We Know What You Need To Know
Manhattan is one, if not thee, most complex and exciting residential markets in the country. At 14 miles long and 2 miles wide, Manhattan’s residential population is approximately 1.6 million. The population more than doubles to close to 4 million during the day via a network of tunnels, bridges, railroad lines, subways, commuter rail, ferry systems, bicycle lanes, and pedestrian walkways that link Manhattan to the surrounding counties, cities and towns.
Manhattan’s skyline might suggest one big neighborhood, however, it encompasses a multitude of unique neighborhoods, each with its own distinct physical and community characteristics. Furthermore, residential ownership in Manhattan is comprised largely of cooperatives and condominiums apartments as well as single family townhomes. With approximately 60% of residential units co-op, it is vital for prospective buyers to understand the difference in ownership between a co-op and condo.
- In a co-op, the homeowner owns shares in a corporation, whose asset is the building and land (typically). The shares allow the owner to occupy their specific apartment via a proprietary lease. In addition, all the homeowners in the building are responsible for the underlying debt on the building/land. Therefore, it is very important for a potential buyer or seller of a coop to understand the financial condition of the corporation, both in terms of debt and cash reserves. Typically, coops have higher financial hurdles for buyers than those of condominiums.
- Complicating matters, the financials of a coop are not publicly available. Co-ops also have limitations to subletting and possession. That is, co-ops are not a good fit for someone looking for an investment property or may want to sublet the property down the road. These limitations result in co-ops appearing more compelling pricewise than their condo counterpart.
- With a condominium, the homeowner has a direct ownership via a deed to their space and therefore, the debt is attached only to their unit.
In both condo and co-ops, understanding the buildings common area maintenance charges and building reserves is imperative in valuing a property. Additionally, in both, board approval is required for a potential buyer.
Manhattan—A Most Complex, Exciting Market
For over 20+ years, Mr. Jackson “kicked the bricks” in Manhattan, appraising over $10 billion of residential real estate and thus, creating a proprietary database. His deep knowledge of the financial, physical and locational attributes is unparalleled. The valuation impact from floor to floor, street to corner, access to subways, views and light play a substantial factor when buying or selling Manhattan real estate. He offers all his expertise in guiding buyers and sellers in this most complex real estate market.
Please contact Jeff directly at (917) 846-5599 / email@example.com for a complimentary consultation on your individual objectives in Manhattan.