When you’re thinking about buying a commercial building in the Florida Keys, is it worth it to buy one that needs repairs? Here’s what you need to know.
Should You Buy a Commercial Building That Needs Repairs?
Most commercial buildings with any age on them need repairs. Due to the nature of their use and being open to the public, they see heavy use and abuse. The degree of care and maintenance over the years determines how well commercial buildings age.
So, the primary question is not should you buy a building that needs repairs. The needle in the haystack is a commercial building that does not need repairs. Read below to discover an even more important concern to consider before buying a commercial building.
Can the Location Make Up for the Building’s Need for Repairs?
Again, the initial, primary concern is not repairs. The all-important question for any such purchase is that central question for all real estate, no matter what kind.
Location is the determining factor for whether you should make the purchase. Location, more than any other variable, is the central question. Location is what gives a commercial building its value or lowers it.
Is the building in or reasonably near a financially active and vibrant area of the city?
Is that area a safe place to walk any time of the day or night? Answers to these initial questions should guide you in moving forward with your purchase.
Can the Building Hold Up to Its Intended Use?
Is the building still suitable for which it was designed and built? Will your use plans require expensive and extensive remodeling? More importantly, is the building design and layout suitable for the use you have in mind without any remodeling?
What is the condition of the property upon which it sits? Does it need extensive re-design and resurfacing? Is the attached sufficient?
What about ingress and egress? How conveniently located is it to the street, road or main thoroughfare? Will its users be able to comfortably come and go with and against traffic?
Is the Building Potentially Profitable?
If all the aforementioned questions are satisfactorily answered, now you should begin to assess repairs. Do so with an eye toward costs.
Purchase price plus cost of all repairs is the total cost, not just the asking price. Your total cost is the benchmark for profitability and how quickly you will realize that profit.
Assessing Repair Costs
Hire professionals to inspect the foundation, walls, roof and overall structural condition. Next, have the electrical system thoroughly inspected and assessed for repair, or if the building must be completely re-wired.
Order an inspection for the building’s HVAC system. Inspect for mold and any other air-borne contaminants. Keep a running total for these repairs and the inspection fees.
Making an Offer You Can Live With
If no deal-breaker repairs are discovered, make your best offer with the repair costs included. If the seller agrees, you have just purchased your commercial building.
Are You Buying a Commercial Building in the Keys?
If you’re thinking about buying a commercial building in the Florida Keys, we can help you! Call us at 305-296-1400 to talk about what you’re looking for – we’ll help you find the perfect property.
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