What is the difference between an appraisal and a comparative market analysis?
Simply put, the difference is night and day. The CMA relies on vague market trends based on active and sold homes in the general area. They are typically provided by a real estate agent, who has a vested interest in the outcome as their commission is tied to the value of the home. Also the real estate agent job is to get the most possible for their potential client. The realtor may list the property above or below the market value of the home in order to suit the needs of their client. In short a CMA delivers a “ball park figure” for the purpose of listing a home. An appraisal is based on statistical analysis of the market and the use of closed verifiable sales in the subject’s immediate market area. Market reactions to differences in the amenities between the subject property and comparables are determined thru market extraction and applied in the report to come to a specific opinion of market value. In short an appraisal is an accurate, unbiased opinion of the market value as of a sp
