Real estate is one of the best investments you can make, and commercial property offers a lot of upside for investors interested in protecting their long-term wealth from inflation. But any investment involves risks, and sometimes, the best deals are the ones you walk away from! Our team at Ferstl Valuation Services has been offering trusted real estate appraisals in Arkansas since 1967, and we also offer professional real estate consultations so you can back up your investment decisions with quality research!
An investment analysis enables you to “look before you leap” and determine whether the property you’re considering meets your specific risk and return requirements. Your analysis report will reflect the relationship between the acquisition price and anticipated future benefits of a real estate investment, and we’ll take the time to learn about your financial situation and help you determine if the investment suits your long-term goals. Here are a few factors to consider before you make an official offer:
Is the property valued accurately? The value of commercial properties is heavily dependent on market conditions, which can change in a heartbeat. Scheduling your own independent appraisal is never a bad idea, particularly if the property hasn’t been appraised recently or seems under or overpriced. Always remember that any deal that sounds too good to be true likely is!
Are you liquid enough? One of the greatest benefits of owning commercial office space is receiving steady cash income from tenants, but you’ll have to carry the note even when the property isn’t fully leased. It’s also important to budget generously for building maintenance and the unexpected repairs that inevitably arise.
What are your long-range plans for the property? If you’re purchasing an investment property as a potential “flip,” it’s dangerous to assume it will sell quickly. There’s often a fine line between real estate speculation and gambling, and the real estate market isn’t always as “red hot” as we’d like it to be when it’s time to sell. An investment analysis enables you to determine whether you’d like to proceed with the investment or seek more return-on-investment-positive alternatives.
For more information about real estate appraisal services in Little Rock or to schedule an investment analysis, contact us online or at 501-375-1439
