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What Buyers Look For Before Making an LOI

Reviewed & updated July 2026 · By Jason Bitton, RE/MAX Commercial, Libertyville, IL

Serious buyers do real work before they'll put an offer in writing. Knowing what they check lets you prepare for it — and price accordingly.

A letter of intent isn't the start of a buyer's process — it's the end of their first round of homework. By the time a serious buyer writes one, they've already verified enough to be confident. Knowing what they verify lets a seller get ahead of it and avoid the surprises that produce a low offer or a retrade later.

The income story

For income property, this is everything: the rent roll, the actual leases (not summaries), and verifiable NOI. Buyers test whether the income you're advertising is real, current, and durable — and they discount anything they can't verify. Clean, provable numbers are the single biggest driver of a strong, fast offer.

The leases themselves

Remaining term, escalations, renewal options, who pays what (NNN versus gross), and tenant credit. A great rate on a lease that expires next year prices very differently than the same rate with eight years left.

Physical condition

Roof, HVAC, parking, structure, and any deferred maintenance. Every dollar of work a buyer expects to inherit comes off their offer — so known issues are better disclosed and priced than discovered.

Title, survey, and easements

Buyers and their attorneys want clean title and want to understand any easements or encroachments before they commit, not after. Surprises here are a classic source of mid-deal friction.

Zoning and use

Whether the current and intended use is permitted, and whether any approvals are needed. A buyer with a specific use won't write an LOI until they believe they can legally operate there.

Environmental and financeability

On industrial and former auto or industrial sites especially, buyers screen for environmental risk early. And quietly, every buyer is asking whether a lender will finance the property at the price — debt-service coverage, condition, and tenant quality all feed that answer.

The sellers who transact fastest are the ones whose documents are ready and whose story holds up under verification. Disorganized or unverifiable financials are the most common reason a buyer hesitates, low-balls, or walks. Get buyer-ready before you list, and the offers come in stronger.

Frequently asked

What do commercial buyers check before making an offer?
Verified income (rent roll and leases), physical condition, title and easements, zoning and permitted use, environmental risk, and whether the price is financeable.
How can a seller make a property more attractive to buyers?
Have clean, verifiable financials and leases ready, address obvious deferred maintenance, and confirm zoning and use up front. The fewer open questions, the stronger and faster the offers.
Why would a buyer lower their offer after an LOI?
Usually because due diligence surfaced something the listing didn't disclose — unverifiable income, deferred maintenance, a lease issue, or a title or zoning problem.
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RE/MAX Commercial · 1344 S Milwaukee Ave, Libertyville, IL 60048
Jason Bitton, RE/MAX Commercial
About the Author

Jason Bitton is a commercial real estate broker with RE/MAX Commercial in Libertyville, IL — #1 RE/MAX Commercial Broker in Illinois (2022, 2024, 2025) — serving Lake County, the North Shore, the O’Hare corridor, and the Chicago suburbs. More about Jason →

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