Homes and Commercial Real Estate: Condition of the Property

Make sure that as you are reviewing properties to purchase that you look at the condition of the basics: Undercarriage (varieties of foundation, post & block...), wiring, heating, roof and gutters, etc... Most Buyers should get an "Inspection" by a licensed Inspection Services company, there are many individuals providing this service with a variety of experience. Your Realtor should be able to recommend two or three to choose from... however... don't let an Inspection Report scare you.

MOST buildings and property have some issues that you need to be aware of and perhaps have fixed previous to purchase. With the local Building Codes changing continuously, the property will almost always be "behind" the current building codes in some way. Do not let this influence your decision on an EMOTIONAL level "Oh my Gosh.. there are so many 'things' in this report, let's RUN AWAY (screaming...)". These are just issues, they are details to evaluate as a part of the process. I have seen numerous clients "run away" from buying a property that would have been an excellent value with benefits to them far outweighing the items on an Inspection Report.

Remember, MOST buildings or even land will have some kind of issues, it is up to you and your advisers to decide what are important items or not; to determine present or future costs of improvement or upgrade; to evaluate dispassionately and objectively what the REAL value is to your investment portfolio. All of these items: neighborhood, house style, business location, current availability of good contractors, structural or system versus cosmetic... all of these issues need to be part of an EVALUATION process, not an emotional approach.

Seasoned Buyers and Investors have learned how to look through the details and work toward the VALUE they are looking for in a property. Some details need to be negotiated within the purchasing process, some need to be taken into account for action after the property is yours.

Again, I have seen many Buyers hold off from the purchase of an "excellent value deal" because of Condition of Property issues, and the home or commercial property goes to someone else who can work through the details and determine what is truly important.

Remember that any improvements you do to a property can be accounted for and used to reduce your "profit" when you go to sell in the future, money you spend over the first 6 months to a year is money in your pocket (actually throughout your ownership) when you go to sell later. You can make sure that you are establishing a real ESTATE of greater value, pun intended.

Happy purchasing,
Layne ";->

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