Expert: Jessica Bryan - 1/19/2006

Question
Hi, what is the difference between a market valuation and
an apprasal? Thank you in advance for all your help-Miguel

Answer
Hello Miguel;
A market valuation (often called a Comparative Market Analysis or a CMA) is done by a real estate agent.  A market value can be presented to a seller who wants to know what their home is worth based on averages.  If, for example someone wants to know a market value of their 2,000 square foot 3 bedroom home that is 10 yrs. old, I will give them an average sales price based on other like properties.  That is a market valuation.  I can go into quite a bit of detail using rooms, quality, features, location, size of property, and other amenities to provide the best possible evaluation based on recent sales in the area.  I can even measure the house to ensure accuracy and will take into account the condition of the home and the history of sales based on an active or quiet market.  The more detail I provide and use, the more accurate my evaluation.  This differs from an appraisal in one major way: an appraisor performs the evaluation for individuals or banks.  The appraisor must be certified and all appraisals use the same techniques and approach to assigning a value to a home.  The real estate agent may or may not use this technique and does not have to be as thorough in the evaluation since there is no bank basing their loan on the findings.  Having said that many real estate professionals do an excellent, thorough and accurate evaluation.  It is just not (usually) as in-debth.

So when you see a "market evaluation" terminolgy, know that a real estate agent is involved.  When you see "appraisal", know that an appraisor has done the work and must stand by their findings.

Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services