Eight Reasons for a Property Condition Assessment

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Real estate agents who specialize in residential occasionally purchase commercial properties for themselves or they may represent a client who is buying a commercial property. So, most real estate agents deal with commercial properties at one time or another, regardless of their area of expertise.

 

We frequently hear from real estate agents of their clients not getting a Property Condition Assessment (PCA) on a commercial building. A potential tenant or buyer usually knows in advance that they will do extensive reconstruction to ensure the building will meet their needs and so they opt out on the inspection since so much of the building will be remodeled.

 

Owners, property managers and potential occupants have endless reasons why not to have the building inspected.So we thought we should share the reasons why your client should get their commercial property inspected:
  • Get an accurate and documented assessment of the condition of the property for a purchase or lease.
  • When listing a property for sale or lease, a PCR (Property Condition Report) can be beneficial by fully disclosing all defects upfront, which can markedly decrease the risk of the property falling out of escrow due to problems found during the inspection contingency. This can also reduce the time spent negotiating since all issues are known in advance.
  • As a possible occupant of the building, if any flaws are discovered in advance, the purchase price can be negotiated and result in huge savings. In the case of a lease, any defects can be documented and possibly negotiated as well.
  • A PCR can be used by the building owner to document a condition before and after a tenant moves in.
  • An apartment building owner or an HOA can get an assessment done so that they have predictability on upcoming repairs, such as part of a required Reserve Study.
  • An apartment building owner can get an assessment done to ensure that their building is being maintained properly.
  • Any landlord or property manager can get an inspection to assess possible safety issues or hazards.
  • Insurance companies require periodic thermography of the electrical system on commercial buildings. Electricians who aren’t certified in thermography will often call a commercial inspector (who is certified in thermography) to take infrared images and provide a report.
The inspector’s job is to find the defects that are not easily visible. Unless the owner, property manager, buyer or tenant is extremely knowledgeable on buildings, issues are bound to come up after it’s too late. Even if the tenant or new owner will be replacing all the systems, they could still run into unpleasant surprises. An inspector knows what to look for on the HVAC systems, the electrical, plumbing, roof, et cetera, and can flag potential problems.

 

 

Posted in Qualified RE Inspectors.