What is the difference between a Comparative Market Analysis (CMA) and an Appraisal?
A CMA is compiled by a licensed real estate agent who is using comparable properties from the MLS. This provides an estimate of what the agent thinks the home will sell for based on your home’s size and condition, the location, and the current market conditions. It is wise to have a real estate agent do a CMA on your home before putting your home on the market. This way, you can see what potential buyers will be using to decide how much they will offer on your home, and you will have ammunition to defend your price as well. An Appraisal is compiled by a licensed real estate Appraiser. Institutes that lend money to buyers require that an Appraisal is provided so that they are insured they are not lending more money than what the home’s current value is. An appraisal is typically paid by the buyer and is sometimes needed if a homeowner is refinancing their home. The Appraiser is also taking their comparables from the MLS but is using a developed formula to arrive at the current value of
