Commercial real estate is one of the best “buy and hold” assets to own, because property values typically outstrip inflation rates and you’ll also receive steady cash income from your tenants. But our personal situations change all the time, and sometimes it’s necessary to sell properties to raise cash for other investments. But before you list your property for sale, you need to know exactly what it’s worth!
Ferstl Valuation Services has offered professional real estate appraisals in Little Rock since 1967, and we’re ready to put our experience to work for you! Property values are influenced by numerous factors, particularly supply and demand, and an independent appraisal is the best way to ascertain your property’s current fair market value and determine the right asking price. Here are a few things to keep in mind if you’re considering listing your commercial property for sale, and we’re always a phone call away if you’d like to schedule a professional consultation.
How quickly are comparable properties selling? One of the easiest ways to determine whether you’re in a “seller’s market” or a “buyer’s market” is to visit websites such as Zillow and Realtor.com and review the recent sales of comps in your area. The less time they’re spending on the market, the better your chances of making a quick sale!
How recently has the property been renovated? If your property is in a market poised for growth, you might consider making a few upgrades to increase its value. You can typically recoup about 60-80% of the cost of kitchen and bathroom renovations, and you might also consider adding new amenities such as covered parking, meeting rooms, or an on-site fitness center. And if you’re on a tighter budget, a well-done exterior paint job can boost your property’s value by as much as 2-5%!
What are the current market conditions? If you have a turnkey property for sale in an area that’s recently been rezoned, you’ll likely generate plenty of interest from buyers who are willing to pay top dollar. Just remember that demand for commercial property declines during a recession, and even the most well-qualified investors might pause their search for new properties when interest rates are on the rise!
For more information about real estate appraisal services in Little Rock, contact us online or at 501-375-1439.
