An appraisal is a formal property valuation by a certified professional, while a CMA is a realtor’s market-based estimate.
These two property valuation methods serve different purposes in real estate. A professional appraisal involves a comprehensive, legally-recognized assessment conducted by a licensed appraiser who follows strict industry guidelines. A Comparative Market Analysis (CMA) is a less formal evaluation performed by real estate agents to help sellers determine listing prices.
- Appraisals include detailed interior and exterior inspections, neighbourhood analysis, and construction quality assessment
- CMAs focus primarily on comparing recent sales of similar properties in the area
- Appraisals are typically required by lenders for mortgages and refinancing
- CMAs are commonly used for listing properties and making purchase offers
- Appraisals have associated fees, while CMAs are usually offered as a free service by realtors