No matter how experienced you are at buying residential properties, it’s a different game when it comes to commercial real estate. Naturally, commercial properties come with a myriad of other considerations. Some may even say that buying a commercial building is more difficult than buying a single-family home.
When buying a commercial building, do your homework to ensure you’re making a good investment. After all, this type of purchase is a big financial risk. Without further ado, read on for this pre-purchase inspection checklist of a commercial building.
Look at the Location
When purchasing a property, consider the location, especially if you intend to use it for business purposes. A property’s infrastructure and neighborhood can either add or subtract value.
Determine its Structure Classification
A commercial building is one that is used for business. Different property types, however, are classified differently. Consider office buildings that are classified as Class A, B, or C. The safest structures are Class A, while the most dangerous are Class C.
Assess the Condition
While knowing the building’s classification is useful, you should also consider its current condition. Also, look into the structure’s previous purpose, and how it has aged the property.
Additionally, for peace of mind, have the property inspected for issues such as mold or asbestos before making the purchase.
Prevent Expensive Future Repairs or Damages
If the cost of a building inspection worries you, think about the long-term costs of not having your property inspected. While this strategy may save you or your company money in the short term, it may end up costing you a lot more in the long run.
The longer we ignore or are unaware of a problem, the worse it becomes. If you leave your building unattended, it may sustain costly water damage.
Ensure Everyone’s Safety
A commercial building inspection ensures that everyone who enters the structure is safe and secure. You, your employees, independent contractors, and clients are all included.
This is not only the moral obligation of the owner, but it is also the most financially prudent course of action. Unnoticed electrical or wiring issues, for example, could cause a fire and destroy your entire life’s work.
Furthermore, you may be held liable if your building is unsafe and causes injury. Individuals may sue commercial property owners for injuries suffered on their property.
Financing and Closing the Deal
To buy the building, you’ll need to secure financing. Your personal and business credit scores, the type of property being purchased, and the lender all influence affordability.
Prior to making an offer on a property, pre-approval is required. Your accountant can help you create a budget based on cash flow projections.
Any big financial step needs to be guided with knowledge and expertise. As such, now that you know what to consider before making your commercial building purchase, you’ll be able to find what fits your budget and your needs. Again, buying a commercial building involves several steps, which is why you will also need the right people to help you.
For reliable structural inspection, AEI can ensure that all safety criteria are satisfied and that the structure is solid and up to code. With us, you can be stress-free as you sell, buy, or manage properties. Schedule your appointment with us today!