About Bronx County, NY

Buyer 101: Coops-Sponsor Please…. or Not?

Ok you did all your research, COOP vs. Condo, and decided a Coop apartment is for you!

You also have the cash credit and income to buy at a certain price. So all you have to do is find an apartment in an area you find comfortable.

Is it that easy? No quite that easy.

Board Approval Units

In general, most Coops utilize the board approval process. To put it simple, the board’s job is to screen potential Buyers. In some cases having a board is good in other cases it is bad. You can pass the Board very easily or you could be rejected for financial reasons and/or personal conflicts with the board members.

Pros-Screen tenants, more units are available because they are resales so more selections, a good board usually selects good neighbors

Cons-A difficult board may reject you even if your qualified, are sometimes not renovated by owners

Sponsor Units

Some people find the Board approval process unpleasant. So those people may purse what we call Sponsor Units. These units do not have Board Approval Process. The units are being sold for the 1^st time by the development that sponsored the conversion from rentals to a Cooperative. Typically, if you get a mortgage you get the apartment. That sounds great? It is a definite option to the Board Approval Process.

Pros-Less picky, you get the mortgage you get the unit, sponsor usually does complete renovation.

Cons- some back will not lend depending on % of owned units, sponsor is less selection than board

View My Coop Blog Below and Upcoming Blogs

Buyer 101: COOPS -Who's Your Foe, The Board or The Banks?

Upcoming blogs

"the pros and cons of the board approval process"
"Coops vs. Condo"

Milton D. Johnson
Licensed Associate Real Estate Broker
www.milton4realestate123.com
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Rant & Rave: Builders of Tomorrow?

But many years ago and every now and then today, a builder actually has a vision of maximizing light, space and overall beauty of a home in addition to how one room flows to another.

We all have our strengths and weakness. Unfortunately for many builders today, weakness is their strongest attribute.

They call themselves builders because they have the money any can hire people to put together “homes” (using the word loosely). They insult people intelligence with ridiculous prices for tiny homes. I know your all guessing, Hmm, does he like builders. Actually I do some will not buy land that the can not build a decent size house. Of course their motivation is that a larger home is easier to sell. But at least those builders are on the right track

So my advice builder is “build with care, build as if you would live there.”

Then you product would sell easier and agents would find better buyers for you.

Motivated from a Blog by "Home That Leave You Speechless" by Catherine Paris

Milton D. Johnson
Licensed Associate Real Estate Broker
www.milton4realestate123.com
www.facebook.com/milton4realestate123
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Is An All Cash Deal Good For You?

The investors that I use buy properties all cash , in 30 to 45 days, no mortgage contingencies, in all 5 Boroughs of New York City. Offers are made within 48 hours.

Homes

Is your property in need of of a tremendous amount of repair?
Is your property fire damaged and your unable to make the repairs?

Foreclosure

Are you behind in mortgage payment and close to foreclosure?
Do you want to step away from the property with money?

Lots

Is your land is vacant or has a garage?
Do you have 1 more more lots next to your home that you are willing to sell?

Contact me for a FREE Evaluation or if you need to know if all cash deal is good for you.

www.milton4realestate123.com
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Buyer 101: COOPS -Who's Your Foe, The Board or The Banks?

This is a great question to ask while the mortgage turmoil is occurring across the US.Prior to the turmoil Coop Boards were typically harder to get an approval from, much harder than than banks. Well, as of Fall 2009 the banks are taking the lead and are making COOP buyers work even harder to get a mortgage commitment.

COOP REQUIREMENTS

If you are interested in buying a Coop apartment, there COMMON requirements that you may know of. Some are:

• Board Approval which is a review of your application (your basic profile, work family). If you fortunate you may have a sponsor unit which do not need Board approvals but have there own pros and cons.
  (Please view my next BUYER 101:COOPS PURCHASE-SPONSOR UNITS PROS & CONS)
• Minimum Down payments are typically at 10%, but less frequently, some Coops have higher minimums as high as, 20% to 25%, or more
• Income Requirement restrict individuals with incomes too low or too high depending on the Coop. Minimum income requirements are usually control the ability of buyer to afford the unit; Maximum income impairments are usually for starter Coop to promote ownership among those with lower incomes

BANK REQUIREMENTS

• PRE-TURMOIL Banks followed the 10% down format and left it up to the individual Coops to require higher down payments. As long as the person was credit worthy and had reserves in the Bank.
• MORTGAGE CRISIS is causing the banks to more restrictive than the Coops Boards. If buyer credit SCORES are not close to 700, the banks may require the buyer to have 20% down. So a basic rule to use now is if any of your scores is below 700 serious consider 20% or you may an increased likeliness to be denied the loan. Even if you have the reserves in the bank and enough income.
  
  Of course consult a mortgage professional familiar with Coops Sale in Your Area to See Best Your Option

MILTON D. JOHNSON
Licensed Associate Real Estate Broker
917.676.6421
www.milton4realestate123.com
www.facebook.com/milton4realestate123
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Why Do Sellers Rush Buyers to Sign A Contract While A Buyer is Reviewing A Home Inspection?

Please understand in NYC A Seller can entertain as many offers as they wish until there is a signed contract. So, you can lose any money invested prior, for example home inspection, terminte inspection, plummers etc.

My Response:

Home Inspection:Scheduling and Review

A lot of times buyers take a long time scheduling inspection, reviewing the results and then at the end decide not to go ahead with the deal. As a result, sellers end up losing deals with other qualified and motivated buyers. Just think if you were in their sellers shoes.
Usually New Buyers do not want to make an offer and do home inspcetion when some else is doing the same

Giving The Buyer Adequet Time

On the other hand, the seller has to give the buyer enough time to do the inspection, a week is fine, and another week review and negotiate the results of the report. The review time and negotiaton time may be longer in case you need estimates for major repairs. Any longer is a waste for both parties especially if the delay is caused by both not agreeing to 1 or more terms. Move on, there are more homes out there or give in to the term(s), waiting a month to come to this realization does help anyone. Who knows, the seller may come back and say they agree after you moved on or you as the buyer may reconsider and take the deal later.

Signing The Contract

Now if the both the parties agree to certain terms have your attorney add the terms (usually called addedum) to the contract, sign it and send it to the seller attorney to be signed ASAP. Once the seller signs you have a deal, the terms of the agreement have to be met prior to closing.
Some terms to be added to the contract maybe- New Appliances, a new boiler, fixing the roof, etc.

If you delay and someone offers more money and better terms to seller and you can loss the deal and all your effort and the money you spent.

So moving quickly, but cautionously, is in the Buyer's best interest.
If the price is right move forward, if it doesnt feel right, let it go!

Buyers and Brokers, have You experieced a simliar problems? Tell Me how You Handled it?

Milton D. Johnson

Licensed Assocciate Real Estate Broker

www.milton4realestate123.com
www.facebook.com/milton4realestate123
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