Coops (sales, real estate market, foreclosure)

[Valera37]

Hi i am new to the board. Can anyone tell me if the prices for Coops will drop next year ? I am looking to purchase a coop in brooklyn midwoon area. Asking price is 197K. Is that reasonable for this neighborhood ? Thanks.

[Henna]

If anyone had a crystal ball for the real estate market, I think we would know that by now. If anyone DOES tell you YES or NO, be aware this is their opinion only on an anonymous board. Are you really going to trust someone who says they know such a thing? I wouldn't.

You can check past sale prices of coops in that area by going on propertyshark.com.

[Viralmd]

You didn't say how big the place was, either...it's hard to know whether something is reasonable without any description of the property.

[Valera37]

The property is well renovated with all new appliances. Its arount 850 sq feet.

[Viralmd]

Again, very little information: is it pre-war, post-war? one bedroom? Studio? Impossible to say with the information you've provided.

[Henna]

another extremely important detail is the monthly maintenance. If it's on the high side, the asking price usually has to drop to compensate for this. Also, I know that in my neighborhood, the value of a coop depends greatly on the particular building it's in. Some well-cared for buildings with nice reserve funds and maintenance charges that don't go up every year are going to be valued higher than the opposite kind of building.

Buying a coop is a complicated business. The value of it is not always clear until your lawyer starts digging into the building finances and info provided by the managing agent. however, that said, a quick look at recent sales in the building should tell you what people have been paying during the past 3 years. This info should help you significantly.

Just to make sure - you do know the difference between a coop and a condo?

[scatman]

As was said, one may want to be aware of the coop's finances. Also, if a coop allows you to put down less than 10%, you may want to question it. Most coops want 20% (some want 30%), and a <10% down may mean the coop needs units filled or its finances may be a problem. I'm not saying don't buy it, but at least question it!

[Viralmd]

Some Manhattan co-ops don't allow mortages at all...It varies, from building to building. Your attorney needs to have someone pore over the minutes of the board meetings to really sort out what's going on in a building.

[Henna]

Originally Posted by Viralmd

Some Manhattan co-ops don't allow mortages at all...It varies, from building to building. Your attorney needs to have someone pore over the minutes of the board meetings to really sort out what's going on in a building.

That's funny, I always assumed when a coop wouldn't allow a mortgage that was a bad sign that the coop was in bad financial health - meaning that they knew a bank wouldn't give a mortgage to someone buying in that building (too risky for the bank).

I never realized that the opposite may be true, that the coop wants to make sure the new resident does not pose the risk of having a foreclosure (if there's no mortgage there can't be a foreclosure).

[Alan B 718]

Originally Posted by Valera37

Hi i am new to the board. Can anyone tell me if the prices for Coops will drop next year ? I am looking to purchase a coop in brooklyn midwoon area. Asking price is 197K. Is that reasonable for this neighborhood ? Thanks.

where exactly in midwood. what are the amenities, is it near the train, does it give you a parking spot, is it really MIDWOOD and not east flatbush. how many rooms, whats the maintenece?
Also, brooklyn is kinda the X-Factor with the realestate. there are 1000/sqft condos still being sold for 700k. business is still going strong, new constructions are still popping up all over. its really hard to tell if prices in brooklyn will drop next year, if at all.