BUYING A CO-OP
5 Things To Consider When Buying A Co-op
One of the biggest reasons to buy a co-op is that they typically sell for less than similar condos. You can often find co-op apartments in NYC for sale for 10-20% less than comparable condos. You'll also save on closing costs if you buy a co-op as you won't have to pay the mortgage recording tax or title insurance. Before taking the plunge, here are five things to keep in mind when buying a co-op:
1. Co-ops often have strict financial requirements, including minimum down payments, income restrictions, and credit score minimums. Make sure you understand these requirements before starting your search.
2. Co-ops are owned collectively by their residents, requiring board approval to purchase. The board will review your financial status, employment history, and other factors to determine if you are a good fit for the community.
3. Co-ops have monthly maintenance fees that cover building upkeep, property taxes, staff, and other costs. Be sure that you understand these fees and how they will impact your budget.
4. One feature to note is that co-ops often have strict rules and regulations that govern everything from pet ownership to subletting. Request a copy of the House Rules for any building that you are considering.
5. When buying a co-op consider seeking broker representation as it is at no cost to you. Unfortunately, many buyers do not. Realize that the seller's broker's fiduciary responsibility is to the seller and as such they will be looking for angles in the deal that will be in favor of the seller, not you. A competent broker with experience in NYC housing sales will represent your interests and help you to navigate the intricate process of buying a co-op.
