Advice selling coop townhouse, River Park

[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.

[Anonymous]

Other than landscaping I think it looks great, op.

[Anonymous]

$3000/mo co-op fees is absurd. Sure they maintain the minimal,exterior areas, but it’s all overpaid. You would need to be in a home well over $1MM to have that much in taxes and upkeep, and if you did a bunch of stuff diy, it would be far less.

It’s really as simple as that. It’s $36k/yr down the tubes that will never be recovered.

[Anonymous]

Ironic that in NYC coops are extremely popular. But in DC people don’t understand them.

Even when including property taxes, insurance, utilities it is high.

BTW I have owned a condo and a coop. My coop they covered heat, water, gas, property taxes, window replacement, hvac replacement in common charges which my condo did not so that is clearly worth more per month. But $3,000 is a lot.

You should join board and work to improve financials

[Anonymous]

Americans, save nyc, just don’t get coops. I’ve given up trying to explain them. To a far lesser degree they don’t understand condos either.

[Anonymous]

Anonymous wrote:Americans, save nyc, just don’t get coops. I’ve given up trying to explain them. To a far lesser degree they don’t understand condos either.

We get them…we just don’t like them and have better ownership structure alternatives in condos townhomes and fee-simple rowhomes.

Can you explain why it’s worth paying $36,000/ year in fees/taxes for this co-op?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Americans, save nyc, just don’t get coops. I’ve given up trying to explain them. To a far lesser degree they don’t understand condos either.

We get them…we just don’t like them and have better ownership structure alternatives in condos townhomes and fee-simple rowhomes.

Can you explain why it’s worth paying $36,000/ year in fees/taxes for this co-op?

Coops are actually a better set up. But people can’t get over you own shares instead of real property and the fear of board approval of you and rental restrictions.

I owned a well run coop and it appreciated 300 percent during my ownership. We had an amazing board.

When we were newly married we lived in a one bedroom and I recall people thought I was very rich as it was well maintained and beautiful. I even had a dentist and doctor in building.

[Anonymous]

Some coops can be a good deal. I don't think this one is, since it's possible to get condo townhouse units in the same neighborhood for lower monthly payments. Some people may be willing to pay a premium for a barrel roof but not most. The high rise units in river park are extremely cheap not counting the monthly fee, and I think the townhomes are going to have to adjust in similar ways.

[Anonymous]

Anonymous wrote:Some coops can be a good deal. I don't think this one is, since it's possible to get condo townhouse units in the same neighborhood for lower monthly payments. Some people may be willing to pay a premium for a barrel roof but not most. The high rise units in river park are extremely cheap not counting the monthly fee, and I think the townhomes are going to have to adjust in similar ways.

This is a logical analysis. Very rare to see anyone think like this on a coop.

[Anonymous]

I would get some new photos taken now that spring has passed and everything is green - that patio is a very attractive feature this time of year and I'd stage it accordingly.

[Anonymous]

The reserve study for River Park suggests that special assessments of perhaps several hundred thousand dollars for the townhome units could eventually come due to take care of the deferred maintenance needs. This likely means they must triple the current already wildly excessive HOA fees or pay in large lump sum special assessments. New aluminum barrel roofs are needed at $150,000 each. New soffits are required. The HVAC chiller broke down last summer. The recently redone HVAC piping is leaking. TheHOA is essentially broke. The project may no longer be economically viable. This 62 year old coop development is essentially unmarketable.