Here is my dilemma. I am buying a property in NYC that I am told will be jointly decided on by the developer and the bank — the bank will receive/review the offer first. The developer is in default to the bank for $11M and has 3 sponsor units that he is trying to sell.

I have made an offer on a property that is asking $5.6M, my offer was for $4.5M after bringing in an architect and a contractor. The building is supposed to be a luxury one, but has affordable housing finishes (C-grade cabinets in the kitchen, purgo floors throuough apt, low ceilings randomly put up, etc.) Apt has never been lived in and has been on the market for 5 years. Architect expressed concern about condition of mechanicals and found that the ductwork was not insulated even though broker is insisting it is insulated.

Broker suggested I hire an engineer to do an engineers report as she thinks the architect is trying to jack up his renovation fee. I think I made the right offer price but am receiving lots of resistance from broker (I think my broker is intimidated by the seller’s broker aka the bank — this is just a hunch)

Can you tell me (1) if I made the right offer, (2) Do I need the further expense of the engineer’s report (3) What happens to apts that are on the market for more than 5 years (in NYC??)

Thanks for your advice. Please email me back. I really appreciate your thoughts in this matter.

Best,
Sharon