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Beyond Puzzled and Disturbed.
Apartment was 1/2 of what we could afford based on income (some of it fixed)
Completely modest purchase
Great Credit (both of us)
What do they base this stuff on?
I'm Disappointed and Exhausted
maybe price was too low
The Apartment sat on market for a long time. We gave asking price on it's most current ask. But yes it was lower than 2 other units in the building in same line.
Price however is reflective of condition of apartment, high maint and market.
I'm upset do to time and wasted money but feel equally bad for the seller (vacant apartment)
What building and apartment? Some co-ops pickier than others
Boards are finicky. They'll reject for any dumb reason; perhaps they don't like the seller and wanted to screw him out of a sale, or perhaps they didn't like YOU. By the way, did you get to an actual board interview? Or were you rejected before that? The majority of rejections happen during the financial review stage. If you were rejected AFTER a meeting it means someone rubbed someone else the wrong way.
No Interview. Property is Southgate.
We absolutely could afford this. From not just our standpoint, but from, brokers, mortgage lender, great reference etc...
This apartment has been on market since 3/2010.
I'm frustrated to have to start again but grateful to not be apart of this community. Time and money gone but I truly feel for the seller (vacant apartment).
Myself and my husband are solid people all the way around. I heard such great things about the building. What a joke.
Well, it sux but you're better off without them. Seriously.
DTD: The banks are currently peeing in their pants over the Greece, Portugal Ireland -- and absolutely --Spain problem. Because the European banks are under capitalized, the Euro is going to tank even if they fix the Greece issue for a couple of days/weeks/months. All banks, including US banks will undergo new cap regulations. Banks will constrict pay, perks and jobs. So as NYC loses the European buyer and the NY financial district buyers, prices in NY will come down.
This is not a co op vendetta, it is a gift from the gods. You got a pass. In a year you will be able to buy the same apt for significantly less. Be grateful.
I believe I agree Squid and APT23.
I can't believe I'm saying that after looking for 2 years and now at a blank slate.
But knowing the facts (our finances) and this price I can only think we're being spared from something.
One aspect not mentioned is my husband is a known performer so that could be a reason too but
if they had only met us they would know what quiet and reliable people we are. Thank G-d for Streeteasy.
Now...I need a rental :)
As if on cue, this is the first article I looked at after leaving SE:
prices will be coming down. remember what happened to prices in 2008/09?
While many financial rules are still to be written, some firms have decided that they cannot afford to wait any longer. The last significant industrywide job cuts were in early 2009. In the first quarter of that year Goldman alone cut its work force by almost 9 percent. Since then, most firms have held steady on their head counts or have added to them slightly. That will change this summer.
The scale of the expected cuts is bad news for the New York City economy, which depends heavily on a booming financial industry to pay taxes and fill its restaurants. And they will come as the national economy is still struggling to find its footing since the financial crisis.
The article goes on to posit that there is good news: the banks will benefit from IPO's like Pandora and Linked In. Ha! That is until investors sue for fraud for overpricing the IPO's by a magnitude of maybe 1000.
Was Matt on the board? In reality, they have done you a huge favor. Rejected by a board one year ago (pied a terre) - I am thinking of sending them a fruit basket - saved us from further price cuts, increased maintenance, new assessments.
Who is Matt? Isn't rental inventory down? I'm just not sure how to ride this out.
So what I read in that CNBC article that backdoor23 posted was:
Goldman cutting $1bn of NON-COMPENSATION expense
Morgan Stanley cutting a whopping 300 brokers. Low performing brokers at that. Plus another $1bn in ... NON-COMPENSATION EXPENSE. And no cuts in investment banking or trading.
Barclays cut a whopping 600 people. Throughout the world.
And, "The profit picture is also somewhat more stable for diversified companies like JPMorgan Chase, Bank of America, and Citigroup". JP Morgan is trying to cut... again ... NON-COMPENSATION EXPENSE.
So what now? Buy or Rent? It took us forever to find a place that made sense and apparently we didn't make sense to the board.
I'd like to be out of current rental in 4 months and this just wasted way too long and I know the process of how long boards
take to review, to look etc...
Is a Condo really going to be any easier?
If it's the one I think it is, cute apartment. I remember you looking at downtown condos around $1.6mm, so I'm assuming you make around $400K, which should have been enough to pass (I have never done a deal in Southgate but I'm extrapolating from the financials of apartment, and the area). I wonder if your taxes are funky and your broker didn't catch it.
GL as you go forward.
DG Neary Realty
Hi, What do you mean taxes could be funky? We make over 400k. Had post close 6 years at least cash.
What does GL as you go forward mean?
Internet slang: GL = good luck!
So in all of your wisdom would you keep looking or just rent.
dont be surprised if a board member wants to buy the apartment to combine with his/her own unit...
DTD, have no experience with coop boards. But based upon my laymans perspective I would not at all be surprised if you were rejected by your husband "being well know". It seems most celebrities are rejected for obvious reasons. I happen to agree. Your quality of life can go downhill fast with Madonna, Lady Gaga or jennifer Anniston living next door. So why not emphasize to the board that your husband is really a non event.
And have Facebook permanently delete both of your accounts, and those of all your friends and family.
sorry DTDWIH, that hurts. Like others have more or less said, it's all on the path to your perfect place.
If your financials are solid, and the apt. is fairly priced, I think you are correct in thinking it may have to do with your well-known performer husband. In following this crazy NYC co-op business, celebs or the well-known performer may be discriminated against..."high maintenance" "party lifestyle" Does he play an instrument? etc.
Thing is we are QUIET low key people not matter how recognizable. Sounds like a bunch of BS if you don't interview the person.
Simple questions; Simple answers or Call the landlord or referrals. Another chapter for the book..
