Commercial real estate acquisitions function to increase the value of a business. When purchasing a property, business owners focus on the potential return on investment and the residual value of the property. Once the buyer gets the property, the inspections function to identify any potential problem areas, so they receive attention promptly. What should an inspection of this type include?
What Does a Commercial Property Inspection Include?
When assessing a property, the commercial property inspector looks at the five major systems of the building. This includes the roof, the structural integrity, electrical systems, the plumbing, and the HVAC systems. The report generated following this inspection provides valuable information regarding the value of the property, potential problem areas, and more. What does the building inspection include, when should the owner request a building inspection, and why?
What Does a Building Inspection Include?
Buildings vary greatly. When an owner requests a commercial property inspection, the inspector considers the nature and use of the building to determine what systems and components need inclusion in the process. However, all inspections typically include the HVAC system, plumbing systems, the roof, electrical systems, and structural integrity. Once these components have undergone a thorough examination, the inspector moves on to other building features. What might these include?
An owner or potential buyer might request information on exterior fixtures and elements or parking areas and sidewalks. They want to know if there are barriers to accessibility or if problems might arise with drainage systems. Wood decks and balconies may feature in the property, and these need inspection as well. Never overlook safety items and request a document review to gain a better understanding of the cost of building ownership and the value of the property.
Consider requesting additional services. This might include an energy audit, mold sampling, or radon gas testing. An engineering certification becomes desirable in certain situations, and a person might want a pest control assessment to ensure they won’t have problems once they occupy the building. These serve as only a few of many additional services a person may wish to have carried out as part of the building inspection process.
When to Request a Building Inspection?
Men and women often assume building inspections only occur when the property is changing hands. However, an owner should have these inspections carried out regularly. They help to identify potential problems that need repair or pinpoint which systems will need replacement in the coming years. Owners need this information to plan their budget and ensure their building remains in good shape at all times.
Why Request a Building Inspection?
Buyers may wonder whether they truly need to spend the money for a building inspection. If a buyer plans to get a loan, the lender typically requires this assessment of the property. However, when a buyer plans to pay cash for the real estate, they still need this task carried out. What are some benefits associated with a commercial property inspection?
Quality
No person wishes to buy a property only to learn they must carry out major repairs. The commercial building inspection determines the quality of all systems and appliances on the property. This allows the buyer to calculate the cost of any upgrades or repairs needed before they commit to making the purchase. Current owners may wish to have this assessment carried out also to determine whether they need to make upgrades in the future and how best to plan for the cost of these upgrades. This makes budgeting easier for all parties involved in the planning process.
Negotiations
A buyer must know all potential problems with a property before making an offer or committing to the property. The commercial property inspection provides them with information on what repairs the property requires. With this information in hand, the buyer strengthens their position during negotiations. They can request the seller lower the price to account for the cost of the repairs or have the repairs carried out before the sale goes through so the buyer won’t need to take on this work. If the seller refuses to do either, the buyer may wish to look for property elsewhere.
Property Value
Any work needed on a property reduces its value. A buyer must know what they are getting and how it will add value to their portfolio. The commercial building inspection provides information on how much the property is currently worth. In addition, the inspector may provide information on how much the property would be worth once the repairs are completed. The buyer can then make an informed decision regarding how much to offer for the real estate, knowing they are getting a fair deal at the end and a property that will add to their bottom line.
Knowledge
One thing people rarely think about when they request a property inspection is the knowledge they will gain by having this task completed. The property inspector provides information on the features of the building that may otherwise be overlooked. For instance, most commercial properties come with an HVAC system. The inspector shares details about this system, such as its age and condition. The potential buyer may then research the system, its expected lifespan, and more to learn whether they will need to upgrade or when the system might need replacement. This allows the potential buyer to plan for the future and any improvements, upgrades, or repairs.
Protection
A commercial property inspection helps to protect the value of the property. During the inspection, all major systems on the property undergo an inspection. This ensures problems aren’t overlooked and receive prompt attention. This helps to keep repair costs under control and ensures the property remains in compliance with all building codes. For instance, a locality might require a commercial property inspection to identify violations of health and safety codes. This inspection identifies issues in need of correction and reduces the risk of the property owner. This protects the owner’s investment in the property.
Commercial property inspections play a crucial role in the purchase and ownership of commercial buildings. Never discount the importance of this service. When choosing an inspector to work with, look for one that is InterNACHI certified. This ensures you are getting a quality inspection that provides the information you need to be a responsible business property owner.
