Finding The Right Buyer For Your Home

So you think you’ve found a buyer. Here’s what to do next.

If you’re a co-op owner, finding the buyer is the easy part. For prospective buyers—and eager sellers—navigating the co-op board interview process is the final battle in the process; the reasons for a “not approved” stamp are myriad and often inscrutable, and New York City co-op boards are famous for snubbing the rich and famous. Your buyer is largely on their own for the interview process, but there is some specific advice you can offer in advance to nudge the process in the right direction. Here are some tips to help things go your way:

Show them the money

Before the board interview, your buyer should get their financials in exacting order. Gather two years of tax returns and bank statements, as well as a stack of sterling business and personal references. With very few exceptions, boards will insist that prospective buyers prove that they can cover monthly mortgage and maintenance payments, maintain a debt-to-income ratio of no more than 30 percent, and have sufficient liquidity for any potential assessments the building may pass along to each of the co-op’s shareholders.

Anticipate the objections

If your buyer plans to snag your place as an investment property, a pied-à-terre, or a city pad for a grown child, he may be in for a tussle with the board. If you have four Pomeranians, get ready to rumble. Ditto reality TV stars, tuba players, and Madonna. Being somebody isn’t necessarily a deal-breaker, but being unprepared to make your case could be.

Get ready to get personal

Co-op board questioning isn’t only about business, and your buyer should remember that board members aren’t merely interviewing a prospective shareholder, they’re interviewing a prospective neighbor. They may ask about family and friends or her documented successes at work. Ask the board president to provide a list of interview questions in advance, and encourage your buyer to bone up before the big day, so there’ll be no sweating, no stammering, no surprises.

Manage your expectations

In the end, while Fair Housing regulations prevent a buyer from being turned down due to gender, race, religion, or sexual orientation, the laws don’t require co-op boards to divulge the exact reason for a rejected application. That said, if your board turns down buyer after buyer for no stated reason, there may be a darker motivation at play, and it may be time to seek some sage advice from a lawyer.