Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

What it takes to get your housing cooperative offer accepted


Download PDF

First-time homebuyers often look for easy ways to alleviate the sticker shock of buying an apartment or townhouse, especially in New York City.

Manhattan and the surrounding boroughs are notorious for their expensive real estate, leading first-time buyers to slash costs whenever possible.

A common misconception is that buyers will save money by making an offer directly to the seller’s agent rather than being represented by a buyer’s agent.

In many cases, this belief will actually end up costing a potential buyer time and money. In the case of housing cooperative transactions, in which are members are granted the right to occupy a single housing unit, the process can be particularly complex.

The buyer’s agent: On your side

Without the help of a professional to navigate the complicated maze of buying a home in New York City, buyers’ offers are often rejected outright.

The role of the buyer’s agent — particularly in a hot market — is to help answer buyers’ questions and make targeted tweaks to their offers to secure their desired real estate.

Housing co-ops

With housing cooperative (co-op) boards, the transaction can be especially convoluted.

Potential buyers may need to submit a lengthy board package, which can be hundreds of pages long, detailing their financial and employment history, debt-to-income ratio, post-closing liquidity as well as a variety of personal information and a bio.

Putting together a board package and corresponding with a buyer, management company, mortgage professional and attorney in a co-op purchase can take months.

Debt-to-income ratio and post-closing liquidity

A clear explanation of the buyer’s debt-to-income ratio and post-closing liquidity are crucial components to include in the financial component of the offer, a fact that is sometimes unknown to potential buyers who may mistakenly leave them out when they attempt to apply for an apartment.

These vital numbers are reviewed by the seller, the listing agent and the co-op board to determine whether they are dealing with a serious buyer.

Also, co-op board standards for debt-to-income ratio are much stricter than those of a bank, so even if a buyer is already pre-approved by their preferred financial institution, this by no means assures their approval for the apartment.

More than money

Monetary value is typically not the most important criterion a co-op board or owner considers in determining whether an offer will be accepted.

Each co-op board has its own financial criteria that they use to determine which buyers they accept.

To prepare a strong offer, it is essential to show that the buyer continues to possess ample liquid assets and a strong income post-closing, as well as general stable assets before, during and after the sale.

Buyer profiles

Furthermore, it is imperative to consider the full financial picture, submit an offer that is professionally composed and shows a complete profile of the buyer.

In addition to being financially qualified, the offer must be “humanized” to present the client as a friendly person who will be a good neighbor and positive member of the community.

A quality real estate agent will, with the help of the buyers, write a brief bio about them that may include where they went to school, how long they lived in the neighborhood, or — if they are a couple — how they met.

Any personal details that speak positively to a person’s character, and portray a buyer as a three-dimensional, make an offer more than just a number on a page.

An agent would aim to present their buyers as people who will reflect well on the entire co-op building.

Negotiating perks

A good agent is also a skilled negotiator.

When purchasing a home, it is wise to have someone in the buyer’s corner who can negotiate strategically.

There is a real science and art to negotiating, and as a buyer it can be very difficult to negotiate over such an emotionally charged subject as a new home.

Buying a home first and foremost is a business decision. A savvy buyer understands the best way to ensure their offer will be accepted is to collaborate with an agent who can help them get the deal done the first time around.

Joan Kagan is a sales manager/licensed associate real estate broker for TripleMint in New York City. Connect with her on LinkedInFacebook or Twitter.

Source: click here

Read More



  • Need print and social media marketing fast? Enter CoVault

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What ‘being the best’ means to 5 agents

    Luxury homes and affluent clients require service that is second to none. If you’ve asked yourself...

  • NestEgg cracks the code for small landlords and the agents who help them

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • How 3 agents have leveraged a referral network to sell homes

    Marketing by word-of-mouth is seen as a nice-to-have in most industries. But in luxury real estate, ...

  • LeadJolt plugs into the power of Facebook lead gen

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Finding the perfect home for an unconventional client

    Have you ever had a client request the highest, most panoramic property in the area so they can maxi...

  • Showing app Entro has potential — but should address agent safety

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Dreaming of your brokerage being on the big screen? Try ITESMEDIA

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Virtual tour success stories: How 4 agents used visuals to make the sale

    Can luxury properties be sold without a client site visit? The upsurge in virtual viewings this past...

  • Streamline new agent engagement with Guru Solutions

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

January 2021
Mon Tue Wed Thu Fri Sat Sun

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3


    Loading ... Loading ...