Recently signed a contract to sell my mom's coop apt in Queens for 200K. Buyers are waiting for financing and have not yet submitted app to coop board. Upon mentioning to the managing agent the price I am selling at she said that the board would never approve it because it is to low. Since the contract is signed I don't know what to do now . The apt needs a lot of work that I cannot afford to do.... [more]
Recently signed a contract to sell my mom's coop apt in Queens for 200K. Buyers are waiting for financing and have not yet submitted app to coop board. Upon mentioning to the managing agent the price I am selling at she said that the board would never approve it because it is to low. Since the contract is signed I don't know what to do now . The apt needs a lot of work that I cannot afford to do. It is in my mothers name and I have power of attorney. As is I am not getting anything from the sale since it will all have to go Medicaid for my mom. I wish I could just get out of the contract. The buyer is a colleague and I told her of the problem. She wants me to talk to the board pres about accepting the price. If he doesn't budge what should I do. Am I responsible to pay for the work the buyers lawyer put in if we don't go through with the sale.
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Response by sf6brooklyn
almost 14 years ago
Posts: 12
Member since: Jun 2012
Unless your mom's apartment is in a super fancy building, it's likely that the managing agent is just being a self-important jerk. (so many are) What are comparable apartments selling for in that building? Would 200k+cost of necessary repairs= approximate market price? As long as the price is within reason, the board should approve it. Don't let him bully you.
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Response by rlr689
almost 14 years ago
Posts: 158
Member since: Apr 2012
My thought here is that the buyer must know that in order to go through successfully with a coop purchase, the buyer must present an acceptable and accepted offer by the seller. ADDITIONALLY, the buyer must pass muster with the coop board. You are not responsible for this. The buyer has to know that an application to the coop board must be simultaneous with communications between the buyer and seller and buyer/ lender. You should not hold yourself responsible for paying the buyer's legal fees up to this point.
However, I would try to get an idea of what sale price the coop board would accept for future prospective buyers before you try to sell the place again.
You have to also communicate to the board that a lower price might have to be considered given the condition of the unit and the lack of funds to do any updating to bring the unit up to fair market value.
I wish you well!
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Response by Socialist
almost 14 years ago
Posts: 2261
Member since: Feb 2010
If your not going to get any of the money from the apt., why sell it? Why not rent it?
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Response by sheastadium1
almost 14 years ago
Posts: 4
Member since: May 2012
I can't rent it because it is my mothers apt and since she is in a nursing home and on Medicaid she can't have income. Also the apt is not in any condition to be rented.
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Response by Consigliere
almost 14 years ago
Posts: 390
Member since: Jul 2011
No, you don't have to pay the purchasers' lawyer.
Where is your lawyer?
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Response by jms8
almost 14 years ago
Posts: 110
Member since: Apr 2011
Talk to your attorney, but coop sales contracts are always contingent on board approval, they don't approve, you get out of the contract. Easy.
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Response by Consigliere
almost 14 years ago
Posts: 390
Member since: Jul 2011
JMS is correct. Unless you amended the contract.
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Response by Sunday
almost 14 years ago
Posts: 1607
Member since: Sep 2009
"The buyer is a colleague..."
"I am not getting anything from the sale since it will all have to go Medicaid for my mom."
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Based on these two statements, my guess is that the price is probably indeed too low even considering the condition of the apartment.
Your colleague will have to accept a lower discount to close the deal or eat all the expenses so far and walk away angry (probably directed at you) for not being able to get a great deal at our (Medicaid/gov/tax payer's) expense.
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Response by urbandigs
almost 14 years ago
Posts: 3629
Member since: Jan 2006
can u give us more details? size of apt? monthly cc's? ballpark of accepted price? rough area (streets/ave)? Im curious how low and where this place is it that the MA is so worried here
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Response by urbandigs
almost 14 years ago
Posts: 3629
Member since: Jan 2006
sorry, just saw the queens info...size? ccs?
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Response by sheastadium1
almost 14 years ago
Posts: 4
Member since: May 2012
The apt is a 3 bedroom. It is a large apt in a very congested area of Elmhurst Queens. It needs extensive work. Also the wood floor needs to be entirely replaced due to a pipe the burst underneath. The coop refuses to replace the floor even though it was their fault. It is priced a bit lower than most previously sold units because of the condition. No one would pay more for it.
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Response by crescent22
almost 14 years ago
Posts: 953
Member since: Apr 2008
Why can't you use this floor dispute to your advantage. Tell the Board to accept the deal or they will be left you as shareholder/attorney proxy and you will sue over the burst pipe.
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Response by alanhart
almost 14 years ago
Posts: 12397
Member since: Feb 2007
I find it very hard to believe that a 3BR (even in terrible shape) in Elmhurst would be worth as little as $200K. sheastadium1, what did you do to determine that "No one would pay more for it."? I hope you didn't merely discuss it with people you know, until your colleague agreed to buy it.
In any event, if your board rejects the deal, the contract is cancelled under a typical sales contract, you return the buyer's deposit, and each of you is on the hook for your own legal and any other costs incurred.
This is a good example of mixing business with other relationships, and why some people just won't do so. Hopefully it's a learning experience.
