Key Takeaways
- Three decision gates (Accept, Negotiate, Terminate) force structured evaluation of every inspection finding.
- Total Cost of Ownership includes purchase price plus all CapEx, closing costs, and operational adjustments.
- Risk transfer mechanisms (reps/warranties, escrow, indemnification, insurance) address unquantifiable risks.
- Compare acquisitions on TCO, not purchase price—a cheaper property with deferred maintenance may cost more overall.
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Test Your Knowledge
1.What is a decision gate in the inspection process?
2.What does Total Cost of Ownership (TCO) include beyond the purchase price?
3.How can risk transfer mechanisms reduce inspection-related acquisition risk?