When you invest in a commercial real estate property, you are taking on a certain amount of risk. Among other reasons, environmental liabilities pose one of the biggest threats. Due to affecting the ability to use the property you just bought, environmental liabilities can have a huge financial impact. It’s important to conduct environmental site assessments, specifically environmental site assessment phase 1.
Here are some of the reasons why you should conduct an environmental site assessment.
- It’s A Cheaper Option in the Long Run
When weighing the options, conducting phase i and phase ii environmental site assessments saves you money. By springing for an environmental site assessment, you can find out if there is anything wrong with a property before purchasing it. If it comes down to having bought something, you’re responsible for whatever error is found afterward. This could be money that you weren’t planning on spending at first. Environmental site assessment phases find anything wrong with your prospective property, so you aren’t faced with surprises down the line. Once these errors are found, you are able to renegotiate the price that way the leftover money can then be used to fix whatever needs to be fixed. In some cases, you can demand that the seller fixes the issue.
- Find Out Any Issues that the Seller may have Tried to Hide
It’s human nature for people to try to withhold information in order to sell their product. You can see this in any industry. It’s just how it is. As the buyer, you want to unveil any secret that may have been kept from you during the negotiation process. An environmental assessment phase I is there to uncover anything that the seller wishes to hide. Far too often, a buyer invests in property that turns out to not be what they thought it was. You also don’t always know who you are dealing with. In order to protect yourself and your investment, it’s strongly suggested that you look into an environmental site assessment so there is nothing left in the dark.
- Know Everything there is to Know
This is an extension on the previous point. When you look into having professionals perform environmental phase 1, they look into everything. Not only will they sift through records, but they will also conduct site evaluations. Afterward, you will receive a report of everything they dug up. This will have a big part of the decision making when it comes to trying to figure out whether or not you should purchase the property. If you think about buying a used car. You would hire professionals to look at the car to ensure that everything is okay with it or that whatever is wrong with it won’t take too much to fix. Just like you would want a full report on a car you’re about to buy, you want a report on a property you’re about to buy.
- Professionals Are Relatively Inexpensive and Quick
We have been speaking about performing environmental site assessments, but you can’t do this on your own. You need people who know what they’re doing. By hiring an environmental consulting firm, you are bringing on professionals to do the work for you. Companies will only cost a couple of thousands of dollars and typically take only a month to finish their findings. When you are looking to grow your investment, you don’t want to wait months and months before getting a report back. There are times where the report is lengthy and depending on the property, the assessment may take longer. In general, environmental site assessments are quick so you can make the decision to buy the property or not.
- Professionals can Assist in Your Property Purchase
An environmental phase 1 assessment can assist in your purchase of a property. There are cases where a consulting firm’s report can fast-track your purchase and for much cheaper than the intended price. If you really need a site, there are ways to get what you want when you have an environmental assessment done. This is just one of the many reasons why you should have an environmental site assessment conducted.
If you are looking to purchase property, you want to know everything about that property that you can. By having a full report, you can make the decision if you should purchase the property or if you should re-negotiate for a cheaper price. By hiring an environmental consulting firm, you are bringing in professionals who are experienced in this field. They have the knowledge to know exactly where to look and what to look for. This way, you know what needs to be fixed and how honest or dishonest your seller is being. Save money in the long run by looking to invest in a phase 1 assessment. There are no surprises when you do your homework beforehand.