Considering buying or selling a home in Monterey Park, CA? Knowing the market value of homes in Monterey Park is crucial for a successful real estate transaction. However, it’s important to note that “value” can refer to two distinct concepts: market value and appraisal value.
In this post, our realtors at Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team will discuss the difference between these two types of value. We’ll also break down why it’s important to know your market value, as well as three ways to calculate it.
How is Market Value Defined in Real Estate?
Market value is the current price of homes in the real estate market. It’s largely determined by supply and demand. If there are many home buyers in the market competing against each other then market value will increase, driving up the prices. Conversely, if there’s less competition, then demand will fall, causing market value to decrease.
Knowing market value is vital for those who plan to sell their property in Monterey Park, CA. It ensures that they can receive the highest possible price for their home. Likewise, understanding market value is essential for home buyers to make sure they don’t overpay for a property.
The Difference Between Market Value and Appraisal Value
Appraisal value and market value are two different concepts in real estate. As mentioned above, market value is primarily determined by the law of supply and demand. Appraisal value, on the other hand, is calculated through a formal appraisal process by a professional appraiser.
Unlike market value, appraisal value is based on a variety of factors such as:
- The physical condition of the property
- Recent comparable sales
- Location of the home
- Square footage
- Interior design
- Age of the house
- Landscaping
- Renovations
It’s possible for appraisal value to differ from market value. For example, the appraisal value of your home may be higher than the market value because it has certain features that aren’t apparent just by looking at it from the outside. This could include brand-new appliances or new flooring.
Typically, appraisals are ordered by home buyers as part of the mortgage application process. However, home sellers can order one as well.
When an appraisal is done, the professional will consider all aspects of the property, both interior and exterior. Other homes in the area are also used as a comparison.
Why Is It Important to Understand the Concept of Market Value?
Knowing the market value of homes in Monterey Park is important because the data can be used to accurately assess the worth of your own home. This way, whether you’re buying or selling, you’ll know that all parties to the transaction have a baseline understanding of the home’s value.
Home buyers want to pay less and home sellers want to get as much money as possible. With the market value in place, each side will know the price expectation and can use it as a jumping-off point for negotiations.
Find the Market Value of Homes in Monterey Park, CA, With These Methods
Market value is something you will have to calculate, whether through online tools or by hiring a professional. Here are three of the top ways to discover the market value of homes in Monterey Park:
- Online Home Valuation Tools: Online home valuation tools are a good way to get a rough estimate before confirming with a real estate professional later on. There are many online home valuation tools available, and some of them are free to use. However, be careful when using these tools, since they tend to be inaccurate.
- Professional Appraisers: For the most accurate and detailed valuation, hiring a professional appraiser is the ideal option. It isn’t free, so be sure to consider the cost.
- Realtors: Part of any real estate professional’s job is to provide clients with the market values of their homes. They do this by conducting a comparative market analysis, which looks at all the currently listed and recently sold properties in the area.
We Can Help You Buy or Sell a Home in Monterey Park, CA
If you need help finding the market value of homes in Monterey Park, contact Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team. Our team can help you determine how much your home is worth if you’re looking to sell. If you want to buy a home in Monterey Park, we can make sure you get the best possible deal and don’t overpay.
We’re continually ranked as one of the best real estate teams in Monterey Park. This is because we offer high-quality customer service, consistent communication, and unique buyer and seller guarantees.
These guarantees include our Guaranteed Sale Program for home sellers and Buy it Back Guarantee for buyers.
To learn more about our guarantees and what it’s like working with our team, give us a call at 626-789-0159. You can also fill out the form on this page.
