Looking for info on co-ops

[adiampa]

Searching for a small place in New York, I have just come across a perfect apartment. It all looked great, the price was right and I prepared an offer with my broker.. Then she called the seller's broker and learned that in addition to my downpayment, the Co-op board wants to see 3 years worth of mortage + maintanence in my savings account! That comes close to 100K! Is that odd? I can't believe that they would be so strict. I woudl have about 25K left in my account at closing (once my parents add some gifts to it), but 100K, no way. How can this be possible? Who is setting these rules? By the way, I have perfect finances otherwise, stable job, high income, absolutely no debt. Is there anything I can do?

[Carbro]

No. Perfectly reasonable. The board has to know that you will be able to carry your share of the building's expenses. Each co-op has its own standards, and nuthin' you can do about it. They don't even have to tell you the reason if they turn you down.

It's a cold world out there.

[Henna]

I've heard this kind of thing is standard in alot of Manhattan coops - not so much for outer borough coops, but perhaps in the richer areas of Brooklyn/Queens it might be true as well.

[George&Alora]

Being outside of NYC the OP is most likely like I was a few years ago. I came here from Chicago and had Absolutely no concept of coops, and therefore was a little afraid of them.
I'll put your mind at ease. Coops are very common here. And they are no harder to find a buyer for than condos.
Yes, they take longer to get the buyer approved, but buyers know that. It's normal, this is how it goes for a million new yorkers who have bought or sold a coop.
The only thing you have to take into account is that you're paying maintenance- usually from $500-$700 bucks- which allows the building keep it's reserve of cash in case the roof needs fixing or something major goes wrong. (the bldg should have a few hundred thousand $ in reserve)
Maintenance usually includes heat but not electric. (Mine is a great deal at $550 which includes everything)

Bottom line, weigh your pros and cons, but don't be afraid of coops here in ny.

[Henna]

Important to note that the maintenance also includes real estate taxes. In a condo, this would be a separate charge. So in fact even though condos seems like they have lower maintenance, once you add in the real estate tax it often adds up to the same amount as the maintenance for a coop. My maintenance for a very large one bedroom coop is about $475 which admittedly is on the low side (one of the reasons I bought it!)