Author Topic: Question about Selling a Co-op  (Read 1331 times)

AlmstRtrd

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Question about Selling a Co-op
« on: September 21, 2017, 12:20:09 PM »
Hey all you real estate folks. I am selling a co-op apartment in NYC. It's the first time that I have sold property and I don't know the ropes. The place has only been on the market for five days and I've been told by my realtor that an offer is "imminent".

What are the general guidelines for deciding when to accept or reject an offer? If I am not happy with what the prospective buyer is offering, is there a standard way of going about putting them on hold/rejecting their offer? My guess is that if I wait, i will have more than one offer on the place. But, of course, that is never guaranteed.

Sorry this is so vague. I'm so green that I guess I'm not quite sure exactly what my question is. I don't have to sell the place immediately but also don't want it lingering on the market for months.

Many thanks in advance for your help!

alexpkeaton

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Re: Question about Selling a Co-op
« Reply #1 on: September 21, 2017, 09:56:13 PM »
Living in New York myself and having just bought an apartment 1.5 years ago and knowing how crazy it is, I'd guess an offer that quick is probably for your full asking price. Any desirable apartment that's priced reasonably will get offers immediately. In our case the routine was:

  • Make full price offer.
  • Our agent informs us that there are competing offers.
  • Selling agent asks for "final and best offer" by x date and time.
  • Stress out over how much you're willing to pay, and what you think your competitors might be willing to pay.
  • Possibly lose out to a lower but all-cash offer (this happened to us).

Anyway, if you're not happy with the offer you can just reject it or counter with your asking price if you're not willing to budge.

AlmstRtrd

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Re: Question about Selling a Co-op
« Reply #2 on: September 22, 2017, 06:34:29 AM »
Thanks for your succinct and informative reply, alexpkeaton. That was very helpful!

AlmstRtrd

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Re: Question about Selling a Co-op
« Reply #3 on: September 22, 2017, 08:55:29 AM »
Hmm. Six days after listing my place, I just got an offer that is 4% below asking price. A 2nd open house is scheduled for Sunday (9/24). Is it a normal and fair approach to say that I will evaluate any offers on, say October 1st? Thanks for your help!

alexpkeaton

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Re: Question about Selling a Co-op
« Reply #4 on: September 22, 2017, 08:27:13 PM »
I don't really know what's normal as I've only sold one house in my life. But I think it's normal for offers to have some expiration date, so you can't just keep stringing a buyer along while you wait for better offers to hopefully roll in.

When my brother sold his condo in Washington, DC, someone made an offer before he had his first open house. But the buyers stipulated that my brother make a decision on the offer before the open house. Of course, to make it worth taking the unit off the market that quickly, it had to be a strong offer, and it was.

Mind sharing a link to the listing? My wife and I love real estate porn.

AlmstRtrd

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Re: Question about Selling a Co-op
« Reply #5 on: September 24, 2017, 06:25:22 AM »
We bought a co-op in queens (Jackson Heights) in 2000, and sold it in early 2003.   The market was pretty hot then, and we deliberately chose a Manhattan agent from a strong firm (Douglas Elliman) in order to try to attract buyers who would see the value compared to the cheaper Manhattan neighborhoods (we flipped to Queens after being disappointed with what was available/the prices in Hudson Heights and Inwood, which were the only Manhattan neighborhoods we could afford at the time.

We only had one open house, got an offer for about 5% under list (we listed at $285, they offered 270), we countered with 280 and they accepted.  We were on a tight timeline -- only in NY for meetings for a few weeks before returning overseas.  If that hadn't been the case we might have waited to see if we could get higher offers.   But we had listed for more than our agent recommended (he thought we should list at 250-260), so we were happy with 280.   Until the people who bought from us sold for 560 two years later!  So goes NYC real estate....

Anyway, remember that your board has to approve the buyers, and often deals fall through at that stage (we got our place after the board rejected the first buyers).  Ask your agent about whether you can consider backup offers - might be an option.

Good luck!

Those numbers sound about right for that time period. I am in Hudson Heights and the market had a serious run-up from 1998 to about 2005, so, yeah 2003-2005 was a HOT market. It's in another run-up now. The thing that people seem to either forget or heavily discount in NYC is that real estate can crash in a recession. In that area of Manhattan prices fell 50% during the quick recession of the early 1900s and that recession only lasted about eight months. Everyone that I speak to says that this time is different but when prices get up to $1,000 for a square foot, something feels way out of balance to me, especially in an area that requires one to take a long subway ride to get anywhere.

Having a hard time getting the wife on the same page as I am. The way gains, taxes and NYC co-op selling expenses (they never end for those of you unfamiliar with NYC co-ops) shake out, we only get to keep maybe 60 cents on each additional dollar at this point.

Mind sharing a link to the listing? My wife and I love real estate porn.

Ah, let me think about that. Still getting used to seeing our place and things online!