Sale at 55 N Moore #2F

The loft last sold in July 04 for $999,999. Obviously to avoid mansion tax. It has been on the market since Feb of this year with several price cuts. I would first ask to see permits for building the loft area. If it is illegal, it is a problem and probably will have to be taken down. Also ask to see the minutes of co op meeting that specifically discuss building of loft area if it was built during the tenancy of the seller. If loft is legal, I would bid $999,999 and bring comps to show that prices have fallen to early 2005 prices and lower. Also bring psf comps in area for small one bedrooms. If there is any real appreciation it would be small and not worth it to pay mansion tax.

Thank you apt23. I think the loft pre-dates the seller--who has put no money into the apt. It is a storage space that i wish did not exist. Wonder if I should bid even lower.

if the loft predates the seller, there is more of a chance that the loft is illegal. N. Moore street was not very gentrified in the 90's and some people played fast and loose with the rules, i would ask to see permits. if they can't provide them, i would definitely bid lower. Permits should have been registered with the building dept. if it is not part of the original building structure. .Of course, If they call the building dept then they would be alerting the building dept to the fact that there might be an illegal loft in the building. Not that the building dept is organized enough to care.

you should definitely discount the loft if they can't provide permits. of course, they could always sell to another buyer who doesn't care. however, if the broker finds out through seller -- or through you--that loft is illegal, they would have an obligation to tell the next buyer that it is not legal.

If it is legal and they have proof of permits, you can still bid lower but since they started with an asking price in the $1.4's, you can't count on how flexible they are. However, if they hear that break even number, they might respond. Even still they will be losing transactional costs which are significant.

So, if you really, really want the apt, do this.

Ask the broker if loft is legal. Tell the broker you are going to make a bid but you just want to see the permits first to make sure the loft is legal. If broker can't provide them then say you just need to see the coop minutes where they discussed the construction. If they can't provide that, tell them no problem, you will call the building department to get copies.

If you find out that the loft is illegal and the broker lied to you, you have them by the short hairs. There would be the implied threat that you can report it to the building dept, you can report it to the co op board which would have to take action or be legally liable. Of course if you bid successfully you would be the owner of an illegal loft and you would be legally liable. So, you would have to make a bid contingent on them taking it down -- now you really would be bidding on 900 sq ft--and you could put up a legal one if you buy it.