We have decided to sell our co-op apartment. It is currently sublet but we will no longer be able to sublet after this year because of co-op policy changes. We had originally envisioned using the place ourselves as a second home, but this is not seeming like a good idea anymore. We're not looking to make a killing on this; just to get close to what we spent and move on. I have offered it for sale... [more]
We have decided to sell our co-op apartment. It is currently sublet but we will no longer be able to sublet after this year because of co-op policy changes. We had originally envisioned using the place ourselves as a second home, but this is not seeming like a good idea anymore. We're not looking to make a killing on this; just to get close to what we spent and move on.
I have offered it for sale to the tenant, who is still thinking it over; if this avenue pans out, what things should I be concerned about? If each of us hires a lawyer to handle the sell/buy will that be sufficient professional support for both sides of the deal?
If this does not pan out, what's the best way to go about choosing a listing agent? My fallback is the person we used when we bought, but this person does not seem to be terribly active; there is only one listing under this person's name right now. However, this agent was good to work with at the time we bought. I am okay with paying for reasonably helpful service.
So any advice?
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Response by LENOXav
over 12 years ago
Posts: 150
Member since: May 2010
The Lawyers can hash it out, if the Deal develops between you and your current Tenant...
And, if that doesn't pan out, go with the Agent with 'only one listing under their name' . . . more time to focus on your listing, rather than countless others! [By your own admission, "they were good to work with . . . "]
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Response by vslse65
over 12 years ago
Posts: 226
Member since: Feb 2011
One of my clients is in the same situation as you and is listing his coop through me. I too am not very active outside of our own portfolio, but he trusts me and knows I'm capable. Imo, an agent's activity (or inactivity) doesn't necessarily reflect their competence or work ethic.
If FSBO is not an option and you were happy with the original agent, I would use him/her.
Good luck.
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Response by mariop
over 12 years ago
Posts: 0
Member since: Nov 2011
Where is this apartment located? Currently looking to buy in Manhattan.
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Response by uesowner
over 12 years ago
Posts: 47
Member since: Apr 2007
Thank you for the advice.
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Response by crescent22
over 12 years ago
Posts: 953
Member since: Apr 2008
I haven't sold yet but this is what this board has taught me to look for- some combination of:
* who is willing to over 5% to sell, 4% for no buyer's broker or better;
* echoing the above, who is going to show fire in selling this place - don't list your Jr 4 with someone who has a couple of $10m places on sale also - what they say they will do to generate demand (listing on their brokerage site so it gets picked up by SE does not count);
* who knows the neighborhood, building, and comps so well they can cite them in their sleep.
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Response by crescent22
over 12 years ago
Posts: 953
Member since: Apr 2008
* who is willing to bid 5% to sell (commission)
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Response by bramstar
over 12 years ago
Posts: 1909
Member since: May 2008
Did you use a broker to secure the current tenant? If so, check your agreement with that broker to be sure there isn't a clause that allows the broker a sales commission if your tenant purchases the apartment.
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Response by mneuwirth
over 12 years ago
Posts: 36
Member since: Oct 2010
1) Certainly it's important to check the lease to see if the rental agent involved is due a commission. This is standard.
2) You can best judge the relationship you have with your tenant. If it's cordial you should be able to come to a price and terms agreement with them and close the deal with the 2 attorneys.
3) One important question is whether your tenant will pass the Coop board or not. Some buildings have relatively liberal boards and others are very conservative. If your building is one of the latter it's important to look at the person's tax returns, bank statements and credit report to gain at least some confidence everyone's time is not being wasted.
Please feel free to contact me if you have any questions, I've been a broker in Manhattan for 11 years.
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Response by mym
over 12 years ago
Posts: 188
Member since: Jun 2009
I know that you're not looking to make a killing, but you should go to a few open houses of comprable apts., so that you get a sense of what market is like today-different from a few months ago.
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Response by uesowner
over 12 years ago
Posts: 47
Member since: Apr 2007
I will look at the lease agreement to see if there are any conditions. The tenant has been there for 7 years, so kind of a long time, and I don't know if that agent is even in business anymore -- or if the company still exists, for that matter!
The tenant had to go through board approval to sublet from me and is well-liked by the other people in the building, so that part of board approval I'm sure wouldn't be a problem. The only question is finances.
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Response by uesowner
over 12 years ago
Posts: 47
Member since: Apr 2007
Yeah -- just checked, and the company no longer exists. It was acquired by two other agencies (one for rentals, one for sales).
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Response by bramstar
over 12 years ago
Posts: 1909
Member since: May 2008
>>Yeah -- just checked, and the company no longer exists. It was acquired by two other agencies (one for rentals, one for sales).<<
Still check your original agreement. You don't want some broker coming out of the woodwork claiming a commission.
The Lawyers can hash it out, if the Deal develops between you and your current Tenant...
And, if that doesn't pan out, go with the Agent with 'only one listing under their name' . . . more time to focus on your listing, rather than countless others! [By your own admission, "they were good to work with . . . "]
One of my clients is in the same situation as you and is listing his coop through me. I too am not very active outside of our own portfolio, but he trusts me and knows I'm capable. Imo, an agent's activity (or inactivity) doesn't necessarily reflect their competence or work ethic.
If FSBO is not an option and you were happy with the original agent, I would use him/her.
Good luck.
Where is this apartment located? Currently looking to buy in Manhattan.
Thank you for the advice.
I haven't sold yet but this is what this board has taught me to look for- some combination of:
* who is willing to over 5% to sell, 4% for no buyer's broker or better;
* echoing the above, who is going to show fire in selling this place - don't list your Jr 4 with someone who has a couple of $10m places on sale also - what they say they will do to generate demand (listing on their brokerage site so it gets picked up by SE does not count);
* who knows the neighborhood, building, and comps so well they can cite them in their sleep.
* who is willing to bid 5% to sell (commission)
Did you use a broker to secure the current tenant? If so, check your agreement with that broker to be sure there isn't a clause that allows the broker a sales commission if your tenant purchases the apartment.
1) Certainly it's important to check the lease to see if the rental agent involved is due a commission. This is standard.
2) You can best judge the relationship you have with your tenant. If it's cordial you should be able to come to a price and terms agreement with them and close the deal with the 2 attorneys.
3) One important question is whether your tenant will pass the Coop board or not. Some buildings have relatively liberal boards and others are very conservative. If your building is one of the latter it's important to look at the person's tax returns, bank statements and credit report to gain at least some confidence everyone's time is not being wasted.
Please feel free to contact me if you have any questions, I've been a broker in Manhattan for 11 years.
I know that you're not looking to make a killing, but you should go to a few open houses of comprable apts., so that you get a sense of what market is like today-different from a few months ago.
I will look at the lease agreement to see if there are any conditions. The tenant has been there for 7 years, so kind of a long time, and I don't know if that agent is even in business anymore -- or if the company still exists, for that matter!
The tenant had to go through board approval to sublet from me and is well-liked by the other people in the building, so that part of board approval I'm sure wouldn't be a problem. The only question is finances.
Yeah -- just checked, and the company no longer exists. It was acquired by two other agencies (one for rentals, one for sales).
>>Yeah -- just checked, and the company no longer exists. It was acquired by two other agencies (one for rentals, one for sales).<<
Still check your original agreement. You don't want some broker coming out of the woodwork claiming a commission.