Comparative Market Analysis or Appraisal

Woman using computer to look at market graph

During the home-sale process we hear two terms—comparative market analysis (or CMA) and appraisal. You may be asking yourself if they’re the same thing. Well, they’re not.

A Comparative Market Analysis (CMA), or sometimes referred to as a Broker Price Opinion (BPO), is performed by a REALTOR®/real estate licensee. An appraisal is completed by a licensed appraiser, usually on behalf of a bank.

A CMA gives us more of a range of value using tools available to all agents. CMAs that I prepare often include property sales on public record that were not reported to the multiple listing service (MLS).

An appraisal report is a carefully documented opinion of value, one that a bank will rely on to make a lending decision. So when we talk about “value,” that is generally defined as what a buyer is willing to pay and what a seller is willing to accept. If the buyer isn’t using all cash for the purchase and is getting a bank loan, the bank will order an appraisal (that the borrower pays for) to ensure the sale is arms length and is backed up by defensible data from recent sales of similar properties.

In conclusion, I as a REALTOR®, can provide a Comparative Market Analysis to property owners, typically at no charge because it’s a fairly simple, streamlined process that will many times be the start of a client relationship where I proceed to market and sell the property for you.

A CMA gives adequate information for:

  • Listing price
  • Estate valuation (probate)
  • Divorce
  • Ad valorem property tax disputes
  • And general curiosity of property value for future use—it may help you decide whether to refinance or cash out your equity

If you need an appraisal, I can provide you with contact information for qualified licensed appraisers. Just ask!

Want to know more? Are you interested in having a Comparative Market Analysis performed on your property? Call/text us at (405) 585-6580 or email