Whenever you’re preparing to buy or sell commercial property, you can’t afford to be hasty! No matter how motivated you are to make a deal, you owe it to yourself to perform your due diligence and make a properly informed decision. And if you’re a seller in a market that’s poised for growth, a few targeted improvements can make a significant impact on the property’s value. Our team at 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!
A professional consultation is an excellent way to “look before you leap” into any real estate transaction. If you’re a buyer, it helps you decide if the property is the right fit for your portfolio. And if you’re a seller, an independent appraisal can help you determine the right asking price. Here are a few things to keep in mind if you’re considering listing a commercial property.
How does the property match up with comparable properties? Reviewing the recent sale price of comparable properties in the area (commonly referred to as “comps”) is a good benchmark for evaluating local supply and demand. If your property offers amenities that others don’t have, such as covered parking, centralized gathering spaces, or an on-site fitness center, be sure to consider that in your pricing strategy.
What’s your budget for renovations? If newly constructed or recently renovated properties are selling for a premium in your area, making a few renovations is a great way to add value to your property and increase your asking price. It’s easiest to recoup your investment in kitchen and bathroom upgrades, and a fresh coat of paint is a very budget-friendly way to spruce up an older property. It’s also crucial to “know your limitations” before attempting to do any renovations on your own!
Are there ways to improve the property’s operational efficiency? You should always budget generously for operational upkeep and maintenance, and keep a sufficient amount of cash set aside for unexpected repairs. As you make improvements, consider investing in more energy-efficient systems to enhance your bottom line. Lower utility bills also make the property more attractive to both current and future tenants!
For more information about real estate appraisal services in Little Rock, contact us online or at 501-375-1439.
