Condos, co-ops: Long Islanders opt for amenities, perks

After nearly 40 years in their Manhasset Hills home, Gary and Robin Zander no longer wanted the hassles of owning a house.

"We enjoyed being empty nesters in our home for many years," Gary Zander, 70, said. While they weren’t doing major upkeep themselves, managing the details of a house took its toll. Hiring professionals to handle landscaping, heating and air conditioning maintenance, snow removal and more cost money. Vetting those providers took time and energy.

"We figured, let’s look for an easier lifestyle on Long Island," said Gary.

In August, he and Robin, 66, traded their memories for amenities, selling the five-bed, 3½-bath house and buying a three-bed, 2½-bath condo in The Hamlet in Jericho. They pay a little more than $1,000 a month in homeowners association fees, which cover maintenance, landscaping and amenities like pools, tennis and pickleball courts and a clubhouse. Although they don’t expect a major monthly savings compared to owning their house, they say it’s worth it.

"There is the significant benefit that it's the HOA who's responsible for overseeing and getting the work properly done instead of me, the homeowner, having to worry about it," Gary said.

Owning a house remains an American dream, but lately more, often older, Long Islanders are chasing a different dream. Condominiums and cooperatives that provide community, comfort and convenience are in demand on Long Island.

The number of condo sales in July in Nassau dropped 3.6% from a year ago to 54, amid a supply shortage, while the number in Suffolk rose 3.6% to 116, according to OneKey MLS. The number of co-ops sold in July in Nassau dropped 13.1% to 53 from a year ago, while the number in Suffolk rose 59.3% to 43.

Condos’ days on the market in July fell 1.9% to 52 in Nassau compared to a year ago, while rising 3.9% to 53 in Suffolk. Nassau co-ops were being snapped up, dropping 21.1% in July in terms of days on the market from a year ago to 56, while Suffolk co-ops remained flat at 55 days.

"It’s more like a country club lifestyle," said Gale Barbagallo, a real estate salesperson at Daniel Gale Sotheby’s International Realty and Hamlet resident who represented the Zanders. "It’s a great alternative for people who are downsizing. They don’t need a big home anymore. This works for them."

It’s more like a country club lifestyle. It’s a great alternative for people who are downsizing. They don’t need a big home anymore. This works for them.

— Gale Barbagallo, real estate agent and resident of The Hamlet

Credit: Rick Kopstein

Residents are opting for community, not just privacy, whether in 55-and-older condo developments or those without age restrictions, or with co-ops. Some use condos and co-ops as second homes, while others live there year-round.

"It’s Long Islanders wanting to stay close to home," said Amanda Elshiekh, senior director of marketing and communications for B2K, which owns the Boardwalk Residences condos in Long Beach. "They can enjoy living in an active community."

Condos, co-ops and costs

A housing shortage has pushed up demand and prices not just for houses, but condos and cooperatives year-to-date, although there was some softness in the market in July. Condos can cost less than houses (they’re often smaller) and co-ops typically cost less than both, but prices often are heading north.

Median condo sales prices in Nassau as of July dropped 8.3% to $721,250 from a year ago, but were still up 10.9% year-to-date to $720,000, according to OneKey MLS. Median sales prices for Suffolk condos as of July rose 1.1% to $465,000 from a year ago and 9.4% year to date, also to $465,000.

Co-op demand is strong amid a low supply with median co-op sales prices in Nassau rocketing 12.1% to $334,000 as of July from a year ago, while Suffolk co-op median prices rose 10.4% to $250,000.

"I think there’s a housing shortage," Barbagallo said. "There are a lot more buyers than properties for the market in general."

"We still have a lack of inventory," said Glen Fox, a real estate salesperson at Douglas Elliman Real Estate. "We see people who bought five or six years ago. There’s a tremendous market in terms of resale."

Empty nesters looking for less — not more — space further fuel booming interest in condos and co-ops.

"There is still quite a bit of demand," Fox said. "We’re seeing a lot of first-time homebuyers and downsizers."

What's the difference between a condo and a co-op?

There are similarities and big differences between condos and cooperatives, which have cheaper entry points and typically offer less freedom in terms of renovations and pets, a wide range of regulations and approval of buyers.

"Condos are more money than co-ops" per square foot to purchase, said Denise Kearse, a real estate agent at Weichert Realtors Quality Homes in Baldwin. "A co-op could be good for someone starting out or downsizing."

Co-ops’ ownership structure is different from condos’ where residents pay HOA fees. In traditional condominiums and houses, you get property deeds, while with co-ops, you receive certificates of shares, Fox said.

Co-op boards typically get involved in many decisions, passing rules to protect organizations and limit individuals. "You own cooperative shares within that community," Charles Bennett Jr., a salesperson for Signature Premier Properties in Rockville Centre, said. "The co-op can dictate what you can and cannot do."

Kearse said every board has its own rules, but some are common. "They allow you to do renovations, but you may have to use a vendor approved by the board," she said.

While condos can be town houses, houses or apartments, co-ops often are apartments in buildings. "A co-op has a wide net for anyone in the market," Fox added.

Condo communities often span larger properties, Kearse said, although The Boardwalk condo in Long Beach is a denser waterfront site with valet parking, concierge, heated outdoor saltwater pool, 2,500-square-foot fitness center, large yoga room, two saunas, coworking space, main lobby with a billiard room, club lounge and party room.

