Should I Get a Real Estate Appraisal or Market Analysis?

Appraisals and comparative market analyses don't always come out the same way.

They Are Similar

A comparative market analysis and appraisal are similar because they are designed to place an accurate market value on a property by measuring it against comparable properties in a neighborhood within a 1-mile radius. A market analysis is often a free service provided by real estate agents, while an appraisal will cost $200 to $500 as of August 2010 depending on the property's location and size.

Values Can Be Very Different

Market values between a CMA and an appraisal can be much different. Who performs the CMA makes a difference. Not every real estage agent is qualified to run a CMA that will come close to appraisal values, so there is a chance for inaccurate data to appear on a market analysis.

Bottom Line

If the goal is to sell a home, a market analysis is a good starting point, but an appraisal is required down the line. To ensure that the house is priced appropriately in comparison to other recently sold and for-sale properties, an appraisal can be a worthwhile expense.

References

• This Matter: Real Estate Appraisal
• Your Dictionary: Comparative Market Analysis Definition