Inspecting a Prewar Coop?
We’re looking at a large (80 unit) prewar coop, and wondering how inspections work in this context. We’ve only looked at smaller property up to this point — do we call the same sort of building engineer? Should we expect it to cost substantially more? What else should we be asking?
We’re looking at a large (80 unit) prewar coop, and wondering how inspections work in this context. We’ve only looked at smaller property up to this point — do we call the same sort of building engineer? Should we expect it to cost substantially more? What else should we be asking?
Minard is right that an engineer would basically just give you information to allow you to decide whether to buy or not. You don’t negotiate with a board, they approve you or not.
I think it would cost you from $500-800 for the inspection. And it’s hard to imagine what the problems would have to be in that large a building to make you change your mind about the purchase… I guess maybe termites plus furnace plus roof could do it.
I’d be more concerned about the culture of the building and the board and making sure it’s a good fit for you. I lived in a very relaxed coop, which actually has its downsides too. I’m sure the uptight ones are no fun. Definitely check out the minutes.
It never occurred to me that having an inspector looking at the boiler in our small coop was an insult! It seems to me that the potential buyer has every right to know the condition of the building. Can’t hurt to ask. It is just as much their right, I think, as looking at minutes/annual reports. (I would gladly have drawn the line at somebody whose lawyer read five years’ worth of minutes, line by line, hour after hour…. but we allowed that, too!)
I would very much worry about insulting the board. They are going to be much more of a problem than any boiler, trust me. Read the minutes yourself — for years back – and you’ll get an idea of the culture of the building and board — how they respond to complaints, litigation, applications, defaulted shareholders, decorating issues, long term planning, disagreements, governance, everything. In fact, I would have your head examined before you even think about getting involved in a Brooklyn Heights coop.
A million bucks? Sheesh, y’all over estimate me. Still: what we’re offering is a lot of money to us.
We haven’t hired a lawyer yet, but we aren’t quite to a contract yet either. We’re inching towards both of those things.
I’m not worried about insulting the board, but it does seem like a much bigger question. I don’t think there’s much to negotiate, but I do want to know if there’s major roof work on the horizon that isn’t in the plans.
If someone is investing a million bucks or more into a corporation and they want to use professionals to thoroughly and independently look into it for them, I think that reflects positively on them as an applicant. (I didnt’ do that!)
It’s okay for attorneys to look thru the building’s financials and minutes but not the boiler room? I don’t get it. Maybe because our boiler room is so nice?
Also, I’m afraid we take the point of view that we are inspecting them, not vice-versa.
Ringo, yes, I recall a similar discussion some time back. Perhaps my building is the exception in telling buyers Nyetzki to poking around the building.
Minard and I have disagreed about this before, but this kind of inspection is not at all a problem in our (fancy) Brooklyn Heights co-op building. I’m on the board, and I’m familiar with how the inspections go.
I bet 2/3 of buyers skip them, but 1/3 have inspections. The inspector will walk thru the apartment and look at the regular things and then inspect the facade, boiler, roof, etc. Our super handles it. No big deal. We don’t have a lot of turnover so this happens once a year at most and takes less than an hour of the super’s time.
You would assume that the board/building would be aware of any outstanding issues and they’d be noted in the minutes. But I’m no longer shocked by how many buildings in our area either don’t have a handle on the work that needs to be done, or delay important but expensive work. I think co-op inspections cost around $500. Might be worth it.
We ask a LOT of personal info from applicants. I respect their right to investigate the boiler room!
lala, The fancier the co-op the less amused they will be by a potential buyer’s request to look at the boiler room.