I wrote two weeks ago about a new building I was hoping to move into around the first of the year. The closing was scheduled for tomorrow. Now it looks as though both closing and move in to the new studio space will have to wait until mid- to end of January, if they happen at all. While the building looked like it was in pretty good condition during the walk through, the building inspector found quite a lot of problems that weren’t at all expected by me or the seller. Some of the problems, after more investigation, are not such a big deal, however, other problems really are a big deal and will be expensive to fix.
Once we all read through the building inspector’s report, and spoke to structural engineers and contractors about the specifics of what actually had to be done, we started to get a feel for the scope of the project. We’re getting quotes from contractors on all of the work that needs to be done, so that the seller and I can figure out what the next steps will be. We’ve got the roofing estimate, the termite tenting estimate, and a ballpark figure for cost of fixing the termite damage, mold damage, badly installed plumbing that has failed, re-grading the parking lot and sidewalks, and hooking up the (currently) unused HVAC units to service and test each of them, as well as a few smaller odds and ends. Of course, this will affect the final price I pay for the building, so the seller and I will have to work out the financial effects of knowing about all of this work needing to be done, once the rest of the estimates come in.
Now that we’ve gone beyond the building inspector’s initial report, I’ve started hearing from the various contractors and I have a first pass estimate on the total cost of remediation for all of the items needing work. I also have a handle on what I’ll have to pay for (building wear and tear) versus what the seller is responsible for (structural items and equipment being in working order), and I’ve had a chance to settle down and think this through without all of the emotion (mostly disappointment and frustration that the building wasn’t what it seemed to be) and reactivity raging. With calmer thinking, it still seems like a good idea to invest in this place, so now it’s all about the bottom line and whether the seller is willing to ante up for his part of the cost. If so, I’ll go forward with it, just a little later than I had planned. If not, then I’ll have to let it go and look at other options. I’ll keep you all posted… 🙂
