Can you walk away from a closing up to the minute it is scheduled?

No, I just consulted with an attorney on this as I am looking to do the same. Your only loss is the deposit.

yes you can. My attny told me taht there is no formal process - that I just should not show up for the closing. sounds whacky, right, in a million dollar transaction that there is no formal process in place?

There is a process. Unless you notify 24 hours in advance, you will be liable to managing agent and any bank(s) involved for their fees. Secondly, it's just bad form not to have your attorney alert the seller's attorney you have decided not to close. There's always the chance you can come to some arrangement in price concession, go forward and not lose your down-payment. Buying an apartment is not like day-trading. If you're going to hold it for 3-5 years, you will regain any loss you fear now.

irreponsible advice: "If you're going to hold it for 3-5 years, you will regain any loss you fear now."

Yes, taking a loss now for the chance that you might break even in *nominal* terms, ignoring carrying costs, is not very smart...

"Yes, taking a loss now for the chance that you might break even in *nominal* terms, ignoring carrying costs, is not very smart"

Not sure I get your point nyc10022. You can bet to lose 10% today vs. losing 10% 3-5 years from now. For me, the decision could go either way depending on the circumstances.

Can streeteasy confirm whether or not the first three postings are from identical IP Addresses (alana, Maraman, coverdrive)? They seem a bit suspicious!

A broker told a friend of ours who sold (closed) his apartment last week that she was just grateful both parties showed up. Allegedly she has had six deals recently where the buyers never came.

6 deals recently where the buyer never showed up? lol, allegedly,

Buster, you are the one who sounds suspicious. The issue of walking away from deposits has been coming up with more and more frequency, for obvious reasons, in this forum. All of those guys have been participating in the debate lately, and their respective situation are probably genuine, or at least more believable that what our dearest remaining bulls usually post. Besides, many people have already asked streeteasy how to "unmask" all the assumed posters, which is impossible, not to mention that it is equally impossible to know if all the regular bulls who have given as so much informed, sane, and financially sound RE advice (buy, buy, buy now!) for months actually own all the RE they claim to own, or have owned and made millions, of course. So, just seethe at home and don't want to appoint yourself as the police, please.

trompiloco - buster is going to come back saying alana, Maraman, coverdrive AND trompiloco are the same!!

Actually, we are. We are all just a figment of stevejhx's imagination and the fact that he has lots of time in his hands.

And the funny thing about that, regarding da bulls is that they're always crowing about "pent-up demand" and how 9500 inventory "is nothing for the amount of people who want to buy in Manhattan", but they hate to see that we, the real people who are interested in buying but want to be informed and sensible and don't want to plunge headlong into financial disaster, are actually numerous.

JuiceMan, while I get your point about losing 10% today vs 10% in 3-5 years, it is actually a lot more than 10% if you can't cover your expenses in the intervening 3-5 years because you won't be getting a bonus or have lost your job...

If you lose the 10% today, then you have defined and limited the loss to just that - 10%.

If you decide to go forward with the purchase and sell the apartment later - you still will have to deal with closing costs - which will probably be 4-6% anyhow.

The only difference is that in waiting you HOPE that the price of the apartment goes up, but you also assume the risk that the price could go down. But regardless, the closing costs are still going to be there.

So even if you could somehow sell the apartment in 3-5 years for what you paid for it today, you would only be "making" the difference between the 10% deposit and the 4-6% closing costs. Not to mention that you would have taken a loss in real terms when you factor in inflation and the various carrying costs of maintaining an apartment. (Not to mention, as stated, the probability that you could lose your job in the next 5 years...)

Honestly, given the direction our economy is going and the fact that NY real estate prices are still in a bubble, it appears that taking a 10% loss today reduces your risk exposure more than hoping that prices go up.

I heard someone mention me?

Why do discussions like this start? Alana, are you in contract looking to walk away? Or is this just a theoretical exercise because you want to put in an offer and think that in the interim couple months that prices might decline by over 10%?

Wouldn't you give up the 10% you put down when you went to contract if you don't show up at a closing??? I would think the only valid excuse would be a problem getting a mortgage and a buyer would know that well in advance of a closing.

prada, the thing that you're missing is that you will be able to purchase a similar apartment for 30% less, then you will be saving 200% of your entire net worth, if you are the typical purchaser. Get it? Ok, glad you're in the market.

Plus you may be closing in a building that is only 51% sold and who knows how the hell the common charges are going to get paid in the future, or if the developer might go bankrupt. This is what has kept me out of the new development market for years. I am a long-time bear (sold too early, in 2004, because I thought this was insane) who didn't have stevejhx's determination to remain in the fight.

dmag2020
about 9 hours ago
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prada, the thing that you're missing is that you will be able to purchase a similar apartment for 30% less, then you will be saving 200% of your entire net worth, if you are the typical purchaser. Get it? Ok, glad you're in the market.

can you help me with your math on this?

Some questions:

Isn't the whole common-charges issue in new developments a big factor that's been underdiscussed so far? Is there any precedent on how things unwound with these in past downturns? And are the calculations regarding how a lender or co-op board determines a buyer's affordability today, the same as they were in the past downturns?

"prada, the thing that you're missing is that you will be able to purchase a similar apartment for 30% less, then you will be saving 200% of your entire net worth, if you are the typical purchaser. Get it? Ok, glad you're in the market."

what an ass

dmag2020....You are so sure that you will get a similar apt. for 30% less...you make no sense!!