Commercial Property Inspections are an Essential Step in Closing a Sale
As a commercial real estate lender, Extensia Financial has funded countless commercial real estate loans of varying scope and scale. With each of these loans, one of the most essential steps is having a property condition assessment conducted by a qualified commercial building inspector. This step safeguards buyers, investors and the lender by spotlighting a property’s hidden structural, maintenance, mechanical and hazardous shortcomings. In short, a commercial property inspection protects your investment by making you aware of potentially expensive and dangerous maintenance and repairs that will need to be addressed.
The Commercial Building Inspector’s Role
We should preface this advice by saying a comprehensive commercial inspection must be done by a qualified commercial building inspector. Their training and experience give them the optics and know-how to conduct a thorough inspection that should shed light on any large-scale issues with a commercial property.
A certified commercial building inspector will closely evaluate the following as a part of his/her inspection checklist. Then, he/she will document the property’s condition and include an estimated cost of any immediate or upcoming repairs that will need to be done.
- Building structure and its foundation
- Electrical and plumbing
- Mold and hazardous materials (ex. black mold, water damage, lead paint, asbestos, etc.)
- Fire, safety and ADA compliance
- And more
Protecting Your Commercial Investment
Bottom line: A commercial property inspection safeguards you in making your real estate investment. Repairs can be expensive and time-consuming. Plus, overlooking hazards such as mold and asbestos can not only lead to costly repairs but also potential litigation should you have tenants who become ill as a result of residing or working in the property. A commercial inspection is a quick and easy step to protecting you from potentially large and costly issues down the road.
After your commercial property inspection is complete, you and your lender can then decide if the investment is a sound one.
Even if you are a cash buyer, we equally recommend you have a property inspector conduct a commercial inspection. Cash transactions sometimes overlook this step given the fact they are not needing loan approval. But cash buyers need to be just as aware of building issues so they too avoid costly repairs.
About Extensia Financial
Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial offers competitive and collaborative commercial real estate loans. We partner with credit unions and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire full lifecycle of the loans, including commercial inspections. Extensia Financial is a proud member of the AVANA Family of Companies.