Board rejection

It's worth a shot, though the approach to seller's broker should be made by your broker and not you. And if it's truly a rejection based on price, the goal should be to find out what price the board is fishing for (rather than having you bid against yourselves).

Another thing to think about: you must know, having made the bid, why this apartment is trading lower than recent comps -- is there a noise problem? a condition problem? Your goal is a board acceptance, but you don't want to pay a quarter for a dime, either...so has seller clearly communicated to his/her board that she is selling a dime?

ali r.
DG Neary Realty

It is absolutely worth a shot if you love it. They typically will not disclose a reason but you may be able to fish for the truth through your broker via the seller. There could be so many reasons (and not necessarily rational ones) that you were rejected. I am sure the seller is troubled by this and wants to make this work.

If you financed, I'd be curious to know where the appraisal came in at? Was it close or over?

I'm going to be contrarian and say you should just move on. I am going to predict the board will not reconsider your application no matter what you do.

President Nixon couldn't get into the co-op he wanted, either. It happens. I'm sorry.

I'm also going to predict that the seller will not accept a new offer from you anyway. It's not your decision, remember, it's the seller's.

The back-up offer is "essentially" the same? But apparently not the same? In case this fact is relevant, the same offer all-cash is not the same as an offer with a loan, at least to many boards.

Also, how do you know about this back up offer? Dd you get that from the seller's broker? If so, What kind of seller's broker reveals that to you and/or your broker? There is a legal obligation of confidentiality that has been breached here, if you got that info from a broker.

Apart from anything else, if the board agreed to reconsider your application at a higher price, then it is revealing the reason it rejected you. Revealing reasons for board rejections is not wise for the board, ever.

A comp means a comp, which means similar enough--with adjustments for obvious things--to do a broker price opinion or comparative market analysis, and similar enough to persuade a licensed appraiser with their highly technical way of adjusting for differences.

If the price you offered is "substantially" lower than comps, with a seller who is "anxious," the board is just not going to let that seller devalue the whole building for a quick sale.

What you're trying to set up here is negotiating the lowest possible price with the board. If the board is at all smart and careful, which they've already proven they are, that is not going to work. And that's an aggressive strategy that does not reflect well on you and future peace in the building.

You love the apartment, of course you do, you're telling us it's a bargain. Everyone loves a bargain. And you've got a seller who is disadvantaged, perhaps, that you can take advantage of.

In some buildings, that alone is enough to get you rejected.

Finally, the idea that a property sits on the market too long and gets stale is mostly myth in New York City, and other places where I own real estate too, by the way.

Brokers use that line to get their seller-clients to do things the seller should do but won't because they don't want to spend the money, or don't want to lower the price. I've used it myself, but I have stopped since concluding it's usually not true.

Especially anywhere in NYC, people will come out of the woodwork to buy a correctly marketed and priced property no matter how long it's been on the market.

If the reason for a delay is a board rejection, then days on market is totally irrelevant to most buyers, who are all sure they'll pass the board anyway.

Aptbuyer1,

Very sorry to hear about the rejection. Dont feel too bad (although i know this is hard), rejections happen all the time, even to the rich and famous (see Mariah Carey). Its been said that everyone gets turned down at least once.

Shortly, I agree with all of what's been said, and even though kharby2's comments are true, I'd still be tempted to try to gain some more information. Don't expect anything to change, but at least you'll be more familiar with things, maybe even for your next attempt. I'd take Ali's advice and try it, the right way, even if it's for your edification more than anything else.

Agree with kharbs, cut your losses and run. Unfortunate, but time to move on.

Ive seen this work.....so its worth a shot

Actually there was an article written about this a few years ago. NY Times I think. They did a good deal of research and found that plenty of people ask boards to reverse their decision and that boards do in fact reverse their decisions at times. They said it was not the norm, but it did happen. I would try for sure. And while you are trying, keep looking for a new place. Nothing to lose.

it can't hurt to make an inquiry, and, possibly offer to pay more for the place. but try to avoid your info flow being fouled by brokers, and speak directly to the seller, if possible.

kh is quite right when he says the board will be reticent to clear you at a higher price. provides opening for a lawsuit.

Invite the board out for Bob Evan's buffet. They'll reconsider. Point out that most of them probably couldn't pass their own requirements today if they applied. Blue haired co-op commando's!

Re: Point out that most of them probably couldn't pass their own requirements today if they applied.

paging Matt, Matt. Matt. paging Matt.

you want to try to see if you can pay more for a coop lease that you have an agreed upon price, just because the board rejected you?

dude....

move on.

I guess if the seller wants to pay the price increase himself - then ok inflate the price that sounds kosher (not). but I would not drop another dime on it.

I have had a few decisions reversed by the board. The seller or the seller's broker needs to talk to someone on the board or the managing agent and ask if "off the record" they can tell them can anything be done for them to reconsider the applicant.If they won't reconsider what should they be aware of for the next buyer application . If they felt the price was too low and would affect the other values in the building ask what price would be acceptable? The seller needs to do this regardless so as not to have another turn down