What is a Property Condition Assessment & Why Do I Need One?
BUSTAMANTE ENGINEERS STAFF • April 8, 2020
Over 25 Years of Experience in All Types of Due Diligence Inspections
Whether for annual capital budgeting or the refinancing of an existing property, building owners and managers need a comprehensive understanding of the physical condition of their properties. Not only does this help comply with established standards, it also ensures the wellbeing of tenants and long-term success of the asset.
A Property Condition Assessment involves a detailed analysis of a property. It is similar to a home inspection, but on a much larger scale. A PCA determines the present physical condition of the property and provides a professional opinion on future anticipated recommendations associated with the property. The experts from BUSTAMANTE ENGINEERS INC look at virtually every physical element of the property and evaluate its condition and future repair and maintenance requirements.
Our environmental engineering expertise puts us head and shoulders above other assessment firms that may only have course-trained environmental technicians. Our knowledge of local regulations and familiarity with PA, NJ and DE programs gives our clients a decided edge with our Environmental Site Assessments.
Who Needs a Property Condition Assessment?
PCAs are among the most common commercial real estate inspections. Lenders, insurers and property investors may require one as part of larger due diligence processes such as acquisitions and appraisals. Property condition assessment results also help various stakeholders understand capital requirements of a building.
- Lender: PCAs are often a requirement of a bank because any potential problems could affect the value of the property, or the ability of the borrower to pay their mortgage.
- Buyer: A buyer wants to know issues as well and will likely use the PCA as a negotiation tactic if they will need to replace/repair certain things in the property.
Four Steps to Completing a Property Condition Assessment
- In-Person Interview - This occurs at the very beginning of the process. BUSTAMANTE ENGINEERS will schedule to speak with someone at the property, preferably someone who knows about the building’s history and where its components are located.
- Pre-inspection Owners Survey - As part of the interview we ask the builder owners to fill out a survey to includes just things as roofing warranties, past major capital needs, and the like.
- Physical Walk-Through - Next we will conduct a complete the physical walk-through. BUSTAMANTE ENGINEERS will go through the entire property and will take pictures and take note of the characteristics about the building like elevations, surrounding properties, site characteristics, building systems and more.
- Research & Document Review - BUSTAMANTE will then conduct research on the property. We will visit or file right-to-know applications to local agencies such as the fire marshal, the planning or building code official to obtain records on past building code or life safety issue with the property.
We’ll Structure a Property Condition Report to Fit Your Needs
The final result is the BUSTAMANTE ENGINEERS Property Condition Report outlining our findings. This report will inform the property buyer and lender the condition of the major components of the building and property and provide a cost estimate of deficiencies and a 10 to 15 years reserve schedule for planned replacements over the term of the loan.
The standard of care is in accordance with ASTM E 2018. This standard is often appropriate to complete due diligence in a real estate transaction and complies with industry standards that many lenders require. As with any real estate transaction, the client may not need an ASTM-compliant report. A building inspection report or structural only report are alternatives we offer. We can structure a report to fit your needs.
Getting More from Your Property Condition Assessment
A Property Condition Assessment is a tool that allows the client to make intelligent decisions based on the condition of the property. BUSTAMANTE ENGINEERS, INC.
has over 25 years of experience in all types of due diligence inspections including Property Condition Assessments and Building Inspections for all commercial property types. We may recommend a follow-up study after the initial PCA if we find a concern that needs further evaluation, such as an underlying structural problem.
Our goal is to provide the utmost professional service and deliver a comprehensive report so the client can meet their financial needs and due diligence requirements. Click to contact us online and schedule a Property Condition Assessment today!
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