3 Reasons You Should Consider Buying A Co-op

NYC is one of if not the most unique real estate markets in the world when you consider the wide variety of housing stock available, rigorous financial screening processes required when purchasing, and the incredibly competitive nature of the industry at large.

That being the case, and on the subject of unique properties, let’s revisit cooperative homes here in the city. I have previously discussed how coops can be challenging to purchase and I meant it, they can be. But there are some very practical reasons as to why you should consider buying a cooperative home.

Let me not keep you in suspense, here are 3 key reasons to consider:

No. 1: Value

Above all else, coop apartments can be tremendously valuable in the NYC real estate landscape. While everything in this town is expensive if you’re looking to get the most bang for your buck, then you’re going to get it in a coop. Buyers who are priced out of condominiums or townhouses can often turn to the equivalent coop and secure a great home that fits their needs.

No. 2: Choice

As coops make up around 60%-65% of the owned home inventory in the city, you will have a lot more choices from which to choose if you explore coops. This is even more so true if you want to explore certain neighborhoods that are very coop rich such as the West Village. So if you’re looking for that hard-to-find apartment or maybe in a neighborhood that doesn’t have much to buy, consider coops as a key option.

No. 3: Upfront Savings

While I mentioned getting better value from coops on the total cost, one key component to coops that most people don’t consider is the lower closing costs. Because you are not technically buying real property, remember you are getting shares of cooperation, you do not pay certain NYC closing costs. These include mortgage recording tax and title insurance. Those two costs alone can cost you thousands of dollars when buying a condo or townhouse. But they do not apply to a coop purchase which keeps additional money in your pocket.