What is the difference between an Appraisal and a Comparative Market Analysis (CMA)?
A residential real estate appraisal and a CMA are very different. Although CMAs can be helpful, CMAs rely 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 of value. The biggest difference between a residential real estate appraisal and a CMA is the person creating the CMA report. A CMA is created by a real estate agent who may or may not have a true grasp of the Grand Strand market or of valuation concepts. Appraisals are created by licensed, certified professionals who have made a career out of valuing Grand Strand area properties. Further, the appraiser is an independent voice, with no vested interest in the value of a home; unlike real estate agents whose income is oftentimes tied to the price of the home.
