What distinguishes an appraisal from a CMA?

An appraisal is differentiated from a comparative market analysis (CMA) primarily by the requirement for licensing. An appraisal must be conducted by a licensed appraiser who has undergone formal training and is certified to provide an objective assessment of a property's value. This process involves adhering to established standards and methodologies, which include thorough research of the property, the local market, and any relevant economic factors.

On the other hand, a CMA is typically prepared by real estate agents and provides a broader overview of market conditions by analyzing recently sold properties that are comparable to the subject property, but it does not require a license. Because of these licensing requirements, appraisals are often perceived as more formal and authoritative than CMAs, thus making the distinction clear.

Other aspects, such as the depth of analysis or the legal recognition of the documents, do not reflect the essential distinction in professional standards and requirements between appraisals and CMAs.