Friday, January 16, 2009

Baby It's Cold Outside

The coldest temperatures our region has seen in four years – so much for global warming!

While it will be no fun showing homes in Delaware and Philadelphia counties this weekend, the cold provides a great opportunity for sellers and buyers to evaluate the weather resistance of their current and future homes. Drafty windows, minimal insulation in the attic, or gaps around exterior doors all pose problems with simple fixes that can improve a home’s marketability and live-ability.

Last fall, when it wasn’t too hot or too cold, I went around the house and re-caulked all of the windows inside and out. We have vinyl replacement windows with exterior capping that is fairly low maintenance, but all places where different materials meet (stucco and aluminum capping for example) have different responses to heat and cold that require caulking and re-caulking on a fairly regular basis. Over time the caulk gets brittle and cracks and needs to be removed and re-done. The process only takes a few minutes for each window, and the caulk itself only a few dollars for several windows. We remarked this evening that the results are dramatic.

Sellers should know that buyers will often walk in front of windows to see how drafty they are. Energy efficiency is very important to buyers today, especially first time home buyers who are perhaps about to be responsible for utility costs for the first time. As renters they know full well about comfort issues, but those issues now have a price tag connected to them.

In the attic, over time fiberglass insulation becomes compressed and less efficient. Insulation should be placed along the “floor” of the attic, not stapled into the plywood sheathing that comprises the roof. Often people make this mistake in Cape Cod style homes where the “attic” areas are partially finished. Putting insulation up against the sheathing doesn’t allow the roof to “breathe” properly and moisture builds up on the roof and becomes a potential source for mold. Mold, in addition to potentially posing health risks, also over time can cause wood to rot, further damaging structural components of the house.

I was at a home inspection in Wallingford this week where a 12-year old roof with mold-damaged sheathing and rafters will need to be replaced, rather than re-shingled.

Lastly, gaps below exterior doors can allow cold air to rush in, and heat to escape. Quick fixes like draft dodgers along the inside will certainly improve living and utility bills, but they are red flags to buyers. If the problem is extreme, homeowners need to replace doors, or as a middle ground install a storm door.

Saturday, January 10, 2009

Is Graduate Hospital Still Booming?

I was showing houses to Beth in the Graduate Hospital area in Philadelphia earlier this afternoon. Graduate Hospital is a neighborhood named for the hospital on the 1800 block of Lombard Street and has taken on the area from Broad Street to the Schuylkill River south of South Street to Washington Avenue. This large section of the city below Rittenhouse Square and Fitler Square has continued to thrive over the past year and remains one of the few areas where buyers and sellers continue to agree on pricing.

One indicator of that is the number of pending sales, which for 19147 (which includes all of this area, plus a substantial number of properties south of Washington) is 56. A better indicator, however, is market absorption.

Market Absorption
Market Absorption indicates the length of time it would take to sell all currently available properties, based on recent trends, if we were to freeze the market and not add any houses for sale. It’s a purely theoretical concept, but helps quantify the market. Absorption numbers of 6 months indicate a balanced market, and lower than 6 indicate a strong seller’s market. Over the past year absorption figures started rising above 6 months and even above 12 months, indicative of a strong buyer’s market.

The market absorption rate in 19146, based on the last quarter, is 12.65 months – it would take 12-13 months to exhaust the housing inventory if no other homes were put on the market, based on the demand for homes over the last quarter and the number of active listings today. Even though that number is clearly indicative of a buyer’s market, in context it still shows property moving quicker than in other neighborhoods. In Bella Vista, for example, the absorption figure is 15.7 months, and in Washington Square West/Society Hill it is 26.1 months.

Divan
The showings in Grad Hospital culminated with a rehabbed rowhome on the 2200 block of Carpenter Street (3BR/1.5Ba home priced at $274,900) which is down the street from Divan Turkish Kitchen & Bar, a wonderful Mediterranean restaurant that I first experienced about a year ago when selling a home on Christian Street. At that time we sampled, among other things Kayseri Manti, steamed lamb dumplings topped with a garlic yogurt sauce and mint. They were lovely, as were the kabobs, and the mixed appetizer plate which includes hummus, Turkish yogurt (Haydari), eggplant salad (Patlican Salatasi), eggplant and tomatos (Soslu Patlican) and stuffed grape leaves (Yaprak Sarmasi).

