Why Perform a PCA Before Disposition

Uncover and Address Deferred Maintenance

Buyers are increasingly cautious and detail-oriented. A pre-sale PCA allows owners to identify and address maintenance issues before they appear in a buyer’s due diligence. Correcting, or at least pricing,these issues ahead of time can prevent downward pressure on pricing and keep negotiations on track.

Improve Marketability and Buyer Confidence

Providing a recent third-party PCA report signals transparency and professionalism. It demonstrates that the owner understands the asset and has taken proactive steps to maintain it. For institutional investors, lenders, and REITs, this transparency can significantly increase confidence in the property and reduce perceived risk.

Strengthen Pricing Strategy

A PCA provides a detailed breakdown of short-term repairs, long-term capital needs, and system life expectancies. These insights help owners and brokers justify pricing, position the property competitively, and manage buyer expectations. Knowing the asset’s true physical condition also enables more accurate net proceeds forecasting.

 Streamline Buyer Due Diligence

When sellers share a recent PCA report during marketing, it can reduce duplication of efforts during due diligence and shorten the transaction timeline. Buyers often use the seller’s PCA as a baseline, leading to fewer surprises and a smoother closing process.

Support Negotiations and Warranty Management

A PCA provides objective data that can be used to support representations and warranties within the purchase and sale agreement. It can also highlight warranty-covered repairs that should be addressed before sale, ensuring no missed opportunities for cost recovery.

Facilitate Capital Planning for Portfolio Dispositions

For portfolio sales or recapitalizations, standardized PCA reports create consistency across assets. This allows investors to prioritize capital deployment, allocate reserves accurately, and assess property-level risk uniformly across the portfolio.