How much to bid?

why not start with the neighborhood comps you mention? also, if sponsor still controls (and esp if that means most banks won't finance), you should discount/haircut further for the control and illiquidity issues), though I don't know how to value that.

Thanks. Sponsor does not control. But for any outsider buyer, the apt. is a dud. Even for us, its long term value is not at all clear. Our current thought is to just sit tight and wait it out...since sponsor can renovate more easily without coop board approval (circumvent wet over dry rules, etc), it may further advantage us to wait. If anyone else has any wisdom about dealing with sponsors in this particular market, I'm all ears.

Front door in grey painted service area, high maint, no view, 1 bath, fresh new el cheapo sponsor reno. Did I miss any highlights?

There must be a compelling reason why you want this place because you'll likely have till you die.

You're right. The only motivation is to combine it. Its next door.

Since you already told the sponsor you're interested I would let him sit on it and go through some pain. If it's as bad as you say he'll likely come to you sooner or later. I mean who other than someone willing to do a combo would buy an apt without a proper front entry?

Would the board allow you to combine units?

Can you find out the sponsor's financial situation - ie how long he's willing to let this apartment sit on the market.

i would first find out if the combo will be approved, then give a sponsor and "open" offer. he'll be back in 3-4 months and you can decide if your offer should be lowered.

Many others in the bldg have combined; some are in process now. I don't think that itself would be a board issue. They would be concerned about the alteration plan.
In any event- from what I understand economistis, the sponsor has plenty of reserve and could let the place sit ...and sit.

ab_11218 : what's an "open" offer?

If you say a fair market value for the RENOVATED unit is $725K-$800K, then you are about $200+K apart on price or 20%. I will assume you are about the same amount apart for the place in unrenovated condition. While 20% is not absolutely an insurmountable difference, it is at the outer limits of what is negotiable in my view. Especially since you will have to make an opening bid about 30% off asking price if you have any chance of finishing negotiations where you want to be. That is, you obviously can't open with your final offer or the deal will die a still birth.

For these reasons, I getting the seller to even talk will be very very tough once you bid 30+% off asking price. Now, you will surely explain your rational for the bid you make so the seller understands where you are coming from. And you will have to determine the intangible value to you of having a larger joined apartment in this building and what you think the added value will be to a joined apartment.

But the negatives you list concern me a lot. Very compromised views and high maintenance never go away and are among the worst negatives a unit can have. If you combine the units, does the price that the unit would sell for make sense to buyers in terms of the maintenance figure that results? Often combining yields a disproportionately high maintenance that really turns off future buyers. At certain price points these things are not very relavant (someone purchasing a whole floor in the Beresford is unlikely to be concerned about monthly maintenance fees since they would have to be astoundingly wealthy). But buyers of $2MM properties are most often not in such a position and the monthly maintenance will matter to them A LOT.

Your comments, Kylewest are very helpful. Maintenance now for the combination would be around 4K--probably mid-to high range for 2500 sf. Lots for us to think about.