What is a primary focus of risk management tools in real estate?

The primary focus of risk management tools in real estate is addressing physical building problems. Effective risk management involves identifying, assessing, and mitigating potential issues that could affect a property's integrity and value. This includes evaluating the condition of the building, identifying hazards (such as structural deficiencies or safety risks), and implementing measures to address these concerns before they lead to larger problems such as legal liabilities or significant repair costs.

While improving marketing strategies, increasing property values, and enhancing negotiation skills are important aspects of the real estate business, they do not specifically target the risks associated with the physical condition of properties. Instead, risk management is fundamentally about ensuring that properties are safe, compliant with regulations, and maintained in a manner that protects both the owner’s investment and the well-being of occupants or users.