The first big difference between a condo (condominium) and a coop (cooperative) is that; a condo is real property. This means that when you buy it then you own it, in its entirety. On the other hand when you buy a coop you are buying shares in a corporation.
Condos usually cost more money than a coop, but the maintenance fees are lower. Coops usually cost less money than a condo, but the maintenance fees are higher.
The process can be more straight forward when dealing with a condo; less paperwork and sometimes there is no board interview. This really depends on the condo building. There are some condos where you do have to go through the full paperwork and board interview process. When dealing with a coop you usually have to go through the full paperwork and board interview process.
There are other differences, but these are the main ones.
There are many reasons why people pick one or the other. It really depends on individual needs, wants, and feelings. A good agent can help you figure out which one is the best match for you.
I hope this helps.
If you have any other questions, or know of anything I can help you or anyone you know with then Please feel free to call me.
Dania K. Robley-Lehi
Keller Williams- NYC
Licensed Real Estate Saleperson
"The Real Estate Matchmaker"
I will answer your question about whether co-ops are harder to sell than condos, as you've gotten many answers to your first question. I've also explained the difference in detail in many earlier posts, so please feel free to browse them.
I've got to say that my pet peeve on Trulia Q&A is when someone from another part of the country attempts to answer a question about NYC. As the National Association of Realtors says "Real estate is local." The NYC market particularly is unique and quirky, so please don't think someone from Kentucky has any idea how to answer your question and has apparantly scared you totally unnecessarily.
Of apartments that can be owned in NYC, approximately 75-80% are co-ops. In the 1980s, many rental buildings went co-op. In recent years, condos have been introduced to NYC. Condos are either new construction or new conversions. Therefore, our prime most-loved neighborhoods of pre-war buildings, such as the Upper West Side and the Village have almost exclusively co-ops. There is a shortage of inventory in those two neighborhoods because of the demand, so co-ops are absolutely not hard to sell. Most people buying and selling apts. in NYC are buying and selling co-ops.
There are advantages and disadvantages to both co-ops and condos. A very major advantage to a co-op is that careful screening takes place. Though many people dread applying for board approval and going through that process, the fact is that the reason NYC was last in and first out of the housing crisis is because those co-op boards made sure people who bought were qualified to buy. That is why we have not had the foreclosure problem here. Co-op board standards are higher than bank standards and while anyone with a pulse was able to get a mortgage at one time, that did not mean by a longshot that they would pass a co-op board unless truly able to afford it. Furthermore, by the board making sublet policies that are somewhat restrictive, the plus side of that is that your building will never have transients coming and going (serial renters in a majority of units). When you buy a condo, you can sublet at will, but you will also have ever-changing rental neighbors, and if too many units are rented out, when you go to sell, the bank will not give a mortgage to your buyer if there are too many non owner-occupied apartments. Also, co-ops are less expensive than condos, so again on the question of are they hard to sell - no.
Condos are not better than coops; co-ops are not better than condos. They are different and one or the other may be more suited to you. A skilled, experienced agent can help you know what is right for you, streamline your search, and take you through all the steps of the purchase process. I would very strongly advise you use a really good buyer's agent.
Halstead Property, LLC
http://jenetlevy.halstead.com for all NYC listings
In a co-op, we own the entire building, as a corporation, and the corporation gives us the right to occupy and transfer the unit.
More technically: a co-op is a single piece of real estate; a condo is subdivided into separate units and common areas.
As a practical matter, co-op boards have more responsibility than condo boards - to the buyer, that means that you have to undergo a more rigorous approval process to become a partner in a co-op than you do to be a owner of a condo.
All the best,
Accredited Buyer Representative
Licensed Associate Broker
William Raveis Legends Realty Group
914 406 9023
When you are looking to sell, it is important for you (or your broker) to make sure the buyer plans to use a reputable lender based in the NY area with extensive experience with coops.
Is there extra money set aside in a reserve fund for long term maintenance?
Do the condo's expenses exceed revenues due to a high foreclosure rate or other reasons that the owner's debt's go unpaid? If there is a shortfall does the association have a plan besides cutting back on services or raising fees for making it up?
Feel free to call me and I will diligently work to satisfy your needs.
I'd be happy to go into even more of the finer poiints if you have a moment to chat. Please call me or email any time. Charlie Summers, VP, Bellmarc Realty, 917-376-1648
NMLS # 6395
Financing Kentucky One Home at a Time
A Coop is a type of ownership of property. This is when the individual unit owners own shares in the cooperative building and do not own the actual property. The amount of shares owned is determined by the value and size of the apartment. The cooperative building owns all of the units and the purchaser is buying stock in the building. Most Coops have strict subletting rules. Once your offer is accepted you must submit a board package to the board and if approved by the board, you would have to be interviewed by the board before you are accepted.
A Condo is a building where individuals own individual units but share common areas with the other unit owners of the building. A more liberal type of ownership than Coops, Condos also have more lenient policies regarding subletting and pets. While you still have to submit a board package, the board reveiws your board package and grants a waiver of first rights refusal.
Hope that answers your question.
Licensed Real Estate Salesperson
Member of Real Estate Board of New York
Halstead Property, LLC
770 Lexington Avenue, 10th Floor
New York, NY 10065