You Claim your building is 70% Sold ...and I claim that you have a problem telling the truth
So there I was last night at some little gathering of well heeled city folk, many of whom are "In the Know", along with a few hanger-on'ers, and me. And someone that knows who I am drops a BOMB- a certain new construction condo building in town is 44% sold. Oh how I love a good story. Especially when it appears to be true, and contrary to what the PR machines have been putting out. I understand the motive. Every new Philadelphia real estate condo building loves to put on a good show, and appear to be a success. I get it. But don't you, Mr. Sales Staff for any given new condo building, feel any sense of remorse or regret when you convince a buyer to buy in your building, under false sales stat quotes? I certainly would. Philly condo buyers should not believe everything they hear. Especially from developers sales staff who claim that their buildings have this much, or that percentage sold. The numbers are secretive, not displayed in the MLS, or in government records, and sometimes the numbers are bogus. And what recourse might you have? I would suggest very little. When you walk into any new construction condo building, without a buyers representative (aka- me) with you, you possibly are going to get one side of the story. Many new condo developments have a policy and it reads- "Agents must accompany on buyers FIRST visit"....or, they (that sales staff) will not allow me to come in with you visit #2, or anytime thereafter. I personally feel this policy is bullshit. If you visit a building, then meet me, I cannot be your agent for THAT building. So wise up here folks. IF you want buyer representation...see me first. Then let's go visit some new construction high rise buildings. Because if that building is spewing BULLSHIT, I am going to tell you. And again, I am kinda' "In the know".....
Back in the 1960's, Tarryton Cigarettes had the saying "I'd Rather Fight Than Switch". Personally, I think I would give up my specific brand of cigarettes than take a solid punch in the face. But fighting is what some folks like to do, at least verbally, and this characteristic is often played out during the back and forth volleying of buying or selling a home. Especially when Mr. Buyer or Mr. Seller don't have to face the opposition directly, and are allowed to vent their frustrations through a third party- Their trusty realtor. In a weakened real estate market, almost all transactions involve some kind of fighting between buyer and seller. Rare are the times that everyone agrees upon value and terms. The seller always believes his home is worth more than it actually is, and buyers always believe that they are overpaying for any given piece of real estate they may be eyeing. Evidently sellers don't watch the evening news, and buyers swallow everything that comes out of a news anchors mouth as gospel. Sure the market is soft in Detroit and St. Louis, and of course Miami and Las Vegas are struggling, but since all real estate is local, the true depth of our economic issues in any given part of the country cannot be summed up by some Gloom and Doom story on the nightly news. To sellers, the effects of the economy on their home value is slight, and to buyers, this downturn is the similar to Chicken Little's forecast that the sky is falling. Somewhere between the two lies the truth. Hence, the initial conflict in getting both parties to agree on value. The real problem comes when the negotiating for the smaller issue arise. How much of a credit for issues discovered during a home inspection is fair? Since both buyer and seller are now at their breaking point- who is going to be the one to give the nearly nominal concession to allow the transaction to continue? This scenario once played itself out, much to the detriment of one of my sellers. As a veteran real estate agent, trying desperately to bring two parties together, the sticking point after a few weeks of negotiating was a washer and dryer. A used washer and dryer...a Kenmore I believe. The buyers wanted them, and so did the seller. The seller decided that although the cost of moving the appliances out of his basement, and across the country to his new home was going to be borderline worthwhile, it was just the knife he was going to stick into the buyers back. To hell with them, was his motto. Take it or Leave it, I recall him saying. The buyers took option two, and walked away from the deal. The seller kept the home, along with his used white Kenmore washer and dryer. His life was on hold for just over four months, as we found a new buyer. And this new buyer was smart- he let the seller keep his washer and dryer, and he paid $40,000 less than the first buyers who walked away from the deal four months earlier. Fighting, for the sake of fighting, is sometimes a costly event. Even if you love your washer and dryer a lot, it is sometimes better to cut your losses and head for the hills, even if it means having to fork over a few dollars for a new washer and dryer. Pinching a dime for a dollar is never a good idea, and usually an awful idea in a softening real estate market.
