Despite what you might think, even a brand new commercial building is prone to suffer from some more or less minor flaws. Maintenance problems and improperly installed plumbing or electrical systems will all eventually lead to issues that will require the attention of professional handymen.
If your store, office building or warehouse is currently showing signs of issues with the roofing, A/C system, water pipes or electrical outlets, and you are getting ready to sell your building, we warmly invite you to schedule am inspection. If you are the owner, it falls under your responsibilities to be fully aware of any difficulties your facility might be dealing with and sort them out prior to the sell. Let’s see exactly what these inspections can do for you and the buyer, and how to get ready for the inspection itself.
Benefits of Commercial Building Inspections
In order to pre-list your property to sell on the market, you will need to undergo an inspection that should introduce you to any potential problems your building might be confronted with. The same process should also let you decide whether you wish to:
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Handle these issues on your own terms. This will give you the advantage and freedom of hiring your preferred handymen/renovators/plumbers/electricians – people you have worked with before you know are trustworthy, fast and affordable. However, keep in mind you may be also dealing with various delays because of the new circumstances, which could make the sell more difficult.
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Sell the property as-is and simply adjust the selling price in direct proportion to the repair work that needs to be done. Keep in mind some buyers might be scared off by the thought of having to invest even more money in the building, leading to difficult negotiations. Expect some of the people who have expressed their interest in your property to back down from the negotiation table.
What do Buyers Have to Gain From an Inspection?
Buyers are particularly interested in knowing exactly what problems the facility is facing as pointed out by professional evaluators, rather than their inexperienced and untrained eye. While a buyer may come across a large number of issues that might prevent him from sealing the deal and buying the property in the end, it is still a good call to get the inspection.
Plus, as a buyer, you will also have the chance to ask the seller to perform any necessary repairs and renovations prior to buying, drop the price or completely give up the contract. For example, if you are interested in purchasing a land casino, you will need to know how recently the building was renovated, what extra amenities and repairs you may need to do on the gaming rooms, how old are the piping and electrical systems and so on. As opposed to new online casinos, brick-and-mortar casinos do require heavy maintenance and upkeep work. See if you are willing to handle it.
Keep in mind that you should ask for the inspection contingency when initiating the negotiations, so you can set clear limitations on the repair costs. Should the inspector’s estimate be higher than this limit, the contract will become void. This inspection is, therefore, a good means of staying protected against a potentially bad deal that will leave you with a commercial building that requires expensive repairs that you will not be able to afford or will not be willing to do.
What To Know Before The Inspection
Prior to the arrival of the inspector, you should know a few things that should ease the process . For starters, know there are no federal rules that regulate these inspections. The laws will differ form one state to the other, this is why it is important to work with experience inspectors who know what they are doing and who have a lot of expertise in the field.
Each US state requires specific standards of certification for building inspectors. An inspector with bad reviews and zero credibility will represent a big challenge you should steer clear from.
Make sure you find out exactly what type of certificates your inspector holds and which associations they belong to so you can save yourself the trouble of working with the wrong people. The American Society of Testing Materials features certain requirements its members must comply with in order to be included. They must have minimum levels of experience, on top of codes of ethics they will need to use while performing their duties.
It is best to accompany the inspector upon his or her arrival. Take advantage of the property tour to you can familiarize yourself with the building and all of its facilities and systems and understand what kind fo repairs the inspectors might recommend. By personally seeing the faulty electrical wiring or leaking pipes, you will get a better understanding of what to expect and decide whether to buy or not.
As an owner, you may want to trim all tall trees and shrubs to simplify the exterior part of the inspection. Your property will also most likely be photographed by the same inspector for his report. You may want to hire some expert cleaners to get rid of any clutter and dirt.