What's the difference between a CMA and an Appraisal?
Both a CMA (Comparable Market Analysis) and an appraisal are important to determine market value. Which one you choose for your present needs is up to you. You may require both in some circumstances.
When a REALTOR performs a CMA, which is comparison of a variety of active listings, pending listings (to see how the market is trending) and sold listings within the past six months as they can best compare to your home, with adjustments as necessary. The agent may NOT quote an exact price, but must give a range of value. There is no cost to this service- the agent hopes that if you decide to sell, that you will hire them. They will also give you a detailed marketing plan including positioning your home in its best light in the marketplace. Take note: Some agents are starting to charge fees for CMA's. Ask before you invite them over. CMA's can range greatly in pricing from agent to agent, given that agent's experience and expertise in pricing. It is important to meet with an agent familiar with your neighborhood and town.
When you hire an Appraiser to give you a price on your home, or evaluation, that appraiser will perform much the same research as an agent, however he/she is also required to use a standardized form, which holds more information thatn most CMA's. Another difference is that the appraiser will typically only use what they determine are the three most relevant active listings, and three most relevant sold properties within the last six months, within a specific radius guideline. An appraisal will have an quoted market value price- rather than a range, additional photos, your Schedule A from the deed (metes and bounds description), the volume and page number as recorded in town hall of your purchase, standardized calculations and adjustments, mortgage amount, and the reason for your appraisal request clearly on the form. Expect to pay anywhere from $300- $600 for an appraisal, depending on the type of home you have and where it is.
Both Realtors and Appraisers are licensed through the state of Connecticut and must complete continuing education to maintain their licenses. Both can give you very accurate opinions of value. It is imperative that no matter which professional you hire, that you make sure that they are very familiar with your area. I sometimes see banks hire appraisers for properties where the appraisers that they send out live as far as 50 miles away. They just can't possibly know your area well enough to do the best job. Local Appraisers are best, if you need to go that route.