I am a Philadelphia realtor and I blog, I Podcast, I write articles, I am quoted in a lot of publications, I am ranked very high on very general (Philadelphia) search terms (especially relating to condos) and the thought of obtaining a higher pagerank and relevant links on Google via good content is something I obsess over. DO YOU? Is there anyone who is interested in understanding that exchanging a link for exchange sake is about as useful as putting water in your gas tank? Sure, you are going through the motions, but it is not going to get your motor started. Or how about accepting trackbacks on blog entries? Any real takers, besides fakers? I am interesting in talking about relevant linking to enhance the content of an particular indexed webpage. If so, please contact me. And search google for some fairly general Philadelphia/Center City search terms...and see how I stack up. Please :-) Mark Wade CenterCity.com CenterCityCondos.com CenterCityHomes.com Blog.CenterCityCondos.com Prudential Fox and Roach Realtors 215.521.1523
Seems hardly a day goes by that I am not asked for my two cents in the general arena that is Center City Condos. As a professed uni-blab, big-brained know-it-all in this field, I have to confess that I eat, live, breathe, think, and dream downtown Philly condos for a good portion of each day. I was once asked what I believed would be the best long-term "hold" in terms of condominiums, and have come to the conclusion that the answer lies on the northwest corner of 13th and Spruce Streets.
The Lenox was converted from apartments to condominiums in 2005-2006 and exemplifies the pre-war midrise condominium building here in Center City Philadelphia. Thirteen stories tall, clad in a dark red brick with bay windows on every side, the building does have a fair dose of curb appeal. At 250 S. 13th St. is indeed Center City's diamond in the rough. Grossly undervalued for what the building could be, and is becoming, the Lenox hold some truly unique floor plans, a central location, and topped off with a few TRUE penthouse units. Add in the fact that it is a doorman building with a generous loading zone out front, and the pieces of the puzzle (that being Value) begin to fall into place.
I believe the building is an excellent value based on the current resale dollar per square foot. A nicely finished two bedroom, one bath, complete with newer kitchen and bath, original architectural details, and two to three walk-in closets can be purchased around the $340,000 mark. Close to Jefferson Hospital is a real plus, as are the oak herringbone floors, plaster walls, and detailed, yet nonworking fireplaces. The owners association is currently undergoing a host of capital improvements (see the scaffolding encircling the building), and looking into a few rule changes or upgrades that one day may permit washer/dryers in each unit, as well as central air. Those are currently two factors that are greatly (and I mean GREATLY suppressing resale value). Word on the street is that the Parker Hotel across the street is possibly being eyed by the University of the Arts. Such a move would be a boon for the owner of 250 S. 13th St. as well.
If long term value is what you are seeking in a Condominium, then you might want to consider a look at The Lenox at 250 S. 13th St. in Center City Philadelphia, as it is my guess that if the building can improve, or have improved unto it, a few details, that the units within the building will shoot up in value more than most Center City condominiums will over the next ten to twenty years.
I often hear sellers complain that they are not going to make any money on the sale of their home, and they feel that have somehow went wrong in buying their home in the first place. To which I say, bonk! Just look at how you "won"....
•1) For every month you lived in your new home and made a mortgage payment, you were able to deduct the interest on the loan. Try that with a rental payment. And be sure to let the IRS know of your plan here, as I am sure it will go over well with them.
•2) You were able to paint the living room that hideous red your wife/husband/other wanted, and didn't have to worry about NOT getting your security deposit back
•3) If you had a fixed rate mortgage, you were able to plan on stable month payments, without the threat of yearly increases in rent, which most landlords do as a matter of habit, as opposed to doing so based on market conditions
•4) You didn't have to worry that your landlord was going to kick you to the curb after your lease expiration period, in order to turn the apartment into condos
•5) You had the "quiet use and enjoyment" of the home to do as you please. The piece of mind that only comes from home ownership. And you now have the
•6) pride of owning your own garden rake, a lawnmower, and perhaps washer and dryer.
