What is the difference in a CMA and an Appraisal?
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Scottsdale Real Estate - Phoenix Real Estate
CMA vs Appraisal
Many home sellers and buyers can be confused between the difference of a Comprehensive Market Analysis (CMA) and an Appraisal. Although both have many common elements, typically a CMA is generated by Realtors as an informal assessment of a property's market value in order to establish the most likely selling price for a property. Whereas an Appraisal is done by a professional who has taken classes and passed the State examination. The CMA is offered as a free service while the Appraisal is several hundred dollars. Although it is possible for a seller pay for an appraisal prior to listing his home, most sellers can opt to make use of the CMA to set their market price. In a slower market with a longer average days on market, an appraisal which is valid for a short period of time is expensive to continually update to be accurate. But the CMA is easily modified as the market trends evolve. The seller can adjust his asking price as needed based upon the latest CMA. The majority of buyers lenders will not allow the seller’s appraisal to be used and will require a new appraisal for the buyer. The Realtor CMA is not a guarantee of the selling price a but gives the seller the most likely range a home will sell within. Please note that the result can change quickly depending on the time of year, general outlook within the community, changes in interest rates or economy and many other factors that may affect the actual selling price. So a CMA is an opinion based upon market trends and available neighborhood recent market history. It is an informational tool for the Seller to place the asking price in the most likely range to generate the highest offer. CMAs are not only for prospective sellers. Buyers should also request a CMA for properties they're seriously looking at to determine whether the asking price is a true reflection of the current market. The final market value is the price the house will bring at a given point in time, once the seller and a ready willing and able buyer establish a "meeting of the minds" on price. Check some of the information that should be included when preparing the most accurate CMA available. An Appraisal goes through the same pricing steps as a CMA. However, it is created by a professional who has taken classes and passed the State examination. The Appraisal is a documented opinion of value. The appraiser attempts to accurately price the marketed property without concessions and not including a property sold under duress, such as foreclosure. Most lenders require that an appraisal take place to ensure the loan amount desired doesn't exceed the value of the property being sold. The appraisal certifies to the bank and secondary mortgage investors that the buyer has paid fair market value for a home or less. That the home is not worth less than the amount offered by the buyer. We are professional full time / full service Realtors. Contact us to assist you with the sale of your home!!  
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