Thinking about buying or selling a home in Pasadena, CA? If so, you’ll need to know how to find the market value of homes in Pasadena before you start. Understanding market value is essential for a successful real estate transaction.
But many home buyers and sellers are unsure how to calculate market value, let alone that there are two different concepts of value: market value and appraisal value. If you want a successful real estate transaction, it’s important to understand these terms.
That’s why our real estate experts at Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team will explain the difference between these two types of value below. Additionally, we’ll cover three different methods to calculate your property’s value.
Understanding Market Value
First, let’s go over what market value is. Market value refers to the current price of homes in the real estate market, and it’s mainly determined by the law of supply and demand.
If there’s fierce competition among home buyers, the market value of homes will increase, driving prices up. But if there’s a lack of buyers in the market and low competition, the demand for homes will decrease causing market value to decline.
Knowing the market value of homes in Pasadena is crucial for anyone planning to sell or buy a property in the area. For home sellers, it ensures that they receive the highest possible price. For home buyers, understanding market value is essential to avoid overpaying for a property.
Market Value vs. Appraisal Value
While market value is primarily influenced by supply and demand, appraisal value is determined through a formal appraisal process conducted by a professional appraiser.
Appraisal value takes into account a range of factors such as the physical state of the property, recent comparable sales, and the location of the home. It’s also worth noting that appraisal value and market value can differ from each other.
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, nothing is stopping home sellers from ordering one as well.
When an appraisal is done, the professional will consider all aspects of the property, both interior and exterior. Some factors that are taken into consideration by appraisers include square footage, location, interior design, age of the house, landscaping, and renovations. Other homes in the area are also used as a comparison.
3 Methods to Calculate the Market Value of Homes in Pasadena
Knowing the market value of homes in Pasadena 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.
Here are three of the top ways to discover the market value of homes in Pasadena:
- Use 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, keep in mind that these tools tend to be inaccurate.
- Hire a Professional Appraiser: For the most accurate and detailed valuation, hire a professional appraiser. The cost of an appraisal varies depending on the size of the property, but it can range around $300 to $500.
- Work With an Experienced Realtor: 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.
Our Professional Realtors Can Help You Buy or Sell a Home in Pasadena, CA
If you need help finding the market value of homes in Pasadena, 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 Pasadena, we can make sure you get the best possible deal and don’t overpay.
Why should you work with us? We’ve been serving the Pasadena area for years, and we’re continually ranked as one of the best real estate teams in the area. Clients love working with us 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.