Getting In: Co-op Board Navigation Tips

DECEMBER 16, 2011

Co-op, short for co-operative. And often they aren’t, especially in New York City.

Some of the city’s most coveted buildings—like the Dakota and One Sutton Place South—are co-ops. The concept of purchasing shares of stock in a corporation that owns the real estate rather than buying the property itself can be confusing to first-timers. Though many have reportedly loosened up a bit since the arrival of a virtual forest of condos in the past decade, getting past the board—even when you’ve got the finances to buy—can be daunting. Your agent should be able to provide you with a list of what to include in your application package. Here are some basics:

Co-op boards require extensive financial documentation. Passing the board can be more difficult than getting a mortgage. Most boards require that you have 20%-50%+ of the price of the apartment in liquid assets after closing costs.
Make sure the board’s rules are in line with your plans in terms of subletting, buying for family or using the apartment as a pied-a-terre.
Some buildings are known to have easy-to-please boards, some are known for their exclusivity. Your agent should be able to clue you in to this information so you can at least be forewarned.
Look at your application the way you would a resume. Include volunteer work or community involvement; It may help to show yourself to be a community-minded individual.
Recommendation letters: Investigate every connection to board members that you can six-degrees-of-network your way to finding. Make sure the people who recommend you have known you for a long time.
Dress for success. When you meet with board members, wear what you’d wear to a job interview for an executive position. This is not the time to show off the latest Gaga inspired outfit or your winning beard contest entry.
If the building allows pets, make sure your Fido or Fifi is prepared.

Again, your agent should be a good resource to clue you in on what you need—in addition to a bit of luck and perhaps a cousin’s golf buddy—to get the board’s ok.

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Getting In: Co-op Board Navigation Tips

DECEMBER 16, 2011

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