Philadelphia Real Estate Blog

Think your condo board and management companies don’t play a role in your value retention?

  

The old adage “Buyers Are Liars” is repeated often in many Real Estate circles. I think the line is a crock of sh*t….The line should be “Realtors don’t spend the time to get to know their Buyers.”

The key to selling condos in Philadelphia. Find out as soon as possible what trigger is going to make any given condo work for a given buyer. Oh, and make sure you know everything about almost every condo in town and be able to discuss that condo at length, at the drop of a hat.

Here is a list of things that I find buyers really key into when shopping for a condo here in town:

1) Walkability
2) A Side of parking
3) Proximity to a given Point Of Interest
4) Areas in which they already are familiar
5) Curb Appeal / Interior Condition

Which one of those blows the others out of the water?
That would be # 5…

I hear it all the time- “I want this area”, “I must have parking”, or I want to be able to walk around town”.  But many of those MUST HAVES fly out the window the minute the majority of buyers walk into a Philadelphia condo and fall in love with what they are seeing…usually quite a different story than what originally comes out of their mouths. NOTHING wrong with knowing what you like….I too am very visual.
Gone is the need for a study, or a 2nd bedroom, that large kitchen buyers have always wanted. Visually stunning condos here in Center City Philly are always in demand- regardless of most market conditions. Believe you me….and NEVER underestimate the fact –
IF IT SHOWS WELL, IT WILL SELL WELL

Some Philly Condos Appreciate and some Depreciate Like people in a swimming pool, some float, and some sink. The question is why.

Obvious factors are the showing ability and emotional impact that a particular condo unit does or does not possess: 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 years of selling real estate, I have never had a buyer tell me to find him the dirtiest, or the worst decorated condo available. Easily, as much a ten percent difference in value depending upon showing ability. And of course interior condition can also have a major impact on value. Beige bathtubs and appliances can crimp value fairly quickly in a lot of cases. 

In addition, 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 or decline in its finishes. Also prohibitive condominium association rules and policies can deter many buyers from specific buildings. A host of factors can cause units to sit on the market longer than normal, and almost always guaranteeing a lessened resale value.

Location is also a huge factor to the rate of either appreciation or depreciation. 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 Center City 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
Berkshire Hathaway Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

There may be a dozen reasons why your condo may not sell in this real estate market. Many are beyond a sellers control-but SO MANY displeasing features (in the eyes of a buyer) are a direct reflection back onto any given seller. I am sorry. But it’s true….

Here we go:

 1) Your condo doesn’t show like a model home. Remember, the emotional wallop is HUGE in the resale value of a condo. You do need to paint, regrout, recaulk, etc etc. And fix that closet door that is off its track. You follow me? No one wants to buy your issues… Many buyers are out to buy emotion and fall in love with their new purchase. Best to pretend your condo is going on a date, and present it with some style and showmanship. And get rid of the clutter. IF the buyer thinks you are outgrowing the space, they too just might think your condo lacks space or storage. I see it time and time again. So very true-day after day, year after year.

2) Your condo is overpriced. If everyone else in your zip code is down in value (from say 2007), there is a reasonable chance your Philadelphia condo value is down as well. It’s not like you can easily escape that fact. You can almost always overcome any other shortcoming to your condo if you price it right. Easy math on that one….

3) Your Realtor is perhaps doesn’t fully have his head in the game.  Not really full-time, not from the area, does no marketing, has no real influence on your market segment, and all-in-all, just waits for the phone to ring hoping a buyer will magically appear.   For instance- If you owned a $4,000,000,000 single family house to sell in Villanova, I would be the WORST candidate for you. So why are you hiring a friend of a friend from Chadds Ford to sell your Center City condo?

4) Your condo association has neglected to keep the building FHA approved, or at a minimum, Fannie Mae Warrant-able. Meaning your condo can shine like a star, and still not be able to sell because financing options for buyers are exceedingly limited. This can seriously deter many buyers from considering your condo for purchase.

5) Your building looks like hell because no one is stepping up to the plate and keeping the common areas in good visual repair. Buyers don’t even need to see the inside of many Center City condos around town because they have already made up their minds by walking through your lobby and the hallways. I can’t tell you HOW MANY times a buyer (after walking through the building and then stands at the door to your unit) says “I am not going to live here”. They don’t need to see the inside of your condo if they don’t get a good feel for the building. Common. Very common.

Mark Wade
www.CenterCityCondos.com
Berkshire Hathaway Home Services | Fox and Roach REALTORS®
530 Walnut St. Philadelphia, PA 19106

Like haircuts and our waist size, things have a tendency to change over time. Here are some notable changes I have seen to the Center City condo market over the past 25 years-

1) The Disbursement of Wealth – In the mid 1980’s, if you had a million dollars to buy a condo, you landed on Rittenhouse Sq. And probably in 1820 or 1830 Rittenhouse. Today- your imagination and money can take you to far away exotic places like- Old City, Bella Vista, and the Loft District. Large high-end condos have spread around town to almost all neighborhoods.

