Although they are similar in their process and final product, a comparative market analysis is not the same as an official home appraisal. While a CMA is created by a real estate agent to estimate a home’s value, an appraisal is a home valuation that must be conducted by a licensed appraiser.
Like a real estate agent, an appraiser will review comps and take current market conditions into consideration when figuring out a property’s fair market value. However, an appraiser will also conduct a thorough inspection of the home to gain more insight into its condition.
While an appraisal is considered to be an objective valuation, a CMA is intended to estimate value with a client’s goals in mind. Therefore, the CMA is often thought to be the better option when deciding on an asking price or a competitive offer.