Can I Buy An Under-Priced Co-op Without Board Concerns?
Question: I have an opportunity to buy a co-op for $150,000 even though similar units in the same building typically sell for $190,000 to $200,000. Is this deal too good to be true?
Answer: The arrangement is probably both true and unlikely to conclude with a sale.
Co-op sales are unique in that they require the approval of a co-op board. A major function of the board is to maintain and enhance the value of the property. Allowing the sale of a unit at a steep discount can be seen as reducing unit values for all owners — precisely what the board doesn’t want.
The probability is that the board will not approve the sale and that the owner will be required to find a market-rate buyer.
This, of course, is also good for the seller.
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