In commercial real estate, one must have detailed information on the property in question. Without understanding the ins and outs of prospective premises, an investor cannot know for sure how to bid on it nor know what costs will come up later on. In figuring out these details, commercial property investors should conduct a building condition assessment.
Building Condition Assessment
A building condition assessment is, as it sounds, an evaluation of the physical condition of a building. It helps buyers know what they will need to address when they buy it and whether or not they can afford it. This assessment generally costs around $2,000, but it is well worth it. The more information you have, the more reasonable your bid will be to both yourself and the seller.
How It Works
You’ll need to find a commercial property inspection company that is accredited and follows the industrial guidelines for this procedure. The inspectors will document the building with photos and notes, as well as detail its maintenance history. Some companies can also inspect for environmental contamination like mold, asbestos, herbicides, lead, etc., which will be a crucial factor in deciding whether you still want the property or not.
What It Covers
- Outside premises: They will check out the grounds, including items like the pavement, fencing, landscape, lighting, etc.
- Building structure: This includes the foundation and structural beams.
- Fundamentals: Check over the conditions of the roof, staircases, windows, walls, flooring, exterior doors, etc.
- Mechanical systems: One needs to check the HVAC, the plumbing, and the electrical work as well.
- Safety systems: Also inspect safety systems for fire protection, intruder prevention, and carbon monoxide protection.
- Interior finishes: Inspect the conditions of the drywall, carpeting, flooring, and furnishings.
Why It Matters
The building condition assessment tells you the condition of each of the premises’ components, what needs immediate fixing for code compliance, and how long the other items will last before they need replacing. It gives you a clear picture of the short and long-term future care for it overall. From there, you can make a smart offer, or walk away.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.