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