Co-Op owners are in an unfortunate conundrum. Even if they want to sell at market prices ($700/ sq ft for 2BR, 2BA), the Co-Op board will make it next to impossible. Why?? Because once one unit goes for what it should, then all values in the building will drop.
I say let them drop, and file a claim to have property taxes abated due to the decline in value. Win, Win, Win. Buyer gets a FAIR price, Seller gets to move on with life, Remaining Co-Op tenants get tax reduction.
Unfortunately, Sellers are still quite emotional, and can't accept the fact that market is not, and will not be what it used to be - COMPLETELY, RIDICULOUSLY, OVERVALUED!!
I don't know why there is this automatic assumption that ALL Coop boards will reject all transactions at lower prices. Look at the various threads on SE about low sales and see an awful lot of them are Coops.
"Because once one unit goes for what it should, then all values in the building will drop."
So many sellers are so irrational... for example, we're looking to sell and buy. We understand that our unit isn't worth anything close to what it was a couple of years ago. That's life -- you deal with it. You don't childishly cling to a valuation of your place that is obsolete. Sorry to all those who bought their places in the last 7-8 years and now have to sell, but you bought too high, and those prices aren't coming back any time soon.
mbptcc are you joking or just some anti-real estate shiller? Last 7-8 years are too high? 2001 was too high? 2002 was too high? 2003 was too high? No, sorry
If you add on the mortgage in the building or take the excess maintenance and equate it to forever, these coops still look way too high.
"Too high" is in the eye of the beholder.
no the sam miller reports which points to NYC RE dropping by 20% and activity by 50% = > too high
yep yep
nyc matt--a plank that talks! what will they think of next?
Co-Op owners are in an unfortunate conundrum. Even if they want to sell at market prices ($700/ sq ft for 2BR, 2BA), the Co-Op board will make it next to impossible. Why?? Because once one unit goes for what it should, then all values in the building will drop.
I say let them drop, and file a claim to have property taxes abated due to the decline in value. Win, Win, Win. Buyer gets a FAIR price, Seller gets to move on with life, Remaining Co-Op tenants get tax reduction.
Unfortunately, Sellers are still quite emotional, and can't accept the fact that market is not, and will not be what it used to be - COMPLETELY, RIDICULOUSLY, OVERVALUED!!
Hopefully if you live in a co-op, it is pre-war and good bones rather than something post-war. The pre-wars hold value better.
johngalt1945, when the tax base goes down, the tax rate goes up.
I don't know why there is this automatic assumption that ALL Coop boards will reject all transactions at lower prices. Look at the various threads on SE about low sales and see an awful lot of them are Coops.
"Because once one unit goes for what it should, then all values in the building will drop."
This is a fallacy. And and oxymoron to boot.
So many sellers are so irrational... for example, we're looking to sell and buy. We understand that our unit isn't worth anything close to what it was a couple of years ago. That's life -- you deal with it. You don't childishly cling to a valuation of your place that is obsolete. Sorry to all those who bought their places in the last 7-8 years and now have to sell, but you bought too high, and those prices aren't coming back any time soon.
mbptcc are you joking or just some anti-real estate shiller? Last 7-8 years are too high? 2001 was too high? 2002 was too high? 2003 was too high? No, sorry