Is there a difference between an Appraisal and a Comparative Market Analysis (CMA)?
An appraiser, as the disinterested third party, provides a professional, unbiased opinion of market value, to be used in making real estate decisions. Appraisers present their formal analysis in appraisal reports. A realtor’s market survey or CMA is much less detailed and COULD be biased by the realtor’s objective or potential commission. They are usually NOT a disinterested third party. An appraisal delivers a defensible and carefully documented opinion of value. 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 rather than selling them. Further, 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.
