Ferstl Valuation Services has offered trusted 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! Whether you’re buying or selling real estate, an independent appraisal is a must! The process typically takes about two weeks from start to finish, and we’re always a phone call away if you have any questions. And one of the questions we most often hear from buyers and sellers alike is “What factors influence property values?”
Property values change constantly, and an independent appraisal is the best way to determine a property’s current fair market value before you list it for sale or make an offer. These are just a few of the key factors that impact property values in Arkansas:
Location and neighborhood—Buyers are always interested in finding homes and investment properties in good school districts with convenient access to public transportation, parks, and upscale retail centers. You might not be able to change a property’s location, but you can and should consider making some upgrades if it’s in a neighborhood where comparable properties (“comps”) are selling quickly. And if you can’t afford major renovations, focus on curb appeal: replace and repaint water-damaged wood, keep the lawn mowed, and ensure that the home and yard are immaculately clean at all times!
Physical attributes—Overall square footage is one of the key factors that influences property values, but it’s often less influential than usable space and the number of functional bedrooms and bathrooms. You can typically recoup 60-80% of your investment in kitchen and bathroom upgrades, and a fresh coat of white, grey, or beige paint can boost a home’s value by up to 10%!
Economic factors—Property values are heavily influenced by supply and demand, and it’s easiest to sell homes and commercial properties at a premium if they’re in the right neighborhood and there’s a scarcity of comps for sale. Interest rates might not directly influence property values, but when rates are high, even the most qualified buyers might postpone their search until the economy improves. You should definitely pay attention to how long comps stay on the market and set your listing price accordingly.
For more information about real estate appraisal services in Little Rock, contact us online or at (501) 375-1439.
