Opinion of Cost Versus Contractor’s Quote - What’s Better?
Only 12% of Our Clients Are NOT Interested in Immediate Repair Costs Paired with the Commercial Inspection — Here’s Why That’s a Bad Idea
Most of our commercial clients—88% to be exact—request an opinion of immediate repair costs alongside their inspection report. But 12% choose not to, often because they’re trying to save time, reduce the upfront fee, or believe they’ll “figure it out later.” While that might seem reasonable in the short term, it can be a costly oversight in the long run.
In this blog, we’ll unpack:
Why skipping repair cost insights is a risky strategy
5 real-world scenarios where cost estimates made a critical difference
What our Opinion of Cost report includes and how it’s different from a contractor quote
How this simple add-on saves clients time, money, and stress—every time
Let’s look at why opting out of repair cost analysis is often the most expensive decision clients don’t realize they’re making.
Why Immediate Repair Costs Matter in Commercial Property Transactions
Whether you’re buying a 2,000-square-foot retail shop or a 120,000-square-foot warehouse, your inspection is only half the story. Without cost context, you don’t know how severe an issue is, whether it justifies renegotiation, or how it fits into your budget.
Here’s why skipping this crucial step is risky:
1. It Leaves You Blind in Negotiations
Buyers without cost estimates are at a disadvantage during contract negotiations. They can’t credibly justify price reductions, escrow holds, or seller repairs without quantifiable data.
2. It Delays Financial Planning
Without a ballpark cost for immediate repairs, clients can’t accurately calculate capex reserves, loan requirements, or ROI projections.
3. It Sets You Up for Sticker Shock
When contractors finally arrive—often weeks after closing—owners are surprised by the scope or cost of needed repairs. Budgeting on assumptions instead of facts is a recipe for regret.
4. It Makes You Appear Uninformed
Inexperienced investors or buyers who show up to the table without repair costs often signal to brokers, lenders, and sellers that they’re unprepared—which weakens their leverage.
5. It Wastes Time After Closing
Without a repair plan in hand, new owners spend the first 30–60 days scrambling to get bids, assess urgency, and respond to tenant complaints they could have anticipated earlier.
5 Real-World Scenarios Where Repair Costs Made or Saved the Deal
These examples are drawn from our actual client experiences (anonymized for privacy) and illustrate why cost clarity matters:
1. A Leaking Roof Turned Into a $115,000 Breakthrough
A buyer was initially discouraged by signs of roof damage on a 40,000-square-foot retail strip. Our cost estimate revealed that instead of a full tear-off, localized repairs would cost ~$18,000. That saved the deal—and $97,000 in assumed liability.
2. An Elevator Modernization Was the Deal Breaker
An investor purchasing an office building passed on the repair cost option. After closing, they learned the outdated elevator would cost $68,000 to replace—not the “maybe $20k” they assumed. It wiped out their first year’s cash flow.
3. Parking Lot Repaving Was a Major Concession
A seller insisted the parking lot was “just a little cracked.” Our cost estimate for repaving came in at $42,500. The buyer used that documentation to negotiate a seller credit—something they wouldn’t have been able to do without our numbers.
4. ADA Compliance Wasn’t on the Radar
One client nearly missed $32,000 in immediate ADA upgrades. Our Opinion of Cost broke down the price of compliant signage, door hardware, and restroom retrofits—letting them plan for a phased upgrade before a complaint arrived.
5. HVAC Panic Was Prevented
A client panicked when we noted six aging rooftop units. Our estimate showed that only two needed immediate replacement (~$14,000), while the rest could operate for 2–4 more years. It changed the tone of the acquisition from fear to confidence.
What Our “Opinion of Cost” Report Includes
We provide a line-item breakdown of estimated immediate repair costs for key issues found during the inspection. It is NOT a contractor quote, bid, or guarantee—but rather an educated cost range based on current market rates and system complexity.
Our report covers:
✔ Roof Repairs or Replacement
We estimate square footage-based repair or replacement costs by system type (TPO, EPDM, built-up, etc.).
✔ HVAC Replacement or Servicing
We price the replacement of non-functional or past-life rooftop units, splits, and boilers based on size and tonnage.
✔ Electrical or Fire Safety Issues
Includes repair of unsafe wiring, panel upgrades, missing suppression devices, or emergency lighting issues.
✔ Plumbing and Sewer Repairs
We estimate cost for drain line repairs, fixture replacements, water heater issues, and basic ADA plumbing upgrades.
