Category Archives: Co-ops

BuyingtipsforManhattanproperty, Co-ops, Historic district, Upperwestside

What is it like to buy a co-op on the Upper Westside in NYC?

Co-op Board Process

In this post, we will discuss the Co-op Board process for a typical upper west side building on Manhattan’s upper west side. When you have already found an apartment and are in contract, you will begin two processes- your loan application and your co-op application. We will give an overview of the 2nd process.

You will prepare documents to submit to the Building’s management. This will include reference letters-both personal and professional as well as a financial statement with supporting documents, many disclosures, and even a landlord or management reference letter. Once you have prepared these documents, they will be uploaded to a portal or if the management is still in love with paper, you will be dealing with paper.

When you have everything prepared you can submit it to your real estate broker who will review it and help to present it in the best possible light. The seller’s broker as per protocol will review as well and make suggestions to your real estate broker.

In NYC co-ops, management will review the submitted package and then will request clarifications or missing documents. This process of management review for a co-op will likely take about 2 weeks depending on the building. Then it goest to the Board of Directors.

On the Upper West Side, it depends on the building as to what will be evaluated by the Board. Is the building a small, non-doorman building or a historic, architecturally significant residence on Central Park West? Some buildings will be flexible with the usual guidelines and some will be more rigid. Speak to your Broker prior to submitting an offer to understand the guidelines. In general, Boards in cooperatives would like to see 20-25% down payment, 28% Debt to income ratio, and 2 years of post-closing reserves. Long term debt like cars or student loans will be factored in. If your monthly mortgage and maintenance is projected to be $5000 then showing $120,000 in your Chase account after allocating your down payment will be ideal.

Advanced tips
Pay off your credit card debt
If you are short on Post-closing reserves, ask Mom or Dad for a gift to cover those reserves. You can return the money after closing.
Reference letters should be from people that know you very well and should speak about how they know you and why you would be an ideal addition to your prospective co-op
Get your Board application in as soon as possible especially if you are trying to move by a certain time as in when your NYC lease expires.

Hopefully, the Board will then ask you to come in for an interview. In most cases, you are probably on your way to becoming a shareholder. But still treat it like a professional interview and do not offer more information than you are asked.
In the case where you are turned down, unfortunately, there is not too much you can do but little known fact, you can re-submit your application especially if you can get some intel as to why the rejection.

Buying an Upper West Side cooperatives can be a challenge especially when inventory is low, but putting together a good Co-op Board application can really help you to increase your odds of approval. Be patient with the process and you will make it through.

About the Author
Brian Silvestry is a licensed real estate broker on Manhattan’s Upper West Side. He has been licensed since 1999 and lives on the Upper West side since 2004.

Buying tips for your NYC apartment, Co-ops, Condos, Manhattan

How is a Manhattan co-op different from a condo part 3?

In this continuing series we will take a look at a couple more differences between co-ops and condos.

1- Co-ops tend to be located in prewar buildings while condos tend to be newer, shinier and more full of amenities. So if you love prewar lobbies, crown moldings and other details of prewar buildings, you probably will be looking at more co-ops. Almost all new offerings in the last 10 years plus are condos so condos tend to satisfy the wants of Manhattan buyers who are looking for newer buildings with amenities like swimming pools, roof decks, bowling or golf simulators. Some co-ops will have nice amenities as well but very few co-ops have been built in the last 20 years or so.

2- If you are a foreign national or US based investor, condos will most likely be your choice. Co-ops tend to examine a plethora of documents as previously mentioned including US credit. Since a co-op can turn down someone without providing a reason, if you are foreign national purchasing as a primary residence or a pied-a-terre, your safer bet will be a condo. Also, if you are purchasing for investment, almost all co-ops will require you live there first then there will be restrictions for how long you can rent.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Buying tips for your NYC apartment, Co-ops, Condos, Manhattan

Manhattan co-ops versus condos part 2

There are many differences between Manhattan co-ops and condos and in this series we take a look at a couple at a time.

1- Condos typically let you rent your apartment out without limit. So if you experience a job change and do not want to sell, you can rent out the apartment without an issue. In a co-op typically, you can rent out 2 of 5 years and then need to move back or sell.

