Author Topic: It's all done (NYC sale)  (Read 3909 times)

OzzieandHarriet

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It's all done (NYC sale)
« on: April 07, 2014, 07:43:25 AM »
We finally sold our NYC apartment. For anyone contemplating buying and then selling in NYC, the selling process took about 8 months with a cash buyer with sterling credentials -- about 6 months to get a contract (with two price drops) and then 2 more months to get board approval and schedule the closing. Closing costs were about 10%, and we sold for $50k less than we paid.

We deposited the checks, set up an investment account at Vanguard with most of the money, and set aside the rest in a savings account to pay the taxes. Cancelled ConEd, insurance, and bill pay for the monthly maintenance, so that's ~ $1,000 a month we won't be paying now.

I also filed all our tax returns and paid estimated taxes for the first quarter and set up autopay for the other three payments.

We were quite sad to leave the place behind, but it's also liberating. It was a stupid decision to buy it in the first place, but live and learn. At least we didn't lose too much money on it. I just hope the market for that type of apartment doesn't suddenly get hot now! But I'm going to try not to look back.

AlmstRtrd

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Re: It's all done (NYC sale)
« Reply #1 on: April 07, 2014, 08:50:06 PM »
Hey OzzieandHarriet, Sounds like you sold a unit in a NYC coop building, correct? I will be going through this in a few years and am not looking forward to it. And when you say "closing costs of 10%" are you including a 6% fee to a realtor? Thanks.

OzzieandHarriet

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Re: It's all done (NYC sale)
« Reply #2 on: April 07, 2014, 09:22:16 PM »
Yes, it was co-op, and the 10% includes the agent's commission, plus legal fees, flip tax, etc.

We didn't live there, btw. It was an investment (and a poor one, at that!).

AlmstRtrd

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Re: It's all done (NYC sale)
« Reply #3 on: April 07, 2014, 09:29:03 PM »
Sorry this one didn't work out but I appreciate you sharing. Yesterday I just started looking at all the costs associate with selling our coop and I felt many thousands of dollars poorer. I found myself mentally pushing our retirement date back a year or so. Everyone has a stinker of an investment here and there, though we usually only hear about the winners.

OzzieandHarriet

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Re: It's all done (NYC sale)
« Reply #4 on: April 09, 2014, 07:42:57 AM »
Selling any real estate costs about 10% if you use an agent -- it's not just New York. So it's just something to factor into the cost of owning.

tryan

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Re: It's all done (NYC sale)
« Reply #5 on: April 10, 2014, 09:23:44 AM »
Sorry for your loss !

How long did you own it .... I thought the city was a "hot" market.  Guess I am surprised.


KingCoin

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Re: It's all done (NYC sale)
« Reply #7 on: April 10, 2014, 06:53:28 PM »
Sorry for your loss !

How long did you own it .... I thought the city was a "hot" market.  Guess I am surprised.

The high end is extremely hot, with prices averaging $3,500/sqft (not a typo) in some new constructions:
http://www.bloomberg.com/news/2014-04-08/lower-manhattan-condos-rival-midtown-s-luxury-skyscrapers.html

The problem with these ~$250,000-400,000 studio co-ops is that there's no natural buyer. Young, mobile people age 22-27 usually don't have $50-80k to plop down as a down payment (unless they're bankers or lawyers in which case they usually have their sights on a more ambitious property).  28-35yos are usually thinking about a family and need more space. Investors, foreign buyers, and even pied-e-terre buyers are often banned or chased away by restrictive co-op rules. So who's left? You might be able to nab a retiree of somewhat modest means or a childless couple that doesn't really care about space.

OzzieandHarriet

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Re: It's all done (NYC sale)
« Reply #8 on: April 10, 2014, 07:48:57 PM »
Our buyer was a young person just starting out with a good job and generous parents. She wanted a modest place she could afford on her own after getting the parental help, and I guess this fit the bill.

Solo

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Re: It's all done (NYC sale)
« Reply #9 on: April 20, 2014, 08:10:41 AM »
Sorry for the loss, but congratulations on the sale. I'm actually dealing with selling a coop studio right now. The closing fees will be 11% due to the buyer having an agent as well (+1%). I'm keeping my fingers crossed it doesn't take long to get to the finish line, since they already signed the contract and they too are paying cash. The only thing between me and a sale at this point is the board. I remember it took me about six months to purchase the place from offer to closing (that was 13 years ago), but I also financed it.

I too started to worry that the market would heat up, especially after just reading an article in the NY Times about buyers with 1MM and nothing available, but as my father (wisely, imho) told me, you can't put a price on peace of mind. I don't need the ongoing financial and mental cost of owning a place that has little-to-no influence on my life other than to guarantee that it'll take a big chunck of change from my checking account each month. I'll gladly invest that money into something with more liquidity and flexibility, and less emotional baggage.

OzzieandHarriet

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Re: It's all done (NYC sale)
« Reply #10 on: April 21, 2014, 11:15:52 AM »
Sorry for the loss, but congratulations on the sale. I'm actually dealing with selling a coop studio right now. The closing fees will be 11% due to the buyer having an agent as well (+1%). I'm keeping my fingers crossed it doesn't take long to get to the finish line, since they already signed the contract and they too are paying cash. The only thing between me and a sale at this point is the board. I remember it took me about six months to purchase the place from offer to closing (that was 13 years ago), but I also financed it.

I too started to worry that the market would heat up, especially after just reading an article in the NY Times about buyers with 1MM and nothing available, but as my father (wisely, imho) told me, you can't put a price on peace of mind. I don't need the ongoing financial and mental cost of owning a place that has little-to-no influence on my life other than to guarantee that it'll take a big chunck of change from my checking account each month. I'll gladly invest that money into something with more liquidity and flexibility, and less emotional baggage.

Exactly the conclusion I came to.

And people with 1 million to spend wouldn't want to buy a place like the one we just sold.

Just wanted to add: In addition to not having the responsibility and uncertainty of owning the place, having all that extra money now invested is providing much peace of mind.
« Last Edit: April 21, 2014, 11:19:50 AM by OzzieandHarriet »