by Mish Daniel | Free Information
If you want to understand the ins and outs of commercial building inspections, you’re in the right place. An inspection ensures that your purchase is up to code.
In our latest podcast episode, Mish and Andrew talk to Daniel Watts from Rapid Building Inspections. They cover a lot of ground, from what to expect from a commercial building inspection, how to read between the lines in a report, and then, of course, diving into some of the horrors uncovered during particularly juicy inspections – you have to listen to believe!
You can listen to the latest podcast episode here.
At Revolve Commercial, we’ve built our business on helping people achieve their goals to live their dream lifestyles. We guide you, step by step, through investing in cash-flow-positive commercial real estate. The best part? It’s easier and less expensive than you might think. We teach our clients to make maximum profit with minimal resources and effort. We know what works because we’ve done it and do it better than anyone else. Revolve Commercial is your go-to commercial property buyers agent with years of experience! So contact us today if you want to kickstart your commercial property investment journey.
What does a building inspection involve?
A commercial building inspection is a procedure that verifies a building’s entire health. In Australia, commercial building inspections are carried out after you’re already under contract and are usually paid for by the buyer.
You can understand that as someone looking to use a building to generate revenue, you’d want to ensure that the structure is sound and in working order before finalising the deal. This way, you mitigate the chances of incurring any hidden costs down the road.
What do building inspectors look for?
Building inspectors look for many things and often find more than expected. For commercial buildings, inspectors are generally looking for:
#1. Safety Hazards: These are especially important in commercial property as many people will go in and out of the building. This is the owner’s liability, so it must be checked thoroughly.
#2. Major Defects: A defect is labelled a major defect when there is damage or inconsistencies in any of the key, load-bearing elements of a building. A major defect can render a facility unsuitable for its intended purpose and may even lead to the destruction or collapse of the building.
#3. Infestations: Usually, a pest inspection is included in a commercial property inspection. Termites, mites, fleas, snakes, and so on are looked out for. There have been reports of buildings with termite infestations up many floors. This can be highly damaging.
#4. Roofing: The general condition and strength of the roof will be inspected. It will also be checked for leaks, cracks and so on.
#5. Structural Integrity: Over time, the structural integrity of a building may become compromised. This is a significant factor. You don’t want to move into a building and have it come crumbling down.
#6. Electricity and Wiring: Another common factor that will be examined is the electricity and wiring, ensuring it is all working correctly and verifying there are no dangers.
#7. Plumbing: The inspector will check for leaks, faulty taps, pipe connections etc. Generally, any area tagged as a “wet area”, like kitchens, bathrooms etc., will be inspected.
#8. Heating, Ventilation and Cooling (HVAC): The inspector will check if the HVAC systems are working correctly.
#9. Meth Contamination: That’s right, methamphetamine contamination is a thing. You’d be surprised how often this comes up. The contamination refers to the drug’s consumption and manufacturing on the building premises.
#10. Exterior: This includes the walls, parking lot, landscaping, roofing, etc.
#11. Documentation: The inspector will look at the building title, certificates, permits, and building plan.
What happens after a commercial inspection?
After inspecting the issues outlined above, the inspector prepares a report which they will hand over to you. From the report, you can then decide whether to keep the same offered price, negotiate the price down, or decline the purchase altogether.
When it comes to the cost of an inspection, it depends on the size of the building. Generally, they start at around $500 but can range into the thousands for larger office buildings. It is, however, worth factoring in how much you could save by getting the building inspected. For this reason, we highly recommend getting a commercial building inspection.
Looking for a commercial buyer’s agent in Queensland?
At Revolve Commercial, we believe a commercial building inspection is vital before finalising any deal. Even new buildings should be inspected, as things like incomplete or poor quality work could be detected.
We are a commercial buyer’s agent in Brisbane, and we choose to work with Rapid Building Inspections when organising inspections for our clients.
Investing in commercial real estate can be highly profitable but also challenging without the help of a buyer’s agent. We have years of experience with commercial properties throughout Brisbane and surrounding suburbs, including our expert buyers’ agent service on the Gold Coast.
Revolve Commercial is the number one destination for people who want to work with a commercial real estate buying agency. We make property investment easy and hassle-free because we give our clients a priceless foundation of knowledge from which they can build their portfolios. So contact us today if you’re looking for a buyer’s agent in the Brisbane or Gold Coast area.
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