Whether you are contemplating buying or selling a home in Arkansas or just trying to get a game plan together for a future real estate opportunity, it is important to know the value of your home or the home you are deciding to purchase. Here are a few steps to finding out how much your home is worth.
Outline the External Factors of the Property
Analyzing your surroundings and fair market value can be very helpful in determining house value. Things like job growth, which you can expect in Arkansas as Walmart prepares to open more locations, have an impact on residential and commercial property value. Job creation increases the need for multifamily housing options. When the area sees an incline in jobs, certain property values increase, giving you a good idea of your own property value.
Watching interest rates can also help you determine your property value. When interest rates are low, people are more likely to invest in real estate, which could have a positive impact on your real estate values. Interest rates are likely to remain low, considering the currently low inflation rate and the stability of the ten-year Treasury Rate. If inflation stays low, then interest rates are less likely to increase. If interest rates do not increase, property value will remain stable. This is good news for your residential and commercial property values in Arkansas.
Another key factor when evaluating fair property value is the market area of your real estate. There are many new trends affecting communities and neighborhoods across the country. For example, many previously neglected areas are undergoing revitalization as Millennials further saturate the workforce and become renters and homeowners. Traffic and public transportation are also key in determining your commercial property value. Can your customers and clients get to your commercial space? If your property is residential, can your residents get to their jobs easily? If yes, your fair market value is likely to increase. Take note of current events in your community to know how your property values will fluctuate.
Evaluate Comparable Properties
A good way to gauge your property value is determining the value of similar properties. You can go online and search various websites to get an accurate estimate of similar properties in your area. You should try to find at least three valid property comparisons to narrow down your own home value range. For an accurate estimation of your real estate values, compare properties with the following similarities :
- Property size
- Property condition
- Overall market area
- Rental income
- Property upgrades
When comparing properties, think about the types of properties buyers would look for if yours were not available. This will give you good insight on how to evaluate your house value.
Understand the Trends to Predict Future Property Value
Technological and economic trends can have an effect on your residential and commercial property value. Here are a few things to look for when determining your Arkansas real estate values:
- Commercial property trends
- Changes in real estate technology
- Policy and legal changes
Commercial property trends continue to evolve. In the last decade, an abundance of big retail chains has turned into warehouse spaces as online shopping revolutionizes the way consumers interact with businesses. Additionally, many commercial properties have turned into secondary data centers for big brands like Amazon. These trends have an impact on both residential and commercial property values. Demand for residential spaces is greater in areas where there are commercial properties providing jobs. The arrival of big retailers in Arkansas indicates that your property value will increase if in the right market area.
Changes in technology can also increase your property value. Today, the desire for convenience grows with every technological innovation. If you have made technological upgrades to your home or bought it with upgrades, your property value will likely increase.
Policy and legal changes will likely have an effect on your real estate value, as well. If you are in a market area where eminent domain is likely, you may see a decline in your property value. The Constitution states that the government can only enforce eminent domain if it provides just compensation to the property owner. For further information about eminent domain in Arkansas, check out our previous blog post.
Hire a Professional Appraiser at Ferstl Valuation Services
Having your property appraised is a requirement of lenders, but it can also be helpful in verifying where your residential or commercial property stands in value over time. An appraiser will evaluate these key factors to tell you the value of your real estate:
- Market – The market area in which your real estate is located
- Property – The condition of the home or commercial property, including land
- Comparable properties – The sales, listings, vacancies, cost, depreciation and other factors for similar houses in the same market.
Prepare for a Property Appraisal
Being prepared for an appraisal will benefit you well. Have you had a previous appraisal? What information did you acquire from that? Maybe there were suggestions for repairs that would increase your property value. Make sure to make those repairs before your next appraisal. Ensure your home and land are free and clear of any unsightly messes that would lower your real estate value. Have all necessary documentation ready and on-hand. Little things can make a significant difference during your appraisal, so make sure you prepare properly.
Call Ferstl for Your Property Evaluation Today
If you are in need of a residential or commercial real estate evaluation in Arkansas, contact Ferstl Valuation Services today. With our years of experience, we will help you determine the value of your property with ease. Give us a call today to get started.