Why Condos Sell at Higher Prices Than Co-ops
2015-09-14
Q & A with Dottie Herman
Question: Why do condos sell for more than co-ops?
Answer: If a co-op and condo apartment have identical interior and exterior amenities and the only difference was their property type, the condo would sell for more. In a co-op, the board has more control over your rights as a homeowner than a condo association does, and therefore more restrictions in co-ops allow condos to achieve higher prices. Manhattan has three times as many co-ops as condos. This does not mean that one type is better than the other, but it does mean that they represent different markets.
Question: Does having solar power for your home increase its value when you go to sell?
Answer: It's still early for the installation costs to be recognized by the market in many cases, often because many solar panel installs are actually leased and not considered part of the real estate. Over time and certainly in specific situations, there is the potential for an upside to value.
Question: I recently put my home on the market. It has been on for 2 weeks and we have received a nice amount of interest but no offers yet. In the interim we found a home we love, but we need to sell our property first. The sellers haven't purchased anything yet and don't seem to be in a huge hurry. Can we place an offer but not to close until December? Would someone ever agree to that? Hopefully by then our house will sell.
Answer: If you're fortunate to have found a property you love, you should proceed with putting in an offer, and since the sellers are not in a rush, you can accommodate them with a later Closing, to which they should seemingly agree.
Question: Does a pool add value to my home? Someone said because it is dangerous with kids that it will decrease the value?
Answer: More and more families vacation at home as amenities such as swimming pools are not as unattainable as they used to be. There are also safety precautions, such as fences, that eliminate many objections. There may be buyers who object, but it will not be a concern when the right buyer comes along.
Question: There are currently 5 homes for sale on my block. It is a long block with maybe 30 homes. Would a potential buyer be concerned as to why there are so many homes on the same block for sale? Should we wait to list our house?
Question: Why do condos sell for more than co-ops?
Answer: If a co-op and condo apartment have identical interior and exterior amenities and the only difference was their property type, the condo would sell for more. In a co-op, the board has more control over your rights as a homeowner than a condo association does, and therefore more restrictions in co-ops allow condos to achieve higher prices. Manhattan has three times as many co-ops as condos. This does not mean that one type is better than the other, but it does mean that they represent different markets.
Question: Does having solar power for your home increase its value when you go to sell?
Answer: It's still early for the installation costs to be recognized by the market in many cases, often because many solar panel installs are actually leased and not considered part of the real estate. Over time and certainly in specific situations, there is the potential for an upside to value.
Question: I recently put my home on the market. It has been on for 2 weeks and we have received a nice amount of interest but no offers yet. In the interim we found a home we love, but we need to sell our property first. The sellers haven't purchased anything yet and don't seem to be in a huge hurry. Can we place an offer but not to close until December? Would someone ever agree to that? Hopefully by then our house will sell.
Answer: If you're fortunate to have found a property you love, you should proceed with putting in an offer, and since the sellers are not in a rush, you can accommodate them with a later Closing, to which they should seemingly agree.
Question: Does a pool add value to my home? Someone said because it is dangerous with kids that it will decrease the value?
Answer: More and more families vacation at home as amenities such as swimming pools are not as unattainable as they used to be. There are also safety precautions, such as fences, that eliminate many objections. There may be buyers who object, but it will not be a concern when the right buyer comes along.
Question: There are currently 5 homes for sale on my block. It is a long block with maybe 30 homes. Would a potential buyer be concerned as to why there are so many homes on the same block for sale? Should we wait to list our house?
Answer: It is important for you to rule out any matters of public record that may be affecting your neighborhood and are the motivating factors for these home owners to list their homes for sale. If there are no issues of this type, current favorable market conditions & low interest rates are strong motivating factors. Be sure to check out your competition so that your home is priced correctly.
Source: http://www.worldpropertyjournal.com/featured-columnists/q-a-with-dottie-herman/real-estate-advice-dottie-herman-real-estate-column-co-op-prices-new-york-condo-prices-2015-real-estate-wisdom-real-estate-news-9349.php
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