Too often technical assessment of the property is the most neglected part of real estate investment transaction. If we use a little parallel – people would not buy new smartphone or laptop without deeper knowledge of its details and technical parameters. However they usually hesitate to spend small amount of money on technical inspection of real estate property they want to purchase. Needless to say that difference in pricing between first and second investment is more than significant…

Technical inspection of real estate property in a nutshell

The aim of technical inspection of real estate property is to identify obvious defects as well as hidden defects of a property which is an object of inspection (apartment, house, residential house). Inspection is carried out by certified professional with technical education and relevant inspection experience. Since real estate brokers in Prague usually don´t check information about property, other task of inspector is to conduct ‘proofmeasurings’ of real estate property. 

Outcome of an inspection has form of professional report which contains list of all defects and other important observations from inspection in structured form. Inspection report also includes assessment of costs for repair of existing defects and also assessment of potential risks which arise from existing technical state of property.

Here are 3 main reasons why to spend money on technical inspection of real estate property:

• Investment to real estate is usually very important decision with long lasting (not only financial) consequences. Professional technical inspection can make this decision easier since investor will be acquainted in detail with real situation of the property. This way investor can avoid many unpleasant ‘surprises’ related to technical nature of the property in the future.
• Technical inspection can bring more transparency into the whole process of price negotiations between seller and buyer. Common situation is that buyer spends a lot of time and energy on price negotiations but at the same time he has no precise information about technical state of property he wants to purchase. And it is exactly technical state of property which can serve as one of the most solid arguments to decrease price of the property.
• Technical inspection helps investor to eventually build a complex picture of costs for future reconstructions and necessary repairs of the property after purchasing it.

Standard technical inspection in Prague usually includes the following:

1) Technical assessment of

• Ceilings and walls,
• Carrying constructions and other cross buntons,
• Façade of the property and insulations,
• Installations (water, canalization, gas, electricity, heating)
• Interior floors and other surfaces,
• Doors and windows,
• Cellars, garages and common areas,
• Fire safety and hygiene conditions,
• Real sizes of rooms,
• Humidity, noise of location, etc.

2) and drafting report which includes:

• Plan of the property in which defects are marked,
• Assessment of cost of reconstruction and repairs of defects,
• Assessment of technical quality of investment according to technical criteria of investor.

Report from technical inspection of an apartment in a scale described above can be delivered in 72 hours after receiving order. Shorter reports (without costs assessments) are ready in 24 hours after receiving order. In case of more complicated reports (f. e. from inspections of residential houses) delivery time is set up individually.

Summary

Careful technical assessment of the property is often one of the most underestimated factors of real estate investment transactions. This is paradoxical, especially if we compare costs of technical inspection service and its long lasting benefits. Considering financial magnitude of real estate investment and small price of technical inspection service, it is highly recommended to use this service before purchasing real estate property.

Read here more about inspection service before purchasing property in Prague