I think you're correct about the differing markets for multi-family housing and SFHs. Your experience is similar to what I've observed: daughter in May purchased a Co-op in Brooklyn, NY, 20% down, 5% above asking price of a pre-WW-II bldg unit; waived all financial contingencies. Appraisal in any event came in at purchase price -- not a big surprise here if the lender does a lot of lending for co-ops. Her offer was not the highest offer made on the unit but the sellers thought it was the most financially stable offer and perhaps that letter she wrote about wanting the unit helped out.Ketawa wrote: ↑Tue Nov 23, 2021 4:52 pmI purchased a co-op in downtown DC in February 2021. I knew the building I wanted to buy in and was successful on my first try.
I had up to about 25% available for a down payment in the price range I was looking. This is a little complicated because of the underlying mortgage with a co-op. Deducting the underlying mortgage, which is financed by the co-op and paid through co-op fees, I had more like 34% available for a down payment.
The place I looked at had been on the market for about 10 days. I submitted an offer at 3% below asking. Another offer came in on the same day. I used an escalation clause to offer up to 2% over asking. I based this on comparing the unit to others in the same building.
My offer waived the inspection contingency. I asked my agent if it would be worthwhile to waive appraisal or financing contingencies, and he advised against it. I wasn't worried about the appraisal since I had plenty for a down payment, but financing can be tricky for a co-op because few banks offering mortgages on them, so I didn't press the issue.
The seller accepted my offer even though my cap was $1K below the competing offer. They said they appreciated my occupation (I'm in the military and I believe the seller was in TSA management). I know the competing bidder was only planning on 10% down. I don't otherwise know anything about the competing bidder's finances, so it's possible that my larger down payment was a factor, as well.
This may not be very informative since I was shopping at the height of the pandemic in a co-op building, which didn't see the astronomical price increases of SFHs.
On the other hand, I've seen a SFH list for $895K in Springfield Virginia, and sold the next day on May 1, 2021 for $1.1 million, with the out-of-town purchasers making the offer from the listing they saw off the internet. They closed and moved in 60 days later. Have no idea what type of financing, if any, they had for this purchase.