Anyone sold a NYC coop yourself, without a broker? (middle-class, for sale by owner)

[erezz]

Obviously, people do this all the time, but I was wondering how it works, especially with a coop apartment. I was just thinking of floating the idea, with maybe online ads for a couple of weeks, to see if there’s any interest, and I have a good idea of a price range, based on recent sales in my building.

But I’m wondering about things like:

-Although you can’t turn people down for specific anti-discrimination categories, what if there’s someone who you don’t want to deal with, or know the board will reject him?

- If someone isn't likely to be approved, how do you break that news?

-What if you get several interested people - or you want to wait until you get more than one? If you have an open house and a few people are interested, how do you juggle that?

- Of course the building would have a formal application packet, but I gather a broker would use some kind of preliminary application if someone expresses interest – it there some kind of standard Blumberg form for the first step? I'm guessing sellers do a basic assessment to see if the person is likely to get Board approval. I think brokers ask some financing questions.

- Any lawyer recommendations? And at what point does the lawyer get involved?

I know – I’m such a novice I probably shouldn’t attempt it, but any suggestions would be appreciated.

[DelightfulNYC]

Originally Posted by erezz

Obviously, people do this all the time, but I was wondering how it works, especially with a coop apartment. I was just thinking of floating the idea, with maybe online ads for a couple of weeks, to see if there’s any interest, and I have a good idea of a price range, based on recent sales in my building.

But I’m wondering about things like:

-Although you can’t turn people down for specific anti-discrimination categories, what if there’s someone who you don’t want to deal with, or know the board will reject him?

- If someone isn't likely to be approved, how do you break that news?

-What if you get several interested people - or you want to wait until you get more than one? If you have an open house and a few people are interested, how do you juggle that?

- Of course the building would have a formal application packet, but I gather a broker would use some kind of preliminary application if someone expresses interest – it there some kind of standard Blumberg form for the first step? I'm guessing sellers do a basic assessment to see if the person is likely to get Board approval. I think brokers ask some financing questions.

- Any lawyer recommendations? And at what point does the lawyer get involved?

I know – I’m such a novice I probably shouldn’t attempt it, but any suggestions would be appreciated.

Actually easier to sell it yourself in some ways.

I have done it.

First the biggest buyer pool in a coop are people in building themself. Make sure you post laundry room, lobby, coop website, telephones poles, train by building. Do an open house if possible.

Also Zillow and Craigs list are good places to advertise for free.

A lawyer is not involved till you get a oral offer you agree upon. You should already have a lawyer in mind so you can give prospective buyer your lawyer info and tell them to have their lawyer call your lawye.r

You dont turn anyone down as a for sale by owner. You take offers and ask questions. The one you like you say yes.

For instance I had a tie offer for best offer. One was a single 29 year old CPA accountant with no pets. The other was a realtor who was buying it not as a realtor but for herself and her 90 year old Mom but then said she really wont live in unit as she is on title only for financials reasons and when her Mom passes away.

The 29 year old actually was paying cash to boot and had references from a few good people.

I just never got back to the realtor and her Mom too fishy. Plus the 29 year old was a clean cut good looking guy who had a big four job where he worked 12 hour days. The board loves that.

Some weirdos came. My favorite a DJ who works off the books but buying with his girlfriend who he is not married too but loved the acustics in my living room as

[Wells5]

Is this a multi-million dollar co-op on the UES or UWS originally designed as a co-op and not converted from an apartment building? If so, hire a professional realtor and leave them to handle all of the details. Note: Broker commissions are negotiable even in NYC. See link.

Brick Underground


If it's a converted apartment in Brooklyn, the LES or the other boroughs and reasonably priced, then go ahead and put it up for sale yourself and don't worry about the other tenants.

Google "FSBO marketing plans" for info on the how to go about selling your co-op.

[erezz]

Originally Posted by DelightfulNYC

Actually easier to sell it yourself in some ways.

I have done it.

First the biggest buyer pool in a coop are people in building themself. Make sure you post laundry room, lobby, coop website, telephones poles, train by building. Do an open house if possible.

