Commercial property offers many great benefits if you invest at the right time, including market appreciation, tax benefits, and monthly cash income from tenants. Every property investment comes with its own combination of risks and potential rewards, and it’s important to have as much advanced knowledge as possible to ensure you’re making a properly informed decision. Out of all the information you’ll need to make a savvy investment, obtaining a proper valuation is absolutely critical. 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 a phone call away whenever you have any questions about property values in The Natural State!
We’re one of Arkansas’ oldest and largest full-service appraisal firms, and we take great pride in offering reliable, trustworthy, certified commercial and residential real estate appraisals, real estate consulting services, and expert witness testimony in eminent domain cases and property disputes. These are just a few of the factors that impact property values, and we strongly recommend contacting us for an official appraisal before you make an official offer.
Location-one of the oldest jokes in the real estate business is that there are only three things that affect a property’s value: “location, location, location.” You can expect to pay a premium for properties in downtown areas, but you can also find amazing deals in up-and-coming areas.
Comparable properties-The listing and/or recent sale prices of comparable properties, or “comps,” provide valuable insight into the value of a prospective property. This information can be easily located online, and you should search for nearby properties with comparable square footage used for the same residential or retail purpose.
Market conditions-Supply and demand definitely come into play when determining property values, and there’s a lot of potential upside if there’s a paucity of comparable properties nearby. Turnkey properties that are already occupied are a great source of instant cash income from tenants, but the demand for commercial office space decreases in a tightening economy. Many investors see their cash reserves disappear quickly if they experience high vacancy rates, so keep that in mind any time you’re counting on increased demand for office space or apartments in an older neighborhood.
For more information about real estate appraisal services in Little Rock, contact us online or at 501-313-0641.
