Cooperative and condominium apartment values are not comparable for a variety of reasons. Co-ops have a much longer history in New York than condominiums and many of the city's older luxury apartment houses are cooperatives while many of its newer ones are condominiums. The latter have become more popular in recent years because usually owners are granted more freedom in selling their units and prospective buyers do not have to pass the scrutiny of the shareholder associations in cooperative buildings. Economic comparisons between the two types of tenant ownership is often difficult, because of many factors such as: the building's existing financing and tax valuations, level of staffing and services, changing neighborhood conditions, its physical condition, whether or not it is an official landmark, and whether it has fully utilized its development rights. Contact your accountant or financial advisor for more specific guidelines.

If you are considering purchasing a co-op, please keep in mind that most co-ops require that you finance 75% or less of the purchase price and that you have substantial liquid assets after the closing (usually at least 10% of the purchase price). Thus, as a very general rule of thumb, in order to purchase a co-op, most co-op boards will require that you have liquid assets of at least one-third of the purchase price, irrespective of the amount for which you may be pre-qualified for a mortgage. So, if you are considering purchasing a $1,000,000 co-op, you should have at least $350,000 in liquid assets and be prepared to put down $250,000 in cash. Most boards will not consider buyers that just barely meet the building's financing requirements and whose liquid assets will be virtually depleted after the closing. Though there are co-ops that are less stringent, the majority are entirely non-flexible in this respect.

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