Commercial properties offer a lot of upside for investors, including tax benefits and a monthly cash income from tenants. Aggressive investors enjoy purchasing properties at bargain rates to flip them quickly, and many prefer to “buy and hold” a portfolio of properties. And even if you don’t have immediate plans to sell, it’s essential to know your property’s fair market value in case your plans change. But can you increase its value if you’re on a budget?
Ferstl Valuation Services has been offering trusted real estate appraisals in Little Rock since 1967, and our team of professionals is a phone call away when you’re ready to schedule an independent appraisal. J.T. Ferstl, MAI, is also an Arkansas-licensed attorney who offers trial preparation and expert witness testimony if you’re headed to court for an eminent domain case or any other property dispute. Numerous factors influence a property’s fair market value, including location, amenities, and the availability of comparable properties in the area. You should also understand which factors you can change and which you cannot. The good news is that there are numerous relatively inexpensive upgrades you can make that can make a big difference.
Make physical upgrades—One of the most obvious ways to add value is by upgrading the property, and you’re most likely to recoup your investment in kitchen and bathroom upgrades. Underpriced properties often sell quickly in an up-and-coming neighborhood, but capital upgrades are a good way to avoid leaving money on the table when it’s time to sell.
Improve monthly cash flow—No property owner enjoys increasing rent, and the best way to avoid it is by running a tight ship. Routine property maintenance is often the stitch in time that helps you avoid paying for major repairs later. It’s also worth considering installing energy-saving systems to help you lower consumption and decrease the size of your carbon footprint.
Improve the property’s curb appeal—Keeping the lawn mowed and the windows washed will keep your tenants happy, and it’s also an excellent call to action that encourages prospective customers to pull in and patronize their businesses! And when you’re looking to get the most bang for your renovation buck, it’s hard to beat a fresh coat of paint!
For more information about real estate appraisal services in Little Rock, contact us online or at 501-375-1439.
