Why Should Co-ops Sell for Less Than Condos?

Co-ops make up about 70% of the inventory in New York City. In certain neighborhoods like Greenwich Village, it's over 90%. Yet co-ops generally sell for about 20-25% less than condos. How can co-ops close the gap?

That was the question discussed at a roundtable Bill attended this morning. It was held by the NYRAC (New York Residential Agent Continuum), an organization of civically-minded residential real estate professionals in New York City whose mission is to elevate the ethical standards of our profession.

The short answer: if the goal for a co-op is to increase their prices, they can become more competitive with condos (and other co-ops, for that matter). Think upgraded amenities, less stringent subletting options, and relaxed financing restrictions as examples.

We'll be addressing the subject more in the coming months. In the interim, what are your thoughts about co-ops? How do they stack up against condos? We'd love to hear from you.