Zach, our VP of Sales, once inspected a roof for a client about to invest his entire inheritance in a commercial property. After a thorough evaluation, Zach discovered the roof was in poor condition and would have to be replaced in a few years - and would probably cost around $900,000...a sum of money the client didn't have. Without Zach's inspection, he could've found himself in serious financial trouble.
This goes to show you just how critical a good roof inspection is for commercial property. As a buyer, you don’t want to lose money on a bad investment; as a seller, you don’t want to lose a deal or be forced to accept a lowball offer after a problem is discovered.
Fortunately, at GIDEON, we have over 20 years of experience inspecting all kinds of commercial roofs for both buyers and sellers of commercial property, and we can help you avoid costly problems no matter which side of the negotiating table you’re sitting on.
In this article, we’ll discuss:
One question buyers, sellers, and realtors alike may ask is: Why should I hire a roofer? Won’t my building inspector determine the roof condition?
The answer is: Yes and no.
A building inspector will typically detect any obvious damage, like visible ponding water or tree growth. They may also tell you the type and age of the roof system. But in most cases, they lack the in-depth knowledge necessary to properly evaluate the roof’s condition, let alone present you with solutions.
A roofing pro, on the other hand, can do a thorough assessment and present you with cost-effective solutions. They’ll be able to detect a vast array of issues that a building inspector simply doesn’t have the training to look for. In fact, our team at Gideon has been approached by building inspectors to do roofing inspections for them - they’re well aware they lack the necessary tools and knowledge.
So what are the benefits of professional roof inspections for those who are selling a commercial property
Having an inspection before listing your property puts you in a much stronger negotiating position. You won’t be caught off guard if a buyer discovers (or claims to discover) roofing problems…and then tries to lowball you. If the roof is in good condition and has plenty of life left, you can demonstrate that with a thorough, professional report. If the roof does need repairs, you’ll be able to discover and address them before they cause problems at the negotiating table.
A roofing issue uncovered in the middle of negotiations may not only result in a lowball offer; it can lose you the deal altogether. During our team’s 20 years in the commercial roofing world, we’ve seen sellers suffer frustrating delays and missed opportunities because a thorough roofing inspection revealed a problem that changed the buyer’s investment calculus. Hiring a roofer can help you avoid wasting your valuable time on a deal that goes south.
A roofing professional can secure a higher valuation for your building, giving you a higher ROI. Let’s say that your roof is in good condition with no significant problems, but it only has five years left on its warranty. Because of this, your buyer wants a lower price…or worse, they simply turn the deal down. A knowledgeable roofer might determine that an elastomeric coating will restore the roof, extend its life an extra 10-15 years, and renew the warranty - all for a significantly lower price than a complete replacement. Now the building will attract more buyers and fetch a higher price.
A thorough, professional inspection with excellent documentation inspires confidence and trust in potential buyers, as it demonstrates transparency, professionalism, and a commitment to maintaining the building.
Commercial roof inspections don’t just help the seller. They are just as crucial for the buyer, perhaps more so - after all, if a major problem goes undetected, you’re the one left holding the bag.
While a quick visual inspection for leaks may help you avoid investing in an obviously failing roof, a more thorough inspection can help suss out less obvious (but no less serious) problems. While a roof may appear fine on the surface, installation errors in the roof assembly under the surface may cause severe problems down the line.
The last thing you want to do is end up like the customer we mentioned earlier almost did - sinking $2 million into a building that will surprise you with an additional $900,000 expense just a few years down the road.
A roof inspection doesn’t just help sellers find and fix problems before negotiations; it helps buyers uncover them. A good inspection can help you negotiate price reductions or repair work prior to closing on a deal.
The upfront price of a roof is just one part of your investment calculus. You also need to understand your overhead and plan for necessary upgrades or repairs. A roofing inspection can help you forecast future expenses and plan for improvements, so you can genuinely understand your ROI over the investment timeline. You may discover, for example, that the roof has another eight years of life, and when it’s time to replace it, you’ll need to upgrade the insulation to meet current building codes. If your roofer is very knowledgeable, he can recommend insulation and roof replacement options that will save you a substantial amount of money on heating and cooling costs. Armed with all of this knowledge, you can avoid surprise costs, save money, and generate a higher return on investment.
At the end of the day, most of us have had difficulties when it comes to buying or selling a property, and the stakes are never higher than when it comes to commercial property. Fortunately, a competent, knowledgeable commercial roofing professional can help you maximize your return on investment and avoid costly difficulties. If you’re gearing up for a sale or looking to buy, give GIDEON a call. In a free 15-30 minute consultation with one of our experts, we can assess your situation and provide you with customized recommendations.