Purchasing any kind of real estate is a big investment. Buying a large parcel of land on which to build something; or purchasing an existing building which is established in its location are nothing to take lightly.
There is an adage about real estate and it is very true. The three most important facets of real estate are:
- Location
- Location
- Location
Without the right location, the business you want to run from your building could fail, from reasons of zoning and land use to exposure. Location also affects renovation costs as well as insurance. Location is the most important thing, hands down.
If the purchase is for your business, there many details to consider. For example, a warehouse buyer could look at such as ceiling heights, existing office space, floor load capacity and power. An investor may look at property condition but overall, it is tenants, leases and income. Long-lasting tenants are typically ideal because they have staying power.
One very important detail that many buyers take for granted when paying cash is the condition of the soil. My brokerage has worked with a local (yet regional) environmental assessment firm to compile a thorough list of due diligence tasks. These go above and beyond soil testing but soil testing is often ignored. This is a bad move because claiming you did not know will remove any liability from you.
An advantage to use our brokerage is in the professional relationships we have. With every contract we write (or deal with put together) our buyers are presented with this list. We also suggest a detailed due diligence process.
Alterra Realty Group excels at working with clients and can certainly help you determine the important things to look for when buying a building or land. Please contact us with any questions.
