Here’s why Phase I Environmental Site Assessment is important
When it comes to investing, refinancing and buying industrial land and commercial property, Phase I Environmental Site Assessment is more relevant than people think. Following the required due diligence process is immensely essential, because a considerably high sum is involved in such transaction. Below are some solid reasons to spend on Phase I ESA.
- Save huge in the long run. Sample this situation – you didn’t get the ESA done and have purchased the property, only to find a leaking tank underneath. If that has led to contamination of the soil or groundwater, you would be liable to pay for the cleanup and subsequent work. On the other hand, phase 1 environmental site assessment from the Ortam Group won’t cost much, and what’s even better is the fact that you can get the report in just 10 days.
- Negotiate better. By getting ESA done, you can actually get the property at a cheaper price than expected. Just like the situation above, if you get the ESA report and it shows the presence of an underground tank, it is likely that you can get a lower price, keeping the cleanup and other costs in mind.
- Know your property better. As a buyer, you have every right to know about a commercial property before you make the investment. Expectedly, phase 1 environmental site assessment just helps in digging up the facts and details. This is done in a professional way, and therefore, the information is accurate.
- Get a complete picture. Sellers are often not honest about the things they say, and eventually, buyers end up paying for not-so-accurate environmental disclosures. ESA just helps in knowing if the seller or the agent is true to what they are saying. It is also well known, ESAs are not expensive, at all.
What about costs and other aspects?
Phase I Environmental Site Assessment costs can vary considerably, and that can cost around thousands of dollars, depending on the factor. In general, the location, type of the property and relevant site details may have an impact, but the good thing is you can get an estimate in advance.
In all fairness, Phase I Environmental Site Assessment is a must for commercial real estate investors. It helps keep up with the norms, secure funding and get assured of their investment. Many companies dealing in ESAs can even help with underground tank removal, mold detection and other things too.