Effie's Restaurant
While talking about Mediterranean cuisine, I would be remiss if I didn’t mention one of my favorite restaurants in Philadelphia – Effie’s. Located at 1127 Pine Street in Washington Square West, this BYOB has many of the usual Mediterranean staples, but also the best baby lamb chops in the city. My wife and I last visited in November – it had been more than a year since our last trip, and we were pleased to see that it was as good as ever, and well worth the inevitable long search for street parking in the neighborhood. We’re planning to return for date night again later this month.

Wednesday, January 7, 2009

All Buyers Should Get a Home Inspection

I woke up this morning and smiled. Not only was it not snowing -- no school delays or closings after all -- but it was raining steadily.

I love the rain.

I had a home inspection for a buyer in Manayunk today and, as I wish for on every home inspection day, it rained. I’m not a big fan of standing in the rain, and certainly have never been one to sing in the rain, but a home inspection in the rain allows the inspector to really get a good look at any water penetration issues that a home may have, and really tells a buyer whether or not the basement is dry.

I use that phrase intentionally because as Howard Shanker from Apex Inspections likes to say (and explained today), “there’s no such thing as a waterproof wall, or a dry basement.” Truth be told, today’s basement was pretty dry. No standing water (“in-ground pool” in Realtor parlance), but as Howie always points out, concrete and stone leach ground water and at the very least add humidity to every basement.

In addition to uncovering basement problems, rain water is quick to illuminate other issues with a home: clogged down spouts and gutters, leaky roofs, leaky windows, exterior drainage concerns, clogged sewer lines (in some urban areas run off from the roof, as well as the discharge from sump pumps is collected into drains and fed into the sewers causing them to back up in heavy rains) – the list goes on and on. Apart from fire, or maybe termites, water can cause more damage to a home than any other external factor.

During the home buying process, buyer’s typically have the option of having a licensed home inspector review all of the systems within a home – structural, plumbing, roofing, electrical, etc. Inspectors are generalists. They look for safety concerns and overall functionality issues, but are not experts (usually) in one specific area – like HVAC systems. They also are not code-enforcement officers and do not use municipal building codes as their yard stick for evaluation.
The home inspection is paid for by the buyer, and can be the basis in some cases to negotiate for the seller to make repairs to the home, or in some cases terminate the transaction. I tell all homebuyers that they should not expect to get any concessions at all after a home inspection and that they should be comfortable with the negotiated terms as they stand. That said, if the inspection truly brings to the fore an issue, or issues that were not expected, buyers should not be shy about trying to see if repairs can be made by the seller or in lieu of those repairs if they can be compensated. Regardless, money spent for a home inspection or inspections is not refundable.

Gooey Looie’s
Somehow today the subject of cheesesteaks came up and Howie, posed the “what’s your favorite” question. I noted that I am not a Pat’s vs. Geno’s guy (for non-Philadelphia area residents both of these South Philadelphia institutions build sandwiches with thinly sliced beef (with or without grilled onions) layered with cheese on a hoagie roll) but instead I am a big fan of a lunch truck in University City (Sophie’s) and in the suburbs, am partial to the Hungry A in Broomall. Turns out that Howie also thinks the Pat’s/Geno’s debate is for out-of-towners, and that although he lived around the corner from Cosmi’s (see Savoring South Philly), his favorite cheesesteak comes from a Pennsport deli called Gooey Looie’s at Moyamensing & Moore. Perhaps on my next rainy day inspection in Pennsport I will taste for myself!

Tuesday, January 6, 2009

Tastefully Done Overbrook Rehab

I've been showing properties off and on to Dawn for a few months and today we saw a true gem in Overbrook. A well renovated row home with gleaming original hardwood floors with exquisite inlay details on both the first and 2nd floors. The open floor plan on the first floor combined a living room with fireplace (non-functional) and crown molding, dining room with crown molding and a kitchen with new laminate floor and updated countertops. The rear yard was terraced and included boxes for plantings as well as a hardscaped patio and lower entrance to the finished basement. The pricetag was a very affordable $125,000 on a tree-lined block.

