ODIC_sub1

Property Condition Assessment

Property Condition Assessments and Building Evaluations

 

The purpose of this assessment is to assist the Client in evaluation of the physical aspects of this property and how its condition may affect the soundness of their financial decisions over time, by observing building components and evaluating their physical conditions. This is important because the client understand how the condition of the building will impact the performance of the asset. Lenders and real estate investors are the main users of Property Condition Assessment (PCA) Reports.

 

We provide a summary of the conditions observed during the on-site inspection of the property and estimates for Immediate Repairs Cost Estimate and Replacement Reserves Cost Estimate. These estimates are based on construction costs developed by Means Construction Cost Data and ODIC’s experience with past costs for similar properties and assumptions regarding future economic conditions.

 

This Report will be completed in general conformance with the ASTM Standard E 2018 – 01. The Remaining Useful Life (RUL) of the property systems and components will be assessed and the estimated cost for repairs or replacements will included in the cost estimates.  The physical condition of building components is typically defined as being in one of four categories: Excellent, Good, Fair, and Poor.

 

Assumptions regarding the overall condition of the property have been developed based upon a survey of “representative” areas of the building. The estimate is based upon the observed physical condition of the property at the time of the on-site visit. The estimate is made only with regard to the expected physical or structural integrity of the improvement on the property, and no opinion regarding economic or market conditions, the present or future appraised value of the property or its present or future economic utility are expressed by ODIC.

 

Based on observations of readily apparent conditions, an immediate Repairs Cost Estimate will be developed addressing areas found to require replacement, repairs or significant maintenance within the next year to help the Client evaluate the property.  In addition, a Replacement Reserves Cost Estimate will be prepared for the major components identified requiring repair, replacement or to have significant maintenance performed over the next 12 years.