Co-op financials

Your attorney will get the financials and read the board minutes going back for a few years. After reviewing with him then you would sign the Contract. Sometimes the selling real estate broker will give you the financials beforehand if he senses you are serious. The broker will definitely know if the building is on a land lease and ask him upfront.

Thanks John. But what I have noticed is a lot of brokers are new to the business. So when I ask a question, they seem to be clueless. And I hate to commit before seeing the numbers.

Do you think is an insult to the seller if I ask for the financials before we negotiate? If the building is in good shape, they should have nothing to hide.

I think it's putting the cart before the horse for a buyer to ask questions about financials before making an offer -- for heaven's sake, you have a period to review the financials before signing the contract -- but this IS more of a buyer's market than we have seen in years.

In accord with the times, we went ahead and ordered the financials on our last listing, a one-bedroom co-op in the East Village. (which btw, is something that the managing agent charges for).

I don't know that I'd feel comfortable handing them out to just any browsers (there are issues of privacy involved -- will you tell me what the salaries are of the people at your place of business?) but I can at least answer general questions about the size of the reserve fund, etc.

If a buyer then got serious enough to make an offer, we would have the financials at hand.

ali r.
{downtown broker}

this is a crazy process...you don't get to look at the financials until you have an accepted offer but since there is no contract you are not obligated in any way to go forward. bad situation for the seller, good for you...so take advantage.

i completely agree with you that financials should be available upfront...there is no salary information contained...and since you can back out anyway, what difference does it make?

ah, new york....makes no sense.

no -- the shareholder should have 3 years of financials available to you before you make a bid. period.

what does "should have" mean? have you ever bought or sold an apartment in mnahattan?

Columbia, I don't know about your building but the salaries of our staffers -- super, doormen, etc. -- are in my current condo's financials.

ali r.
{downtown broker}

its a co-op and there are no salaries there but these are union positions so what's the difference? is the theory that a disaffected doorman will pose as a potential buyer in order to negotiate a greater than union mandated raise? can we re-enter from the twilight zone?

how can you even make an offer without seeing the financials and knowing what you are buying? it absolutely makes sense that you should look at them before you put in an offer!

if you want to check the basics, log on to the dept of NYC finance, and look at their water and tax bills. if they pay on time and don't have any outstanding debt i would consider moving forward with at least an offer.