Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Boost Property Sale Price: Document Your Add-Backs Now! #shorts

9 Oct 2026 · 1 min

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In this short advisory, the speaker explains how undocumented add-backs directly reduce a property's sale price by the amount of the add-back divided by the cap rate. To preserve value, each add-back must be documented with a simple invoice and a one‑sentence explanation. Undocumented add-backs are treated as fictitious and raise buyer suspicion. Additionally, the speaker warns against deleting these items from the accounting books, as doing so creates a mismatch with tax returns that buyers will scrutinize. The recommended practice is to keep the original entries, present them alongside the documented add‑backs, and maintain transparency to ensure credibility and maximize sale price.

Chapters

Every one of those is also a direct reduction in your sale price, dollar for dollar divided by your cap rate. Unless you document it as an add back, the buyer will accept. And here is the standard for an add back: you can hand over an invoice and explain it in one sentence. That is it. Undocumented add backs get treated as fiction. Worse. They make the buyer suspicious of everything else in the file. So do not just list them, document them. And one more thing, do not delete these from your books. That creates a mismatch with your tax returns, and the buyer will ask for those returns. Leave them where they are and present them as documented add-backs alongside the original statement. Transparency is what makes an add-back credible.