Why would a developer sell condos vs. coops?
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[{"id": "dx19nnm", "text": "In California, it is more difficult finding a lender for coops and they tend to be cheaper than condos.\n\nI\u2019ve only sold one but it was annoying. It fell out of escrow four times because the buyers couldn\u2019t secure a loan. A lot of local lenders won\u2019t even touch a coop.\n\nIf a developer has an option between the two, I don\u2019t see why they would choose coops over condos.", "replies": [], "depth": 1}, {"id": "dx1edot", "text": "Co-ops are weird and more people are comfortable with condo ownership structure ", "replies": [], "depth": 1}, {"id": "dx1iy6f", "text": "This is my opinion, but I think coops are more attractive to tenants. They typically require large down payments, and a coop board can pick and choose the people who live in the building based on an undisclosed set of criteria. Condos can be sold to anybody, and also can typically be subleased to anybody, and that can lead to undesirable neighbors. Coops typically try to keep the building under control. \n\nBut from a developers standpoint....It's much easier to build and sell condos. ", "replies": [], "depth": 1}, {"id": "dx1s5z4", "text": "Condos separate the tax lot which is easier to do in some juresdictons but in New York City for example, it would involve bringing an older buiding to modern code (when building more than 3 units)\nA no action condo is when there's 3 or less units. That's a no brainier and would never go coop. \n\nA coop is shares in a building and a proprietary lease. Doesn't need attorney general approval to create. A condo of 4 units + needs attorney general approval. That can take months.\n\nIn New York City coops sell for less because of the higher deposit requirements and the lack of freedom at the property. From a commercial standpoint. Commercial coops are hard to finance.", "replies": [{"id": "dx1xzfw", "text": "Many places (NY being one of them), co-op's also aren't treated as real estate.", "replies": [], "depth": 2}], "depth": 1}, {"id": "dx1wrny", "text": "Condos are easier for the general public to finance.", "replies": [], "depth": 1}]