Sponsor Unit Offer - Coop . Starting offer? (wood floors, for sale)

[Propertyvirgin]

I'm a first time buyer and am seriously thinking about making an offer on a sponsor unit that just came on the market. (The wood floors aren't even sanded and polished yet) Comparable units sold for 245-255K in 2005. This is Kew Gardens , Queens, NY. (Couldn't find many comparable for the block as it's mostly houses) Unit is in pretty good condition, brand new kitchen, and new floors , sides in the bathroom. 10 foot ceilings too. (love the prewar features!)

There's a transfer tax of approx 7,500. and it's non negotiable. They're asking 285K and the unit is approx 1050 sq feet.

I'm trying to decide what is a proper offer in order to be taken seriously. I have a feeling it would be a hot property since it's a sponsor unit and it's rather nice. (spacious feeling , newly renovated nice neighborhood) When you're dealing with a sponsor unit, is starting off at 15% too low? I'd love to end up at 10% below the asking price but I don't know if that's realistic. I would probably start off at 10% off asking price, but there is that transfer tax and it should be taken into consideration right?

Any advice would be helpful!

First time buying is definitely nerve wracking!

Thanks !

E

[Henna]

Have you looked up the address of the building in propertyshark.com to make sure there haven't been any sales since 2005? If it's a large building I am surprised that no one has sold in 3 years. Though one caveat is that you won't necessarily know any details about the units that have sold (condition of the unit, renovations, view, difference in maintinence, size) -- that is, unless you can tell by the unit number which "line" it is in and which floor it's on.

Also, what is the maintenance? Is it in line with other apartments in the area?

It sounds like a good deal to me.

There was a weird story with a sponsor unit last year in my bldg- the unit was in horrendous condition, really unliveable, but the bones were great and the bldg is very nice. I had a friend who was interested and she spoke w/ somoene from the managmenet office. First they told her the price was $240K with no renovations. I can't remember the exact details but when she checked in with them again a bit later (maybe a few weeks?) they told her the unit was sold. I happened to know this was a lie, since I live here and know the realtor who eventually sold it to someone else a few months later.

This is PURE speculation, but I had this idea that the sponsor realized after telling her that the price was $240K that they thought they could get much more for it and instead of just telling her the price had gone up, they said it was unavailable. Who knows, there could have been many other reasons. In the end, a few months later, it ended up closing for $245K.

Another story is that a different friend made an offer on another sponsor unit in the neighborhood that went absolutely nowhere. I am not sure if the sponsor just preferred not to sell - but they are legally required to list the unit on the market -- or what. She made the offer, it was not accepted and the unit continued to be vacant and for sale. It probably still is.

I also had my own weird story with a sponsor (this was in Brooklyn in 2005) where the apt. was listed for $216K - and I was told by the agent that only a full offer would be accepted. I offered the full amount. A month went by and all the sudden the price jumped to $245K - and only a full offer would be accepted. For totally unrelated reasons I did not end up pursuing the deal but it just makes me think dealing with a sponsor is a whole different animal than dealing with a seller who is most likely going to be more interested in making a deal.

But - fyi, it's worth ALOT not to have to go through board approval!

[Propertyvirgin]

Good warning.. I'll try not to get my hopes up then in dealing w a sponsor unit. But not having to go through board approval would be such a plus.

There are units that sold in 08, one possible 2 bedroom sold for 260K. but since it's not on the same line, I can't be positive it's a 2 bedroom. The ones that are on the same line, were bought in 2005 , for 245 to 255K. and correct, who knows the condition of the other apartments sold.

Maintenance is around 80 , 100 more than alot of your average 2 bedrooms in the kew gardens forest hills area.. $850 not including electricity. But, the places that are around $750 are mostly 900 sq ft and under.

I'm feeling like it's a decent deal too. Think we'll make an offer.... just not sure how much. Maybe offer 255K and be okay if negotiations end up at 265, 270K, depending on how many offers are out there.

Doubt I can trust the realtors involved to be honest on the number of offers and the price I should offer.. which is why I'm trying to come upon the starting price.