Buying a piece of real estate isn't always about financial appreciation. Sometimes, the added value is the piece of mind you have knowing that you have a roof over your head that belongs to you. And your bank.
If you are anything like me, after a grueling day of showing Philadelphia condos, or any type of real estate to perspective buyers, the first thing I want to do when I get home, besides grumble about it, is mix a Martini. But as a real estate mavine, devotee, and all around nutbag, first I have to go and pick out a paint color for my dining room. One of a series of endless chores that has been on my "things to do list" for just over 8 months. And being a realtor enables me to concievable tackle any home improvement project. Clearly, I know it all.
Well I just saw one of the neatest innovations in painting that can save anyone a bungle of time, energy, and money. Huge secret here....it is called Behr.com. Behr is a paint company that has developed this online service in which you can pay $4.95, and upload a photo of any particular room in your new, say, Rittenhouse Square condominium, or Old City flat. Then you simply click through their 3700 plus paint colors, to see how that room would look in any color of those colors. From eggplant, to a nice sage green, this service is the ultimate "try before you buy" idea, and I think many first time buyers/painters could benefit from such a service.
How Fabulous! If you have painted any room in your Fitler Square condo or Society Hill flat, you know as how easy it is to "miss" the color you were going for. Even by a little bit, a soft yellow can appear just awful- perhaps the yellow you picked is a little bold, has too much green mixed in, or is just wrong for the lighting you have in any given room. This service is going to allow you to see the entire color, on a larger wall surface of any given room you choose, to make sure the color is right for that particular room.
And you know as well as I do, that paint cans have a tendency to gather in your closets or storage areas of your Philadelphia condo, and can generally outlive human beings in general. Just think of how many paint cans you WON'T have lingering decades in that dark corner of your basement storage area! And believe me, this way of "painting a room" is a lot easier to do while downing a Martini or two. Painting and drinking can now go hand! Life just keeps getting better......
It should come as no surprise that some people do not have a life. They can be found, every Sunday at the same place. Your Open House. They are neighbors, half-serious buyers, and some are all around busy bodies. Some you will see for YEARS, doing the open house circuit..week after week, after week- as if one of their hobbies that they might list on a job application would be "Open House looking"....
Now allow me to be the first to admit that I fall into this catagory. I love going to Open Houses. And the first thing I head for? The photos. Come on...tell the truth- you are an open house junkie, and you make a B-Line for the pictures on the wall, in the living room, and on the bureau in the family room as well- Don't you? I thought so....
Half the fun of going to an open house is seeing how other people live. From their decorating tastes, to the trinkets and chachki's littering their lives- I want to know who these people are, and how they live. Don't show me the kitchen. I don't care about the lovely new side by side Amana refrigerator. I am not interested in the stain resistant wall to wall carpeting. If I had X-ray vision, I would peek inside their drawers and closets too, but I know the boundaries of a good open house junkie. And I don't make negative comments inside someone else's house- even when the place is a total piece of crap, is grossly overpriced, and was last cleaned back when telephones had cords, and Duran Duran was on MTV.
Yes, I am one of the good "addicts". I am actually one of the people you WANT inside your open house. I often make nice comments for other, more serious buyers to overhear. "Oh, I love the flow of the living room / dining room area", and "wow, what a great location". I even bought a house last year while doing my Open House circuit. I didn't mean to, but I feel in love with the place, and had to have it. This time though, I was bad mouthing the place, aloud, as I didn't want the other perspective Open house "lookers" to see the good side of this place. So here I sit, in my new house, writing this blog on a Sunday morning, wondering how many "junkies" I am going to encounter at the Open Houses I am sitting this afternoon.
What is it about a real estate transaction that causes somewhat sane, rational carbon based life form to think and act like a bag of nails?
