Do you want to create your own real estate checklist for inspections and needs studies? Are you looking for a way to help commercial real estate clients perform their due diligence? Would you like to learn more about commercial property condition reports?
If any of this sounds familiar, this guide is for you. Below, we discuss the basics of a property condition assessment checklist. We outline what they are and why you need one. Our team also reveals what to include in your own checklist.
What Is a Property Condition Assessment Checklist?
A property condition assessment is an analysis of commercial real estate. This inspection is sometimes called a facility condition assessment. Other names include capital needs assessment or building condition assessment. It may also be referred to as a backlog study.
The evaluation helps buyers learn more about the state of a piece of real estate. These assessments allow them to plan for future repair costs. Examples include roof or air conditioning replacements, plumbing repairs, and so on.
Real estate assessments can be time-consuming and complex. This is due to the sheer number of components they contain. As a result, the person viewing the site may miss key components during the assessment. That is where checklists come into play.
These checklists serve as an inspection template. Inspectors can use the checklist as a guide to ensure that they do not overlook key parts of the property during the walkthrough.
The exact contents of the checklist will vary based on the client’s needs. Some clients want firms to perform only a basic property inspection. However, others may request the firm to supply added services. Examples include elevator inspections, alarm inspections, or mold sampling.
Why Use a Property Condition Assessment Checklist?
A checklist helps ensure that a site inspection is thorough. Keep in mind that each firm will use its own methods. But making your own checklist can help your client better understand the process. A checklist will also ensure that your client receives the services that they want.
When working with a client, you can review your checklist with them. You can outline standard services and discuss any add-on options that they can ask for. This will improve the buying experience for your client.
Checklists are also a risk mitigation tool. The information gathered during a real estate assessment will help clients plan better and take measures to mitigate potential risks on the site.
For example, they can estimate future maintenance and repair costs. Your client could also use this information to change their bid. Or, they may even need to rethink or withdraw their bid if the property requires costly repairs.
What Items Should My Property Condition Assessment Checklist Include?
Each checklist will vary slightly. A checklist for a hotel complex will be different from the template for warehouses. But most checklists should include these items:
- Landscape review
- Utility review
- Estimated upkeep costs
- Site history review
- Review of fire protection systems
- HVAC system inspection
- Ductwork inspection
- Review of wiring, breakers, etc.
- Assessment of plumbing components
- Review of the roof, gutters, etc.
- Overall building assessment
- Review of mechanical systems
Your checklist may address many other key concerns. Examples include:
- Radon gas testing
- Energy star rating
- Alarm inspections
- Wood-destroying organism (termite) inspection
- Soil sampling and testing
- Americans with Disabilities Act (ADA) compliance assessment
You can tailor your checklist to meet the needs of your unique clients. You can also create more than one checklist. Each one can be geared toward a certain type of commercial real estate. This will help you serve clients in many different sectors.
Can a Third-Party Perform My Property Condition Assessment?
Yes, a third party can perform your property condition assessment! In fact, a majority of real estate transactions involve third-party assessment teams. A condition assessment firm can examine key components of a commercial property. These professionals will provide vital information about a prospective purchase. Your client can then use this information to negotiate more effectively.
A property condition assessor can also share their checklist with you. You can give a copy of this checklist to your clients, and this information will help them better understand the assessment process.
Would you like to learn more about assessment checklists? Are you ready to obtain your no-obligation quote? If so, then RSB Environmental can help. We perform property condition assessments and many other services. Examples include environmental site assessments and risk mitigation planning.