Real estate question: Buying a Co-Op.

[Al Neri]

What's up, I know people here know about real estate, so i'm going to ask. I just looked at a really nice Co-Op that I'm probably going to buy. The asking price is $125k but the owner is negotiable. I was considering to put a bid in for $100-105k and see if i can bring her down, would 110-115 seem reasonable for "negotiable?" As for the Co-op... the agent said that if I were to sell it, the only thing I owe the condo is a "flip-tax" the co-op is 100 shares, and they are 10 dollars each. Does that sound right? Maintenence also covers every utility (cept for TV/Phone/Internet). Maintenance is 350, and if I have a mortgage for, ill roughly estimate, 100 after the down payment (there's a 7% downpayment requirement, weird i know), at the fixed rate (is it currently 6.5?) it comes out to 632.07... so i figure roughly 1100 with everything (cable/internet/etc). Just curious about a few things.


cliffs/questions:
* Looking at a co-op, offering at $125k, negotiable
* Does a bid for $105k to ultimately get the place at ~110-115 sound about right?
* Does the 100 shares at 10$ a piece flip tax sound right as all that I owe the building if I sell?
* As far as the RE agent, do I owe anything on top of that usually?
* How much are closing costs usually?

Thanks,
Don R.

 

[Al Neri]

hmmm

 

[dirtboy]

there are some rules about Realtors you should know...

1. They are salespeople.
2. They will say anything to sell something, even if they don't know it.
3. Realtors are not tax preparers or CPA's.
4. If you want to know the truth about taxes, research yourself or get a CPA.
5. I have never heard of a "flip tax."

Real estate sold less than one year is taxed as income. I am not a Realtor, but I sold real estate that I owned less than one year and that is what I paid. Your lender should tell you what your closing costs will be; I figure two to three thousand.

 

[kranky]

There was an article in Money magazine about closing costs - in some areas, they are over $6,000. It showed an example of how the company where one buyer's agent worked also owned the title insurance company and the mortgage broker and nailed some poor buyer for thousands more than the "good faith" estimate.

What a scam. Anyway, be prepared.

What about property taxes?

 

[Al Neri]

property taxes included in the maintenence

 

[joe678]

am in a similar situation looking for a 1br coop, and have been researching... asking price is expected to be negotiated on... closing costs vary depending on the mortgage terms (ie. points paying to get better rates)...

what area are you looking at? i'm assuming in NY if not NYC? also 7% is unusual number