I am looking to buy another coop. should i put current one on market first then look for another.?

Asked by Jenny T, Brooklyn, NY Tue Jan 5, 2010

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Mitchell Fel…, Agent, Brooklyn, NY
Wed Jan 6, 2010
BEST ANSWER
Dear Jenny:

What you have here I liken to a double edged sword. If you sell your coop first, then you will be pressured to find another place to purchase which could cause you to have to pay more in order to make sure you find a place in a timely fashion.

On the other hand, if you find a place you want to buy, you will then be pressured to sell. This may cause you to have to sell for less so as to effect a quicker sale.

In my opinion your best bet would be to start both at the same time. List your existing property for sale and start having buyers look at it and hopefully get several good offers. At the same time you start looking at properties to purchase. This will give you a good feel of where you are at on both sides of the equation. The hope is that the planets align and you can coordinate both at the same time. Remember, you are not legally obligated to anything until you sign legal contracts of sale with the guidance of your attorney. You will have time to work out the smaller details as you move forward.

I have helped consumers do this type of thing everyday for the past 17 years. If you want, call me and I would be more than happy to hold your hand and walk you through it.

Either way keep in mind the following:
1) Make sure you have a really good attorney.
2) On the coop you are purchasing, have your attorney see if you can get a contingency on selling your existing place.
3) Make sure you meticulously qualify the purchaser of your existing coop to make sure that they will be able to "pass the board" and also get their mortgage if they will be applying for one.
4) If you will need to secure financing on your next purchase, make sure you get yourself fully prequalified by a mortgage banker. You should meet with a loan officer and have them review your W2's, last two years tax returns, last three months bank statements and run your credit report to be certain that there will be no mistakes.

If I can be of further assistance please let me know. Good luck!

Sincerely,
Mitchell Feldman
Associate Broker/Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote
First Last, , 90002
Fri Jan 8, 2010
If you cannot afford to hold both properties simultaneously, then you need to sell your current co-op first.

Especially since we're talking cooperatives with reviewing boards that can be unpredictable, you might need to arrange for a short-term rental and furniture storage in between deals. So, you need to budget for these expenses as well as the possibility of carrying two apartments for, we hope, a very short time.

I know this sounds horrendous!, but to do the thing the heart often wants to do--buy the new one first, then sell the old one--can cause a lot of problems. You might want to arrange for bridge financing if you can, it is not always available and is never, to my knowledge, a bargain. But it can be a good way to manage these transitions.

What happens all the time--I see this frequently, especially now, in this buyer's market-- is that people fall in love with a new place, and then find they cannot sell their old place for anything close to the money they expected. Or they find they cannot sell it at all, or that the deal takes far longer than they anticipated. They then lose the new place they wanted, and they become unhappy and frustrated.

The old saying still holds: real estate is easy to get in to, and hard to get out of. You will have a more pleasant experience, I think, if you tackle the hard part first.

Karla Harby
Vice President
Licensed Real Estate Salesperson
Charles Rutenberg Realty, LLC
127 East 56th Street, 4th Floor
New York, NY 10022
(212) 688-1000 ext. 383
(917) 365-0876 cell and text messages
(212) 688-1919 fax
kharby@rutenbergrealtyny.com
http://www.rutenbergrealtyny.com/agent_details.aspx?agentid=51888
1 vote
Dan Chase, Home Buyer, Texas City, TX
Tue Jan 5, 2010
Do you have the money to pay for 2 coops at the same time?

Probably not. That means you sell one, then buy another. It could save you from being foreclosed on and losing both.

Start looking for another one today, but do not buy anything until you have sold the old one. You could be years waiting to sell in a bad financial condition if you do not. Maybe you would sell in 2 weeks. But what if you do not?

p.s. chicken coops are for the birds
0 votes
Barbara Ann…, Agent, Brooklyn, NY
Tue Jan 5, 2010
Hi Jenny,

You should definitely put your apartment on the market first, unless you do not have to sell it to buy the new one. Otherwise, if you do find something you like, you will not be able to put an unconditional offer on the purchase. The "needs to sell to buy" offer will always be less attractive than someone who doesn't have this obligation, even if their offer is higher than a ready buyer's.

Your best bet, in terms of market exposure, is to list your apartment with a real estate company that is a member of the Real Estate Board of New York, which will diffuse your listing to other REBNY-member firms, thus reaching over 5,000 NYC agents. This same REBNY-member agent will also be able to help you find the co-op you are looking to buy. See the below link for more information on REBNY and the importance of using a REBNY-member brokerage.

Good luck!
0 votes
Charles D'Al…, Agent, Brooklyn, NY
Tue Jan 5, 2010
Hello Jenny,If you need the money from the first coop you should definitely sell or at least have a contract of sale on your existing apartment. You might find the perfect coop and not be able to move on it.


If you’re trying to sell your coop and buy another, I can help. Call me Charles D’Alessandro of Fillmore Real Estate today at 718 253-9600 or email me at charles@brooklynrealestatesales.com for more information.
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