Hello, I was just wondering what are some of the reasons a listing might "require" an all cash buyer. Assuming nothing else is mentioned in the listing about payment, what are some of the things a potential searcher might conclude from the listing? Is it more about the co-op board or more about the seller? Is it the building's relationship with the banks? How would this affect the financial... [more]
Hello,
I was just wondering what are some of the reasons a listing might "require" an all cash buyer. Assuming nothing else is mentioned in the listing about payment, what are some of the things a potential searcher might conclude from the listing? Is it more about the co-op board or more about the seller? Is it the building's relationship with the banks? How would this affect the financial standing of the building, if at all? etc.
Below is a moderately-priced example, but my question really applies to any all cash listing. Any and all explanations are welcome :)
http://streeteasy.com/nyc/sale/770380-coop-609-columbus-avenue-upper-west-side-new-york
(the all cash option also seems like a useful feature to include in the "advanced search options" on SE).
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Response by Riversider
over 13 years ago
Posts: 13573
Member since: Apr 2009
All cash buyer means not having to worry deal falls through on financing issues. It's also possible in this environment that the building may have presented problems with lenders(too many rental units, low reserve fund etc)
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Response by urbandigs
over 13 years ago
Posts: 3629
Member since: Jan 2006
or banks want to see X% of sponsor held units close before approving the building for future lending. or some other type of sponsor/conversion restriction that is causing the bldg to be left off the 'approved' list.
Small bldg sponsor conversions, say 4-6 total units, may have to see 50% sold or sold/pending before the banks will open lending to future transactions.
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Response by hsg9000
over 13 years ago
Posts: 95
Member since: Jan 2013
Daniel, I noticed that specific listing, too, on Columbus Avenue. Look at the "discussion" on the building's page as to whether the building might be having tax problems or some other issue. Several people have posted rumors that should be researched. Also, look at the absolute fire-sale price of two units that have recently sold in that building: $26K and $40K. They may be database errors or an indication something is seriously wrong with the building.
The cash issues aside, that unit and building have some aesthetic issues. That pickled floor on the lower level is downright depressing and those random grates placed outside the building give it a city jail look.
All cash buyer means not having to worry deal falls through on financing issues. It's also possible in this environment that the building may have presented problems with lenders(too many rental units, low reserve fund etc)
or banks want to see X% of sponsor held units close before approving the building for future lending. or some other type of sponsor/conversion restriction that is causing the bldg to be left off the 'approved' list.
Small bldg sponsor conversions, say 4-6 total units, may have to see 50% sold or sold/pending before the banks will open lending to future transactions.
Daniel, I noticed that specific listing, too, on Columbus Avenue. Look at the "discussion" on the building's page as to whether the building might be having tax problems or some other issue. Several people have posted rumors that should be researched. Also, look at the absolute fire-sale price of two units that have recently sold in that building: $26K and $40K. They may be database errors or an indication something is seriously wrong with the building.
The cash issues aside, that unit and building have some aesthetic issues. That pickled floor on the lower level is downright depressing and those random grates placed outside the building give it a city jail look.