5 NYC Co-op Board Application Myths Demystified

We will demystify 5 NYC co-op board application myths and tell you why it’s actually a very straightforward process over 95% of the time. The complete guide to buying a co-op in NYC: https://www.hauseit.com/buying-a-coop-in-nyc/

I’m Nick at Hauseit. Check out our website https://hauseit.com to learn how to save money if you’re buying or selling a co-op, condo or townhouse here in NYC.

Save Money When Buying Real Estate in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/

Co-op Board Application Myth #1: The board package is thousands of pages

Technically, this is true, but only if you have an inherently complex tax return or if you have dozens of bank accounts (and therefore, loads of statements). Most buyers don’t fall into either of these categories, and as a result, the completed board application is usually no more than a few hundred pages. Moreover, many buildings have transitioned to online board package systems which do not require you (or your buyer’s agent) to print out physical copies.

Regardless of how many pages the completed application is, the good news is that the preparing a board package is really just assembling a bunch of documents you already have, like your tax returns and bank statements.

The only quasi difficult items in a co-op board package are the reference, employer, landlord and bank verification letters, since you’re reliant on 3rd parties to provide them, and that takes time.

Moreover, most condo buildings in NYC have a similar application which requires most if not all of these same items, including reference letters.

Co-op Board Application Myth #2: The application process can take 6 months

Yes, we have seen the board application process take 6 months. But this was an outlier. Over 95% of the time, the co-op board approval process takes 6 weeks or less from the time the application is submitted.

Co-op Board Application Myth #3: They will weigh my dog at the board interview

Again, this has happened before. But it’s not very common, and it’s certainly not the standard operating procedure for the vast majority of co-ops. Even if they were to weigh your dog, there’s no reason to be annoyed by this, since a co-op’s pet policy never really comes as a surprise. They tell you upfront what the pet policy is. If you try to buy a co-op but you ignore or fail to ask about the pet policy, it’s a red flag to your neighbors that you don’t pay attention and might not respect other rules once you live in the building. So in conclusion, review the pet policy before submitting an offer and singing a contract, make sure your pet qualifies, and if there’s a weight limit, weigh your pet and make sure you’re in the clear.

Co-op Board Application Myth #4: The board application fees are unreasonably high

Yes, co-op board application fees are fairly high. They range anywhere from $300 to $1,000. But what you might not realize is that 95% of condo buildings in NYC charge exactly the same fees.

Moreover, the rental application fees for condo and co-op buildings in NYC are pretty comparable to this as well. If we look even bigger picture, it’s also worth pointing out that co-ops have significantly lower buyer closing costs than condos. So even if the co-op’s application fee is $100 higher than what it really should be, your total closing costs are still pretty good compared to what they’d be if you bought a condo.

Co-op Board Application Myth #5: The co-op can reject me without providing any explanation

This myth is sort of true. Actually it’s completely true, at least for now. From time to time, the politicians in New York make noise about possible legislation requiring co-ops to disclose the reason for a board rejection. But nothing has happened on this front, as of this filming. That being said, co-op board rejections are pretty rare. And most of the board rejections are somewhat predictable, in other words, you could sort of see it coming.

For example, if you’re buying into a co-op which has ridiculous financial requirements, like a minimum of 50% down, and two times the purchase price in liquid assets post-closing, and this co-op also happens to be on 5th Avenue, you sort of know what you’re signing up for.

The vast majority of the time, there’s no reason to expect a rejection if you meet the co-op’s financial requirements, you submit a complete and organized application and you don’t ask inappropriate or arrogant questions during your board interview.

How to Prepare for a Co-op Board Interview NYC: https://www.hauseit.com/co-op-board-interview/

Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
.
.
Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
_
#hauseit #hauseitnyc