What is a Coop apartment? | The Complete Guide to Buying a Co-op in New York City

Condo vs Coop. Which one is better? As a first time home buyer, buying a co-op in New York City can seem very complicated and challenging process. This video will help you understand what is a co-op, how to buy a co-op, pros and cons of a co-op, how co-op board approval and co-op board interview work here in NYC.

We will also discuss the differences between a condominium and a cooperative ownership structures.

What’s up everyone.
My name is Sargis, I am a licensed real estate agent with CORE based here in New York City.

Book your FREE 30-minute consultation call with me if you are looking to buy, sell or rent in NYC or if you just have questions regarding NYC Real Estate.
https://calendly.com/sargis_mosyan/30min


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Timestamps
0:00 - Intro
1:10 - What is a Co-op?
4:34 - Co-op Maintenance
7:43 - Co-op Board or Directors
8:30 - Co-op Buying Steps
10:55 - Co-op Due Diligence
13:06 - Inspection
16:00 - Contract Signing
17:06 - Board Package
22:04 - Closing
22:58 - Co-op Rules and Requirements
26:01 - Pros and Cons of Owning a Co-op
29:08 - Important Questions to Ask

Co-op is a cooperative corporation that owns the entire multi-unit building. In other words the real property is the whole building. Every unit in the building has a specific number of shares allocated to it. Just like if you are looking at a traditional stock in the stock market. Shares represent portions of the stock in a corporation. The amount of shares for each apartment is determined when a co-op is first built or when it was first converted.

In a co-operative, monthly “Maintenance” fees include the costs of maintaining and operating the building, maintenance of the common areas, staff salary, etc.

The difference between Co-operative Maintenance Fees and Condo Common Charges Fees is that the Co-op maintenance also includes your property taxes. So when you own a co-op apartment, you’ll have one bill that includes everything, if you own a condo, you’ll have your common charges and your property tax bill separate.

How much your maintenance fees are depends on how many shares you own in the corporation.

And one of the important things to consider when buying a co-op vs condo or a house, is you have to be approved by the Board of Directors in order to buy an apartment in the building. This is an extra step that co-op buyers have to go through.

Below are 2 important questions to ask when looking for a co-op apartment.
Are there any current assessments?
Is there a flip tax in the building?