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July 1, 2014
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.”
And there you have it….
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
Tags: Center City condo, center city philadelphia condominiums, condos in Philadelphia
June 2, 2014
When enthusiasm drips from a buyers mouth-
Every “Ohh” is worth $5,000
and every “Ahh” is worth $10,000
Location is always going to be a determining factor in price as well as long term value retention. But there are mitigating factors in the Center City condo market that are going to dilute the power of a strong location in driving prices over the long haul. That major factor would be interior condition and the visual impact of any given Center City condo. Here are a few factors that may help the power of a condo’s condition to play a huge role in determining value:
Disbursement Of Wealth- Twenty years ago, if you had $1,000,000 you bought on Rittenhouse Square-period. Today, we will find that every neighborhood has broken the $1M barrier. And it is getting much easier for buyers to find high end condo product in some locations that might have been unfathomable even five years ago.
First Time Buyers and Empty Nesters- Clearly the dominate driving forces in the Center City condo buying segment. AND what do they both have in common? They both want a strong interior condition as neither seem to favor the condos that need work. Trying to get either to buy a fixer upper is an uphill battle (generally speaking).
Everything is out the window when buyers fall in love- You would pretty much have to be new to this planet to not know that concept. I have found that most buyers buy with their eyes. More often than not, buyers will forego the strength of the location in order to buy the condos that really strike a visual chord.
In no way should this argument be a vote for a weaker location than perhaps what you have in mind. However over the long haul, you might be surprised to find just how important condition is to the overall value retention of your condominium here in Center City. Ugly is an 800 pound albatross that can and will drive down your value like no other condominium attribute- And it may not matter if you are sitting in the perfect location. To underestimate the value of strong interior and visual appeal would be to underestimate the overall value of any given
Center City condominium.
Tags: Center City condo, condos in Philadelphia, Philadelphia condos
May 19, 2014
We Will Remember 2014 As The
Year Of No Inventory
In my opinion, the cause is easy to pinpoint.
We are just now coming to a time in the market where prices have begun to rise. However, they have not risen to a point where many sellers have a ton of equity into their Center City condos. As a result, they either choose not to sell or simply cannot sell because they do not have the equity to move into a new home. This creates a bottleneck of demand- buyers are buying but there is not enough product on the market to meet that demand.
We see this phenomenon once every 7 years or so when the market shifts from a buyers market to a sellers market.
Look for the situation to change next fall as more sellers gain the equity needed to move into a new home and list their current properties.
Although I don’t mean to be the “big brain”….
We do have a fairly sizable amount of the
Center City Condo inventory for our buyers….
Tags: Center City condo, philadelphia, philly condos
May 12, 2014
When the market hits a rough patch, the outlying areas are the first to notice the change in terms of demand and therefore pricing. Those “B” areas are usually the last to rebound in terms of demand and prices when the market picks up speed. There are exceptions to that rule of course, but anyone would have a tough time arguing that Rittenhouse Square has the fluctuations in demand during the high and low parts of the Center City condo market when compared to our “B & C” inventory. There is indeed something to be said about the “location, location, location” saying.
But when the market is in full swing as it is today and buyers outnumber sellers, we see the “B” inventory pull up the rear with a real sense of urgency and demand. There are no less than a half dozen condo buildings around town that have had some exceedingly impressive sales….sales where no prior sales have occurred for the past say two years. As the core of our Center City condo market strengthens, so does our outlying areas and with that, our “B” inventory.
Once overlooked, now being looked over
The resale prices in some of our “B” locations is striking as we see values “stair-stepping”,where one sale builds upon the one prior and prices stair-step up in clear and rapid fashion. We can see that trend throughout the Center City condo market and many buildings that had no traction even a year ago are seeing wonderful attention in today’s market.
I find the lack of talk in the general Real Estate community concerning the eastern portion of 19123 and the northern portion of 19107 to be surprising, to say the least. Proportionally, these are our newest growth areas in terms of value.
