Co-op or condo? 🤔 I hear this question a lot, especially from first time buyers.
People are often confused about the differences between co-ops and condos (I get it!). For clarification, a co-op is structured so that you own shares in the building and in exchange you get to occupy your apartment.
So what does that mean for a buyer?
Co-ops usually cost less per square foot than condos. However, with co-ops you are often required to put 20% down and must have plenty of cash reserves left to pass board approval. Condos are more flexible in terms of how much you’re required to shell out for your downpayment.
Also, when it comes to co-ops you’ll have to submit an application to the board and interview with them. The board approval process can be very stressful, which is one reason to have an experienced broker by your side.
If you’re confused about what is best for you let’s discuss your goals! 😊