Home Selling in 07063>Question Details

Foxy8609, Other/Just Looking in 07063

I am looking into purchasing a COOP apartment and I am hearing from a co-worker that I may not be able to profit from selling it. Is this true?

Asked by Foxy8609, 07063 Thu May 26, 2011

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All of the information in the previous answers are true.

When purchasing a Co-op you are purchasing shares/stocks in the building, a proportionate interest. You will not receive a Deed but will receive a shares certificate, per se. Typically the monthly fees are higher and they include the real estate taxes for the unit. I currently have a co-op on the market in PA and have sold two others. This particular type of real estate is more prominent in New York and some other states so financing could also be a bit of a challenge. Most mortgage companies will shy away from giving a loan on co-ops or will charge extra high rates. You may do better going to a bank or savings and loan in the community where the co-op is located.
I hope this information helps.
0 votes Thank Flag Link Sat May 28, 2011
Foxy,

It all depends on the housing market when you resell. As well, some boards assess a "flip tax" if you resell within a set period, such as one year to three years.

I hope this information is helpful to you.
Regards.
0 votes Thank Flag Link Thu May 26, 2011
So I probably wont be able to up the price like $10,000 when Im ready to sell it? Of course going through all the proper procedures w. a broker and the association.
0 votes Thank Flag Link Thu May 26, 2011
Hi Foxy,

Yes. As well, they are harder to resale. All prospects buyer have to be approved by the co-op's board of directors. There are many demands for personal-background and personal-finance information, comprehensive employment history and background checks.

It's also harder to sublease your co-op, and in many cases that is not allowed at all. Co-ops require larger down payments than condominiums, and all maintenance fees are higher than in condos, nevertheless they are tax-deductible.

Regards.
0 votes Thank Flag Link Thu May 26, 2011
Much will depend on the exact location, board requirements, size, condition, if looking to rent the unit check with managemrnt to see if it's allowed, etc.; do consider working with an agent of your own, he/she will be your best guide. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Thu May 26, 2011
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