Buying a commercial space can be a completely different experience from buying residential property. There are different requirements for each type. But one thing that remains the same is the need for a thorough building inspection before you buy.
Mark Allen, a Commercial Real Estate Endorsed Local Provider (ELP) in Florida, said commercial buyers should never forego an inspection before they buy a property.
“I won’t allow my own buyers to skip inspections,” Allen said. “It’s crucial for a buyer to have all the information possible on the building they’re preparing to purchase.”
The regulations that require a seller to fully disclose any known problems with a residence do not apply to commercial property, Allen explained. Commercial purchases are subject to caveat emptor, let the buyer beware. So it is the buyer’s responsibility to discover any problems that may exist with a commercial space before he buys.
A commercial building inspection will turn up problems in these areas:
If a seller has deferred maintenance in any of these areas, the buyer could be in for some huge repair bills.
“And, if a buyer utilized a majority of his funds to purchase the property, he may not be prepared to write the large checks it will take to make the needed repairs or renovations,” Allen said.
The cost of a commercial building inspection depends on the size and type of the property and can range from $500 to $5,000. When you consider that an inspection can save tens or even hundreds of thousands of dollars in repairs, the price of an inspection is well worth it.
“I want my commercial buyer to know everything possible and be 100% confident when they walk into their closing,” Allen said.
Your commercial real estate agent will be able to recommend a licensed commercial inspector.
If you’re considering investing in commercial property, it is essential to work with an experienced commercial real estate professional like one of Dave’s ELPs. Your ELP is an expert in your market and can help you save money on your purchase. Contact your ELP today.
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