Advice selling coop townhouse, River Park

[Anonymous]

I am a real estate attorney with an extensive real estate investing background that has included many development projects.

I’ve been in your shoes before. The issue is that it is a coop. I agree with you; it is a steal. But the vast majority of the market does not agree. For illogical reasons people have an aversion to coops.

Also, does your agent have this property listed as a coop or house on the MLS. People looking for houses aren’t even looking at coops. Even though it is a house it doesn’t come up when they look.

[Anonymous]

I agree that this isn’t the best area for coops because most people don’t understand them. But your unit is lovely! I hope it sells soon.

If you want it to move, do a good price drop. I would also invest a few thousand into cleaning up the front and back landscaping. Target bachelors. They want a cool spot but not the effort. Also, the lighting needs to be updated and can be done cheaply. Get rid of the track lighting and the balloon lights in the bathrooms.

[Anonymous]

It’s very dated. Drop the price.

[Anonymous]

Being a coop does not always mean high maint, what is the cause of that?

I lived in a coop in NYC and we had a very very low underlying mortgage and our maint was cheaper most condos.

building is over 30 years old did they never pay down the original mortgage?

My building went coop 1965 and we paid off mortgage by 1995 and just has a small loan to maintain coop status and for liquidity reasons. So there was no high coop fees.

[Anonymous]

Coops if DMV people understood them should have rose in value more quickly than condos last two years.

Coops have underlying mortgages that most boards refinanced at record low rates in Spring 2020 to Spring 2022. The new buyer gets full advantage of that.

But they don’t understand them.

[Anonymous]

The cost to own at current interest rates is $6000/month with a 20% down payment. You can rent an equivalent place for under $5,000. That is the problem.

[Anonymous]

Anonymous wrote:The cost to own at current interest rates is $6000/month with a 20% down payment. You can rent an equivalent place for under $5,000. That is the problem.

Homes always cost more to own than rent in a normal interest rate environment

My house rents for 6k a month with 20 percent down would cost 8k a month

[Anonymous]

Anonymous wrote:Hello!

Background: I’ve lived in this coop for 3+ years: https://redf.in/cPenNa. Unfortunately due to a changing family situation we’ve moved out and are selling. We love the neighbors, and location (walkable to metro, Wharf, Navy Yards), gated community pool and gym. The coop fees are steep at $3,000, but if you consider the price is half off a similar home just down the street and that the fees include maintenance (interior and exterior), HVAC, property taxes, most utilities and amenities, it comes out about even if you had a larger mortgage and has to pay your own maintenance.

House has been on the market for 60+ days, unfortunately we’ve had limited showings, and moderate traffic for four open houses. I’ve lowered the price a few times. It’s now $559,900k from $625K, very reasonable for a 4bed2ba by the What. Our listing agent has been supportive and is saying to hold tight and trust the process.

Question: Everything I’m reading from the news and anecdotally from friends is that DC is a hot real estate market with quick sales over listing. What do you think is holding back interest for our home? Is it just the coop fee? The reason we could afford the house was bc we didn’t have the down payment for a $900k+ mortgage, but we could afford the monthly. I thought there would be a bunch of folks like me like that were held back from buying only bc of lack of a large savings for down payment. Are DC buyers in the market now only those well off enough who could afford expensive townhomes and drop cash for it?

First, the “hot market” with homes selling at over asking before an open house even happens is in the nicer inside-the-beltway suburbs.

Second, yes it is the coop fee. I get what you are saying about running the numbers, but you don’t build equity in coop fees. Your home is in an amazing community and I know I would love living there—but I wouldn’t buy due to the coop fee.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hello!

Background: I’ve lived in this coop for 3+ years: https://redf.in/cPenNa. Unfortunately due to a changing family situation we’ve moved out and are selling. We love the neighbors, and location (walkable to metro, Wharf, Navy Yards), gated community pool and gym. The coop fees are steep at $3,000, but if you consider the price is half off a similar home just down the street and that the fees include maintenance (interior and exterior), HVAC, property taxes, most utilities and amenities, it comes out about even if you had a larger mortgage and has to pay your own maintenance.

House has been on the market for 60+ days, unfortunately we’ve had limited showings, and moderate traffic for four open houses. I’ve lowered the price a few times. It’s now $559,900k from $625K, very reasonable for a 4bed2ba by the What. Our listing agent has been supportive and is saying to hold tight and trust the process.

Question: Everything I’m reading from the news and anecdotally from friends is that DC is a hot real estate market with quick sales over listing. What do you think is holding back interest for our home? Is it just the coop fee? The reason we could afford the house was bc we didn’t have the down payment for a $900k+ mortgage, but we could afford the monthly. I thought there would be a bunch of folks like me like that were held back from buying only bc of lack of a large savings for down payment. Are DC buyers in the market now only those well off enough who could afford expensive townhomes and drop cash for it?

