Quote:
Originally Posted by Misha888
if either parties need to go the bank, the bank will decide on its value based on income (capitalization rate). I'm certain both parties have accountants who have done the math and know how much cash they have on hand for such a transaction. If current tenant gets those two extra years, they have the advantage . . . and I could go on.
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I don't think the city council care less what the bank believe the value of the property is or how much capital a business can raise. Whatever the appraised value is, someone has the cash, even if its the syndicate and they will take the money. Good example is state surplus land such as Laconia State School, the politicians want millions for land that has been appraised for far less. Meanwhile the buildings are rotting away.
