The three line items that kill stabilized deals in diligence
A retrade is almost never a surprise about the building. It is a surprise about the paperwork. On stabilized product the same three items account for the overwhelming majority of price reductions after contract.
First, collections reports and DHCR history review. A rent roll that shows an inflated number rather than the collected rent will overstate income, and the buyer's lender will catch it alongside the DHCR review - and then you're back to square one looking for a new contract. Preferential rents, arrears that have been carried for months, and registration gaps all surface at the same moment, and they surface in front of the one person whose opinion decides whether the deal funds.
Second, unresolved HPD and DOB violations. Class B and C violations are cheap individually and expensive in aggregate, and they get priced at the buyer's "contractor rate," not yours. An owner who has been handling repairs through a trusted super for fifteen years is genuinely shocked by what the same scope costs when it is quoted by an acquisitions team building a capital budget.
Third, the real tax number. Underwriting last year's taxes on a building that is about to be reassessed after a sale is the most common single error we see in outside offering memoranda. The buyer models the post-sale number because their lender makes them. If your marketing package does not, the gap between the two becomes a negotiating point rather than a known quantity.
None of this is hard. It is just work that has to happen before launch rather than after contract. Every one of these three items is knowable weeks before a property is shown to anyone, and knowing them is the difference between a clean process and a deal that dies at the eleventh hour with your building carrying the stigma of having been in contract and fallen out.