CMA vs Home Appraisal: What’s the Difference?
When pricing your home, you’ll often hear the terms Comparative Market Analysis (CMA) and appraisal. While both help determine a property’s value, they serve different purposes and are completed by different professionals. Understanding the distinction helps you make informed decisions as a FSBO seller.
🔹 What Is a CMA?
A Comparative Market Analysis (CMA) is an estimate of your home’s market value based on similar properties that have recently sold in your area. Real estate agents or FSBO sellers typically prepare CMAs using MLS data, public records, and current listings.
- Compares your home to 3–5 recent sales ("comps")
- Adjusts for size, condition, and amenities
- Used to determine a competitive listing price
🔹 What Is a Home Appraisal?
A home appraisal is a formal valuation conducted by a licensed appraiser to determine a property’s fair market value, usually for mortgage lending purposes. Lenders require appraisals to confirm that the loan amount aligns with the property’s value.
- Required for financed home sales
- Appraiser inspects property and reviews comparable sales
- Used to protect lenders and buyers from overpaying
🏡 Key Differences Between CMA and Appraisal
| Aspect | CMA | Appraisal |
|---|---|---|
| Purpose | Estimate listing price for sale | Confirm market value for lending |
| Performed By | Agent, broker, or FSBO seller | State-licensed appraiser |
| Cost | Usually free or low-cost | Typically $400–$700 |
| Data Source | MLS and comparable sales | On-site inspection + MLS data |
| Use Case | Setting your home’s asking price | Finalizing loan approval |
💡 When to Use a CMA vs Appraisal
Use a CMA when you’re preparing to list your home and want to determine the best asking price. Use an appraisal when a buyer’s lender needs an official valuation to complete financing.
As an FSBO seller, starting with a CMA helps you price competitively and attract offers faster. Once under contract, the buyer’s lender will typically order an appraisal before closing.
📈 Get Maximum Exposure with Brokerless
Brokerless helps FSBO sellers list their property on the MLS for a flat fee — giving you the same exposure as traditional agents without paying high commissions. Combine your CMA pricing strategy with MLS syndication to reach buyers on Zillow, Realtor.com, and hundreds of local agent sites.
Explore Flat Fee MLS Packages and start your listing today.