My advice for each of the following parties involved in a real estate transaction:
1) BUYERS: It is a law in almost all 50 states that you MUST experience cold feet within the first ten days of executing an agreement of sale. Expect it. But also remember that you also agonized about that pair of shoes, or that suit you bought, that was also kinda' expensive. So relax, everything will be fine.
2) SELLERS: No, the buyers cannot be locked up in a turkish prison for stealing your property. It was the forces of the market, not those darned evil buyers who "stole" your home at a great price.
3) COOPERATING AGENTS: Perhaps you are new to this planet, but truth be told, I don't make decisions. My buyers and sellers do. I just relay the messages back and forth. So don't get all huffy with me, Missy :-)
4) MYSELF: Take each transaction seriously, though not too seriously. Play by the rules, be nice, and always be fair. And retain the notion that the biggest nut bag in this transaction, from time to time, can be moi.
Having been a realtor here in downtown Philadelphia for the past 18 years, I know my way around. There seems to be very little I don't know about Center City Philadelphia real estate. And don't even try to match wits with me when it comes to the market, contracts, traffic patterns of buyers, etc. I know it all.
I try to keep my overwhelming arrogence to myself. I don't want to come off as anything more than perhaps a bit impatient/self-important with other realtors. I don't fight with other realtors, I don't cuss them out, I try to keep disagreements on a rational level, and I try to end every transaction on a nice note. Name calling is out of the question. And I have never suggested that another realtor was actually a non-human from another planet- I give them "just" credit for being carbon based life forms. And just plain being rude to other realtors? Nah. What goes around, comes around in this business, and nothing is more detrimental to a realtor's career than being known as someone who no one wants to do a deal with..... You never know when a buyer is going to call you to see a listing belonging to an agent who you just double crossed. Or were nasty to. Or hung up on.
I remember burning two bridges in my 18 years here in downtown Philadelphia real estate. To this day, each instance bothers me. I wasn't at my best. I could have been civil, or at least more open, honest, and professional with these two other agents.
I have a pretty good track record of working with other agents, and I think most realtors would like to do business with me repeatedly. I think they view me as competant, and if I do loose my cool, it is always followed with an apology or a nice word or two.
Upon entering the business, this was the first rule my manager taught me.....NO BRIDGE BURNING. And I am still with her (thank god!), and selling close to $65M+/- per year in condo sales. She's a smart lady. And I have only hung up on her once in my real estate career, and have yet to call her a name, and I am pretty sure she is not an alien from a distant galaxy.
I am the smart-a** who sits in the back row of the condo board meetings heckling board members while a martini is spillin' out of my right hand. I am the one who always votes for higher condo fees and special assessments. And I don't care if you don't like me.
I want the common areas attended to frequently. I want light bulbs in the stairtower changed, the carpet in the hallway swept, and the windows cleaned with resonable frequency. I want my doorman to be tidy and responsive...not some slug who can't at least smile, or feign politeness when my guests arrive. I am not interested in a mouse on the 5th floor of my condo building (say, in the trash room), nor am I much of a fan of filthy awnings over our front entrance, or fire extinquishers that haven't been routinely serviced.
In the case of communal living in a high rise condo building, or a loft here in downtown Philadelphia, I believe what is good for the gander, is good for the goose. Hurray for special assessments that keep our building in A+ condition, not only visually, but also mechanically. Because nothing spells low resale value, potential building structural and mechanical weakness like a lack of maintenance....not to mention that if we don't keep good repair of the common roof, and it leaks, ultimately our master insurance policy rates are going to sky-rocket.
Try not cleaning or maintaining the inside of your condo, and see where that gets you. True also of the larger building- an ounce of prevention is worth a pound of cure. And like your teeth, your relationship, and the car you drive, everything in this world requires ongoing care and upkeep.
So bring on those special assessments if and when necessary. This condo is an investment for me, and I plan on protecting that investment and watching it grow!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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