Philadelphia Real Estate Blog

A buyer of mine sent me this link, www.RayDoor.com, and I think it is really groovy! And a great idea for many Old City condo lofts which have exceedingly large living rooms. By adding another bedroom area, and still keeping the light coming into your living room, you could quickly and easily add value.

And the look is very hip and perfectly positioned for some of the neat Old City condos that Center City has available! See more at www.RayDoor.com.

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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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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Auction, short sales, and foreclosures all exert pressure.

 
Interesting development- I had a gorgeous listing that sat on the market for a while, and recently sold for what I would suggest was a really really good price. A strong showing ability, layout, & amenities, coupled with low condo fees and low taxes might have suggested that this unit sold under its value.

However, in  the Philadelphia condo marketplace of 2010, the price was spot-on. The seller recognized the effects that outside forces have played on the local condo market, and therefore acted accordingly.  She signed the buyers highest and best offer.  With the onslaught of a handful of weakened sellers hobbling around the auction blocks, and banks selectively underscoring a trend in pricing with a foreclosure here and there, pricing a Philadelphia condominium is of utmost importance.

The year is not 2007, and prices are not where they were at one time. Though Philly has fared well in comparison to other large cities across the USA, it would be folly to believe that values have not fallen in the past few years. The bottom line is that if your condo is priced well, it should sell well.

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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Does an 800 sq. ft. Philadelphia Condominium become more valuable if you start adding walls?

Here is what I believe to be correct:

1) You will lose value if you turn a two bedroom condo into a one bedroom condo by removing walls. Improving the size of the living room does not add value. At all.

2) Any huge one bedroom unit that can visually and logically be turned into a two bedroom condo- should be.

3) A cheap 2 bed VS a cool 1 bed? Depending on sooo many factors- primarily square footage, location, prestige of building, interior condition, etc, etc. A 2 bedroom gets you divided rooms- but can that top (say) a stronger building in a stronger location inside a 1 bedroom unit?

4) Whether the walls completely seal off a bedroom, or bedrooms are cordoned off by half-walls, in most instances will not affect value of any given unit.

5) I think that if we were talking a Beach House, then yes….go for the 2 bed. With the plethora of hotels in town, perhaps the value of more “rooms” in a Philly loft is diminished a bit.
 
Agree, disagree? Lets hear it….
 
Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

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Like fanny packs, scrunchies, and “been there, done that”, the use of exposed brick in many Old City lofts is getting out of hand. Are buyers sooo over exposed brick that a decorating intervention needs to happen here? Though I personally like exposed brick, I like mine with a twist. I like mine painted.

I will never forget the time I walked into the 2nd floor condo at 131 Cuthbert St. and saw that the two owners had taken a pair of corner exposed brick columns, and painted them medium-darking gray. I thought I was going to have a stroke. It was so gorgeous. Really stunning! And everyone who came into the condo (we are talking EXPERIENCED Center City realtors, who have seen it all) was also really blown away by the simple addition of paint to exposed brick.

So think outside the box. Go big or go home. Just do it….. And other trite ad slogans. I encourage you to give your buyer something he or she isn’t going to see anywhere else.
Worse case scenario is you hate it, and end up painting it white (or pale powder blue). Oh, and painted exposed brick should never be done in a high gloss. EVER. I’m just sayin’.

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

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