It is NOT always dollars and cents that prompt a seller to sign an agreement of sale…here are a few tips to sweeten your Philly Condo offer:
Shorten your settlement date-especially if the home is vacant.
Get a pre-approval from the mortgage company that the LISTING agent uses most. This will allow the listing agent, who will be presenting your offer to the seller, to be comfortable with your financing arrangements.
Shorten your home inspection period to 7 days instead of 15 days.
Put more money down (to be held in escrow) – a full 10%.
Add an “AS-IS” clause (which will still allow you to inspect and terminate the deal within the time frame permitted, if necessary).
Write a really nice note about how much you love the seller’s home and why you are buying their home. If it evokes a special emotion out of you, let the seller know. Every seller wants their home to be “loved”….let them know you love their home!
If a property is vacant, but still has unwanted clutter and dirt, tell the seller you will buy the home as it sits today.
If the seller is buying another home, and doing so locally, consider allowing his or her title company to do your title work. Most title rates are standard, and you (generally speaking) will not incur more costs by having your title work done by a company you or your realtor chooses.
If you are flexible in the dates you can settle, give the seller the option to pick the settlement date. You can write a contract that gives the seller the right to choose your settlement date within a specific period of time, like “ from 30 to 90 days from execution of the contract”..seller to decide.
Many things in a real estate transaction are emotional. Sweeten that emotional pot and you might find you’ll save a few dollars. It happens more often than you think! Shoot me an email at Mark@CenterCity.com or call 215.521.1523 when you are ready to start shopping for your next condo here in Philadelphia, and we’ll help you make a sweet offer.
Mark Wade BHHS Fox & Roach Realtors® 530 Walnut St. #480 | Philadelphia, PA 19106 www.CenterCityCondos.com
Living in a low rise or loft styled condominium can have its ups and downs. Here in Center City Philadelphia, we consider a low rise condominium to be an association that generally has anywhere from two to eight units, within a three to four story building. Defined as such due to the physical nature of how such properties simply exist in our area. Generally such structures are converted townhouses or small warehouse buildings, these low rise condominium associations have gained a lot of popularity since their inception in the mid 1980’s.
On the plus side, we find one of the attractions to be low condo fees. Since many of these buildings lack services that a high rise luxury condo building might hold, we can expect condo fees to reflect such a lack of service. No elevators, no door men, no concierge, no parking garage, etc. translates into a reduced common fee, which makes sense. Additionally, the small tight knit condo association, formed from anywhere (again) from two to eight member- each owner of course being a member. Less formal rules such as more liberal pet policies can be a major plus for those looking for condominium living. Also, the ability to play a central role in the budgetary process, and the management of the condominium building can be seen as a plus as well. Owners feel they have more say in to how their building is operated, how money is spent for improvements, and can informally change and add rules as they see fit.
On the possible down side, is a small association in and of itself. Some members may not want to be responsible for the operations of their buildings. They may want an outside management company to pay the bills and make decisions on capital improvements. These owners may not care for the fact that there are such few voting members, should they be “at war” with say another member of the association. A four unit condo association might have a tendency to be kind of an US verses THEM scenario. Additionally, the lack of services may be a drawback to some potential buyers. Possibly a buyer may want the intimacy of a small condo association, but would prefer a little higher condo fee to say, have exterior windows washed on a regular basis, and have trash removed by an outside company twice a week.
Buying a low rise condominium suits many tastes. But certainly such a scenario is not for everyone. An open mind, and good communication between all members of such an association is important for its well being. I live in a four unit low rise building on Front Street in Old City Philly, with limited services, and I think the situation is just perfect. We all get along well, with the general notion that our decisions are based upon what is best for the association, and the long term upkeep of the building.
Twenty years ago, a Capital Contribution was a very rare line item paid by a buyer to reimburse the seller. Today, a Capitol Contribution is standard for almost any purchase, and the payment now goes to the condo association and not the seller.
So WTF is a Capitol Contribution?Quite simply, it is a one-time fee collected from every buyer. Those funds are paid to the condo association and added to their bank account for long-term capital improvements. Most commonly, the fee is equivalent to two months of condo fees. Though often, the fee can be as high as six months (for associations looking to build their kitty).
Everyone buyer pays the fee, so don’t think you are being singled out. And the money is not going to line someone else’s pocket. You’re basically paying the condo association in which you are now a member. So cough it up…
1.) Do I need a lawyer? Legally, no you do not. However, I suggest you hire a REAL ESTATE attorney as they can be helpful. What I do NOT suggest is that you hire your brother’s neighbor, and is a personal injury lawyer. That could really do more harm than good, in my opinion. Get a Philly REAL ESTATE lawyer.
2.) Can I move in prior to settlement? Uh…no. Never. Sorry.
3.) Can I change the settlement time or date at the last minute? Usually not. The title company, the seller, the mortgage company, the listing agent all would need to clear with their schedules. Best to decide early upon a settlement time and date and stick with the plan.
