What is a Property Condition Assessment & Why Do I Need One?
BUSTAMANTE ENGINEERS STAFF • Apr 08, 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.
Understanding the permitting process is crucial to ensuring your project proceeds smoothly, without legal hiccups or delays. This guide aims to demystify the world of residential construction permits for homeowners, offering a roadmap through the bureaucratic maze...
On January 8, 2024, New Jersey passed legislation to help protect and maintain the structural integrity of certain residential building structures. This legislation is effective immediately.
Embarking on a residential construction project is both an exciting and daunting task. As civil engineers with years of experience in construction oversight services, BUSTAMANTE ENGINEERS has seen how costs can escalate quickly if not properly managed.
Are you thinking about updating or expanding your driveway - or constructing a new one? Let’s take some time to deep dive into the benefits of each type of common pavement material: ASPHALT, CONCRETE, GRAVEL/STONE & PAVERS. This article will talk specifically about gravel driveways and the various types of pavers available...
Are you thinking about updating or expanding your driveway - or maybe constructing a new one? Last year, I decided to take the plunge and update my gravel driveway. I took some time to deep dive into the benefits of each type of common pavement material: ASPHALT, CONCRETE, STONE GRAVEL & PAVER BLOCKS. This installment will talk specifically about Asphalt and Concrete pavement surfaces. Gravel and the different types of Concrete Paver Blocks will be discussed in the next installment...
From a structural engineer’s point of view, it was overwhelming to imagine how they built such beautiful, ornate masterpieces without all our modern technologies. Today as engineers, we are required to provide drawings, documents, material, and design specifications before a project begins.
Maintain Your Home’s Exterior. As the seasons change, so should your home maintenance tasks. Now that winter and spring are through, you can tackle exterior maintenance projects you couldn’t do during wet or frozen weather. These maintenance tasks will prepare your home for summer when the sun is bright, and the temperatures are high.
Contrary to popular belief, “100-Year Flood” does not refer to a flood that happens every century. Rather, the term describes the statistical chance that a flood of a certain magnitude will occur over a 24-hour period, in a certain area, once in 100 years.
Home Inspectors look at the home in general terms evaluating conditions that may cause the house to be unsafe, function improperly, or have major mechanical issues. A structural inspection often takes place after the home inspector submits their recommendations and points out possible structural issues that the homeowner should take a closer look at. A licensed engineer is the only professional that can provide an opinion on the structural integrity of a home.
Does It Make More Sense to Replace the Roof or Repair It? Over time, your roof will start to show indications of wear and tear. While there are a few things that can indicate your roof is no longer in its best shape, any one sign on its own doesn’t necessarily mean your roof needs replacing. Proper upkeep of your roof helps ensure that it stays in good condition to maximize future resale value and keeps you and your belongings protected from weather in the meantime...
Understanding the permitting process is crucial to ensuring your project proceeds smoothly, without legal hiccups or delays. This guide aims to demystify the world of residential construction permits for homeowners, offering a roadmap through the bureaucratic maze...
On January 8, 2024, New Jersey passed legislation to help protect and maintain the structural integrity of certain residential building structures. This legislation is effective immediately.