What is a co-op? What is the difference between a co-op and a condo?
I have been fielding these two questions since February 19th of this year. And, no one said it better than the article in the Seattle times, “More buyers celebrating life in a co-op“, by Abraham Aboraya. By chance, this is even the co-op where my listing is – the beautifully spacious and mid-century modern Melrose Terrace Cooperative, at 308 E Republican St. Unit 112, if you would like to look it up.
Cooperatives look and live just like a condominium. The difference? In a condo, you actually own and take title to the unit itself. In a cooperative, you own shares in the corporation.
Financing used to be a bear – until now. In the old days, (two weeks ago), you needed ten percent down to buy a co-op. Currently, through the National Coop Bank, NCB, if your credit score is 700 or higher, you only need five percent down. That’s right, FIVE percent. Not that much higher than an FHA loan. And let me remind you, co-ops are less expensive. The Times article says that co-ops range in price from $109,500 to $429,000, with a median of $199,500. Condos, on the other hand, range in price from $115,000 to $3 million, with a median of $300,000. Quite a difference, huh! And, for the same product!
This super cute co-op is 732 sf, has a view of the iconic Space Needle, Olympic Mountains, downtown Seattle, and Lake Union. The unit has one large bedroom, a dining room, a swanky built-in cocktail bar, and a truly efficient kitchen. Bus stop is one block away. Storage, parking, a spot on the terrace, what else do you need?
If you are looking for a condo, and were told that co-ops were hard to finance and not an option, think again. This might be the way to get you out of that cramped, little apartment and into your very own place for not that much more money than what you are paying right now.
