Mitchell Hall

A down payment is the percent that will not be financed. In Manhattan it can be 10%- 100%. A deposit is what is required when signing a contract . A 10% deposit is usually required. Some new construction requires 10% at signing and an additional 5-15% within 6 months of signing. - Thu Jul 24 2008, 20:05

Hi Tils,

Keep in mind buying a coop is different than buying a house or a condo. Don't second guess yourself, your gut instincts are correct. I would not advise a buyer to wave a financing contingency unless they already had an appraisal and a loan commitment and are very secure in their finances and comfortable with the risk.

The reason a seller wants a non contingent contract is so they can keep your deposit if anything goes wrong. Most lenders give a loan of 80% of the appraised property value. If the property doesn't appraise for the contract amount you will most likely still be offered a loan however it will be 80% of the appraised value not the sale price. You can either come up with the difference, re-negotiate or walk if you have a mortgage contingency. It is not in the sellers best interest for you to have an out and to get your deposit back or even re-negotiate the price. It is very likely they have another offer. It is possible the other offer is less than yours but they prefer the terms so they want you to waive the financing contingency.

It is possible the seller sent contracts out to more than 1 buyer. The best offer in the eyes of a seller might not be the best offer to pass a coop board. Have you submitted a financial statement with your offer? A good experienced coop listing agent will make sure the buyer can pass the coop board.

You are also correct about being concerned about the economy. I don't know your personal financial situation but buyers have lost their jobs or have had financial hardships after they sign a contract but prior to the closing.

In a coop, unless you are buying unsold shares from a sponsor board approval is required. If for some reason you can't secure financing and you cooperated with the board your purchase will be rejected. Buyers rejected by a coop board usually get their deposit back. I can not give legal advise but your lawyer can determine in the contract if a board turn down supersedes a non contingent contract. A board turn down can make the non contingent contract moot. Your lawyer can and should protect you and your down payment.

I live and work on the Upper West Side. I'm a long time Upper West Sider and coop shareholder. I am familiar with most coops on the UWS. Feel free to contact me direct regarding this apartment or if you need help with any other.

You can't lose something you never had. In real estate it is never a done deal until it closes. Anything can happen. You will be a better, smarter more aggressive buyer with the next one.There are many fabulous apartments on the Upper West Side. Good luck! - Tue Jun 17 2008, 16:17

Hi Tils,

The flip tax usually serves as a buffer to build the reserve so they can rely less on assessments and maintenance increases. However it sounds like the coop doesn't have many apartments turn over each year. That might not be so good for the building as a revenue source but it is good for "quality of life" for residents. As long as the maintenance is on par with neighboring buildings it is what it is. It's the cost of living in a pre-war Upper West Side coop.

It sounds like a great apartment and you really like it. We are in more of a buyers market right now. I don't know how it was priced originally. Depending on the sellers motivation -- usually heirs of an estate are motivated to sell. If you're the only bidder maybe they will counter. Hopefully negotiations will lead to a deal.

Good Luck - Sat Jun 14 2008, 11:45

Hi Tils,

Some thoughts regarding your concern. Is the maintenance in line with other similar pre-war buildings in the neighborhood? How often and how much have they already increased maintenance? Is the current assessment very high? Is there a flip tax?

At some point all buildings have maintenance increases and or assessments. A low reserve can signal some financial problems but If the maintenance and the assessment is not already higher than other similar buildings I don't think it that serious. If the maintenance is already very high than it is more of a concern and the property value may be diminished compared to similar apartments in a building with a much lower maintenance.

A view is subjective but an "amazing view" will always get a premium. A view of the park or river can be worth 50% more than the same apartment facing the back of the building. A renovated apartment with an amazing view will be worth even more. It is also a rarely available apartment since the same line hasn't sold since 2002.

While buying a home is certainly a major financial commitment it is also an emotional buy. Do you think you will be happy living in this apartment? Will you still be happy and enjoy it if the maintenance is raised $200 per month? Do you like it more than other apartments you've seen? Perhaps your attorney can negotiate the current assessment with the seller. Maybe you can split it - Fri Jun 13 2008, 22:29

Many buildings are marketing that they are "trying" for LEED certification" It might be too early in the process because they can't get the LEED certificate until after the building is completed.