The home screams "Pride of Ownership" without adding over-the-top, trendy, super-improvements. It's amazing what polyurethane, paint and a little elbow grease can do -- all fairly inexpensive improvements -- to improve a seller's chance of getting an offer in a buyer's market. An article in today's Wall Street Journal, which was adapted from David Crook's "The Wall Street Journal Complete Home Owner's Guidebook" published last year, speaks to the fact that most home improvements will not return their value when it comes time to re-sell a house. Even an upscale kitchen renovation returns only 74 cents on the dollar, and a rehabbed bathroom just 68 cents, according to the article. He points out that some maintenance does have to be done:
"It's not a discretionary expense to fix a broken window, replace a worn-out furnace or sometimes even to add a new bathroom. The buyer of a fixer-upper with a kitchen that hasn't seen a paint brush or a scouring pad since 1967 doesn't have a choice but to renovate."

Today's home in Overbrook really does encapsulate this philosophy: all the rooms are well maintained: bathroom tile work is all in tact, kitchen is clean with older cabinets that have been repainted, etc. Without granite and new appliances, the home still shows heads and shoulders above all else in the market right now.

Saturday, January 3, 2009

Savoring South Philly

No matter what people are saying about the awful state of the real estate market, this is a great market for first time homebuyers and investors. There are lots of homes to choose from in most areas, interest rates are extremely low, sellers are motivated and buyers are in short supply. That all spells a great Buyer’s Market.

I showed houses to Evan and Katie today – first time homebuyers looking to purchase a 2-3 bedroom rowhome in Philadelphia, perhaps in South Philadelphia. Today we looked at one home in Fishtown (just northeast of the Northern Liberties along the I-95 corridor) and several other properties on both sides of Broad Street below Washington Avenue. On the west side of broad we looked at new construction and some rehabbed properties right around $200K. Many of them featured granite kitchens and finished basements and ranged from 960 square feet to 1700 square feet. The neighborhoods were south of Graduate Hospital and ran from Broad over to Point Breeze. On the east side of Broad we looked at similarly priced rehabbed rowhomes in the 1000-1200 square foot range as well below Bella Vista.

Philly Delis
At the end of the day Evan mentioned that we were really close to Cosmi’s, a South Philly delicatessen that I had never been to. I love deli food, and Philadelphia more than holds its own against the great lower Manhattan eateries that pile on the corned beef. I am partial to Koch’s Take Out Shop in University City (4309 Locust St), which I have been frequenting for more than 20 years. Now run by Ezra and Raffi, they still build the great sandwiches with mounds of fresh, thinly sliced lunch meat that would have made Frances Koch proud. In the Italian Market area (abutting Bella Vista), I am very fond of Chickie’s Italian Deli at 1014 Federal Street for “The Original Veggie Hoagie” which is piled high with baked eggplant, sautéed broccoli rabe, roasted peppers and sharp provolone on a seeded Sarcone’s roll. So at 4pm today, with a new deli to experience just a few blocks away, I ventured to 8th and Dickinson to check out Cosmi’s Deli.
It’s a very unassuming corner store – a neighborhood staple on many city blocks – which I have passed dozens of times over the years (mostly on my way to Termini Bros bakery a block further south on 8th Street). Inside the menu boasts it’s 2004 and 2008 “Best of Philly” Cheesesteak awards and offers an Italian Chicken Hoagie (Missanelli’s) that Evan speaks highly of – marinated, grilled chicken breast topped with prosciutto, sharp provolone and either roasted or long hot peppers. It was 4pm, and I was going home to make dinner (Indian Chicken and Potatoes with ginger, onion, garlic, cardamom, turmeric and cinnamon from Madhur Jaffrey’s “An Invitation to Indian Cooking”), so a hoagie was not on my agenda; if it were, I think the prosciutto with fresh mozzarella and roasted peppers on a seeded roll would have been my choice. Instead, I cruised the center aisle which featured packaged foods including DiBruno’s cheese spreads, sharp provolone bites and Zayda’s Kosher Hot Pickles, the latter of which I took home.

