Increased Value In most instance your home has an increased market value as a condominium rather than as a cooperative unit. There are several reasons for this increase in value.
Better Financing Terms Banks approve more loans and lend at better rates to condominiums than cooperatives, which increases the marketability of your home. Many banks simply refuse to give loans on cooperatives, which stifles sales and keeps values low. After conversion, cooperative communities with little sales activity become more attractive to buyers spurring increased sales at higher prices.
Reduced Maintenance Fees Maintenance fees are reduced substantially because the underlying mortgage is paid, lower maintenance fees increase market values of the units.
Reserve Funding Opportunities The new condominium association can create funding for depleted reserves and capital projects.
Collection of Delinquent Assessments Outstanding maintenance fees must be paid off at conversion unit eliminating assessment receivable problems.
Investment Real Estate Owners will be permitted to lease their units creating investment opportunities and increased sales.
New Rules A new set of governing documents is created for the new condominium association allowing the Board to correct problems with the original documents.
Please fill out this questionnaire to see if converting is right for you