Expert: Hans Weber, Licensed Broker Associate - 4/16/2005

Question
Hello,

I will be going to look at co-op in the next few days.  This is my first experience when it comes to real estate.  What are the "must ask" question that I should ask the real estate agent?  I appreciate your response.  

Answer
Hi Alex,

Thank you for your question.

First, you want to know what the other sales in the building have been for the last year.  If there have been none that may be a problem.  Look over the whole complex for its overall condition, not just the unit you are considering buying, because in a way you are buying into the whole place.  You also want to know if there are any special assessments existing or planned for capital improvements.  Also ask if board approval is required.  You can save a lot of time and some money by being sure you qualify for the board's financial requirements before you apply.  Some may require specific incomes, downpayments, cash reserves, etc.  If the agent does not know you can call the management company and ask them directly.

When buying a coop or condo your attorney will request the offering plan and financial statements to be sure the complex is healthy financially.

When getting a mortgage, your bank will also review the offering plan and financials for the same reason.  The bank will also send the management company a condo/coop letter to determine the ratio of owners to renters.  If the ratio is too far to the renter side they may not lend.

If you pass all these tests you can make a nice appreciation on your investment.

Good luck,

Hans