WHAT IS A PROPERTY CONDITION ASSESSMENT?

A Property Condition Assessment (PCA), or Property Condition Report (PCR), is the visual assessment of a building's condition and the accompanying report written to ASTM standards. PCAs are generally ordered by the lender in real estate transactions, but there are more comprehensive variations of the report specific to buyer and owner needs.

Property Condition Assessments are also commonly known as Property Assessment Reports or Property Condition Assessment Reports.


WHO NEEDS A PROPERTY CONDITION REPORT?

  • Lenders
  • Buyers
  • Owners
  • Facility Managers
  • Investors
  • Developers
  • Any stakeholder in the transaction of a property or portfolio

WHY DO I NEED A PROPERTY CONDITION ASSESSMENT?

If you're acquiring property, you already know the vast majority of lenders require property due diligence before approving commercial loans.

In addition, proper due diligence is a stakeholder’s greatest weapon for reducing delays and eliminating surprises that often derail a deal.

Some of our clients work within rapid turnaround times, while others have more time to make their decisions.

But one thing they all share is the desire to avoid obstacles and address potential issues up front.

You need a Property Condition Assessment or Report for any property in which you are a stakeholder for the peace of mind that comes with a comprehensive understanding of the possibilities, obstacles, and costs associated with lending on, or purchasing a new property.

The value of the information you gain can lead to spending much less on a deal, or avoiding a property that has major issues. Would this peace of mind outweigh the costs of the assessment for you?


Reduce Delays.

Eliminate Surprises.

Order Your Property Condition Report Now.


TYPES OF PROPERTY CONDITION ASSESSMENT REPORTS

Standard (ASTM) PCA

An entry-level Property Condition Assessment meets the basic standards set by ASTM E2018-15 Standard Guide for Property Condition Assessments. It's typically ordered by loan officers to satisfy their institutions’ due diligence requirements for approving commercial loans.

The typical scope requires a building generalist to perform a visual inspection of the property and provide a report with general documentation of the inspection.


Acquisition PCA

The acquisition level Property Condition Assessment offers an entirely customizable property analysis, providing buyers and sellers with in-depth insight on all building and property systems and components. 

It's an indispensable tool for stakeholders who want maximum negotiation leverage, budgeting data, and a comprehensive understanding of the unique challenges and opportunities of a potential investment. 

Learn more about the APCA here.


Facility Condition Assessments

Facility management stakeholders are focused on maximizing the utility of a subject property for its users and their unique needs.

During the acquisition process of a subject property, a Facilities Condition Assessment is primarily focused on capital planning or the maintenance management plan for the property.

The FCA provides detailed analysis on historical and projected maintenance practices and costs, equipment and other assets management, and other crucial building components.

Learn more about the FCA here.


WHAT IS THE PROCESS FOR A PCR?

At EBI, your Property Condition Report begins with you; it is extremely helpful and can often decrease the turnaround time of a report when you provide:

  • The reason for your transaction: Are you acquiring, selling, financing, etc.? The plan for the property can help your consultants hone their approach
  • Timing for the report: How fast do you need it? Are there transaction deadlines waiting on the results?
  • Property details: construction date, acreage, square footage, age of the building, etc.
  • Historical information about the property and building operations
  • Any known concerns about the property or prior reports
  • Site access concerns: Is the roof inaccessible? Is it challenging to access in the winter?

From there, your consultant will begin crafting the scope of work required to produce a comprehensive property condition report.


WHY SHOULD I CHOOSE EBI CONSULTING OVER OTHER COMMERCIAL REAL ESTATE DUE DILIGENCE COMPANIES?

Due diligence is a highly competitive environment and some consultants cut corners; as such, not all Property Condition Assessments are created equal.

At EBI Consulting, we know every transaction is important and unique, which is why we work to first understand your needs and ideal outcomes.

A Property Condition Assessment completed by EBI will deliver:

  • Actionable information to help you make the best investment decisions and negotiations
  • Customized solutions that are relevant and unique to your property
  • A dedicated team of senior staff specialists collaborating to meet your goals and needs

Need real life examples of the benefit of working with EBI on your property condition due diligence?

Understand how our comprehensive reporting impacts your project's bottom line with our popular white paper, Advantages of a Higher Due Diligence Standard.

Property Condition Assessments are a critical step in understanding costs, risks, and opportunities related to a real estate transaction.

Our nationwide network of local experts is ready to serve as knowledgeable, trusted partners through every phase of your real estate investments, whether your standard Property Condition Report suffices for a particular deal, or you need senior staff specialists who can customize your property analysis.


Reduce Delays.

Eliminate Surprises.

Order Your Property Condition Report Now.

 

WHY EBI CONSULTING?


Quality. Commitment to quality is at the core of everything we do. EBI's consultants are known for business and technical expertise, responsiveness, and best-in-class reporting tailored to your specific needs.

Collaboration. Leveraging deep knowledge and diverse experience, we create customized solutions that make sense for you. We bring our comprehensive suite of services to bear and provide ongoing communication to help you navigate the nuances of each project.

Integrity. At EBI, integrity isn't simply operating within the letter of the law; it's about understanding and meeting your unique needs, solving problems, creating value for your business, and delivering intelligence you can have confidence in.

Let our nationwide network of local experts find solutions that give you the information you need to make the best business decisions.