✔ Exterior and Structural Repairs
Cost opinions for cracked foundations, failing stairs, deteriorated siding, repaving, and drainage correction.
✔ Code and ADA Compliance
We include repair estimates for critical life-safety, accessibility, or regulatory deficiencies that may cause delays or violations.
Why It’s Different From a Contractor’s Estimate
Contractors provide quotes only after the inspection is complete—and only after you’ve spent days or weeks getting them onsite. Here’s why our Opinion of Cost is a faster and more flexible tool:
When you're navigating a commercial property transaction, speed and flexibility matter. Unlike a contractor’s quote, which can take 1–3 weeks to obtain and often requires multiple site visits and coordination, our Opinion of Cost is delivered immediately after your inspection—within just 1–2 days. It’s built directly into your inspection report and designed to give you actionable, high-level budgeting guidance right when you need it most. This allows you to plan repairs, prioritize negotiations, and make fast, informed decisions without waiting on contractor schedules or risking delays.
While a contractor’s quote is certainly valuable when you're ready to move forward with actual work, it isn't available during the critical window when you're making purchasing decisions or negotiating terms. Our Opinion of Cost bridges that gap by offering realistic, experience-based cost projections that are available at the time of inspection, included in your report, and ready for immediate use in budgeting and negotiation. It’s not a replacement for contractor bids when finalizing construction—but it’s an essential tool for gaining early clarity, strengthening your negotiating position, and keeping your transaction moving forward.
What Happens If You Skip It? A Cautionary Path
Skipping repair cost data might feel like a shortcut, but here’s the typical (and costly) aftermath:
You receive the inspection report—but no context for prioritization.
Contractors are delayed or ghost you.
Your lender asks for a repair reserve—but you have no cost basis.
Tenants start complaining—and you’re not sure how to respond.
You scramble for answers—when you could have had them upfront.
Conclusion: Don’t Buy a Building Blindfolded
If you’re spending six or seven figures on a commercial property, don’t leave repair planning to guesswork. Opting out of the cost estimate might save a little upfront—but it can cost you tens of thousands later. That’s why nearly 9 out of 10 clients ask for our Opinion of Cost—because clarity and confidence are worth it.
Need Repair Cost Estimates for Your Commercial Property?
You wouldn’t buy a building without an inspection—so why close a deal without knowing what the repairs will actually cost?
At Focus Building Inspections, 88% of our clients choose to add an Opinion of Cost to their inspection, and for good reason: it arms you with the negotiation power, financial clarity, and operational readiness you need. Don’t leave six- or seven-figure investments to chance. Get the facts upfront, move forward with confidence, and make smarter, faster decisions. Because real confidence starts with real numbers.
Schedule your commercial inspection with our Opinion of Cost included—or contact us with questions. We’ll make sure you’re not just informed… you’re equipped to negotiate, plan, and protect your investment.
Questions This Article Answers
Why do immediate repair cost estimates matter in commercial property transactions?
What risks do buyers face when they skip a cost estimate during inspections?
How can early repair cost insights improve negotiation outcomes?
What common financial mistakes happen without repair cost planning?
What does Focus Building Inspections’ Opinion of Cost report include?
How is an Opinion of Cost different from a contractor’s quote?
What real-world scenarios demonstrate the value of having early cost estimates?
How does skipping a repair cost analysis create delays and financial surprises?
What specific building components are typically covered in the cost opinion?
How can a cost opinion help lenders, tenants, and property managers plan smarter?
Bibliography / Resources
Building Owners and Managers Association International. (n.d.). Cost planning for building maintenance and repairs. BOMA. Retrieved April 25, 2025, from https://www.boma.org
Environmental Protection Agency. (n.d.). ADA compliance and cost reasonability standards. EPA. Retrieved April 25, 2025, from https://www.epa.gov/ada
International Association of Certified Home Inspectors. (n.d.). Commercial property standards of practice. InterNACHI. Retrieved April 25, 2025, from https://www.nachi.org/comsop.htm
International Code Council. (2021). Code requirements for commercial renovation and upgrades. ICC. Retrieved April 25, 2025, from https://codes.iccsafe.org/codes/i-codes
National Fire Protection Association. (n.d.). Fire and life safety code reference for commercial properties. NFPA. Retrieved April 25, 2025, from https://www.nfpa.org/codes-and-standards