SCENARIO:
A first-time buyer was searching for an apartment in NYC. Her parents worked with me previously and valued my guidance so much that they referred their daughter to me. We discussed her goals for homeownership, got her pre-approved for a mortgage, and I supported her as she explored condos and co-op units across Manhattan.
PROBLEM:
After months of searching, she finally found a co-op that checked all the boxes—right price, great location, and the space and amenities she wanted. With my guidance, she submitted an offer, which was accepted—but only on one condition: she had to use the lender AND real estate attorney recommended by the listing agent!
DIAGNOSIS:
This demand immediately raised red flags. Not only is it unethical (and illegal!), but why was the agent so insistent on controlling the professionals involved? My client shared my concerns, but she was emotionally invested in the property and didn’t want to risk losing it. She thanked me for my help, apologized, and decided to proceed with the agent’s team.
RESULT:
Months later, I checked in with her parents. They told me the process took longer than expected, but their daughter did eventually close. Unfortunately, after moving in, she discovered the co-op’s financials were weak. To cover deficits, the board planned to raise monthly maintenance fees by over 50%!
It became clear why the listing agent wanted to control the transaction. Had I remained involved, I would have uncovered these financial issues during due diligence. Now, other owners were fleeing the building, and multiple units were listed—many at prices lower than what my client paid.
BOTTOM LINE:
Whether buying a co-op in the city or a single-family home in the suburbs, don’t let emotions override good judgment. Watch for red flags. Trust your gut—and trust your impartial advisors, like your mortgage professional and real estate attorney. If something feels off and you can’t get clear answers, walk away. There will always be other homes.
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Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.
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