Both Sides of a Commercial Building Sale Require Professional Engineers

Commercial property transactions usually involve a more complex undertaking than residential real estate transactions. Typically, buying or selling commercial real estate involve increased liability and large sums of money for all the parties involved. And unlike buying or selling a residential property where laws provide buyers basic consumer protection, the law takes on an equal approach in commercial real estate dealings.

Courts expect that both sides of the transaction are sophisticated enough to fully understand the contract terms. Thus, the court will hold both parties liable to the terms of the sales agreement. For such reasons, it is crucially imperative that a buyer or seller of a commercial property should seek help from a professional engineer to close the deal.

Property Valuation

A huge portion of buying or selling commercial buildings and real estate is the process of figuring out the property’s value. Unlike other big investment products, real estate may have no exact sales comparison. To build a market for the real estate, for instance, a buyer may consider looking at buying and turning a property into a movie theater in a location where no other theaters are established.

Commercial properties also often have an income component that adds on top of the value of that particular real estate. Beyond that, the property’s current and future income streams, as well as the condition of its infrastructure are typically factored into the sales price. To be able to set a price for the property, both sellers and buyers need to hire a valuation expert.

Naturally, enlisting the help of a professional engineer is required in these kinds of dealings. Whether you are looking at establishing a good price for your commercial building or planning on buying one, a professional engineer can provide you accurate and legitimate reports about the condition of the property to ensure that you know what you are getting into.

Professional Engineers can Tell if the Building is an Environmental Hazard

One vital aspect of selling or buying a commercial real estate is the transfer of legal liability from the seller to the new owner. If the property has been found to violate certain standards or laws or has been determined to be an environmental hazard, it may be subjected to government regulation.

The process of selling or buying a commercial real estate requires different types of assessments to make certain that potential buyers are not taking on an eventual liability.

A professional engineer’s report and analysis gives sellers and buyers thorough infrastructure findings so that if the owner plans to sell the property, it can be repaired to prevent environmental hazards and other potential dangers. From a buyer’s perspective, the report will allow them to assess whether the property is safe or not.

When it comes to purchasing or selling commercial properties, there is no such thing as one size fits all as the decision must be weighed depending on the person’s requirements and needs. But whether you are buying or selling a commercial real estate, you will want a licensed professional engineer to go over all the different building systems to know the actual condition of the structure. Don’t wait for your counterpart on the other side of the sale to surprise you with their findings.