Friday, January 2, 2009

Small Projects Add Value

Nobody likes clutter.
One of the toughest conversations I have when taking a new listing involves the need for clients to get temporary off-site storage, or permanent dumpster space. One man’s cherished knickknacks are a potential buyer's trash.


I always tell sellers that they should take a hard look at anything they may plan to get rid of after moving, and preemptively remove it from the premises. I know it’s tough to do as purging is time consuming, but I learned the costly lesson the hard way when I last moved. I de-cluttered our home and filled the basement with fairly neatly stacked boxes of possessions. My wife insisted that we should just get rid of stuff, but my need to get the house on the market quickly obfuscated her common sense. Our 7-minute move to a larger suburban home necessitated two moving trucks and took the crew of four 10 hour$. Over the next weeks we proceeded to throw away the better part of a moving truck – mostly box after box from the previous basement.


So I have reformed – well maybe not entirely. I still love my stuff and so do our kids. But a few times a year we do some things to prevent another wasteful and costly move.


The Big Purge
Yesterday, we did the “big purge” with our kids. We took a few hours of two-on-one time with each child going through all of their belongings in their bedrooms. The eight-year-old learned that there really can be too many stuffed animals, and that having the World’s largest collection of miniature bobble-head birds may not be all that matters in life. During the process we discovered toys and games that had never been opened or played with and made decisions to donate some to good will. In all four large trash bags of stuff is leaving the house! Cost to us: 0!

Coat Closet Cubby Shelf
Of course, there are the belonging which we do not wish to part with. For those, we are constantly looking for better ways to keep and/or display them. Which brings us to today’s small project: the Coat Closet Cubby Shelf. While kitchen and bathroom projects may be sexier, today’s $14-trip-to-Home Depot project took less than an hour and will help us hold on to stuff in a way that the next buyer may actually (in a small way) appreciate.


Our hall closet has a rod for hanging coats, and until today a single shelf upon which are piled hats, scarves, gloves and mittens for our entire family. That shelf, despite many organization attempts, some including plastic containers, became unruly whenever disrupted while searching for the right accessory. Today, we added a 2nd shelf above the existing shelf, and between the two shelves added cubbies to keep belongings sorted. The custom shelf fits perfectly in the space, and someday will be sold with the home.

Thursday, January 1, 2009

Away We Go

It's January 1st, 2009, and keeping with my New Year's resolutions, I am starting this long-considered blog today. It is my first foray into the blogosphere and done with trepidation: Will I be able to keep the content fresh (this concern kept me from writing any content in 2008, though I created this account exactly a year ago today)? Will I be able to keep the content engaging? Will my subjects be useful? Will my musings resonate?

I hope this blog will combine two of my great joys in life -- real estate and food. I am a licensed real estate broker in Pennsylvania selling primarily residential real estate in Philadelphia and the surrounding Pennsylvania suburbs. I sell properties (single-family suburban homes, urban townhomes, condominiums, multi-family buildings, etc.) and enjoy representing both buyers and sellers. I also love to eat -- pretty much everything except mushroom pizza. I love eating in restaurants wherever my travels take me and love cooking at home for my wife and kids. I hope that I can share the tastes of the neighborhoods I visit with my readers and in doing so provide additional comment about the community in which I work and play.

On New Years Eve, I showed homes in Philadelphia in the morning -- some great rowhomes in Overbrook and Wynnefield (West Philadelphia almost bordering the Philadelphia Main Line), and then ventured into Center City for some last-minute provisions from DiBruno Brothers for a New Years Eve meal. I combined my two favorite foods last night making vegetarian sushi -- maki made with Shitaki mushrooms (sauteed with teriyaki sauce), avocado, roasted red peppers and cucumbers -- and cheese, the result of my trip to DiBrunos. The cheese plate featured Fromage Dauphinois -- soft and buttery, an aged cows milk gouda and a hard Alpine cheese. We rounded out the dinner with a brie baked in puff pastry with apples, walnuts and rum mounded upon hunks of sourdough or pumpernickel baguette.

I hope that I have whet your appetite and look forward to sharing more in the days ahead.