"It feels more like a resort than a typical condo you would see in Long Beach," said Kristin Altfather, a real estate salesperson at Douglas Elliman Real Estate. She said prices range from $875,000 for a one-bed, one-bath unit with 952 square feet of interior space plus a terrace, to $4.5 million for a 2,848-square-foot oceanfront unit with three beds and two terraces.

Altfather said dogs often are not allowed in co-ops, although cats may be permitted. "Condos are more flexible, allowing pets and dogs in particular," she said. "If you’re a dog lover, most people will lean to condos."

She said parking sometimes is a challenge with co-ops, since some units aren’t deeded with parking spots. Co-op maintenance is typically more extensive than condos, covering exteriors and some interior work, Bennett said.

Boards can complicate purchase, improvements

If your documentation isn’t in order, you can be denied.

— Charles Bennett Jr., of Signature Premier Properties

Credit: Charles Bennett, Jr.

Buying a co-op can be more complicated than a condo, since you have to be approved by the board and pay application fees, which can be $1,000, to be vetted and reviewed. Kearse estimated the average cost is $500.

Bennett added that co-op boards typically require "a significant amount of financial documentation," including a credit check, debt-to-income ratio and down payment, exceeding disclosures to buy houses.

"If your documentation isn’t in order, you can be denied," Bennett said.

Kearse said co-ops typically require a 20% down payment, allowing up to 80% financing. "A few allow you to finance 90%, but very few," she said. "Condos typically don’t have that requirement."

She said condo purchases have no board approval, so purchases are based on simply being able to pay the mortgage, as with a house. Co-op boards may look for that 20% down payment, Kearse said, possibly because they are "looking for people of a certain financial status."

Kearse added that not all lenders provide loans for co-ops and those that do look at whether the co-op, as well as the borrower, is financially sound.

Suffolk County in 2009 passed a bill requiring co-op boards to notify applicants of the grounds of their rejection within 45 days of receiving their application, according to the National Board of Realtors. Nassau legislation imposes a financial penalty on co-op boards that don’t respond to applicants within 45 days.

However, co-op boards may seek to evade their obligations under fair housing rules, Kearse said.

Bennett added "between agent and buyer, we're required by law to have the buyer sign the New York Fair Housing and Anti-Discrimination Disclosure Form."

"Outside of overt discrimination, they can simply deny you because of your age, way you look, skin color, whatever they choose without disclosing the actual reason," Bennett said.

He said a co-op board and applicant should sign a similar form and reasons for denial should be disclosed with a one-time appeal if denied by a completely different set of board members ruling on the appeal.

Cooperative choices

Rhonda Saunders, 53, opted for a ground-level apartment in the Smith Street Gardens cooperative in Freeport, rather than a free-standing house. "I lived in a house most of my life," Saunders, who works at a car dealership, said. "I don’t want to maintain a home by myself."

Location mattered to Saunders, and Smith Street Gardens is near the Nautical Mile, a scenic waterfront street filled with restaurants and shopping. "The neighborhood is good. You don’t have to worry about anything," Saunders said. "It’s safe."

For Saunders, who is divorced, the unit and parking space provide the right amount of space as well as convenience and comfort. Her combined mortgage and maintenance fee is $1,400 a month, and although that includes upkeep, she wanted to improve the unit.

So, Saunders updated the bathroom, refinished hardwood floors, changed appliances and painted. "She really did a great job with her unit," Bennett said.

If Saunders invested in the apartment, the property will likely increase in value due to improvements. "Rhonda’s co-op has appreciated," Bennett continued.

Saunders, who paid $185,000, said comparable units in the same building are now selling for above $200,000. "It’s a good situation," she added.

Renting a co-op, condo

While people typically buy condos and co-ops, it’s sometimes possible to rent, although doing so in a condo is more common than in a co-op. Jeffrey Nagel and Brittany Schneller-Nagel moved from New York City to Long Island, where Brittany opened fitness studios in Manhasset and Westbury. They opted not to buy, but rent a condo from an owner in the Ritz-Carlton Residences in North Hills.

"I wasn’t necessarily ready to move into a house," Brittany said. "We didn’t want to be locked into buying something."

Jeffrey Nagel, an attorney, said "a nice facility with great amenities" and a good location are worth $10,000 a month. "It’s a good example of an extremely well-run facility with very good amenities and a maintenance-free lifestyle," he said.

They’ve been in their two-bedroom, 2½-bath unit with a terrace for three years and like the lifestyle, including doorman, fitness center, outdoor and indoor pools, walking paths, clubhouse with a theater and maintenance by the development.

"If something breaks in the condo, you call downstairs and they come up and fix it," Brittany said.

There’s even a shuttle to the train to New York City, where Jeffrey works. And they can invite guests to use shared spaces for parties and to socialize, something people in co-ops and condos generally enjoy.

"If I have friends over or there’s an awards show, we’ll watch the awards," Brittany added. "It’s very accessible, in the clubhouse. It’s a good place for a gathering."

The Nagels are happy enough with Ritz-Carlton Residences to consider buying a condo there. "We would definitely consider purchasing in the complex," Jeffrey said. "Many families here rent from owners, but inventory is always limited."