Selling your co-op means selling your buyer to the board

| Oct 23, 2020 | Residential Real Estate

Every real estate deal requires the seller and the buyer to jump through a few hoops — but selling your co-op takes extra steps. Aside from making sure the property is in tip-top condition to put on the market and finding a buyer who can afford (and obtain) the financing they need, you also need to sell your buyer to your neighbors — or, at least, the board that manages your co-op.

Having your buyer rejected by the co-op board isn’t just a hassle — it’s also lost time and money. The market can change quickly, and you have no idea how long it may take you to find a new buyer. That makes it particularly important to “sell” your buyer to your board.

Here are some tips that can make it easier:

  • Get the purchase package from the board before you even have a buyer. Look through it. You may have forgotten some of the details or things may have changed some since you filled it out for yourself. This will help you prepare for negotiations with your buyer and make it easier to understand who will likely pass muster with the board.
  • Talk to the members of the board. Give a few of your board’s members a call and let them know you’re selling. Get their thoughts about potential buyers so that you know what sort of things would raise concerns with the board.
  • Make sure that you know everything you can about a buyer’s financials. If those aren’t clear, don’t assume that you can make a deal. The majority of the time, boards reject potential buyers over their financials. Make sure that your potential buyer can afford the down-payment the board requires and has enough money in reserve for any maintenance fees.

Working through the sales process for your co-op is always time-consuming. Make sure that you have a real estate attorney’s assistance from the very start. You don’t want an unexpected problem to suddenly destroy your sale.