There are many questions that prospective buyers and refinancers of a property may have to answer. We found that most people don’t consider environmental due diligence until very late in the buying or refinancing process. Even though they know that a phase I ESA Ohio can help prevent poor investments, we find that this is the case for most people. People don’t understand the protection provided by Phase I and don’t even know what they are.
That’s a good question. A Phase I Environmental Site Assessment usually costs less than a regular assessment. It can vary depending on variables but it is not a huge difference (usually). But, the costs of Phase II Environmental Site Assessments can vary so let us look at the various factors that could impact the cost of a Phase I ESA or phase II ESA Ohio.
Phase I Environmental Site Assessment Cost Variables
I assume that you are familiar with the concept of a environmental remediation consulting Ohio Site Evaluation. Click that link if you don’t know what a Phase I Environmental Site Assessment is. You can find a detailed breakdown of the factors that affect Phase I ESA costs in the article linked above. Here’s a quick summary of what impacts this cost.
• Location can have an impact on the time it takes to review records, and may also affect travel costs.
• Types of buildings and features for the property.
• Current and past uses of the property.
• Any additional work (such as an environmental audit or testing to see if lead paint is present) should be added.
• How many Phase I ESAs have been proposed? (buy in bulk mentality).
• When do you need the report?
Depending on your specifics, a Phase I ESA will cost you between $1,800 and $6,500+.
Phase I Environmental Site Assessment is a combination of research, review, reporting, and evaluation.
The site is investigated by an environmental professional. This can include anything from visual inspections to conducting interviews to learn about undocumented histories or reviewing historical records.
Understanding Phase II Environmental Site Assessment Costs
Let’s take a fictional example to explain this. Imagine that you are looking to purchase a property on 123 Main Avenue. It is 1 acre and has 1 building. In the 1970s, it was a gas station. It is located in the middle of an extremely developed area.
phase iesa will cost $3,500 according to this example.The Phase I environmental professional discovered that the paperwork for the underground storage tank removal was a dead end. There are no receipts, records, government records, or anything. However, the former site owner swears that it was removed.This REC is a Phase II report.
Phase II ESA Costs: Cash Purchasing vs. Financing
The good news is that there’s good news. You can buy the property for cash, and not care about the underground conditions. This might not be a good idea but it’s your money and your decision.
However, if financing is available through a bank, it’s not possible to get out of debt. This Phase II ESA must be obtained. The bank will immediately stop any transaction progress until a Phase II ESA is completed. You have two choices, as I mentioned above. You can either pay a high price for a Phase II ESA, or you can hire a new consultant to help with Phase I.
You’re doing this because no serious environmental professional would accept another’s work without first reviewing it. An environmental professional would most likely not conduct a phase ii esa based on another professional’s Phase 1 ESA. It doesn’t work this way.