4.) Do I have to pay a Capital Contribution and what is it? Yes, you do, IF your condo association requires you to do so. Almost all collect two months of condo fees from the buyer at the time of closing. This does not go to the seller. This helps add to the “kitty” of your condo association. You are more or less paying yourself. Some buildings like 1830 Rittenhouse Square condos do not require one…but that is rare.
5.) Can I move in at any time, or do I need to plan ahead? You need to plan ahead, especially in larger buildings where you would need to reserve the elevator. Those details will be available in your condo docs and/or resale package. Best to read them!
6.) May I BBQ on my patio or deck? 99% of the time, the answer is NO. Some 1st-floor units with outside space may be granted permission by the association. More and more, many buildings are installing BBQ areas.
7.) Does the seller have to repair nail holes in walls where his/her artwork once hung? Not nail holes in the wall. You bought the condo with the holes already in the walls. Unless you believed the artwork magically floated on that wall, you can assume there are nail holes, and yes, they transfer with the title.
8.) Which utility companies do I need to call? Depends upon your condo association. Usually just PECO and maybe the gas company. IF water is included in your condo fees…do NOT call the water company. Ditto for Comcast.
9.) Why do I have to pay transfer tax? Because the City says so. Transfer tax is split between buyer and seller and each pays 2.14%.
10.) Do I have to have a home inspection? Legally, no, but the smart answer is yes. Do it and learn how your condo functions and operates. A good way to learn how to shut the water off if you have a leak.
It is NOT always dollars and cents that prompt a seller to sign an agreement of sale. Here are a few tips to sweeten your offer:
*Shorten your settlement date if the home is vacant. *Shorten your home inspection period to 7 days instead of 15 days. *Put more money down (to be held in escrow). A full 10% will garner attention. *Add an “AS-IS” clause (which will still allow you to inspect). *Write a note explaining why you’re bidding on this particular home. *Vacant, but full of unwanted clutter? Buy it as it sits. Huge relief for any seller.
Many things in a real estate transaction are emotional. Sweeten that emotional pot and you might find you’ll save a few dollars. Further proof that what I do for a living is not rocket science.
A small number of condos in prime Center City zip codes have not appreciated over the past decade+/–
In my 33 years of selling Center City real estate, I can tell you that value growth/appreciation is a priority for most buyers when purchasing a Center City condo: Many buyers rank appreciation as a reason to purchase. On the whole, most condos have appreciated, though any gains are an odd confluence of timing, visual presentation, and a dash of dumb luck.
.*Timing: Often, a number of similar, competing properties are on the market when you list your home. If fewer options exist, your appreciation will be markedly higher. Supply and demand for a particular product are very fluid. One day there are a half dozen two-bedroom corner units at Hopkinson House, and six months later, there are none.
*Visual Presentation: This is the big enchilada. The easiest path to zero appreciation is to make your home look like a frat house. Dirty and ugly will sink appreciation in a snap. I see it weekly.
*Dumb Luck: You bought your home at a great price. The upgrades you’ve done are perfect. A condo, just like yours, recently sold in your building at a record price. Your decorating really resonates with many buyers. You hit the market the same weekend as your future buyer booked a flight to Philly (happens more than you think).
One way to ostracize yourself fairly quickly in your new condo building would be to get on the wrong side of the staff. If you want your packages and your guests to come and go without being tortured or put through a lengthy inquiry, then perhaps you should listen up.
Folks who live in doorman buildings quickly learn that the way to get anything done through the building is through the doorman. From allowing your guests access through the front door to helping you with your packages, a great relationship with staff can certainly make your living arrangements more enjoyable. And from fetching your car, to walking your dog, doormen (and women) can make your life easy, and they often will go the extra mile for Philly condo owners who are friendly. And being greeted with a smile each time you come home is a nice thing. Having a doorman who doesn’t like you is not a walk in the park.
Believe me, I learned the hard way back in the late 1980s by being rude and pushy. I no longer live in that building, and I now treat doormen with respect. You should, too.
Your life will be made much easier if you never piss off your doorman. They are great for learning about building gossip, too…they seem to know everything. Oh, and tipping is generally done at the holiday season, either via a pooled fund which is collected by the building, or done individually. I would suggest you get yourself a stack of $20 bills and pass them out like Halloween Candy. This is not the time or place to be stingy! 🙂
If you are of a certain age, you recall that Eva Gabor on Green Acres just “Adores A Penthouse View” for which she and her husband no doubt forked over some big bucks to accommodate her desire. And who wouldn’t love such a view? The question is- Are you willing to pay for such an amenity- and how do you know what dollar value to assign to such a Killer View? While it makes good sense that Center City condo views can greatly affect value, not all views are created equal, as many Center City condo shoppers quickly discover. Rarely will the cost associated with any given view be properly addressed in terms of value- by developers and condo shoppers alike, and assessing the value of any given view for a High Rise Center City Condo can be a daunting task and can often leave a potential buyer scratching ones heads.
