Appraisal vs. CMA vs. Online Estimate: What’s the Difference?

Homeowners often encounter three different types of value information: a real estate appraisal, a comparative market analysis, and an automated online estimate. They are not interchangeable.

A residential appraisal

An appraisal is an independent opinion of value developed by a licensed or certified appraiser for a defined intended use and effective date. The appraiser considers market evidence along with the property’s condition, quality, site, location, improvements, and other relevant characteristics.

A comparative market analysis

A CMA is generally prepared by a real estate agent to help an owner choose a listing price or evaluate an offer. It can be a valuable marketing and pricing tool, but it is not an appraisal.

An online estimate

An automated valuation model uses available public and proprietary data to calculate an estimate. It may be a convenient starting point, but the model generally has not inspected the property and may miss renovations, condition, views, functional issues, accessory units, or highly localized influences.

Which one do you need?

If the decision requires an independent, property-specific opinion supported by documented analysis, a residential appraisal is usually the appropriate tool. The intended use should be established before the assignment begins.