CMA vs. Appraisal: What’s the Difference?

If you’ve ever thought about buying or selling a home, you’ve probably heard the terms CMA (Comparative Market Analysis) and Appraisal thrown around. They both sound like they’re about figuring out what a home is worth—and that’s true—but they’re not the same thing.

Let’s break it down so it actually makes sense.

What is a CMA?

A CMA is a report put together by a real estate agent (yep, like me) to give you an idea of what your home could sell for in today’s market.

Here’s how it works:

• Your agent looks at recent sales of similar homes in the neighborhood.

• They compare size, location, condition, and features.

• They use that info to suggest a price range for your home.

Think of a CMA like looking at what your neighbors’ houses sold for—it’s a market snapshot to help you price your home competitively.

What is an Appraisal?

An Appraisal is a bit more official. It’s done by a licensed appraiser (not your agent) and it’s usually ordered by the lender when a buyer is getting a mortgage.

The appraiser’s job is to give an unbiased, professional opinion of the home’s value. They’ll:

• Inspect the property inside and out.

• Compare it to recent sales (similar to a CMA, but more formal).

• Factor in things like condition, upgrades, and overall market trends.

An appraisal isn’t just a suggestion—it’s what the bank uses to decide how much money they’re willing to lend on the property.

So, What’s the Difference?

• CMA = Agent’s tool → Helps sellers pick a listing price and helps buyers make strong offers.

• Appraisal = Lender’s requirement → Confirms the home is worth the loan amount.

Think of it this way: A CMA is like a friend giving you advice on what your car might sell for based on Craigslist or Facebook Marketplace. An appraisal is the DMV coming in to give you the “official” number.

Which One Do You Need?

• If you’re just thinking about listing your home or want to know what it could sell for → CMA.

• If you’re actually buying or refinancing with a loan → Appraisal.

Final Thoughts

Both a CMA and an appraisal aim to figure out value, but they’re used at different stages and for different reasons. A CMA helps you price smart. An appraisal keeps the lender happy. Together, they keep the home buying and selling process moving smoothly.