To receive LEED certificate a building has to earn 26 of 69 points on a scale created by the (LEED) Leadership in Energy and Environmental Design, the country's most popular green benchmark. Certification of silver, gold or platunum can happen up to a year after the building is completed. Points can be given for being close to a subway station and there has been some controversy over LEED certification. Now green buildings are required to be 14 per cent more efficient than regular building codes dictate.

There are three buildings on the Upper East Side: The Lucida, The Laurel and The Brompton.
There are two on the Upper West side The Harrison and The Harsen House. I will be adding Brompton to my blog this week.

Feel free to contact me regarding LEED certified buildings on the Upper East and Upper West Sides.

http://nycblogestate.com/2008/02/lucida-upper-east-sides-fir…

http://nycblogestate.com/2008/05/new-construction-laurel-upp… - Mon Jun 2 2008, 10:32

Miraval is a conversion the building was built 1n 1985. There are a few new developments on the Upper East Side and Upper West Sides that are going for LEED certification.

Check out my blog http://nycBLOGestate.com. I've written several articles about Green buildings and LEED certification. Feel free to contact me with any questions or if you would like to receive available listings by email. - Sun Jun 1 2008, 19:22

Hi Thehob,

If I had a couple of hours I could explain the history of Manhattan real estate it's major players and the reasons and politics behind not having a comprehensive city-wide MLS.

Like Casey I'm a REALTOR® in Manhattan. I was one of the founding members of The Manhattan Association of REALTORS® when it formed in 2002.

MANAR was started primarily in response to REBNY (the Real Estate Board of New York) lack of rules. Many firms did not even co-broke listings. The original MANAR members thought eventually the top firms would join. That still has not happened. However the presence of MANAR and The Manhattan MLS in Manhattan forced REBNY to change it's policies. First came the REBNY 72 hour rule where brokers had 72 hours to sell their listings before they had to co-broker it out to other member firms. The 72 hour rule has now become the 24 hour rule. All REBNY members now must co-broker within 24 hours. REBNY now requires mandatory ethics training for all members.

The Manhattan MLS has about 10% of the inventory in Manhattan. REBNY members have about 99% of the inventory. Most MANAR members are also members of REBNY. REBNY is a quasi MLS. There is no central database but members share listings electronically. Proprietary data is not shared.

NAR is a national trade association. Members pay dues. In most markets in the country NAR has a monopoly which is why the DOJ and individual brokers have sued them. In many ways Manhattan has more transparency than in other parts of the country. A consumer in Manhattan has the same access to information as most brokers. The city has a public website nyc.gov that reports closed sales data.

In many markets in the country where NAR has a monopoly, many listing agents are nothing more than data entry clerks. They enter the listing in the MLS and their job is done. In Manhattan a listing agent has to be really good at marketing. Most Manhattan agents work very hard and many are highly educated. Listing agents are always present at showings.

Everything about Manhattan is different than the rest of the country. Manhattan is a unique place in the real estate universe. Not only does it have a large rental market (75% of the available housing units vs. about 5 - 10% in other markets), but it has ownership and other important differences that are often puzzling to newcomers.

70% of Home ownership in Manhattan is in coop apartments. The rest are condos, condops and townhouses. Most new construction developments are condos. Most pre-war apartments are co-ops. Manhattan apartments are either pre-war (WWII) or post -war (modern.) Most Townhouses or Brownstones were built in the 19th century.

Co-op ownership requires submitting a comprehensive Board application (called a Board Package), being interviewed by the Board, and being approved.

Co-op ownership means that you must decide not only whether you like the apartment, but also the building must decide if they will be willing to accept you. Passing a co-op board adds at least 6 - 8 weeks to the purchase process. A major part of my job is helping buyers prepare their packages.

As far as why many Manhattan agents call themselves brokers, I don't have the answer perhaps it is slang. Many firms in Manhattan give titles to their agents based on production such as Vice President or Executive Vice President. Those titles don't mean anything. According to New York State DOS the only titles accepted by NY State are either Licensed real estate salesperson or Licensed real estate Broker. I call myself a broker because I am a Licensed real estate broker.

Below is a link to my Manhattan Relocation Package. All of our peculiarities and differences are explained. - Mon Jun 2 2008, 09:20

NYC Housing Preservation Department - Sun Jun 1 2008, 09:27