The Coyle Group was contacted directly by the condo owner on this assignment. In this case, the owner was referred to TCG by their realtor. The owner purchased their unit in the Bella Vista Lofts building on Washington Avenue, in South Philly, in what we know now was at the height of the Philadelphia real estate market, before the “bubble” occurred.
Our client was thinking about moving to be closer to work. He knew that condo values in the area had dropped since his purchase, he just didn’t know how much. His decision to move depended on the results of our appraisal.
We inspected the unit, a nice two bedroom corner location with views of Center City Philadelphia and a deeded parking space. It was in good condition with all the amenities one would expect with a newer condo conversion. However, it’s raw loft appearance might not appeal to the broadest segment of the market, in his price range.
Upon researching market sales and listings, we found that units in the area were selling for less than when he purchased. Values for similar units in the building and competing projects had declined approximately 7% since the time of his purchase.
Armed with the information contained in our appraisal, our client decided that the benefits of buying a new property closer to his employment out weighed the decline in his condo’s value.