Why a Seller’s PCA is Always a Good Idea
When buying a building, you usually hire your go-to PCA consultant to review the building for you. But what about when you sell a building? Let’s say you’ve owned it for five years. You know everything about it, right? You know what is good, you know. What needs to be fixed, and you also know that it is up to the buyers to find the problems on their own. But what you don’t have is the eyes of the PCA consultant and you don’t necessarily know what the buyer’s PCA consultant will make an issue of. You don’t know what that little crack in the wall will mean to the PCA consultant or you don’t know what the PCA consultant will decide is the problem because you have two or three roof leaks per year. You don’t know if the PCA consultant will decide that the small, isolated mold issue you have in a few guestrooms is somehow a much larger and involved issue than it really is. You don’t know how the PCA consultant will interpret what your property engineer tells them,which sometimes can be an exaggeration.
What if you could know this in advance?
Would it help you better prepare your property for sale? Would it help you decide what to fix now or what to leave for the seller to fix?
Could it get you a better price for the building?
The answer is most likely “yes”. By not getting a PCA when you sell a property, you actually run the risk of letting the buyer’s PCA consultant draw unnecessary attention to some of those grey areas rather than mitigating them or addressing them before they impact your transaction. As PCA consultants to many large CRE investors, sellers often hire us to perform PCAs and we’ve come across issues that would have gone undetected or unaddressed until we reviewed the property. Let’s consider a few scenarios: