Either way they all get you some way or another sooner or later. You need to determine how much has it gone up every year. Even rent stabilized apartments have an increase each year. Do you really like the apartment? Are there amenities worth paying for? Is the building well run? Is there an adequate reserve fund? will you have "quality of life" living there. Is the maintenance in line with comparable building? Some coops receive additional revenue other than maintenance from rental income on retail space in the building that the coop owns.
It is a decision that you have to make based on many variables.
You are under no obligation until you sign a contract and the seller counter signs. In fact, it is not only perfectly legitimate, it is your responsibility because the period between an accepted offer and contract signing in NY is the due diligence process.
During the due diligence process you and/or your attorney are supposed to read the building's financials, board meeting minutes and offering plan to discover any information that may or may not be a reason to move forward and sign the contract or to pull out.
Caveat Emptor "let the buyer beware" is a guiding principle in NY real property law. The seller makes no representation as to the condition of the building's financials. The onus is on the buyer to do their homework. It sounds like you have. Good Luck!
Mitchell Hall, Associate Broker
The Corcoran Group
My question to you is the following. Where did you find out about the yearly increases? I do hope it was through your Attorney. As your Attorney is required to do his due diligence on your behalf (going over the contract, the bldg's financials, etc.). Do you know if he/she went to see the managing agent to look at the minutes of the Coops' board meetings? Your Attorney has that option to see if there have been any discussion about upcoming raises to the maintenance. The Board meeting minutes would most likely have that info. A good Attorney will do that. A less good Attorney will not. Just a thought.
However, before making the final decision, you should have your attorney look into the reasons behind the annual increases. For example, it may actually be a sign that the coop is very pro-active and wants to make sure they have enough money to cover future repairs in the future (as opposed to being forced to impose large assessments), as well as stay up with general "cost of life" increases such as real estate taxes and insurance premiums.
You have to determine how much you wish to live at the place (how much you like it) and whether it is a good value based on the current maintenance costs and the strong possibility that the monthly association fees will continue to rise.
Therefore, you should look closely at the by-laws and the condo association budget, get legal advice from a qualified attorney and if you are not sure whether you can afford it with the rising maintenance costs, you probably ought to be seeking a less expensive property one with a smaller or more doable maintenance cost. Please realize that maintenance is only one of many factors. If you are tight on qualifying due to the maintenance costs on this condo, taxes or price on another similar property elsewhere could cause you the same affordability issues in the future. So, if the rising maintenance issues are a concern now, you may need to re-think your price range. Good luck with your move.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
If the contract has not been signed and you have not given your 10%, you may back out. In fact, the whole purpose of your attorney's due diligence is to look into issues such as the building's finances. If your attorney determines that the building's finances are not in good shape, that is a legitmate reason to change your mind. However, the fact that the maintenance has increased yearly in and of itself may not be a problem if it is not very high. You and your attorney should look at the maintenance in comparison to similar units in the neighborhood.
Halstead Property, LLC
http://jenetlevy.halstead.com for all NYC listings
I just want to act in the best faith possible.
An offer is not bindding until BOTH parties sign and becomes a contract.
After that also you have a period to do your own due delegience.
So i suugest contact your Realtor and also a legal attorney.
Is there something like that in NY?
Beachfront Realty, Inc.
Barry M Salottolo
Licensed Real Estate Broker
Manhattan, Westchester, Connecticut
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