What is a CMA and how does it differ from an appraisal?

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A CMA is the real estate agent’s market-based estimate of what a home could sell for when it’s listed. It uses recent comparable sales, currently listed properties, and local market data to suggest a competitive listing price. It’s designed to help sellers price and market the home, not to serve as an official valuation. It isn’t legally binding and doesn’t come with a formal sign-off.

An appraisal, by contrast, is a formal, signed opinion of value prepared by a licensed appraiser following professional standards. It’s used for financing and other official purposes, and carries weight with lenders because of its formal process and certification. So, the CMA helps set the asking price, while an appraisal provides a formal value determination.