Author Topic: First time buyer, questions about maintenance fees (& avg closing time) (Read 2930 times)

emkayoh · « **on:** January 09, 2015, 01:50:39 AM »

I'm browsing some sale listings and I see units whose maintenance fees vary from below $600 to over $1000. I know elevators are included in this figure, but is there any rule of thumb on what determines a bigger maintenance fee? Is the private garden? Which floor you're on? The square footage? If one wants to save money, would you recommend a lower maintenance fee even if the asking price is higher than you want?

Question 2: What's the average time it takes to close on a co-op in this area? I've heard anywhere from 3-6 months, depending on the time of the year. If I have to move in 2.5 months, would it be reckless to look for a place to buy instead of renting in the meantime?

ellenpratt · « **Reply #1 on:** January 09, 2015, 07:58:10 AM »

Emkayoh, when you buy a co-op apartment you are buying shares in a corporation (the building). Allocation is based on the size of the apartment, the floor it's on (higher is considered better) and other unique aspects of the apartment. The building budget is divided by by total number of shares and each apartment pays according to its shares. Coop fees generally include heat and hot water, the building's insurance and maintenance costs and a contribution to the reserve fund.

You'll have to figure your total monthly costs of mortgage plus maintenance fees when drawing up your budget. Condo boards have different requirements but the percentage they look for is based on how much of your income is spent on housing and generally ranges from 20-30% (with wide variation). The decision for you should be based on those combined fees, the perceived resale value and how much you love the apartment. You want to want to live there!

Closing times vary too but a rule of thumb is 3 months if you are getting a mortgage. Can you extend your current housing for a couple of months or longer? It's also not desirable to feel rushed into making a decision. On the other hand, prices could rise while you're looking. Lots of factors to consider!

Hope this helps,

Ellen Pratt
Rock Realty
Jackson Heights
Cell/ text 434-989-7068
Direct 718/440-9458
ellenwpratt@gmail.com

rhydewithdis · « **Reply #2 on:** January 09, 2015, 10:23:12 AM »

Quote from: ellenpratt on January 09, 2015, 07:58:10 AM

Emkayoh, when you buy a co-op apartment you are buying shares in a corporation (the building). Allocation is based on the size of the apartment, the floor it's on (higher is considered better) and other unique aspects of the apartment. The building budget is divided by by total number of shares and each apartment pays according to its shares. Coop fees generally include heat and hot water, the building's insurance and maintenance costs and a contribution to the reserve fund.

You'll have to figure your total monthly costs of mortgage plus maintenance fees when drawing up your budget. Condo boards have different requirements but the percentage they look for is based on how much of your income is spent on housing and generally ranges from 20-30% (with wide variation). The decision for you should be based on those combined fees, the perceived resale value and how much you love the apartment. You want to want to live there!

Closing times vary too but a rule of thumb is 3 months if you are getting a mortgage. Can you extend your current housing for a couple of months or longer? It's also not desirable to feel rushed into making a decision. On the other hand, prices could rise while you're looking. Lots of factors to consider!

Hope this helps,

Ellen Pratt
Rock Realty
Jackson Heights
Cell/ text 434-989-7068
Direct 718/440-9458
ellenwpratt@gmail.com

emkayoh, Ellen gives you a great summary of maintenance fees. It all depends on the size of your apartment, floor, amenities in the building, etc.

As a rule of thumb, for Queens co-ops, I would say on the lower end you should expect to pay $0.60/sq. ft. up to $1.00 sq. ft. Anything higher than that, I would say you should expect exceptional amenities or a poorly run building.

Superclam · « **Reply #3 on:** January 09, 2015, 10:50:49 AM »

In my co-op, maintenance fees are based on floor area. I don't know if the floor you're on matters or not. My fee includes property taxes, heat, hot water & electricity. Since electricity is included, we pay an additional small fee every month for each A/C and the dishwasher. When we finally get a parking spot & storage space, those will be included in the maintenance fee.
Buildings with doormen will likely have higher maintenance fees.

Shelby2 · « **Reply #4 on:** January 09, 2015, 11:18:44 AM »

Maintenance fees also include your share of the building's mortgage. I believe there are a few original coops (meaning the building started out its life as a coop, as opposed to a rental that converted to a coop later on) that don't have any underlying mortgage. So in those buildings the maintenance is going to be lower. This is my understanding as a layperson; I am not an expert.