2-Co-ops normally have higher monthly carrying charges than condos but lower prices. For example a 2bd/2ba co-op on the upper west side of about 1100 sqft might cost you  $1.5 million and have monthly charges of about $2900. A similar condo might run you $2.1 million but the monthly charges might only be $2000.

Price differences, and ability to rent out are just two differences of the many between co-ops and condos in Manhattan.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Co-ops, Condos, Manhattan, Real estate

What are the main differences between a NYC co-op and condo part 1?

This is the first in a 3 part series of the differences between Manhattan co-ops and condos. 

There are many differences between a Manhattan co-op and condominium and in this first installment we will explore 2 of them.

1- Co-ops can turn down the application of a prospective purchaser without any reason given and that’s it, the buyer can not complete the purchase.  Any fees or costs incurred are not reimbursed and that’s it. A condo grants a waiver of the right of first refusal when they take an application from a prospective purchaser. The only time that they may exercise the right of first refusal is when an apartment is being sold far below market. Instead of letting the sale go forward, they can purchase the apartment.

2- Co-ops more closely scrutinize the financial wherewithal of prospective buyers than condos. So you need to have a down payment of 20-25% plus a debt to income ratio of no more than 28% plus stable job history, and excellent credit. A condo may run credit but they are satisfied with you obtaining a loan commitment or purchasing cash. They are not going to turn you down because you do not make enough money.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Co-ops, Condos, Real estate, Selling tips

Is a renovation necessary to sell your Manhattan property?

Many times, prospective sellers ask if a full or partial renovation will help them to sell their Manhattan apartment? It really depends on several factors.

1-What is the competition like at your price point,neighborhood and building?

2-What is the age of your kitchen, bathrooms and flooring.

3-How long will the renovation take?

4- How much will the reno cost?

5- What is your current market value completely as is?

Let’s look at each one by one.

Competition- If there are several properties for sale that are similar to yours and many of them are renovated, you might have no choice but to do some work in your Manhattan pad before selling. However, if there is a shortage as can be the case for 2 bedroom/2 baths under $2 million for example,  the prospective buyer probably will be willing to do the work themselves.

Age of kitchens and bathrooms. If it’s been 30 or more years since the last renovation, you probably will benefit by doing the renovation. If it’s only been about 10 years then the answer is not as clear. Talk to your real estate broker to get an idea of how the apartment will be perceived by a prospective buyer given the age of the renovations.

Length of time for renovation to be completed-If it’s going to be a one year process due to building approval and contractor availability, it might be wise to forego it or scale it down a bit so that it can be completed in less time. Also, timing is an issue here. If the renovation completion date puts you right in the middle of the December holiday season, it might not be the best time to start marketing.

Cost of renovation- If you decide to complete a 6 figure renovation, it might or might not lead to a dollar for dollar return. It most cases it does not. For example if you have a studio apartment of 600 square feet with a value of around $800,000, a renovation of the kitchen, bathroom and flooring of around $50,000 may return dollar for dollar and also lead to a quicker sale. However, a $100,000 reno on the same apartment probably will lead to a quicker sale but not return dollar for dollar.

Sell as is? When you sell as is, you do not complete any renovation and just sell what you have. What you see is what you get and in some cases this might even be the best strategy depending on the above factors and your personal situation. Consult with your real estate broker.  Normally, they can recommend a good contractor to do work if that is needed as well as advise you as to what will yield a return and what will not.

If you examine your current market value as is, then you can see if it makes sense to do a renovation, knowing the cost and time involved. For example if the current market value is $2,500,000 and you want to do a $500,000 renovation that will lead to a $3 million sale, it obviously does not make sense. But also consider the time of the year now, market conditions and the time of the year when the renovation has been completed. The purpose of any renovation, large or small prior to selling your Manhattan property is to widen the buyer pool, and make it easier to sell and this has to lead to at least a dollar for dollar return, otherwise save your money and sell as is.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

 

Buying tips for your NYC apartment, Co-ops, Condos, Townhouse

Understanding buyer due diligence on a Manhattan residential purchase

Once a contract is sent out, the buyer’s attorney and associates do their due diligence. What exactly happens?

The buyer in the purchase of a Manhattan condo or co-op will examine the last 2 years financials, the original offering plan, any amendments to the offering plan, board application package, house rules and may even read the minutes of the Board of Directors meetings.

