CMA vs. Appraisal

Because they’re so similar in nature, there’s often confusion between a comparative market analysis (CMA) and a real estate appraisal. It’s important to understand the distinction if you’re selling your home.

A CMA is a report that is prepared by a real estate agent. After doing a walkthrough of the property, the agent will research information about comparable properties in the area, usually with an industry resource called the Multiple Listing Service (MLS). This includes properties currently for sale, listings that have sold but not yet closed, and properties that did not sell during a listing period.

This is similar to what a real estate appraiser does, but there are important distinctions. A CMA generally gives a price range, whereas an appraiser’s report gives an actual set market price. CMAs are subjective, and often contain a list of improvements to the property that the owner plans to make, and qualities of the property that the real estate agent believes are selling points.

A Uniform Residential Appraisal Report (URAR), prepared by an independent professional appraiser, is a comprehensive evaluation of the property. It is much more empirical and objective, and will withstand scrutiny in court. In any real estate transaction, it is crucial to have a proper appraisal performed. A CMA can give you a general idea of a property’s value, but only a report from a certified appraiser can give you the specific information you’ll need going forward.

Present Value LLC is a certified real estate appraisal company.

By: Present Value

Tags: cma, comparative market analysis

This entry was posted on Thursday, February 4th, 2010 at 5:06 pm and is filed under Real Estate Appraisal. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.