The real estate landscape has shifted pretty dramatically over the last ten years, and as property values have increased, we’ve seen a noticeable shift in how prospective buyers are working to set themselves apart from others who are also interested in the property. While a higher offer is usually most important to sellers, other tactics that buyers may use to appeal to a seller include making an all-cash offer, waiving inspections and surveys or agreeing to a seller’s target closing date.
Of those tactics, you’ll really want to be wary of agreeing to waive a property survey in your offer. This could come back to hurt you in a number of different ways, even if the seller truly believes that there are no issues with the property. In today’s blog, we look at some of the ways you can be burned by waiving your commercial property survey.
Clear Boundaries
A survey will clearly outline the property boundaries so that there is no confusion where your property begins and ends. You may assume that a fence or shrub line is the end of your property line, but if these weren’t installed in the right spot, you may find that a fence actually sits on a neighbor’s land, or your property actually extends beyond a shrub line. Knowing where your property ends can avoid a costly mistake if you plan to build or improve your land and get close to your property’s boundary.
What Lies Beneath
A property survey will also outline the infrastructure that exists beneath the commercial property. The can include things like:
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Underground power lines
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Water lines
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Sewage systems
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Utility lines
Knowing the location of these buried cables and lines is incredibly important if you plan to build or improve the property and need to know where it’s clear to dig.
Costly Oversight
Yes, a survey is another expense you’ll have to keep in mind during the purchase phase, but it acts similar to insurance in that it can uncover issues before you officially become the owner of the property. It can highlight issues that the current owner will need to address before a sale takes place so that you’re not on the hook for these costly issues down the road. Spending a little money now to learn more about the property during the due diligence phase can save you way more than the cost of the survey should it uncover issues.
A commercial property purchase will be one of the biggest purchases you’ll make in your life, so don’t rush into the process and overlook important aspects of the sale like a thorough property survey. The team at Commercial Partners can help you with several key aspects associated with your commercial purchase, so let us be an ally for you. For more information, or for help with a specific commercial title issue, reach out to the team at Commercial Partners today at (612) 337-2470.