When I almost purchased a co-op on the Upper east side, my CPA actually reviewed the building financials and told me that the building was losing money and my maintenance will increase over time sharply and advised me not to buy. So your attorney or even your CPA will try to steer you clear of any building with finance issues at the least.

Also when they look through the rest of the building documents they are looking for any hint of a major expense on the horizon or perhaps a troublesome neighbor. They may even send their own questionnaire to the building management. I have seen this done by one attorney.

If you were buying a townhouse, they would look at the certificate of occupancy to see if it is consistent with the current layout as well as any inspections that you may have conducted that would turn up any major potential expenses that you may incur like a roof, or mechanical systems.

During this period of time, they will review the contract sent by the seller’s attorney and will also make comments or add a rider to the contract to best protect your interests.

Typically, the due diligence period will take about a week or so, and once completed the lawyer will give their approval/advice to you as the buyer so that you may sign.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Buying tips for your NYC apartment, Co-ops, Condos

Differences between co-ops and condos part 3

In this continuing series we will take a look at a couple more differences between co-ops and condos.

1- Co-ops tend to be located in prewar buildings while condos tend to be newer, shinier and more full of amenities. So if you love prewar lobbies, crown moldings and other details of prewar buildings, you probably will be looking at more co-ops. Almost all new offerings in the last 10 years plus are condos so condos tend to satisfy the wants of Manhattan buyers who are looking for newer buildings with amenities like swimming pools, roof decks, bowling or golf simulators. Some co-ops will have nice amenities as well but very few co-ops have been built in the last 20 years or so.

2- If you are a foreign national or US based investor, condos will most likely be your choice. Co-ops tend to examine a plethora of documents as previously mentioned including US credit. Since a co-op can turn down someone without providing a reason, if you are foreign national purchasing as a primary residence or a pied-a-terre, your safer bet will be a condo. Also, if you are purchasing for investment, almost all co-ops will require you live there first then there will be restrictions for how long you can rent.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Co-ops, Condos, Real estate

Differences between co-ops and condos part 2

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There are many differences between Manhattan co-ops and condos and in this series we take a look at a couple at a time.

1- Condos typically let you rent your apartment out without limit. So if you experience a job change and do not want to sell, you can rent out the apartment without an issue. In a co-op typically, you can rent out 2 of 5 years and then need to move back or sell.

2-Co-ops normally have higher monthly carrying charges than condos but lower prices. For example a 2bd/2ba co-op on the upper west side of about 1100 sqft might cost you  $1.5 million and have monthly charges of about $2900. A similar condo might run you $2.1 million but the monthly charges might only be $2000.

Price differences, and ability to rent out are just two differences of the many between co-ops and condos in Manhattan.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Buying tips for your NYC apartment, Co-ops, Condos

Differences between a Manhattan co-op and condo Part 1

There are many differences between a Manhattan co-op and condominium and in this first installment we will explore 2 of them.

1- Co-ops can turn down the application of a prospective purchaser without any reason given and that’s it, the buyer can not complete the purchase.  Any fees or costs incurred are not reimbursed and that’s it. A condo grants a waiver of the right of first refusal when they take an application from a prospective purchaser. The only time that they may exercise the right of first refusal is when an apartment is being sold far below market. Instead of letting the sale go forward, they can purchase the apartment.

2- Co-ops more closely scrutinize the financial wherewithal of prospective buyers than condos. So you need to have a down payment of 20-25% plus a debt to income ratio of no more than 28% plus stable job history, and excellent credit. A condo may run credit but they are satisfied with you obtaining a loan commitment or purchasing cash. They are not going to turn you down because you do not make enough money.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Co-ops, Listings

211-02 73rd avenue 1 bedroom Bayside Co-op $179,000

A 1 bedroom apartment in Windsor Park has entered the market asking a modest $179,000. The apartment which has a renovated bathroom, galley kitchen, dining alcove and spacious bedroom with two exposures is located on the top floors and faces 73rd avenue(North). It is adjacent to Cunningham Park, two express buses to Manhattan, and a shopping center as well as the Windsor Park Pool and Tennis club.

Storage and parking are available in the community which converted to co-op in 1983. Showings have begun.

Listing info and floor plan