Take steps to ensure that you don’t buy a property with significant mold damage.
When prospective owners acquire a new property, it is under the assumption that certain renovations will be necessary. However, many are unprepared to handle the repairs and costs associated with hidden mold damages. Sadly, many buyers are unaware of a property’s mold issues at the time of the deal due to oversight in the inspection and documentation process. To ensure that you are not on the hook for expensive mold mitigation and repair costs, here are some of the steps that you should take to protect yourself.
- Gaps in the Assessment System
Before a buyer closes on a hotel property, they will receive a property condition assessment. While this report is meant to uncover damage, it does not go into detail regarding the extent, cause, or cost of repairing said damage. This can result in buyers underestimating the degree of damage and ultimately investing in a property that requires more work than they anticipated.
- Hire an Experienced Inspector
The best way to ensure that you do not purchase a property with significant mold damage is by conducting a more in-depth inspection of the property. Rather than simply relying on the hotel’s property condition assessment, you should hire an experienced independent inspection company to determine the extent of mold damage, the cause of this damage, and what it would take to address the issue.
- Remediation Efforts
When dealing with mold damage, it’s important that you develop a systematic and detailed remediation strategy. Once you identify the root cause of the damage, you must come up with a plan to address the issues, repair the damage, and prevent it from happening again. Make sure that you get a thorough estimate of remediation costs to ensure that you go into a hotel transaction with open eyes.
- Price Negotiations
Buyers can negotiate a property’s purchase price based on inspection findings and expected repair costs. So, it’s important that you have accurate damage information before you close on a deal. If you only discover the extent of mold damage after the sale has gone through, then you will either have to pay for repairs out of pocket or file an insurance claim in hopes of recovering your costs.
This is what you need to know about protecting yourself against hidden mold damages during the purchase of a hotel property. If you have purchased a hotel that is in need of major repairs and updates, then it’s important to hire a team of construction experts that you can trust. Contact Nikki Fox at Parkwest General Contractors at Nikki@ParkwestGC.com for assistance with all your building renovation and construction needs today.