If Sellers do not give accurate figures on an Offering, how will serious Buyers Qualify for financing?

Listing Agents must demand accuracy or else they waste the time of both Buyer& Seller. The onus of veryfying data is on them. The lending companies are following stringent rules before taking undue risks and so are Investors. A level of transparency and honesty is necessary. This will expedite the process and all will be happy.
In Buying Property - Asked by Ron G. - Jun 21, 2009
Report Abuse
Answer this Question

Answer(s)

Paul S.
Broker/Agent
Glendora, CA

Age old problem that neve seems to be solved. Unfortunately when a property's value is based on numbers the Seller has a benefit if the numbers are skewed to look good. A little here a little there and bingo a higher sales price. With lending requirements so tight it probably won't work but it seems like they have to try?

Jun 23, 2009
Report Abuse
Leslie H. C.
Broker/Agent
Austin, TX

The lender is qualifying the property more than the buyer so the question should be how will the property qualify for financing?
The lender will verify rents, leases and expenses and apply their own underwriting criteria to the subjective findings. The amount they will be willing to loan will be based on their perception of the risk and not the sellers.
A good agent will either convince the seller about how important it is to get the deal facts correct up front or risk lost time and money and the possible stigmatism of a property that has been misrepresented. A buyer or lender that discovers discrepancies will look much harder for other possible discrepancies and possibly assume that things are not as they appear.
In this market the seller is better off putting the deal out there under very conservative terms and let the buyer find some meat on the bones of the deal.
Leslie H. Cox has been practicing commercial real estate for over 20 years and owns two commercial real estate companies in Texas.
Texas Apartment Brokers, LLC www.TexasAB.com
Cox Commercial Real Estate Advisors www.LHCox.com

Jun 29, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question