Risk Reduction Chart showing how risk can vary up/down given the level of detail provided by a Commercial Property Inspection

Real Estate Purchase Risk Reduction

In reference to the chart above, the degree of uncertainty or risk associated with a commercial real estate (RE) transaction increases/decreases according to the level of detail and due diligence afforded by a PCA or Commercial Property Inspection. Though somewhat arbitrary, on a scale of 1 to 10, the least amount of risk afforded by a Baseline PCA is probably somewhere around '5'. However, the Risk Factor can be much higher depending upon age, authenticity and availability of information obtained in conducting a Baseline PCA. Also note that the level of uncertainty or risk factor can never be '0' regardless of the level of detail or due diligence provided by a Commercial Property Inspection.