วันเสาร์ที่ 18 พฤศจิกายน พ.ศ. 2560

Buying a Cooperative Apartment Means Asking a Different Set of Questions

There is, on the surface, very little difference between a condo and a cooperative apartment; that is, until you prepare to buy one. The unique form in which cooperatives are owned requires a buyer to be aware of the subtle but important distinctions and prepared to ask a different set of questions.

You should start out buying a cooperative by collecting the same information as when buying real property. Hire a professional to check the physical condition of the unit you will be occupying but also ask for his expert opinion of the overall condition of the building. Depending on the age of the structure and your family situation you may want to arrange a lead paint test. The financial health of the cooperative is paramount so request and review the same documents you would before purchasing a condo - the current budget, balance sheet, and board minutes for the past six months or so. Look also at the pattern of monthly fees over the previous few years. Frequent increases or extra assessments may indicate a pattern of poor management.

There are other questions that are unique to cooperative membership. What is the equity structure of the cooperative? As discussed in Part One, there are three types, market rate, limited equity, and leasing or zero equity. Ask about your own equity participation and that of other members. Is there an underlying mortgage on the property and if so, who holds that mortgage and what is the balance?

Read through and understand the rules that govern the building, especially those that regulate how you may use your unit. Must you occupy it or can you sublet? Is there a limit on the length of a sublet? Does the building ฝากขายบ้าน allow children and/or pets? (This may be particularly important should you wish to sublet.) Are there any quirky little rules such as the hours laundry equipment can be operated or the types of window coverings permitted? Can an individual unit be remodeled or renovated without board approval? If not, how involved is the approval procedure?

Judging the true value of a cooperative apartment share is a little trickier than making that determination of a house or condo because of the legal structure and the influence of joint ownership both on the operation of the building and its culture. As with most real estate, the best guide is the "comps" or comparable sales. Check for recent shares sold in the building and the selling price. What is the asking price for any shares currently for sale? If possible find out how long the shares took or are taking to sell. In a stable building (which is a good thing) there may be few if any comps so you will have to look at similar buildings in the vicinity. Here a good real estate agent can be helpful as he or she will know the buildings beyond the dry information in listing descriptions and sales records and can provide data on truly relevant transactions.

Finally, try to talk to people who live in the building. Are they satisfied with building operations? Are problems dealt with quickly and efficiently? How flexible is the board when it comes to approving sales of shares or to negotiating reasonable exceptions to rules?

The biggest difference in buying into a cooperative apartment in New York City is the method of financing it. That will be addressed in a later article.


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