Rising interest rates continue to be a concern for those who own or are in the market for real estate. However, as discussed in this article, now is actually a great time to get an evaluation of your property. In this post, we will continue the discussion and talk about how an online property appraisal, also known as a desktop property appraisal, is a great option for those who currently own commercial real estate.
Concerns Over High Interest Rates
Property owners are shying away from completing transactions due to the high interest rates found in the economy. However, there are some important things to note when it comes to these concerns:
Residential is affected more than commercial
One of the most important things to keep in mind when it comes to getting an online property appraisal in this economy is that residential properties are actually being affected more than commercial properties.
Between the high interest rates, increased selling costs, and overall market demand, it is becoming more and more expensive to purchase a home. However, it’s important to realize that the residential and commercial markets, although under the same economic conditions, are affected differently. In this case, commercial properties are not experiencing quite the same changes as residential properties.
So, what does this mean for you as a property owner or potential buyer? This could actually be a great time to see where the value of your property lies!
Business owners must borrow money to keep their businesses running
Another major concern is the need for business owners to start borrowing money in order to keep their businesses running. As more consumers buckle down on their budgets and change their spending habits, businesses are being affected. Consumers are more and more worried about a looming recession, which ends up negatively affecting businesses across the country.
And what do businesses do in return? They end up going to their bank to borrow more money because they still have bills to pay. But what does this mean for you as a commercial property owner?
If you are a property owner with tenants, this could be a cause for concern. Tenants who can’t afford rent will lead to higher property vacancies that you have to fill. On the other hand, there is also an increasing amount of small businesses and entrepreneurs ready to fill those spots. Even with rising costs and interest rates, there is still a high demand for more commercial property spaces. In fact, Forbes explains that not only have small businesses increased during past recessions, but 90% of interviewed small business owners are confident they will still be open a year from now! This is good news for commercial property owners looking forward in 2023.
Although, if you are the property owner and business operator, you may find yourself looking into forms of property equity or other avenues to keep your business running. However, this is where an online property appraisal or valuation could come in handy. By completing an online property appraisal, you may find that your property is worth more… a major benefit to a struggling business!
How an Online Property Appraisal Can Help
Here at Collateral Evaluation Services, our main focus is providing property owners with the tools they need to understand the value of their property. On top of that, we are able to do this for our clients virtually! Despite the fear of a recession, a virtual appraisal can actually benefit you as a commercial property owner in many ways.
Evaluations are better for projecting
As real estate owners, it’s important to always be looking towards the future and using trends to have the best understanding of the value of your property. This is exactly where an online evaluation comes into play.
Compared to an appraisal, an evaluation is better for projecting what the value of a property will be in months or even years to come. This is because an evaluation looks at a property’s historical use rather than just its current numbers. By looking at all of the data surrounding a property’s past and current trends, you can receive a more accurate understanding of where your property might be in the future.
Overall, utilizing this assessment among other valuable insights into your property allows you to gain a better understanding, not just of your property’s current value, but of where it could be in the future as well.
Is a Virtual Appraisal Right For You?
Despite the current economic conditions, getting a valuation of your commercial property can give you a better idea of what your property may be worth now and in the future. Instead of letting the fear of high interest rates get to you, speak to a member of our team to find out if getting a virtual appraisal is the right choice for you and your property.