Understanding the Difference Between a RISK Report and Commercial Appraisal
If you are considering renting or buying a commercial property, you may assume that once you have an appraisal, you have everything you need to know. Unfortunately, an appraisal may not give you the insight you need into the condition of the property and anticipated costs to keep the property maintained. A comprehensive RISK Assessment Report, however, can give you a five-year breakdown of costs helping you to make informed decisions about the property.
At Commercial Real Estate Inspectors, LLC, we set ourselves apart from the competition by providing one-of-a-kind RISK Assessment reports. Now you won’t have to guess about what it will cost to maintain your property in the years to come. Get an in-depth analysis of all of the major systems, including the expected useful life left in them and a five-year cost projection.
If you are looking to rent or buy a commercial property in Los Angeles, you need a RISK assessment report. Contact our office at (818) 957-4654 to schedule an inspection.
What Is a Commercial Real Estate Appraisal?
A commercial real estate appraisal is a valuation of the property. Commercial appraisals are professional assessments that can be used to determine whether a property is properly priced and are used by lenders to ensure that they are not loaning more money than the property can be sold for.
What Is a RISK Assessment Report?
A RISK Assessment Report is a detailed analysis of the five major systems that comprise a property. RISK stands for “Reliable Inspection for Systems Knowledge” and provides a five-year breakdown of anticipated costs and immediate repair needs.
The RISK Assessment, provided by Commercial Real Estate Inspectors, looks at the:
- Structure
- Plumbing
- Roof
- Electrical
- Heating and air
Consumers are provided an extensive multi-year outlook on the expected useful life left in each system and any repairs or additional investigations that may be needed. The report can be used to help determine whether the property would be a good investment or would end up costing you substantial amounts of money to maintain.
What Is the Difference Between a Commercial Appraisal and a RISK Report?
While both an appraisal and a RISK Assessment Report are important, they are distinct evaluations. A commercial appraisal is used to determine the value of a property while a RISK report, performed by Commercial Real Estate Inspectors, helps to assess the overall condition of the property and provides a multi-year cost estimate for all major systems.
An appraisal may be a condition of receiving financing, but a RISK assessment can help you decide whether the property is a sound investment and can help you prepare for costs over the next five years.
Are You Buying a Commercial Property in Los Angeles?
If you are thinking about buying a commercial property in Los Angeles, contact our office at (818) 957-4654 to schedule an inspection. Get a RISK assessment report today to see the useful life of all major systems and an analysis of any repairs that need to be made. Get the information you need to make an informed decision. Call now to get started.
