According to a recent Olshan Report, two of the top contracts signed in Manhattan were co-ops—an impressive showing in a market often dominated by condos. In fact, co-ops continue to appear regularly in the report, reflecting a renewed confidence and popularity among savvy buyers.
But why are co-ops still so relevant?
For one, co-ops typically offer more value per square foot than condos, allowing buyers to get more space in prime locations for a lower price. Monthly maintenance fees often include real estate taxes, which can simplify budgeting. Co-op buildings also tend to have stricter financial standards, which can contribute to long-term stability and a stronger sense of community.
For buyers who plan to live in their homes rather than rent them out—and who want to invest in a well-maintained, resident-focused property—a co-op can be a strategic and financially sound choice.
Still, the path to co-op ownership comes with its own set of challenges—most notably, passing the co-op board. Here's how to navigate the process and increase your chances of success.
Step 1: Understand What You’re Buying
When you buy a co-op, you’re not purchasing real property. Instead, you’re buying shares in a corporation that owns the building, along with the right to occupy a specific unit under a proprietary lease. This gives the co-op board significant control over who can move in—and what they can do once they’re there.
Boards can approve or reject potential buyers for a wide range of reasons, making it essential to understand their priorities and process.
Step 2: Prepare a Strong Board Package
The board package is your formal application to buy a unit, and it’s often more detailed than a mortgage application. A strong package typically includes:
- Financial statements – Recent tax returns, pay stubs, bank and investment account summaries.
- Employment verification – A letter from your employer or accountant confirming income and job stability.
- Reference letters – Usually two or more, both personal and professional.
- Mortgage commitment letter – If financing, this confirms your loan has been approved.
- Statement of assets and liabilities – A breakdown of your net worth.
Co-op boards often require:
- A debt-to-income ratio below 25–30%.
- A down payment of at least 20% (sometimes higher).
- Post-closing liquidity—enough cash or liquid assets to cover 12–24 months of maintenance fees.
The more organized, complete, and conservative your package appears, the better.
Step 3: Know the Building’s Rules
Before you fall in love with a unit, it’s crucial to understand the co-op’s policies. Every building is different, and rules can be surprisingly strict.
Common restrictions include:
- Subletting – Many co-ops restrict how and when you can rent out your unit.
- Renovations – You may need board approval for even minor work, and rules vary widely.
- Pets – Some buildings allow pets, others don’t, or they may have size or breed restrictions.
- Flip tax – This is a fee paid to the co-op when you sell, often a percentage of the sale price.
Always ask your broker for the building’s house rules and alteration agreements up front.
Step 4: Ace the Board Interview
If your package is accepted, the final step is the board interview. These are often brief and informal but still very important.
Tips for success:
- Dress professionally – Think business casual.
- Be on time – Punctuality matters.
- Be concise – Answer questions clearly and honestly without oversharing.
- Avoid red flags – Don’t mention plans for major renovations or frequent sublets.
- Be personable – Boards want people who will be good neighbors.
They may ask questions like:
- “Do you plan to work from home?”
- “How long do you plan to stay?”
- “Are you planning to renovate?”
The board isn’t just evaluating finances—they’re gauging whether you’ll fit into the building’s culture.
Step 5: Clean Up Your Online Presence
It’s increasingly common for board members to look up applicants online. Make sure your public social media profiles are polished and don’t contain anything that could raise eyebrows.
Final Thoughts
Buying a co-op in Manhattan isn’t just about money—it’s about preparation, presentation, and personality. With a strong board package, a clear understanding of the building’s expectations, and a confident interview, you can make a great impression and move one step closer to owning your piece of NYC.
Work with me to navigate the co-op process with confidence—from preparing a flawless board package to acing the interview. I’ll guide you every step of the way.
