What is the Difference Between a Realtors CMA and an Appraisal?

​

The Comparative Market Analysis (CMA) and a Real Estate Appraisal are both tools used to determine the value of a property, but they differ in purpose, process, and who conducts them.​

​

CMA (Comparative Market Analysis)

• Who does it?

  • A licensed real estate agent or Realtor​

• Purpose:

  • To help sellers set a list price or buyers make an offer​

• Basis of Analysis:

  • Recently sold similar properties​

  • Current listings and expired listings

  • Local market trends

  • Property condition​​

• Cost:​

  • Usually free​

• Level of Detail:​

  • Informal and not legally binding. Varies depending on the Realtor’s experience and data access. For a more detailed explanation of how I adjust for my CMA, go to my blog post @: https://www.kerrianngalloway.com/post/what-will-my-home-be-worth-after-upgrades.​

​​​

Real Estate Appraisal

• Who does it?

  • A licensed or certified real estate appraiser, often required by a lender prior to giving a loan.​

• Purpose:

  • To establish a fair market value for lending purposes, especially in mortgage transactions.​

• Basis of Analysis:​

  • On-site property inspection (interior and exterior)​

  • Comparable recent sales

  • Market conditions

  • Property condition and features

  • Sometimes income approach (for rentals)

• Cost:​

  • Typically $300-$600​

• Level of Detail:​

  • Formal, objective, and legally binding.​Required by banks to approve loans.