medium · National Real Estate Exam valuation
What is the primary difference between a Comparative Market Analysis (CMA) and a formal Appraisal?
- Only a CMA relies on the sales comparison method for pricing, while appraisals use all three approaches
- An appraisal is an independent opinion of value performed by a licensed professional to specific standards
- There is no legal difference between the two, so either document may be used interchangeably for lending
- A CMA is used only by lenders to approve mortgage applications, while appraisals are prepared solely for home sellers
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