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Buying and Selling Commercial Real Estate: Tips for Beginners


About Me

Buying and Selling Commercial Real Estate: Tips for Beginners

Hi, my name is Maxine, and over the years, I have loved watching the property values in Australia rise. Through that time, I personally have bought and sold a number of properties and started to build up a savings account due to the money I have earned. In addition to earning money, I have learned a lot about real estate. I have picked up tips on everything from spotting a "diamond in the rough" to knowing when to be flexible on sales prices. If you want to learn about buying and selling commercial real estate, this blog is perfect for you. Please, take a look at these posts and enjoy reading!

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Reasons why a pre-purchase building report is essential

It may appear as a tedious process when buying a property, but a building inspection is a godsend. As a potential buyer, you should have the building inspected by a qualified building inspector before committing yourself to a purchase. Typically, the building report will give you a valuable insight regarding the condition of the building. As you will see below, a building report is important for several key reasons. 

Detect any structural problems

Due to safety issues and price concerns, you need to make sure you are getting a structurally sound property. A building with structural issues may collapse and cause serious injuries or even death to the occupants. Moreover, there's also the prospect that the structural problem may be almost unfeasible to repair save for major construction. Buildings are expected to adhere to the Australian building codes and standards. By buying a home that doesn't adhere to these standards, the responsibility of upgrading the property up to code will lie on you. A building report will show you whether the property is structurally sound or not. This will save you significant financial and psychological torment down the road. 

Accounting for repairs 

It may appear a masterstroke to buy a building that only needs a few repairs since it's selling at a lower price. However, proceeding with the acquisition without a building report may mean hefty costs for unnoticed repair problems. Once an inspection is conducted and the findings documented in a final building report, you will have clear understanding of what repairs need to be done in order to upgrade the building to your standards or preference. Then you can consult an expert to provide the repair estimates so that you can know how much you will need for the repairs. For refurbishments, a building report is both a life saver and a cost saver.

Assessing sundry structures 

Note that the building itself isn't the only segment of a property that needs the watchful eye of a property inspector. Are you aware that sundry structures, such as patios and sheds, also have to be assessed? Local council codes, which differ from state to state, often stipulate where such structures can be erected, and buying a property that doesn't adhere to these stipulations could mean knocking down the structures in the end. 

Opting against a pre-purchase building report may appear tempting at first when you consider the amount of dollars you could save, but ensuring the building you're buying is safe, needs no costly repairs and adheres to the council building codes is quite important. A building report can stop you from committing the biggest financial blunder of your life.