First, the “hot market” with homes selling at over asking before an open house even happens is in the nicer inside-the-beltway suburbs.

Second, yes it is the coop fee. I get what you are saying about running the numbers, but you don’t build equity in coop fees. Your home is in an amazing community and I know I would love living there—but I wouldn’t buy due to the coop fee.

You can build equity via coop fees in certain cases. My coop I bought in 1991 had a high underlying mortgage at a high interest rate, the board actually raised common charges in 1992, in 1992 was $580 for a one bedroom with no parking spot. They did really good fiscal management and through a combination of refinancing and paying down mortgage I sold it 8 years later for triple my purchase price

My concern this coop with super super low interest rates in 2020-2021 how was underlying mortgage not refinanced. And how was it not paid down. Who is managing this place, you should join board

[Anonymous]

Anonymous wrote:Coops if DMV people understood them should have rose in value more quickly than condos last two years.

But they don’t understand them.

With fees this one ends up at over $6k/mo.

I think people in this area don’t understand co-ops because A) the fees are so outrageous it pushes the monthly PITI past what they could get in a more normally structured condo/rowhouse/townhouse, and B) they don’t appreciate

I don’t understand why anyone would want a co-op given those downsides.

[Anonymous]

Anonymous wrote:I would rather just buy a place with a 6k mortgage.
You don’t get any part of that 2800 a month back when you sell.

On a coop, you actually do get a portion of it back. Reducing the underlying indebtedness increases the amount you take from a sale.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Hello!

Background: I’ve lived in this coop for 3+ years: https://redf.in/cPenNa. Unfortunately due to a changing family situation we’ve moved out and are selling. We love the neighbors, and location (walkable to metro, Wharf, Navy Yards), gated community pool and gym. The coop fees are steep at $3,000, but if you consider the price is half off a similar home just down the street and that the fees include maintenance (interior and exterior), HVAC, property taxes, most utilities and amenities, it comes out about even if you had a larger mortgage and has to pay your own maintenance.

House has been on the market for 60+ days, unfortunately we’ve had limited showings, and moderate traffic for four open houses. I’ve lowered the price a few times. It’s now $559,900k from $625K, very reasonable for a 4bed2ba by the What. Our listing agent has been supportive and is saying to hold tight and trust the process.

Question: Everything I’m reading from the news and anecdotally from friends is that DC is a hot real estate market with quick sales over listing. What do you think is holding back interest for our home? Is it just the coop fee? The reason we could afford the house was bc we didn’t have the down payment for a $900k+ mortgage, but we could afford the monthly. I thought there would be a bunch of folks like me like that were held back from buying only bc of lack of a large savings for down payment. Are DC buyers in the market now only those well off enough who could afford expensive townhomes and drop cash for it?

First, the “hot market” with homes selling at over asking before an open house even happens is in the nicer inside-the-beltway suburbs.

Second, yes it is the coop fee. I get what you are saying about running the numbers, but you don’t build equity in coop fees. Your home is in an amazing community and I know I would love living there—but I wouldn’t buy due to the coop fee.

You can build equity via coop fees in certain cases. My coop I bought in 1991 had a high underlying mortgage at a high interest rate, the board actually raised common charges in 1992, in 1992 was $580 for a one bedroom with no parking spot. They did really good fiscal management and through a combination of refinancing and paying down mortgage I sold it 8 years later for triple my purchase price

My concern this coop with super super low interest rates in 2020-2021 how was underlying mortgage not refinanced. And how was it not paid down. Who is managing this place, you should join board

Not arguing your point, but you bought at a time of fairly deep national recession and sold into a booming economy. That has to be part of the equation.

[Anonymous]

Oh and by the way, my advice is lower the price.

[Anonymous]

Anonymous wrote:Coop not everyone wants to do that.

Very steep fees.

Sorry OP but this has a very limited buyers pool.

100% this. You're going to have to wait until that one buyer who wants a very *unique* townhouse with high condo fees to come along.

This is not going to appeal to the masses just based on the exterior.

[Anonymous]

I actually love Goodman homes and don’t have an issue w coops. I haven’t owned one since SALT changed so not sure how that impacts the deductible part of the coop fee. I think you need to educate dc buyers re what portion of your monthly fee is taxes that you would be separately paying if it were a condo.

You need to wow buyers with the first impression and sadly, your front landscaping is terrible. Remove the extra house number and clean up everything. Pay a landscaper to do the front and back and redo those photos. While buyers are waiting to be let in they’re looking at the mush mash and weeds. Make it sleek and inviting. In the rear rip out all the junk and put some nice landscaping and patio furniture. Take the dead weeds off the balcony.