Cma

Comparative Market Analysis (CMA) ## What Is a CMA? A Comparative Market Analysis (CMA) is a real estate licensee's estimate of a property's market value or likely selling range based on analysis of recent comparable sales, active competing listings, and expired or withdrawn listings. The CMA is the agent's primary tool for: - Helping sellers set a competitive and realistic listing price - Helping buyers determine what to offer on a property - Evaluating whether a property is priced correctly relative to the market A CMA is produced by licensed agents and brokers — it is not a formal appraisal. Only a state-licensed or state-certified appraiser can produce an appraisal for mortgage lending purposes. Agents who call their CMA an "appraisal" are misrepresenting the nature of their analysis and may violate California DRE regulations. --- ## CMA vs. Formal Appraisal vs. AVM Understanding the differences between these three value estimates is tested on the California exam. | | CMA | Formal Appraisal | AVM (e.g., Zillow) | | --- | --- | --- | --- | | Prepared by | Licensed agent/broker | Licensed/certified appraiser | Algorithm | | Purpose | Pricing strategy; buyer offers | Mortgage lending; legal/estate | Quick reference | | USPAP compliance | Not required | Required | Not applicable | | Site inspection | Usually yes | Always yes | No | | Legal use for lending | No | Yes | No | | Cost | Often free (part of service) | $400–$800+ | Free | | Accuracy | Good for active markets | Highest standard | Variable | AVM (Automated Valuation Model): Tools like Zillow's "Zestimate," Redfin's estimate, and lender AVMs use…