Also, one other note on maintenance -- different buildings have different fee structures. I know some buildings where the maintenance for one line of apartments (like the "A" line where all A line apartments are in one vertical line and have the same floor plan) have the same monthly maintenance, regardless of which floor they are on. In these particular buildings, apartments in the front of the building facing the street have higher maintenance than those facing the interior garden.

I think you should think about getting a short term rental on a site like airbnb or something similar, and line up a moving company that can move you out of your current apartment into a storage unit and then out of the storage unit into your new apartment once you are ready to buy. That way you won't feel rushed to buy and you won't feel so stressed if the closing date is pushed off, or the coop board has a delay in scheduling your meeting to pass the board.

Here is a quote from a NY Times article called Much More Than Just ‘Maintenance’

The monthly charges in both co-ops and condos cover operating costs — things like staff salaries, management fees, heat, water and sewer charges, even flowers in the lobby. But that is where the similarities end.

Condos usually have lower maintenance fees than co-ops. That is because they have different ownership structures. Co-op owners do not own real property. They own shares in a corporation: the co-op. Apartments thought to be more desirable — larger ones, or those on high floors with better views — have more shares than smaller ones, or those on low floors that face a brick wall. Since individual owners do not own property, the real estate tax bill for the building goes to the corporation, which in turn collects those taxes based on the number of a member’s shares, as part of the maintenance fee.

In addition, co-ops often have an underlying mortgage on the entire building (which is separate from the mortgage that buyers have on an apartment). So the co-op maintenance fee often includes monthly payments on the underlying mortgage as well.

agentarmen · « **Reply #5 on:** January 09, 2015, 11:54:46 PM »

Hi emkayoh,

For one bedrooms in elevator buildings (walk ups are an exception) I would typically like to see maintenance between 600 and 800/mo, and 2 bedrooms between 800 and 1000 per month... There are some specific buildings that have slightly higher maintenances, which are perfectly healthy buildinds like The Berkley and Terrace View, but the average is closer to the numbers I mentioned above.

Even though it's true that in the same line a few extra shares are allocated to the higher floors in coops, given that you only have 6 floors in most elevator buildings here, the range of maintenances in the same line isn's too wide.

Closing timelines with coops CAN be stretchy and tricky, especially in occupied unit scenario. To do a coop deal efficiently and to get it through the contract process, the mortgage bank, management company, and ultimately the boad of directors to get clearance to close, your timeline is highly dependent on the efficiency, level of communication and the diligence of everyone involved in the deal (you, broker, bank, appraiser, attorneys, managing agent etc.). In builidngs that we've had experience selling in, we may be able to give you a better estimate, and manage your timeline and expectations better. We had a deal close as soon as 30 days from contract signing, and we usually expect to close on or about 60 days from contract.

In terms of renting vs purchasing - renting is the current and the default alternative in every case. In my experience, purchase happens when the purchase becomes the ultimate goal and the right property presents itself within relatively reasonable move-in timeline.

We have a lot of information on our site which may help guide your purchase process : www.jacksonheightslistings.com

Warmly,
Armen

CaptainFlannel · « **Reply #6 on:** February 05, 2015, 01:27:27 PM »

There's also smaller one bedrooms on the market right now with maintenance fees of less than $500. If I had been single when I bought, I very likely would have gone for a slightly smaller apartment than the one I bought with my spouse (as long as it was pet friendly:) )

Jackson Heights Life

News:

Author Topic: First time buyer, questions about maintenance fees (& avg closing time) (Read 2930 times)

emkayoh

First time buyer, questions about maintenance fees (& avg closing time)

ellenpratt

Re: First time buyer, questions about maintenance fees (& avg closing time)

rhydewithdis

Re: First time buyer, questions about maintenance fees (& avg closing time)

Superclam

Re: First time buyer, questions about maintenance fees (& avg closing time)

Shelby2

Re: First time buyer, questions about maintenance fees (& avg closing time)

agentarmen

Re: First time buyer, questions about maintenance fees (& avg closing time)

CaptainFlannel

Re: First time buyer, questions about maintenance fees (& avg closing time)