BUYING or selling a Manhattan co-op has long presented unexpected pitfalls and moments of unique drama. But as real estate prices continue relatively flat, one obstacle has become more prevalent: Co-op boards are rejecting sales outright if they deem the price of the apartment to be too low.
Some boards are so determined to hold the line on prices that they are unswayed by buyers’ offers to place years of maintenance fees in escrow, to increase the down payment and even to pay in cash.
Co-op boards aren’t required to disclose the reasons they reject applications, which makes it difficult to determine just how often buyers are being turned down because the offer isn’t as high as the board might like. But interviews with more than a dozen Manhattan real estate experts, including brokers, board members and real estate lawyers, suggest that boards are saying no more often as they seek to maintain the value of the apartments in their buildings amid a sea of price-conscious buyers.
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