For many Center City condo buyers- it is all about the view of living on a very high floor, and they are willing to pay as much as $50,000 per floor level above the next. Valuation of Center City condos based upon floor height is a tricky equation. A fair rule of thumb is that newer high rises value floor height at $10,000 per floor. But will that premium pan out in a resale scenario- say five to ten years from now? The Questions concerning value and view (and/or floor height) are numerous, and the answer is usually on a case by case basis. But Here are some General Guidelines:
1) A floor height is of little consequence to value if you are still looking into a brick wall of the neighboring building. If you see a brick wall no matter if you are on the 4th floor, or the 19th floor, why pay for an obstructed view from a higher floor?
2) To face (say) Rittenhouse Square, or to not face Rittenhouse Square can be a costly determination. A premium is always highly touted in the Real Estate ads for those with a “Square View”. If a condo on Rittenhouse Square doesn’t mention a view of the square in it’s ad- you can pretty much guarantee that it doesn’t face the Square- And should be priced accordingly.
3) If a great view can be had on the forth floor of any given Center City high rise condo building, is the same view any more of a premium from the twentieth floor?
4) North v South views and East v West views- Pure buyer preference, and Center City buyers generally have not shown any willingness to pay more for directional views, should all other aspects be deemed equal. The Hopkinson House Condominium illustrates this point as south facing units get great sunlight, while north facing units view Washington Square- And units facing either direction are usually equal in terms of value and resale price.
5) A tree-top View, or over the dumpster area? This is a tricky equation. Many buyers do not want a high floor, and enjoy the tree-top view. Not uncommon in Center City, and a tree-top view can command a premium, unless that view is located over the dumpster area.
6) Lower floors in a new Center City High Rise tend to be value based, and upper floors can be heavily weighted for the views they possess. Most buyers will not balk at a mid-point within the building- Anywhere from the ninth through the fifteenth floors are often seen as a good compromise between the two extremes.
7) The premium pricing paid for floor height in a new Center City building will tend to diminish in time. Mid level floors can garner as much in price as the higher floors in existing construction throughout the city. The exception I have seen to this rule is at the Murano at 2101 Market St. here in Center City Philadelphia.
8) In a low or mid-rise condo building, the amount of natural light is as important to value as the view, and corner units tend to sell at a premium as a result.
9) In a Philadelphia Brownstone Conversion styled condo (sans elevator) the second floor tends to be the most desired. Many Center City buyers will object to living at street level on the first floor, and a third floor walk-up will need to be priced accordingly to attract attention.
10) Most buyers believe the view from the 23rd floor vs the 25th floor is negligible. Unless of course, the 25th floor happens to be the Penthouse. Expect to pay more for anything labeled as a Penthouse. Especially one with private patios, a private elevator, or private pool.
The desire and willingness to pay for a view will vary greatly in Center City, and a condominium with a high floor view can be seen as a status symbol. Many developers will ask a premium based upon floor height, but that premium tends to diminish over time in the resale market. All buyers Adore a Penthouse View….but the question is- Are you willing to pay for that view?
Center City offers a buffet of living arrangements. Almost any Center City condominium with a smattering of exposed brick attempts to pass itself off as a loft. Often sought after as an expression of one’s own style, loft living has taken off in downtown Philadelphia. Lofts vary in look, layout, and location throughout downtown Philly. Some loft condos impress mightily, and others are cheap imitations of highly unique, urban treasures hidden in pockets of Old City, Bella Vista, and of course, The Loft District around 13th and Vine Streets. Still others hybrid versions of a loft are modern reincarnations of reused warehouse space replete with luxurious six piece marble bathrooms, and $16,000 refrigerators.
The best example of a hard loft in Philadelphia might be The Old Shoe Factory at 314 N. 12th St. From an unadorned cavernous lobby area, up to the eighth floor via a converted over-sized warehouse lift, the units are characterized by hugely over-sized windows, exposed brick, minimalist kitchens, and bedrooms that are open to the living area. Fantastic city views, high ceilings, and a few units with polished cement floors. Minimalistic at best, these condos truly tag at the definition of a live/work open space where room size is valued over room count.
A fair example of a soft loft might be BridgeView Place at 315 New St. in Old City. With the prerequisite high ceilings, and touches of exposed brick, these condos have been compartmentalized to include bedrooms, walled off kitchen areas, and walk-in closets. Some units at BridgeView do indeed have a loft bed perched above the living space, but those units are few and far between. The conversion to condominiums in the mid 1980’s at 315 New St. is a good example of a reasonable living space, with a bit of “lofty” flair.
The recent hybrid loft, with its three bedrooms and den, Joanne Hudson kitchen, and a veranda off the master suite has become popular in Center City. More and more empty nester couples are discovering the joys of living in an unconventional space- many that may look like a magazine cover, throughout Center City. The bells and whistles attached to many recent Center City loft styled condominiums can make any a buyer take a second look at the possibilities of urban living.
A Center City loft can come in a variety of sizes, styles, and locations throughout downtown Philadelphia. Some more true to their “lofty roots” than others, loft living of all proportions is gaining popularity amongst the empty nester set moving into town from the suburbs and elsewhere. Many of the available loft condos today didn’t exist in the early 1990’s when the very first empty nester/baby boomer began trickling into Center City. And judging from the success of many loft and loft-like sales throughout the area, buyers are finding individuality can be expressed through the (loft) style in which they choose to live.