2) The introduction of “High End Low-Rise/Brownstone” styled condos- The defeat of many a high-end brownstones over the years was the lack of an elevator. Anyone looking to buy high end in a brownstone probably isn’t going to be fond of stairs. From 1030-2 Spruce (Knightsbridge Condos) to the lovely 1904 Spruce and 2138 Lombard, the high-end market is finding its way into groovy Brownstone and soft loft conversions- with elevators.

3) No trend in Co-op growth- No new ones since before the mid-1980’s. They fly well in NYC never really caught on here in town in terms of their growth in numbers. 1901 Walnut is the premier co-op building in town…a lovely pre-war on the north side of the square. Very handsome building…and I fail to see how the fact that it is a co-op has diminished its value.

4) Lower Than Expected Conversion Projects- Yes…we saw the Grande, The Ellington, The Phoenix and a smattering of other re-used office buildings. But with the inventory and locational advantages some of these older places have- I am surprised we haven’t seen more conversions. I would look for more conversion projects in the next wave of building.

5) Zeroing in on Condos Near Jefferson and U of Penn- The growth of small and large size condominium buildings around Jefferson Medical for example has proven to be one of the easiest, sure-fire ways for many condos to find buyers. Like shootin’ fish in a barrel. Ditto for U of Penn area.  Builders are filling a market need, and there are some smart buys in both areas. Huge growth segment.

I love that line. Could you imagine someone throwing that at you to try to overcome or capitalize on a possible downside to a home?

I remember back in the early 1990’s, a listing agent told “Suzy” the REALTOR and Suzy’s buyer that “this” home was historically certified. As the deal progressed, the buyers could find no substantiating evidence to support such a claim. The listing agent, when cornered, uttered, “No dear, I said historically certifiable”.

But that leads to a valid question, especially here in the historic city of Philadelphia. Does the reputation, or historic significance, of a home play into the value of the home… be it a Philadelphia condominium, loft, or townhouse? And conversely, does a less than desirable reputation of a certain home have the ability to suppress the resale value of that home?

I say yes to both.

Pretend a major double murder-suicide kind of something went down in a home, especially in the not too distant past. Such an event might make a buyer hesitate to become interested in a home, which could draw out the length of time a home sits on the market, and make that home riper for a lower sales price.

On the other hand, the fact that Ben Franklin used to make booty calls to your home is no occasion to memorialize such an event with a plaque on the front of your home.

Having, say, “Hail Columbia” composed in your living room might make for an interesting compliment to your resale value. I know of more than one example of premiums being paid for Philadelphia condominiums and town homes where significant history was made at that particular address.

In a town that brought you the likes of Thomas Paine, Dolly Madison, and Betsey Ross, history does sell and has a tendency to sell well; assuming, of course, that such history can be documented and is more than a wild rumor. Less concrete claims, like ghosts and “George Washington once left his wooden teeth in this house” are less likely to garner price adjustment to a historic Philadelphia home.

Interested in buying or selling your own historic (or non-historic) Philadelphia condo? Give me a call today at 215-521-1523 or drop me an email at mark@centercity.com. (Ghost and wooden teeth not guaranteed.)

Certain homes or Philadelphia Condos seem to exude a feeling of tranquility and wellbeing, and the root of this overall sense of harmony has a lot more to it than the pretty slipcovers or antique armoire.

Western designers, interior decorators and architects are increasingly turning to an ancient Chinese study of natural elements called Feng Shui to create serene and comfortable environments. Spaces which have been arranged according to the basic tenets of Feng Shui are believed to be very auspicious, bestowing upon their inhabitants health, wealth and good fortune.

Feng Shui strives for balance between yin and yang, and between the natural elements of fire, water, earth, metal and water. There are practical steps which can help to achieve a balanced, calm living space which will allow the mind and body to find its own inner balance and peace.

De-Clutter

Get rid of clutter – an unrestricted path from the front door and throughout the house is first and foremost in creating positive energy. Dispose of clothes, knickknacks, and possessions which are no longer meaningful or essential.

The Bedroom

To create a Feng Shui ambiance in the bedroom, dedicate the bedroom solely for relaxation, sleep and love – that means keeping electronics to a minimum and no treadmill or office desk. Situate the bed (preferably one that is slightly elevated) against a solid wall away from the door to promote relaxation, and adding symmetric bedside tables add a sense of balance. To achieve Feng Shui in the home on a budget, a rent to own store is an option to consider if replacing or adding furniture in any room.

