What is the difference between an Appraisal and a Comparative Market Analysis (CMA)?
put, the difference is night and day. The CMA relies on vague market
trends. The appraisal relies on specific, verifiable comparable sales. In
addition, the appraisal looks at other factors like condition, location and
construction costs. A CMA delivers a ''ball park
figure.'' An appraisal delivers a defensible and carefully documented opinion
But the biggest difference is the person creating the report. A CMA is created by a real
estate agent who may or may not have a true grasp of the market or valuation
concepts. The appraisal is created by a licensed, certified professional who
has made a career out of valuing properties. Furthermore, the appraiser is an
independent voice, with no vested interest in the value of a home, unlike the
real estate agent, whose income is tied to the value of the home.