COVID-19 + NYC Real Estate
An inviting living room in a SoHo co-op. (From a listing at 110 Thompson St. #6B)
The spread of COVID-19 turned every NYC industry on its head. Luckily, some found ways to adapt. The real estate market, for example, quickly went digital to host showings and close deals. And at least one of those changes might be here to stay: the virtual co-op board interview. To keep the market moving, co-op boards needed to conduct business as usual, but remotely. While online interviews are certainly not a traditional part of the apartment-buying process, many homebuyers have found it more convenient. The same is true for virtual tours and remote closings, which have also become the norm during the shutdown and may well stick around. So, if virtual interviews become the standard beyond the pandemic, what can you expect? Here, brokers reveal everything you need to know.
How Do Virtual Co-Op Boards Work?
When purchasing an apartment in a co-op, the final stage is the co-op board interview. This usually means your application and financials all check out, and all you have to do is show that you’ll be a good neighbor. When it comes to a virtual interview, the same basics hold true. It’s just that the process is completed via a Zoom meeting or FaceTime, rather than in person.
Domingo Perez Jr. of Warburg Realty recently had a buyer approved via a virtual co-op board interview. He described the process as pretty straightforward. “Depending on the building, virtual co-op boards can either Zoom or FaceTime a prospective buyer to conduct a board interview,” he said. “In this case, they all gathered around a Zoom meeting, in the comfort of everyone’s homes, and got to know and love the new buyer as she answered all their questions, animatedly and virtually face-to-face.”
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Warburg’s Rebecca Brooksher added, “Virtual co-op boards work the same as in-person co-op boards in content. The only difference is the convenience.”
There’s even more good news. Pre-COVID, a buyer trying to purchase over the summer might expect a possible two-month wait to schedule an interview, with board members in and out of town. With virtual interviews, there’s no holdup. Plus they tend to be less formal, said Brooksher — mostly because people are in better moods. Interviews are often shorter on Zoom than in person as well.
Preparing for a Virtual Interview
“Because you’re not sitting at a table with five people across from you, a virtual interview takes a little bit of the pressure off,” said Nick Gavin of Compass. But buyers need to be prepared just the same.
“All, or at least most, of the usual recommendations are still applicable,” said Compass’s Michael J. Franco. “The buyer should present him- or herself the same as if it were a face-to-face meeting, and since this is the last step before closing, all you’ll need is your best behavior.”
A wall of exposed brick and a working fireplace add interest to this Upper West Side co-op. (From a listing at 16 W. 74th St. #8)
Here are some things to keep in mind when conducting a virtual co-op board interview.
- Dress appropriately: “Purchasers should still dress appropriately, since dress is clearly visible in Zoom interviews,” said Franco. Brooksher suggests a business-casual dress code.
- Have a separate device for each purchaser: “It may make sense to have each purchaser on their own computer, as sharing one can make it challenging to keep both parties visible on the screen,” said Franco.
- Choose the right background: “Purchasers should ensure that there is little or no background noise, so choosing the right location for the interview is important,” said Franco. “I also recommend nondescript backgrounds — less is more.”
- Stay focused: “Be sure there will be no notifications or distractions on your computer or phone during the meeting,” said Franco. “Be prepared, and refrain from answering calls or texts.” Added Gavin, “Make sure you have a dedicated space and time, so your teenager isn’t interrupting or your baby isn’t crying in the background.”
Co-op Boards’ Reactions to Going Virtual
Co-op board members, like most people, are adjusting quickly to virtual meetings. Some people actually prefer them: “The convenience of scheduling a virtual meeting, whether it’s an interview or otherwise, is incomparable,” said Franco.
Some board members, though, are convinced that nothing stands in for actually meeting a potential neighbor in person. “While buyers may feel this process is more convenient, there are coop boards that still feel there’s no substitute for meeting the candidate in person,” said Perez. “It’s very difficult to read body language during a virtual interview,” added Franco. “It might be hard for some to get a ‘true sense’ of things without being in the same room.”
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Are Virtual Co-op Board Interviews Here to Stay?
With some board members being on the fence about the pros and cons, will virtual interviews ever become the norm?
“Getting this far into the purchase of a co-op means the buyer has already shared an enormous amount of intimate personal and financial information,” said Perez. “This final step is really a meeting to put a face to the name and get a feel for the prospective shareholder. I think a Zoom interview does this very well.”
Ultimately, if virtual interviews do stick around, convenience will be the main reason. “The convenience of virtual meetings is likely here to stay,” said Franco. “My experience with virtual board interviews is that things move along faster, and the boards make decisions faster. There is a clear efficiency associated with them, and a mutual convenience for all parties.”
Gavin added that buyers who are not based in NYC have long been asking for virtual interviews. “It’s a modern approach,” he said. “Two interviews I’ve had in the last week were both outside of NYC, so virtual meetings made it easy.”
The same is true for co-op board members who want to have the flexibility to travel. “I think they are here to stay because it is so hard to have a majority of the board gather in one place,” said Brooksher. “More people will be open to being on the board of their building if they don’t have the hassle of in-person meetings.”
And virtual interviews mean that what was once an intense process for buyers is now less stressful. “My buyers have been pleasantly surprised with the lovely people gathered virtually to welcome them into their new building,” said Brooksher. “Perhaps it is a sign of a new, kinder process for New York co-ops from here on out. Fingers crossed!”
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