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Response by ioserin
almost 14 years ago
Posts: 21
Member since: Jan 2009
I'm a broker and have come across this issue before where the board will not accept a low sale price.
What you need to do is raise the price in the contract from $200K to $250K (or to whatever price you
think the board will find acceptable) and pay the buyer a "renovation" credit at closing of $50K.
It becomes a wash and the co-op gets the price they are looking for.
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Response by urbandigs
almost 14 years ago
Posts: 3629
Member since: Jan 2006
"What you need to do is raise the price in the contract from $200K to $250K (or to whatever price you
think the board will find acceptable) and pay the buyer a "renovation" credit at closing of $50K.
It becomes a wash and the co-op gets the price they are looking for."
do banks allow this? I mean its not huge #s here, but if the buyer is financing, not sure the bank goes for that anymore
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Response by ioserin
almost 14 years ago
Posts: 21
Member since: Jan 2009
"do banks allow this? I mean its not huge #s here, but if the buyer is financing, not sure the bank goes for that anymore"
This may be true. The times I had this occur were with cash sales.
Another suggestion is offer it to the co-op for purchase and let them pay whatever price they want.
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Response by Wells8
almost 14 years ago
Posts: 22
Member since: May 2012
Won't the board see that the contract shows a renovation credit?.
Isn't this considered to be unethical
Unless your mom's apartment is in a super fancy building, it's likely that the managing agent is just being a self-important jerk. (so many are) What are comparable apartments selling for in that building? Would 200k+cost of necessary repairs= approximate market price? As long as the price is within reason, the board should approve it. Don't let him bully you.
My thought here is that the buyer must know that in order to go through successfully with a coop purchase, the buyer must present an acceptable and accepted offer by the seller. ADDITIONALLY, the buyer must pass muster with the coop board. You are not responsible for this. The buyer has to know that an application to the coop board must be simultaneous with communications between the buyer and seller and buyer/ lender. You should not hold yourself responsible for paying the buyer's legal fees up to this point.
However, I would try to get an idea of what sale price the coop board would accept for future prospective buyers before you try to sell the place again.
You have to also communicate to the board that a lower price might have to be considered given the condition of the unit and the lack of funds to do any updating to bring the unit up to fair market value.
I wish you well!
If your not going to get any of the money from the apt., why sell it? Why not rent it?
I can't rent it because it is my mothers apt and since she is in a nursing home and on Medicaid she can't have income. Also the apt is not in any condition to be rented.
No, you don't have to pay the purchasers' lawyer.
Where is your lawyer?
Talk to your attorney, but coop sales contracts are always contingent on board approval, they don't approve, you get out of the contract. Easy.
JMS is correct. Unless you amended the contract.
"The buyer is a colleague..."
"I am not getting anything from the sale since it will all have to go Medicaid for my mom."
------
Based on these two statements, my guess is that the price is probably indeed too low even considering the condition of the apartment.
Your colleague will have to accept a lower discount to close the deal or eat all the expenses so far and walk away angry (probably directed at you) for not being able to get a great deal at our (Medicaid/gov/tax payer's) expense.
can u give us more details? size of apt? monthly cc's? ballpark of accepted price? rough area (streets/ave)? Im curious how low and where this place is it that the MA is so worried here
sorry, just saw the queens info...size? ccs?
The apt is a 3 bedroom. It is a large apt in a very congested area of Elmhurst Queens. It needs extensive work. Also the wood floor needs to be entirely replaced due to a pipe the burst underneath. The coop refuses to replace the floor even though it was their fault. It is priced a bit lower than most previously sold units because of the condition. No one would pay more for it.
Why can't you use this floor dispute to your advantage. Tell the Board to accept the deal or they will be left you as shareholder/attorney proxy and you will sue over the burst pipe.
I find it very hard to believe that a 3BR (even in terrible shape) in Elmhurst would be worth as little as $200K. sheastadium1, what did you do to determine that "No one would pay more for it."? I hope you didn't merely discuss it with people you know, until your colleague agreed to buy it.
In any event, if your board rejects the deal, the contract is cancelled under a typical sales contract, you return the buyer's deposit, and each of you is on the hook for your own legal and any other costs incurred.
This is a good example of mixing business with other relationships, and why some people just won't do so. Hopefully it's a learning experience.
I'm a broker and have come across this issue before where the board will not accept a low sale price.
What you need to do is raise the price in the contract from $200K to $250K (or to whatever price you
think the board will find acceptable) and pay the buyer a "renovation" credit at closing of $50K.
It becomes a wash and the co-op gets the price they are looking for.
"What you need to do is raise the price in the contract from $200K to $250K (or to whatever price you
think the board will find acceptable) and pay the buyer a "renovation" credit at closing of $50K.
It becomes a wash and the co-op gets the price they are looking for."
do banks allow this? I mean its not huge #s here, but if the buyer is financing, not sure the bank goes for that anymore
"do banks allow this? I mean its not huge #s here, but if the buyer is financing, not sure the bank goes for that anymore"
This may be true. The times I had this occur were with cash sales.
Another suggestion is offer it to the co-op for purchase and let them pay whatever price they want.
Won't the board see that the contract shows a renovation credit?.
Isn't this considered to be unethical