When a home, commercial property, or undeveloped land changes hands, obtaining a proper valuation is a critical first step before the sale. Property developers are often willing to pay top dollar for property in up-and-coming areas, and motivated sellers might accept less than market value to raise money for other investments. No matter what price the buyer and seller agree on, A property’s fair market value is always an important starting point for negotiations. But what factors affect property values?
Whenever you have questions about property values in Arkansas, our team at Ferstl Valuation Services is here to help! We’ve been offering real estate appraisals in Little Rock since 1967, and we’re proud to be one of the oldest and largest full-service appraisal firms in The Natural State. We take pride in offering reliable, trustworthy, certified commercial and residential real estate appraisals, as well as real estate consulting services and expert witness testimony in eminent domain cases and property disputes. We’re a phone call or mouse click away when you’re ready for a professional real estate appraisal that will be based on the following factors.
Value of comparable properties-One of the easiest benchmarks for estimating property values is comparing the listing and/or recent sale prices of comparable properties, or “comps.” You can get some good insights into your property’s value by thinking about the types of properties prospective buyers would look for if yours weren’t available. Start by researching the values of nearby properties with comparable square footage that are used for the same residential or retail purpose.
External factors-Realtors frequently use the phrase “location location location,” and many buildings aren’t nearly as valuable as the lot they sit on! An increasing number of families and businesses are returning to city centers, and property values are typically highest in densely populated urban areas.
Market conditions-Property values often rise alongside inflation, but rarely at the same rate. The Fed continues raising interest rates in an attempt to get inflation under control, also making it more difficult to borrow money. One of the benefits of owning commercial property is receiving monthly cash income from tenants, but the demand for office space often softens during inflationary periods as companies are forced to tighten their belts to survive!
For more information about real estate appraisal services in Little Rock, contact us online or at 501-313-0641.
