Physical Needs Assessment by Brittany Romeo | Nov 4, 2020 Commercial/Residential/Office Buildings The purpose of the Physical Needs Assessment is to identify and provide cost estimates for the following key items: Immediate Physical Needs – repairs, replacements and significant maintenance items which should be done immediately. Physical Needs Over the Term – repairs, replacements and significant maintenance items which will be needed over the term of the mortgage and two years beyond. As part of the process, instances of deferred maintenance are also identified. The assessment is based on the evaluator’s judgment of the actual condition of the improvements and the expected useful life of those improvements. It is understood that the conclusions presented are based upon the evaluator’s professional judgment and that the actual performance of individual components may vary from a reasonably expected standard and will be affected by circumstances which occur after the date of the evaluation.