The short answer is yes, it can depreciate. However, during the past housing crisis where housing depreciated immensely throughout the country and foreclosures happened all over, guess what? New York City and its suburbs NEVER suffered that much. This is because co-ops require specific down payments and were forced to turn away buyers who couldn't afford it or who had financial statements that didn't support long term income to pay for their mortgage and maintenance fees. During the housing bubble (pre-2007), lenders were giving away loans to everybody whether they qualified or not. Co-op Boards were only accepting buyers who actually did qualify, dismissing everyone else even though they got pre-approved.
This prevented units in co-op buildings from the housing recession and declining in value. Reality is they declined a bit, but not as much as everywhere else. Currently, co-op buildings are rising in value again because inventory is tight.
Tell your client that purchasing a co-op unit is an excellent investment.... more
Everyone's perception is their own reality. Stop trying to change their perceptions. If you choose to continue to work with them (and you do not have to), work to build their confidence in you and instead of "telling" them anything, try educating by sharing your knowledge.
You need a soft approach until they trust you.
If you would like to discuss this more completely, feel free to give me a call... I've been training and coaching Realtors for years and teach real estate at Stony Brook.
If you'd like a CMA (comparative market analysis) drawn up of what your apt. value is currently, just contact me. As always, it's what the market will bear and good old supply and demand. It depends on the apt.-- size, layout, # of bedrooms, location, price per square foot, view, services, etc.
I've lived or worked downtown in Tribeca since 1979 and am familiar with almost every building. I can also refer you to a mortgage broker who shops among 100s of lenders and will be able to tell you if any would be able to fund a loan for your sale, rather than just a big bank, who are by nature in my opinion more conservative in their lending-- especially post credit crunch.
That said, don't give up just yet. Tribeca is in high demand-- always. Even in post Sandy and post 9/11 world. Safe neighborhood, great schools, tony address. And, many buyers have cash who are shopping in that neighborhood.
If you'd like to speak, feel free to contact me. I can charge a significantly low commission rate on sales and have great experience, selling many Tribeca listings I've had within weeks.
Sr. Vice President
I offer first time buyers who use me as their agent a 10% rebate of my commission on their purchase after closing. For example, if someone is buying a $1,000,000 NYC home with 6% split commission, 3% to "my side", I would rebate them $3,000. I'd consider that an incentive, but just works with me, as my company allows me to do it. On a 5% it would be $2500. The rebate varies depending on purchase price and commission, but it is significant and something I have been doing, but don't know how much longer I will be, so contact me soon if interested.... more
I had to share this as well. Well I was writing the below response, I received an e-mail with a "Trulia lead for a buyer looking in my area." The purchaser is looking in Mississippi. I'm based in NYC. Trulia really needs to get it's act together.... more