What Lenders Look for in a Property Condition Assessment?
When financing a commercial real estate purchase or refinance, borrowers often focus on interest rates, loan terms, and closing timelines. Yet one critical factor can quietly influence whether a deal moves forward smoothly or hits unexpected roadblocks: the property condition assessment. Lenders rely on this detailed evaluation to understand the true physical state of a property and to measure the level of risk associated with the investment. A thorough property condition assessment does more than describe visible issues; it tells the story of how well a building has been maintained and what future expenses may be lurking around the corner. For borrowers, investors, and property owners alike, understanding what lenders look for can make the difference between approval and hesitation. What Is a Property Condition Assessment? A property condition assessment (often called a PCA) is a professional evaluation of a building’s physical condition. It typically reviews major systems and compone...