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WGS Associates, Inc.
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Real Estate Due Diligence

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Property Condition Assessment

The due diligence process of property acquisition is a method of evaluating the risks in ownership or underwriting the financing of real property. Key elements of that process include assessment of any potential environmental impacts, and the physical condition of the property including expected repair and replacement cost over a specified evaluation period.  

WGSA performs Property Condition Assessments and prepares Property Condition Reports using ASTM E 2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process as our basic guideline. This process includes the assessment of the physical condition of the subject property and consists of documentation and review, interviews, walk-through survey, and opinions of probable costs to remedy immediate needs and a replacement reserve schedule over the evaluation term.    

The Standard also recognizes there are varying levels of assessment and due diligence both more and less comprehensive than the guide. WGSA’s policy is to establish an understanding of our clients’ purpose for commissioning a PCA and their risk tolerance so that any deviations from the Standard are mutually agreed upon and clearly stated in the engagement documents and final report.

In general the standard scope of work includes: 

WALK-THROUGH SURVEY: 

Objective: The objective of the walk-through survey is to visually observe and obtain information describing the general condition of materials, systems, and components of the subject property. Observations made are recorded with specific emphasis on conditions needing immediate attention and conditions that will require capital expenditure over the evaluation period. 

Photographs: WGSA documents representative present conditions including physical deficiencies, if any.   

OBSERVATIONS OF THE SITE TO INCLUDE:

Topography

Storm Water Drainages

Ingress and Egress

Paving, Curbing and Parking

Flatwork

Landscaping and Appurtenances:

Recreation Facilities

Utilities

Structural Frame and Building Envelope

Roofing

Plumbing

HVAC

Electrical

Vertical Transportation

Life Safety/Fire Protection

Interior Elements