"Sounds like a bunch of BS if you don't interview the person."
That's what everyone says, until THEY'RE elected to the board.
Then it all makes perfect sense.
I have a lot of experience with clients "in entertainment" (including a couple of Emmy winners and a couple of Oscar nominees) and doubt that notoriety is the issue. If that's the case, the board will either quietly tell the brokers to look elsewhere, or a well-slanted package will get the job done (although convincing someone that your client is a "homebody" when he's doing his interview from the set of an Oliver Stone movie is a challenge.)
More likely, it's the taxes, but I'd have to see 'em to say what gave the board pause.
I would have your broker back-channel to the board to get a diagnostic before you try for another co-op.
"One aspect not mentioned is my husband is a known performer so that could be a reason too but
if they had only met us they would know what quiet and reliable people we are."
What is a "known performer"? Charlie Sheen? Mel Karmazan? Everyone describes themselves as "quiet" and "reliable", by the way ... that doesn't mean they are.
By the way, I'M Matt. Nice to meet you.
I appreciate your wit Matt and I'm sure you're correct. However our paperwork, references, finances backed that up.
As for taxes, we pay plenty of them....
LOL it's not the amount, it's the shape. Your schedule A could be weird; your schedule C could be weird; your K-1s could be off, whatever.
But if you're applying in an uptight building (and I've never done a deal in Southgate, so I'm not accusing them of that) you want to find the oddity and pre-defend against it in your cover letter. We did this in a somewhat recent East Side deal, and I've seen an East Side broker I admire do it too.
I'm not trying to make you feel self-conscious, just pointing out that there was probably SOMETHING that caused the turndown, and finding it and eliminating it is the fastest way to get you into your dream apt.
Possible yet still hard to believe that one wouldn't ask the questions, giving us an option to answer. As you know it's the brokers that have more of the dialog than the buyer. Lessons learned. I'm all one for communication. If not given that opportunity...hands are tied.
Thanks for your input.
Don't you agree that The NY Times would love this thread for their RE Sunday scetion? Story headline could be "Rejected by the Coop Board for Being Well Known?". then they could go on and on and on. It would be a winner. It's got it all wealth. power, celebs, Manhattan, rejection, mystery, easy concept etc. It's all there Mr. Publisher Sir, All there.
Yes and given I work in media...PERFECT. I can document the entire saga. It may even make for the perfect reality show!
Let me now if you want to invest in the project SteveF. Could be safer than real estate :)
Is your husband a known tap dancer? trumpeter? Choreographer for Stomp?
DTD...Write it up however I don't want to star in it b/c then I'd be "well known" and get rejected :)
Yes! How did you guess. Next time we'll submit a demo tape with the package just for fun....
SteveF You're already living it out right here on Streeteasy. One of the main cast of characters. I'm sure someone knows who you are...
"Possible yet still hard to believe that one wouldn't ask the questions, giving us an option to answer."
As a board VP, I can tell you that if we see something we don't like in the package, we're not going to waste your time (or ours) in asking for your explanation. We still won't like what we see.
i.e. homosexualists need not apply
DTD: I know it is a pain to move, but there are a lot of new luxury rentals on the market -- and luxury condos from investors. It might make sense to rent for two years and gage the changes in the market. The global economy is stressed. You could watch the fallout and make appropriate life decisions. It would be difficult for anyone to argue that prices would be higher in two years.
Also, with time, you can expand your search. A low cost fixer-upper could suddenly be in the forecast where you might not have considered that before. And it will be interesting to see why prices go down (Europeans now have a lot less buying power, the financial institutions in NYC are cutting way back on spending which will have ripple effects, possible inflation and rising taxes) or up (can't stop those Chinese buyers and Brazil might be here to counteract their high inflation). When you understand the macro conditions, you will have a better understanding of resale value. Although you can never get a true fix. My cc's on my Miami condo just went up 16% and I was only expecting 5-7%.
in the future, as bad as this sounds, find the apartment yourself and when you have id'd the apartment/building, hire a broker who specializes in that building. that's what you pay them for. the expertise and conenctions for getting you in.
And we'll never ever ever know.... I love every minute of your real estate
advice and banter! It's so helpful. Ok I need to go practice my bagpipes now. Have a wonderful day.
Matt, did you get demoted?
APT23-Can you point me to some of the luxury rentals you suggest?
That was what we were looking for. Something lower cost to fix up.
"Ok I need to go practice my bagpipes now."
Somewhere, an entire floor of a luxury apartment building is breathing a sigh of relief ...
Geez NYCMatt you have no sense of humor.
"As a board VP, I can tell you that if we see something we don't like in the package, we're not going to waste your time (or ours) in asking for your explanation. We still won't like what we see.".......absolute power corrupts absolutely.....
Gotta wonder how NYCMatt made it through the process ...
"Gotta wonder how NYCMatt made it through the process ...
It was my extra-large and very impressive package.
I thought it was your charm.
it was a moron who was willing to pay 20% more then anyone else would've. the board couldn't resist seeing their property go up in price on paper.
DTDWIH: The obvious would be try and stick with condos. I just rented a place to a well known writer/film maker and we had to jump through a lot of hoops. It was tax return related.
A well known starlet lives here, nice understated condo.
The Burkhardt Group
I've always wondered--what's the diff between a 'starlet' and a 'star'?
...and what's a "bram" star?
""...and what's a "bram" star?""
Ha! Good question. Actually, it's a contraction of Bram and Star, two now-deceased pooches from my past.
"my husband is a known performer"
Wonder no further - that is absolutely the reason. Question answered. Oh, he'll have wild parties... or, if he's a musical performer, oh, he'll get up in the middle of the night when inspiration hits him and play his instrument or sing. It has nothing to do with finances.
he could be a mime