Why might a seller’s cap rate differ from a buyer’s cap rate? (circle all that apply)...

Why might a seller’s cap rate differ from a buyer’s cap rate? (circle all that apply)
1. The seller may be cheating the buyer
2. The buyer believes there are different risks associated with the property
3. They may be using the NOIs of different years
4. Different people classify different costs as operating and non operating
5. One party may not believe the property is stabilized

None of the above

Solutions

Expert Solution

Sellers capitalisation rate is different from the buyers capitalisation rate because of following reasons-

(B)the buyer believes there are risk associated with the property so he is having a different capitalisation rate.

(E) one party may not believe that the property is stabilized.

All the other statements are not true

jeff jeffy answered 2 years ago

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