Commercial real estate continues to be one of the best investments you can make as long as you enter the market at the right time. You also need to plan for lean times, which will be inevitable if you hold a property long enough. Savvy investors understand the importance of finding bargain-priced properties, and the only way to ensure you’re getting the best possible deal is by obtaining a proper valuation right up front!
Our team at Ferstl Valuation Services has been offering real estate appraisals in Little Rock since 1967, and we’re just a phone call away if you have any questions about certified commercial and residential real estate appraisals. We’re one of the oldest and largest full-service appraisal firms in The Natural State, and we take pride in offering reliable, trustworthy appraisal services, real estate consulting services, and expert witness testimony in eminent domain cases and property disputes. These are some of the primary factors that affect property values in Arkansas:
Supply and Demand-It’s easy enough to compare the listing and/or recent sale prices of comparable properties, or “comps,” to get an idea of the types of properties prospective buyers would look for if yours weren’t available. It’s not always possible to find an exact match in the immediate vicinity, but listings for nearby properties with comparable square footage used for the same residential or retail purpose will help you get a rough estimate of property values in the area.
The Economy-A red-hot economy can turn into a recession overnight, and rising inflation rates mean rising interest rates. The demand for office space typically softens during inflationary periods, which is good news for investors looking for great deals but bad news for property owners who count on steady cash income from tenants
Other factors-A property’s age and condition isn’t always as important as “location location location,” but turnkey properties are more likely to sell quickly than unoccupied “handyman’s specials” and are priced accordingly. Property values can quickly increase when an old neighborhood is reclaimed by the locals or a new employer sets up in town, but be sure that you know your own limitations before attempting to purchase and renovate a foreclosed or neglected property.
For more information about real estate appraisal services in Little Rock, contact us online or at 501-375-1439.
