Commercial real estate is an excellent “buy and hold” investment, and a portfolio of properties is one of the best ways to protect your long-term wealth; rising property values continue to outstrip inflation, and commercial properties also generate monthly cash income from tenants. But before you buy or sell, you owe it to yourself to start with an independent appraisal to ensure you know the property’s current fair market value.
Whenever you have questions about property values in Arkansas, 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 proud to be one of the oldest and largest full-service appraisal firms in The Natural State. An independent appraisal enables sellers to determine an appropriate listing price, and it enables buyers to ensure they’re getting a good value for their money. These are just a few of the key factors that can influence property values in Arkansas:
Location and Visibility— Realtors frequently use the phrase “location, location, location” for a very good reason. Well-qualified buyers are willing to pay a premium for commercial properties located near the city center with convenient access to highways, and people love patronizing businesses in walkable areas close to upscale neighborhoods and good schools.
Property Condition and Age—The age and condition of commercial buildings is often less important than the land they sit on, but most buyers are interested in turnkey properties that don’t require major renovations or a complete rebuild. It’s always a good idea to review the listing and/or recent sale prices of comparable properties, or “comps” in your area to see how your property measures up. If newly renovated properties nearby are currently selling for a premium, you could be leaving money on the table by not doing the renovations yourself!
Market Conditions and Trends—Property values are heavily influenced by supply and demand, and it’s often challenging to sell commercial properties during an economic downturn or in an area where a lot of comparable properties are currently available. On the other hand, when an area is rezoned for higher density or mixed-use, it can often lead to significant increases in commercial property values and create a “seller’s market.”
For more information about real estate appraisal services in Little Rock, contact us online or at (501) 375-1439.
