Calculating Condo & Co-op Square Footage: https://www.hauseit.com/how-measure-square-feet-real-estate-nyc/ <br /> <br />The main reason why buying a co-op in NYC is a good idea is because they are generally 10% to 40% less expensive than condos of comparable size and quality. Co-ops are less expensive for two main reasons: <br /> <br />There are significantly more co-ops than condos in NYC. Greater supply equates to lower prices, all else equal. <br /> <br />Co-ops are not generally purchased by investors and foreign buyers due to subletting restrictions which makes them harder to rent. Less demand equates to lower prices, all else equal. <br /> <br />Buying a co-op instead of a condo is also a good idea when it comes to your buyer closing costs. Buyer closing costs for co-ops are less than half of what you’d pay for a comparably priced condo. Expect to pay around 1% to 2% for a co-op compared to something like 4% in closing costs for a condo. <br /> <br />If you’re buying a $1,000,000 apartment, saving 2% on your buyer closing costs can equate to an extra $20,000 in your pocket at closing. <br /> <br />Often times, buying a coop in NYC is the only way working families can afford a larger apartment when it’s time to have kids. Many buyers simply need more space for their budget than what a condo will offer. <br /> <br />Unlike condominium apartment owners, co-operative apartment owners are technically shareholders of a corporation that owns the entire apartment building. Co-op apartment shareholders are given a proprietary lease that lets them reside in the apartment that they purchased. <br /> <br />However, because they don’t technically own the apartment that they dwell in, they are not considered to have real property rights. The cooperative corporation is run by a board of directors that is elected by the shareholder base, similar to what you’d see in a regular business corporation. <br /> <br />Buying a co-op can be a bad idea due to the fact that the board of directors enforces strict rules and regulations that touch every aspect of life within a cooperative building. These rules can hamper your ability to sublet the apartment and impact whether or not you can renovate your apartment before selling. <br /> <br />What’s arguably the worst thing about owning a co-op is that the co-op board can derail your future sale by rejecting your buyer, in some cases multiple times. Furthermore, many co-ops charge sellers an extra closing cost called a flip tax. <br /> <br />Looking to buy or sell a home in New York? Learn how you can save on commission and closing costs at https://www.hauseit.com <br /> <br />Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/ <br /> <br />#hauseit #hauseitnyc <br />https://www.hauseit.com
