How Do I Sell My Share? Understanding the Cooperative Resale Process

One of the most common questions people ask before buying into a senior co-op is: "What happens when I want to leave?" It's normal to feel a bit nervous about this.

Selling a co-op share is different from selling a regular house, but don't worry. We'll walk you through how it works so you can feel confident about your next move.

In a popular co-op, selling your share is often easier and faster than selling a house. Here's the step-by-step process.

1Step One: Notify the Cooperative

When you decide to sell, your first step is to tell the co-op's management and board. Most co-ops have a set way to do this. You'll usually need to give them a written notice.

The co-op might have a "right of first refusal." This means the co-op can choose to buy your share at the market price before you show it to anyone else.

Most co-ops don't actually do this, but they have the right to. Usually, they'll let you sell it on the open market.

2Step Two: Use the Waiting List

The co-op's waiting list is your best friend when you're ready to sell. Many senior co-ops in the Twin Cities have lists of people who already want to move in. These buyers have already learned about the co-op and are ready to act.

When you list your share, the management team tells everyone on the list. You might find a buyer before you even put a sign in the yard! Some shares sell to people on the list without ever being listed publicly.

This is much easier than selling a house. You don't have to wait for a stranger to find your listing. The buyers are already waiting for you.

3Step Three: Pricing Your Share

We price a co-op share just like a regular house. We look at what other similar units in your building and nearby buildings have sold for recently.

A few things can change your share price:

• The size of your unit
• Which floor you're on and what you see out the window
• How well you've kept up the unit and any upgrades you've made
• The health of the building's finances
• How the housing market is doing right now

4Step Four: Board Approval of the Buyer

Once you accept an offer, the co-op board must approve the buyer. They'll check the buyer's money situation and make sure they're at least 62 years old. They'll also meet the buyer for a short interview. This usually takes two to four weeks.

The board's job is to make sure the new neighbor can afford the monthly fee (the co-op's shared operating cost). This helps keep the whole community financially strong for everyone.

5Step Five: Closing

Closing on a co-op is usually cheaper and easier than a house closing. You don't have to deal with deed transfers or expensive title insurance for a mortgage.

At the closing, you'll hand over your share certificate and your proprietary lease (the contract that lets you live in your unit). The buyer pays the price you agreed on, and the move is official!

6Working With a Specialist

Selling a co-op involves steps that most real estate agents don't see every day. This includes board applications, share transfers, and working with waiting lists. It's important to have someone on your side who knows the ropes.

Lisa Dunn, SRES®, CSA®, CSREC, has helped many Minnesota seniors buy and sell their co-op shares. She's here to make the process simple and stress-free for you. Call 612.599.3484 to talk about your plans. You've got this!

Have a house to sell first? I’ll help you time it. See what your house is worth or book a free 30-minute call.