Believe me. I’m not making this stuff up.
Tags: Center City condo, Philadelphia condo, real estate philadelphia condos
May 5, 2014
I get asked a lot of questions about Center City condos. Tons actually.
I have no problem with questions. In fact I love questions-gives me the opportunity to be a big brain know-it-all. When I was a kid, my father called me a ham. I don’t think he was too far off. Whatever….here are some commonly asked questions asked by buyers and sellers and the most direct answers I can come up with- My answers are in RED –
1) What will my future taxes be?
I dunno’ – I can’t see into the future.
2) Should I get a Lawyer?
Sure- IF you get a real estate lawyer 🙂
3) Should I have an inspection?
Yes- Please please do.
4) What will this condo be worth in 10 years?
Crystal ball broken- check back later.
5) Do I have to attend settlement?
Usually not. But a buyer who is getting a mortgage may have to attend.
6) Can I move in (either myself or my stuff) prior to settlement?
Uh, no.
7) What are condo docs?
See the answer to question # 2 above.
9) Do I have to pay condo fees?
Yes. All condos have fees. All.
Tags: Center City condo, condos in Philadelphia, philly realtor
April 21, 2014
Let’s Look Closely At The Current
Rittenhouse Condo Market
# Condos For Sale in 19103 Under $300,000 = 13
# Condos For Sale in 19103 From $300k-$500k = 21
# Condos For Sale in 19103 From $600k + = 62
# Condos For Sale in 19103 That Include Parking (all price ranges) = 31
# Condos For Sale in 19103 Having 3 bedrooms = 13
# Condos For Sale in 19103 Currently Pending = 48
# Settled Condos in 19103 since 1/1/14 = 51
# Condos For Sale in 19103 That Are ON The Square = 25
*Information per TrendMLS as of 3/25/14
Tags: Center City condo, Philadelphia condo, rittenhouse sq condos
April 14, 2014
It can make you a big winner or a big loser…
When big money is flying around here and there, the door opens for many folks to get bitten by the A-Hole bug. Which make sense…emotions are running high, deadlines need to be met, etc. etc., and I have seen some folks get seriously burned by playing their cards at the wrong time in the wrong place.
I think you need to look seriously at a few circumstances that may surround your transaction to know the power or leverage you have to throw your weight around. To begin with, the first thing you should look at is
“substitute-ability” of the Philadelphia condo. If you are fishing in a big pond of buyers or sellers, then of course you can bounce from one to the other without much risk to your goal of buying or selling a condo. Want to buy a condo at Locust Point in the spring? Watch your P’s and Q’s and zip your lip. Ditto for say a two bedroom at the Hopkinson House. If you are buying, you need to put your best foot forward and tie it up with a pretty red ribbon because demand almost always outweighs supply in those instances. Playing hardball as a buyer in these circumstances probably isn’t going to play in your favor. Owner’s can feel free to play any cards they pretty much like under those circumstances.
Two Quick Examples:
I sold a Center City condo in early 2010 to a buyer who had a real F You attitude to me, the seller, and the man on the moon for that matter. I have a lot respect for this buyer, and I like him. But I knew early on that if he didn’t get his way, he was going to walk. He may have been trying to save a dime for the sake of a dollar, as this was an exceptional deal, but his hardball play worked for him. I represented the buyer in this case, so I gave him all the ammo I could find. With a little homework, I could easily deduce that a lowball offer was warranted (thank you google) then was accepted by the seller. Winning.
On the other hand, back in the early 1990’s, I had a seller who was a real pr*ck, and his hardball tactics seriously misfired. He got his price, but wanted to keep his prized
Westinghouse Washer and Dryer…that were like 12 years old. Buyers told him to keep his used basement appliances, and walked. Seller sold the property six months later, for $40,000 less. The proverbial $40k washer/dryer, if you will.
