Prospective homebuyers are faced with many questions. There’s one question in particular that is rather unique to the New York City market: co-op or condo? It’s crucial for your buyers to know the difference between the two, and the pros and cons of each, before starting their search. And it’s your role as an Expert to help clients answer this eternal NYC real estate question.
Along with having a conversation with your client, it’s helpful to provide them with an explainer on co-ops vs. condos that they can read on their own time and refer to as needed. In addition to defining the two terms, this handout points out key differences between them:
- Co-ops are less expensive than condos
- There are more co-ops in NYC than condos
- Condos offer more flexibility to sublet
- Condos tend to be in newer buildings
- Co-ops may have fewer amenities
- Co-ops are more restrictive than condos
- Down payment requirements can differ
- Condos have higher closing costs
PREVIEW:
What’s the difference between a co-op and a condo?
Buying a co-op is not like buying traditional real estate. You’re actually purchasing shares of a corporation or “co-op,” which owns the building. The number of shares you own is usually determined by the size of your unit.
A condo, on the other hand, is true real estate in which you own the unit itself. Common areas of the building are jointly owned.
Co-ops are less expensive than condos
The median asking price for a condo in Manhattan was $2.3M in January 2022, while the median asking price for a Manhattan co-op was $830,000.1
There are more co-ops in NYC than condos
NYC contains far more co-ops than condos. In fact, some estimates suggest that 75% of residential buildings in New York are co-ops.2
