Co-op Board Application

Maybe if you worked with a buyer's broker who was familiar with the rituals, rules and protocols of the building you're interested in you wouldn't be asking a bunch of strangers here what to do. I know that sounds really hostile and I don't mean it that way, but this is exactly the kind of advice a good broker can provide. I'd think it would be comforting to have informed advice especially if the seller's broker is from out of town which suggests there's no one to guide you through the application process and review everything before its submission to the coop board. Why not work with a buyer's broker?

NextEra, how many broker in NYC do you think would know anything about HDFC buildings????
1% if that much??? why don't you try to find one and recommend to OP.

NextEra - Please read Semerun's OP - he /she was clear in that they are not interested in a buyer's broker. Your answer is condescending and rude. I guess my follow-up question would be why are YOU here? Essentially, you're asking a 'bunch of strangers' to see your sage reasoning to work with a buyer's broker. Well, I'm sold. What's your email address? Let's meet up ASAP! I'd love you to find me an apartment as soon as possible. In fact, I'll even give you an extra 5% commission because you seem like such a kind, compassionate, and wise broker.

Semerun: It's a good question. While I don't know if it's common for HDFC's to get this involved, I can say that some buildings are more interested in potential shareholders personally. Probably no different than some of the questions a board could ask you in an interview. "What value would you bring to the co-op" isn't an unusual question. Just to be safe, consult with your RE attorney on these types of matters if you're unsure. Good luck.

semerun, I think the bigger issue might be: do you want this apartment if the co-op requires that you do anything other than be a considerate neighbor and pay your maintenance on time? If they demand sweat equity, are you still interested? I understand the original buyers getting a building dirt cheap in a rough neighborhood long ago (just making basic HDFC assumptions) and putting in considerable time and effort, but you're presumably paying WAY more now, and a healthy chunk of that is likely going to the co-op (as flip tax). Maybe your best bet is to answer as generally as possible about what a friendly, thoughtful, neighborly person you are and how solid and dependable your financials are. Mentioning your strong DIY attitude might have them telling you at the interview "the person who used to own your unit did all the building's light electrical..." as they lean in and smile.

WE HATE BROKERS so why would you work with one who might be helpful in this process? Signing off now so I can drill a tooth 'cause I hate dentists, too! ;-Q

As I wait for the novocaine to kick in, let me offer you this to peruse -

http://www.streeteasy.com/nyc/talk/discussion/14131-board-rejection

My friend posted under my screenname- it was her bid that was put in. Those that follow the Harlem posts may know that I have been helping my friend look for an apartment for sometime. Since the local brokers have not been helpful over the past year +++ she is sort of happy that the seller's broker is from out of town (he is actually doing his job). She had been looking for the impossible- a Classic 6 in estate condition at a price that could only be described as a steal. She is low income (by NYC standards) but has been saving nearly 50% of her gross salary every year in preparation to buy a home. She realized in the process that there had been some great pre-war buildings that lost their luster at some point and became HDFC's... that didn't bother her- as long as the building was currently being treated with love. This one clearly is- and she won't mind putting in lots of sweat equity in the process- since I have been on the board of my Condo (which I was also self-managing for awhile) I was able to explain to her clearly what it meant to be involved in running a building. We got a chance to meet a couple of the board members already informally- and they seem like good people that really want to make sure that the person buying understands that unit for sale is really part of their community.

The flip tax is not something she is worried about (it's high at 30%) because she has every intention of staying there for 20+ years (she currently lives in an apartment share- so is used to having just one room- so a Classic Six would be massive for her).

It just so happens that a friend of one of her friend's is a real estate attorney who has handled HDFC's- so again- that does minimize the need for a buyer's broker (even if the local brokers were inclined to actually want to work for their money).

Don't get me wrong- I am not anti-broker- after all we have Front Porch and 30 Years on the board which have proven themselves to be incredibly valuable- but the reality is that their are far too few of these types out there.

If she had posted a description of her finances and what she was looking for here, she probably would have gotten a bunch of "get real" comments from the market cheerleaders. Good for her sticking to her goal the way she did. Best of luck to her. I agree with your statement on brokers. The good ones are very appreciated, but so many are so terrible it's no surprise they have the reputation they do.

semerun-- thanks for the compliment. I know a lot of people disagree with me on this, but I think it only makes sense to slap a cover letter on the front of the co-op package stating who you are and why you want to be in that building. I think that in this case, your friend should use that letter to address the "add value" question, as well as addressing it in the package.

ali r.
{downtown broker}

Ali, do you, or have you considered, hiring yourself out as a consultant, charging per service or per hour? I've spoken to enough brokers to know that I don't need one to search or determine value for me. I've had others behave very unscrupulously, and I like the idea of the seller's broker licking his/her chops over the full commission. About the only thing I wonder about is the board app, assuming the seller's broker doesn't appear competent enough to assist.

After seeing the response to my comment (ouch) I re-read what I wrote and I can see how someone might assume I was a broker touting my services. In fact I'm a recent buyer who got huge, astute and deal-closing help from our broker in successfully navigating a very complicated coop board experience so I can see the value-added -- that is, of course, if you work with the right professional. I certainly didn't mean to be snarky and wish Semerun's friend great success with this purchase.

The only advice I can offer having just weathered our own coop process is to try and put yourself in the place of the coop board and anticipate what they would hope to know about you -- as as fellow shareholder, as a member of their community, and as a neighbor -- and err on the side of more information and not less.