Also Zillow and Craigs list are good places to advertise for free.

A lawyer is not involved till you get a oral offer you agree upon. You should already have a lawyer in mind so you can give prospective buyer your lawyer info and tell them to have their lawyer call your lawye.r

You dont turn anyone down as a for sale by owner. You take offers and ask questions. The one you like you say yes.

For instance I had a tie offer for best offer. One was a single 29 year old CPA accountant with no pets. The other was a realtor who was buying it not as a realtor but for herself and her 90 year old Mom but then said she really wont live in unit as she is on title only for financials reasons and when her Mom passes away. The 29 year old actually was paying cash to boot and had references from a few good people.

I just never got back to the realtor and her Mom too fishy. Plus the 29 year old was a clean cut good looking guy who had a big four job where he worked 12 hour days. The board loves that.

Some weirdos came. My favorite a DJ who works off the books but buying with his girlfriend who he is not married too but loved the acustics in my living room as

No, nothing flashy. Just a small apartment in an ordinary middle-class building.


Interesting about posting internally. I've been avoiding that on purpose, because I' leery of my nosy neighbors, including the board president.


DelightfulNYC, did you just get verbal offers, or make them fill something out initially, or what?

[erezz]

I'm really surprised that more people haven't gone through the FSBO process (either buying or selling a coop), but here's another question to add in.

I was startled at the brokers who asked about a 3% fee for a co-broke, apparently hoping for a five-figure fee for clients who don't want to read ads themselves, and for a few hours of doing paperwork. Has anyone run into that?

By the way, DelightfulNYC, I sent you a PM, but maybe it didn't go through.

[berniekosar19]

Originally Posted by erezz

I'm really surprised that more people haven't gone through the FSBO process (either buying or selling a coop), but here's another question to add in.

I was startled at the brokers who asked about a 3% fee for a co-broke, apparently hoping for a five-figure fee for clients who don't want to read ads themselves, and for a few hours of doing paperwork. Has anyone run into that?

By the way, DelightfulNYC, I sent you a PM, but maybe it didn't go through.

Since you've never sold a co-op before, all I can tell you is that it takes a whole lot more work than what you described to get an apartment in a co-op sold. If you think that creating a board package, getting the buyer's mortgage process run smoothly, delving through comps to come up with an offer, inspections, negotiations, etc etc only take a few hours, you're nuts.

[tonyhoward255]

Originally Posted by berniekosar19

Since you've never sold a co-op before, all I can tell you is that it takes a whole lot more work than what you described to get an apartment in a co-op sold. If you think that creating a board package, getting the buyer's mortgage process run smoothly, delving through comps to come up with an offer, inspections, negotiations, etc etc only take a few hours, you're nuts.

even if it takes the listing agent 50 hours to sell the NYC coop and complete board package, the average NYC real estate commission is $60k. So $1,000 per hour? The best lawyers and doctors in NYC don't charge anywhere near that amount per hour !

if you google nyc discount full service listing agent, you can definitely find a full service agent who will work for 1%. No need to pay 6% imo.

[tfysher112]

Originally Posted by berniekosar19

Since you've never sold a co-op before, all I can tell you is that it takes a whole lot more work than what you described to get an apartment in a co-op sold. If you think that creating a board package, getting the buyer's mortgage process run smoothly, delving through comps to come up with an offer, inspections, negotiations, etc etc only take a few hours, you're nuts.

The most difficult part is by far the board package. If you are selling without a broker and your buyer is unrepresented, you as the seller will need to take ownership of the purchase application process. Submitting a sloppy, incomplete or otherwise board application could severely harm the chances of your buyer being approved by the board. There are some good tips online here: NYC Coop Board Package Purchase Application - Instructions, Tips, Tricks

At the end of the day if you feel overwhelmed by the board application process then I'd suggest you hire a broker, whether it's a full-service broker or someone who charges a reduced fee (like a discount full service broker)... don't risk the actual execution of your deal to save a bit of money!