What Is In A Property Condition Report?

A property condition report is a very detailed review of a commercial property that assists potential buyers in their decisions to buy the property in question. It functions very much the same way a residential home appraisal works as it also shows the values of other real estate in the area. The report records everything attached with the property for example, the electrical systems within the building, plus the landscaping outside as well as their charges to maintain them over time. A property condition report permits the potential buyer to know how much money it costs to run the property and whether or not he will provide the long term money to do it. The property condition report should list any repairs and all upkeep that is done on the property from the previous owners. The price of doing so will also be posted. These reports can be long and tedious although with good reason. Buyers don't want to land in the situation where they won't spend to have the property kept up. It is far better to get a property appraisal finished prior to any papers are signed and any loans written. The price to fix or replace an elevator, for instance, could cost several thousands of dollars up to $100,000. The report can place all these results and how often the work has had to be done. The purchaser may believe that it is less expensive to replace the entire system before he completes the transaction. A big reason to get a property condition report done is to reassure the lending company that the potential buyer can have the money to run and maintain the home over the length of the loan. It is essentially an insurance policy in the real estate world. The review also helps existing owners see where their assets are bleeding if they are losing more money as compared to what they are getting. They will be able to see just what is costing the most money- it could be a defective electrical system that is forcing them to call electricians on a regular basis which can increase in costs over time. After seeing it on paper, the owner can then take measures to adjust any problems. A detailed property condition report covers each aspect of the property. The interior walls, hallways and ceilings are inspected along with the outside sidewalks, pavement and parking lots. The assessors will look at the cost to keep up every aspect of the premises. This assures the lending company that they will be returned and makes sure the buyer that he should have the funds to pay for routine maintenance during the period of the loan. The report gives a history of the property from the moment it was constructed and all of the times it has swapped ownership to the current value of the property. The property condition report is a very powerful tool in the commercial real estate business.About the Author

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