Co-op wants 50% down...why?

Perhaps the board recognizes that brooklyn RE prices are poised to drop another 40%+ over the next couple years and they're smart enough to want their new residents to have some REAL skin in the game when all is said and done, so that the building is at a lower risk.

If it is in the building by-laws, it has nothing to do with the market. All cash sounds like a buyer preference, not co-op. Again, in a co-op, the by-laws rule, not preferences.

Think of the coop as an exclusive club, and the big down payment what keeps away the "wrong" people. It's not important to define what wrong people means, and you need to decide if this is a club you want to join. This is one reason why people go the Condo route. Of course with 50% down payment those in the building have real skin in the game and may act differently than a buyer who put 10% down.

Every shareholder in a coop is potentially at risk for maintenance payments that a fellow shareholder/cooperative resident fails to make. Setting very high standards for financial strength (high income to debt ratios, high liquidity, low leverage) gives everyone in the coop a better night's sleep during times of financial stress (like now.

The downside of course is that finding people who can quality is harder and there may be more difficulty for all shareholders in selling when the time comes.

Condo associations can set tough standards for ownership as well but generally don't. The condo form of ownership is perfect for new development and speculative construction. Which is of course the problem facing Miami and Las Vegas right now....and to a lesser degree NYC

Thanks for everyone's insightful comments. cheers.