The realtor association is having a hard time finding a buyer for a condo they bought for $4 million.
“There’s a lot of money in this,” says Joe Stork, the association’s vice president.
“It’s just a question of finding a real estate agent.”
But when it comes to buying a condo in New York City, there’s one big obstacle: The real estate market is notoriously volatile.
The price of a condo typically climbs quickly after a major recession, then drops.
But the condo market has been stable since 2009, when a wave of cheap inventory from the housing market led to an appreciation in prices.
It was an opportunity for the association to buy the condo for $5 million.
The association wanted to buy it because it’s on a brand-new building.
But it had to be able to sell the property, Stork says.
“If we could not sell it, we’d have to sell it to the association for a lot more than we paid,” he says.
The group took out a loan for $2 million.
And they are now selling the property for about $7.7 million, about 30% more than they paid.
Stork and his fellow real estate professionals are selling their condos for more than the value of their loans.
“We were able to get the condo on a short-term basis,” he said.
“But when the market really starts to pick up and the market is very volatile, we will need to be very selective in who we buy and who we sell.”
What if the realtor didn’t even exist?
The realtors association bought a condo on behalf of a family in Connecticut, but it had no idea that there would be a buyer in the neighborhood.
“I think the fact that it was not a family member of the realtor association gave us a little bit of confidence,” Stork said.
But he says the association hasn’t been able to find anyone willing to buy this condo, which is in the middle of a subdivision in Manhattan.
“They’re going to have to find a buyer, but I don’t think they have a lot,” he adds.
A realtor from the association bought the condo, and the family in New Haven told the association that they want the condo back.
“When I heard that the family was interested, I told them that they had to come up with $4.5 million,” Storks father says.
But that money would be hard to come by.
“That’s where the real estate story goes wrong,” he added.
“The family had been selling the condo to raise money for the family.
But they are not going to be buying it back.”
The family in Washington state bought the same condo for a family of three from a realtork in the state, and they want it back.
The family is planning to sell for about the same amount.
So, how do they find a good realtor?
There are a few factors that can play a role in a family’s decision to buy a condo.
“You can’t just go out and find a person that is looking for a good deal,” Storsons father said.
They also need to have a relationship with a realty that works well for them, which means they have to meet the financial requirements of the association, which includes paying the mortgage on the condo.
Storks family also has to be willing to take a cut of the condo sale.
“My parents are going to do whatever it takes to get this condo back,” Strosks father said, referring to the family that bought the unit.
“And if it means my dad gets his dad a big check, then he’s got to do that.”
Stork thinks there is a big misconception that if you don’t have money, you can’t buy a home.
“Some people think that you can buy a house for $200,000,” he explains.
“This is a $4,000,000 condo.
I mean, it’s a huge price tag, but that’s a good price for a place to live.”