Furniture

Arrangement and placement of furniture is key to energy flow. If your living room furniture is oversized, blocking passageways, tattered and torn, or mismatched, then it’s time to rearrange, move out, fix up, and beautify! Start by walking into the room in question, and look around, what’s the first thing you see when you walk in? Can each chair/couch be accessed easily? You want your furniture to be accessible, make it so no shins will be knocked on that coffee table, that the room it inviting and organized, and that every piece of furniture is compatible with Feng Shui principles.

Details

Lots of fresh air, natural light, natural materials and accents such as bamboo, chimes are also recommended. Adding a strategically placed mirror in the bedroom and elsewhere in the house can multiply the calming effect of a meaningful ornament or a beautiful window view. But there are basic rules for mirror placement; the mirror is to never be broken, never to be placed adjacent from one another, and never placed in front of a window or door.

Colors

Color is an important component of Feng Shui, think about balancing the color wheel – not too hot and fiery and not too cool. As a rule of thumb, try red as an accent color in the bedroom, but definitely not on a full wall, yellow for a family room and kitchen, blues and blacks for work spaces and greens in the bathrooms.

Melisa Cammack

After making the decision to move out of your condo and into a new home, you have a lot of work ahead of you. Moving into a new home can be a lot of work, but proper planning on your part can help you to ease the amount of time and effort needed to relocate. Consider following these tips as you prepare to move.

Review Your Lease

As a first step, read your lease and take note of how much notice you need to provide to your landlord before you vacate the premises. Also, pay attention to the special move-out rules. For example, some leases may require the property to be professionally cleaned before you turn in the keys.

Consider Cleaning and Repairs

In many cases, a rental agreement states that a landlord can withhold your security deposit for any damages made to the property, so consider patching up holes, replacing burnt out lights, cleaning out the oven and other steps as needed. These efforts can take time, so you may consider getting started on some of them immediately after you provide your landlord with written notice of your intent to vacate.

Start Packing

Some people will wait until the last minute to start packing with the belief that they need everything in their place to live comfortably. In many condos, however, items like photo albums, DVDs, books, seasonal clothing and more can be packed up weeks ahead of time. Consider temporarily renting a storage unit, for example, self storage Philadelphia PA, to keep items safe and out of your way as you prepare to move in the coming weeks.

Look For Movers

One of the best steps that you can take to ease the stress associated with moving is to hire a moving company. A reputable moving company can easily relocate your boxes, furnishings and other items quickly and safely on moving day. This provides you with more time to clean your old home and start settling into your new home.

Transfer Services

Approximately one to two weeks before your moving day, contact your water company, utilities service providers, phone service and cable company to notify them of your plans to relocate. You may be able to cancel service in your existing home and schedule new service in your new home with a single call if moving inside the same city.

Contact the Post Office

You should also contact the post office with details about your relocation. You can fill out a change of address form at the post office that includes a mail forwarding service. While you want to call your car loan company, credit card companies and others who send you regular statements and provide them with your new address, you also want to ensure that mail that is sent to the wrong address is forwarded to your new home.

Because there are so many things to do to prepare for a move, it is wise to establish a schedule of to-do items now. You can work through the items on schedule, and this can drastically reduce your stress level during this busy time in your life.

Melisa Cammack

Author Bio

Melisa Cammack has been freelance writing for several years, she loves spending time with her three sons and her husband, as well as preparing for their unborn baby to arrive in mid-March.
Melisa is currently promoting Extra Space Storage – Brighton location, and wishes everyone a safe and efficient moving day.

Remember the olden days when the Sunday paper would arrive and you would get our your red felt tipped marker, then circle the open houses you wanted to see?

That was so 1997….

Those days are all but gone- having been replaced by the advances in internet marketing for Philly condos. Additionally, more and more buildings around Center City are forbidding agents to hold Open Houses- ever.

It is said in Real Estate circles that open houses are NOT for sellers- they are for agents trying to pick up buyers. To a degree, I agree. More so with the fact that videos, virtual tours, podcasts, blogs, multiple photos, etc are easily found with a quick Google search. And most Realtors’ websites can give you a lot more than you can learn at an open house- think neighborhood stats, crime reports, etc. not to mention the gossip and dirt you can pick up on your neighbors house.

If someone is seriously in the market for a condo, they are going to view your listing if they are interested- Open House or not.

I usually find that Open Houses tend to cut down on the weekly traffic- the more people who see it at an open, the less weekly appointments one will find in terms of buyer traffic.

And of course, we are all aware that Open Houses usually beget nosey neighbors, passersby, and the like.

With overall traffic down on Open Houses over the past decade (in my experience)- how long before Open houses will go the way of print advertising for Real Estate?

Probably not long.

FYI-Center City Open Houses are usually ONE hour only- Get in, then get out. Suburban agents can spend 3-4 hours at one open house. How utterly boring. I think I’d rather drink bathwater than to sit in a house on a Sunday for four hours.

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