Sometimes a Bargain is......

....No Bargain at all.

The primary job of a Co-op Board of Directors is keep the value of the apartments high.  Each Co-op has a managing agent that handles the day to day operations. The Board just meets once a month to review policy and decide on whether or not to allow applicants entry into their very exclusive club.

In the past, the primary concern of the Board members was the financial picture of the applicant.  How much of the purchase price is he financing and what is his income to debt ration.

These things are still of paramount importance to a Co-op Board but these days they are looking closely at the purchase price too. As sellers struggle to pay their mortgage they may be willing to sell for below market value. However, the Co-ops are worried that these low sale prices may effect future sales in the building and wind up rejecting the sale.

So, when is a Bargain not a Bargain? When its in a Co-op.