Are you going to be a big winner, or perhaps a big loser? I dunno. But if you are going to play the A*hole card, you better be willing to stick to your guns when the heat rises. I just hope I can give you solid, if not a hint conservative information so you can make your own decision. And if you are being a butt-head, be my guest.. Then we’ll see how the deal is going to go down 🙂
Tags: Center City condo, Center City Real Estate, Philadelphia condominiums
April 8, 2014
I hear a lot of talk about the up’s and down’s of today’s Center City condo market. And what most Realtors are witnessing is multiple offers, properties selling at or above asking price and a decreased “days on market” statistic.
For the majority of the Center City condo market, there are more buyers than available inventory and the shift in that relationship will give rise to actions that we see more of today than we would have even six months ago- such as multiple offer bidding. I just encountered three offers on the same condo in one day and that condo had sat idle for almost two months.
Also becoming common are full asking price offers or even over asking price offers. I think it makes sense (many buyers see the time as being right to snag a condo out of the clutches of others and are therefore willing to put their best foot forward). I am now telling my buyers that IF they see a condo they want- do not hesitate to go in quick and strong.
Because nothing is more painful than a bidding war. Good for sellers, not so much for buyers.
Lastly, Realtors I speak with also confirm that they are seeing a decrease in the “days on market” calculations. Many Center City condos are selling within days, even hours after being listed for sale. I know of one unit at the Philadelphian that was listed in the MLS in the AM, and under agreement about 4 hours later. Not common, but certainly not unheard of.
Tags: Center City condo, condos in Philadelphia, philadelphia
March 31, 2014
You don’t get if you don’t ask….but there are times when I have to say NO to a buyer’s request. I just can’t….Sorry
1) Getting condo docs in advance of your offer- Condo docs are ordered by the seller and can cost up to $300. No seller orders prior to a sale in my experience.
2) Make an offer on two Center City condos simultaneously- Sorry, but you have to make up your mind. You need to approach an offer in good faith…and like dating, you really can only do so one at a time. You may want to two time…but you really can’t.
3) Move In Prior To Settlement- Perhaps if you rub a lamp, this wish could come true. It ain’t going to happen. You can move in when you own the condo. Period.
4) Expect the Owner to Leave The Condo Spic & Span- Yeah….that ain’t going to happen. The contract calls for “Broom Swept Clean” condition.
5) Expecting there not to be nail holes in walls where pictures once hung- Pictures do not magically float or levitate onto walls. They are put there via nails and screws. Expect that holes to remain once the pictures are gone. Shocking, right?
Tags: Center City condo, condos in Philadelphia, real estate philadelphia condos
March 17, 2014
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Take location and amenities out of the valuation
equation and you are pretty much left with reputation
Reputation is the elusive building quality that can garner some high end sale prices for certain buildings in Center City. Every building has a reputation which is built on a plethora of factors- some of which may not be visible to the naked eye. Factors such as: location, curb appeal, overall quality of fit & finish, upkeep and maintenance, and amenities/services that are offered. Some of the more subtle qualities of a good building reputation might be clues to the building’s finances, the size and composition of the condo units, monthly dues, friendliness of staff and management responsiveness.
The one factor that I notice buyers pay attention to is the friendliness of the staff. This is BEYOND HUGE. And such a simple factor that can easily be affected. If your doorman is anything but courteous and helpful- my buyers are going to pick that up pretty quickly and it will sour their impression of your building. York Square in Old City used to have a really pissy front desk staff and a fair number of my clients would comment on that attribute. And the comments from my buyers weren’t nice. First impressions are huge…we all know that.
The reality is that you cannot single out location as being the only driving force of value in a Center City Condo. Just look around town and try to compare building’s based on location alone- then try to determine the buildings value based solely on location. You would pretty much have to be a goof….you follow me? Building reputation and the attributes associated with reputation can indeed dictate value and really be a driving force of those values. |
Tags: Center City condo, Center City Real Estate, condos in Philadelphia
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