 condo in the 19123 zip code.  The equation will always hinge on supply and demand. And the defining of “Buyers Market” or “Sellers Market” by any local big-brain has got to be tempered with the overall supply in that segment of the market  (segment defined primarily by location and price). In addition, the time of year the condo is marketed, and the ability to readily substitute a given condo in terms of bed/bath count and interior condition. Simultaneously, it is possible to have a buyers market and a sellers market at the same time- depending on the dynamics of that particular condominium market segment.
 
Here in Center City Philadelphia, the old saying of “All Real Estate is Local” could easily be termed “All real estate is a lot more local than you think”.

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

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By now, we have all heard hundreds of times that the Home Buyer Tax Credit has been extended and expanded by Congress. If you are a buyer who might be actively looking for a Philadelphia Condo, or even if you are sitting on the fence, here are some facts you should know:

1. Time is running out! In order to qualify for the tax credit, you must be under contract by April 30, 2010. You also need to complete a successful settlement no later than July 1. Which means you probably should not plan to settle ON July 1. Plan to settle a few days in advance. It would be such a shame to miss out on such an amazing deal because of a last minute postponement (none of us hope for them, but unfortunately sometimes, they do happen). 

2. If you are a first-time home buyer, which means you or your spouse have not owned a home within the last 3 years, you qualify for $8000. If you are a “long-term resident” and you are selling or vacating your primary residence that you have lived in for 5 consecutive years to purchase a new primary residence, you qualify for $6500.  A primary residence can include any single-family home, townhouse, condominium, or co-op.

3. If you settle before the April 15 tax deadline, you can even apply the credit to your 2009 tax return! Not a bad deal! If you miss it, you will of course apply it to your 2010 return. Still not bad!

4. The income limits have also been raised. The credit will now be available to single taxpayers with gross incomes up to $125,000 and joint filers who earn up to $225,000. You may even qualify for a reduced credit if you earn up to $145,000 or $245,000 for joint filers.

The clock is ticking on this once in a lifetime deal. If you have questions and are looking to buy here in Philadelphia, feel free to drop me an email at Mark@CenterCity.com or give me a call at 215.521.1523. 

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

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