Why does everyone skip the Phase I ESA on small industrial buys?

Just closed on a 5,000 sq ft warehouse in Phoenix, and my broker kept pushing to waive the environmental report to speed things up. I insisted on a Phase I, and it found a minor solvent plume from a previous tenant that the seller had to pay $15k to remediate before closing. That saved my entire deposit. Do most people just not know the risk, or are they that eager to get a deal done?

2 comments

2 Comments

richard_ramirez8d ago

Maybe they just trust luck more than a cheap report.

mitchell.wade8d ago

Saw a guy at the gas station last week buy twenty bucks in scratch-offs instead of a new tire. The sidewall was worn down to the cords. It's everywhere, this gamble on the big win instead of the small, sure fix. People will risk a total blowout on the highway over spending sixty bucks at the shop. Makes you wonder how we got here.