Skip to main content

Right Building, Wrong Apartment

A few days ago, I met with my attorney and we had a discussion about the two bedroom property that I made an offer on in October.  While he agreed that the space was good and the price was not bad, he was concern that the coop was being mismanaged. I have had some of the same concerns as well. I had been doing some reach online and the feedback has not been positive. I observed documents on Trulia, Zillow and Streeteasy that shows that in 2008 and 2009, at the height of the economic downturn, the property values on the cooperative started to nose dive. Then banks started to refuse mortgage applications for the building. The coops has yet to recover and the prices have continued their downward slide. Another pressing concern was that the coop has not properly budgeted for needed repairs and expenses. In 2012, The building had a operating cost of $6.4 million dollars but had only budgeted for $6 million. That means that the cooperative is operating at a loss. My attorney said that for a cooperative of this magnitude, there should be more money in the reserves. The cooperative has just $200,000 in reserves.Within the last five years, the cooperative has been managed by three different management companies. Another red flag, a significant number of occupants have defaulted on their monthly maintenance for several months. My attorney requested to read the minutes of the last year and a half coop board meetings (as a way to ascertain if the coop has any plans to increase the reserves, etc) however he was not provided the documents. To us, it meant that either the monthly cooperative meetings are not happening or they are not being transcribed. I had no other choice but to walk away.

So, I'm back to searching for that perfect coop/condo again. Over the weekend my real estate agent and I saw two one bedroom apartments. Coop one was in my ideal neighborhood (ideal building too) and was on a quiet street with access to public transportation and shops. The problem, and there always appears to be a downside, the coop was too small, dark and overpriced. There wasn't a kitchen but a kitchen nook that lack space, storage/closet and overhead lighting. I hated the floor plan. The view out the bedroom window opened onto another apartment building and an empty lot. When you enter the apartment you entered into the kitchen nook. There was not a foyer. Also, the application fee for this building was an astonishingly ridiculous amount of money. I liked building though. I loved how friendly the occupants were. The common spaces were also clean and tidy. The coop also has strict rules about renting, no more than 20% of units can be rented at a time and tenants can't remain in the building for more than two years. I was faced with a dilemma. This is the building I have been stalking online for the past two years. But the apartment was not right for me. I almost willed myself to make an offer and was willing to overlook all the concerns just to get into this building. But alas, common sense got the better of me and I decided to walk away. In the past several months, I have watched from the sidelines as home prices in this area skyrocket due to the low inventory, transportation hub and big box stores. Still, with the newcomers and welcomed shops, the community is almost unchanged and untouched by gentrification, especially when compared to other areas in Brooklyn. Coop two was further away from my ideal neighborhood. It too was overpriced but the listing agent stated that the seller was willing to negotiate. It was a one bedroom close to the bus and train. the apartment needed a lot of work in the kitchen and bathroom. I liked the layout. I like the wide foyer/entryway. The apartment however lacked the wow factor. I would need to compromise a lot to be in that neighborhood and in an apartment needing that amount of work. Though Coop two was out of my ideal neighborhood, I was willing to see what I could get for my price point. I noticed that I could get more space. However I wasn't fond of the area. It lacked every amenity that made the ideal neighborhood appealing. I couldn't picture myself living there. I couldn't picture myself shopping there, meeting the neighbors. The ideal neighborhood has an energy about it and a freshness that you don't find elsewhere. I hate to use the term up-and-coming but the ideal neighborhood has lots of potential that is just starting to be realized. The shops are as diverse as the people.

Comments

Popular posts from this blog

I'm Still Here

When I started this blog a year ago, I was in contract on a two bedroom cooperative in Brooklyn, NY. I was very enthusiastic about getting the property and I started planning my design strategies. A year later after being denied by the coop board for the property, I have taken a bit of a break from my home search. I will still update the blog from time to time. However, I am less enthusiastic about the property search and haven't really seen a coop that grabs my attention like that first apartment did. There are certain things that I do not want to compromise on such as location, price and bedroom space. I haven't become a homeowner just yet but I haven't lost all hope of that happening. It just may take a longer time and I'm ok with that.

Switching Mortgage Lenders

I think that in my last post, I prematurely wrote about taking a break from the property search. Yes, this has been a stressful time. While the feeling was genuine, it isn't a true reflection of where I am in the process.  I have been in this property search for sometime now and at this stage, I'm almost desperate to get to closing. I'm tired of attending open houses. I'm tired of  putting my search criteria in Streeteasy and Trulia and somehow hoping that the results will be different.  Though I was reluctant to search for yet another mortgage lender, I had to do just that.  It had all happened out of my curiosity and frustration that I walked into a  bank and asked to speak to a loan officer. It was free and didn't require a commitment. I told the loan officer about my concerns and the trials of the last several months. Then I asked about the cooperative that I made the offer on. And to my surprise he knew it well. He had just close on an apartment in that buildin

Money, Money, Money

Home-buying can be emotionally draining and stressful process. More than the process of searching for a home, making an offer, waiting for the seller to accept or counter your offer and then applying for a mortgage, I’m finding the financial to be the most stressful of all. For years, I have diligently saved and deprived myself certain luxuries in the hopes that I would someday become a homeowner. But now here I am writing the check for down payment, handing over what took me the greater part of two and a half years to accumulate. And then after that, there is the closing cost which is another huge chunk of change. As we get closer to the closing day, I find myself in a mini-panic. The money that I’m using to pay for my down payment and closing cost could actually afford me a three-bedroom, one bath with a finished basement and back yard in Pennsylvania. I could have bought a home in Pennsylvania for cash! It’s a little vexing that as a first-time home buyer in Brooklyn, NY, my home