What is the difference between a bank appraisal and a realtor's appraisal (CMA)?

A bank appraisal is a written opinion of value prepared by a state licensed or certified appraiser who, as a neutral third party, is legally bound to be unbiased and must follow USPAP. Lenders use it to determine the interest rate, required down payment, and whether the loan is approved. A realtor's comparative market analysis is an agent's pricing opinion, which may include factors outside an appraisal and can be influenced by a desire to win the listing.

A bank appraisal is performed for a federally related transaction, so federal law requires a state-licensed or state-certified appraiser to perform it. A realtor's comparative market analysis for a prospective listing is not an appraisal, and Connecticut law exempts brokers and salespersons performing market analyses from appraiser licensing requirements.

A bank appraisal is a formal valuation that must be performed by a licensed, third-party appraiser with no connection to the buyer, seller, or lender, while a realtor's comparative market analysis (CMA) is not an appraisal. Michigan law allows a licensed real estate broker or salesperson to prepare a market analysis to help a customer decide on a potential sale, purchase, or listing price, as long as no separate fee is charged for it. The lender usually orders the appraisal, and the borrower usually pays for it.

A bank appraisal is performed by a state-licensed or certified real estate appraiser who follows the Uniform Standards of Professional Appraisal Practice (USPAP) and develops an opinion of market value that lenders rely on for loan approval. A comparative market analysis (CMA) is prepared by a real estate agent to suggest a listing price. New York's Department of State does not accept CMAs by real estate licensees as qualifying appraisal experience, because they are not appraisals.

A bank appraisal is a USPAP-compliant appraisal prepared by an appraiser registered, licensed, or certified by the North Carolina Appraisal Board. A CMA is a comparative market analysis prepared by a real estate broker, and it does not comply with USPAP, so it does not count as an appraisal or toward appraiser experience credit. Only USPAP-compliant appraisal and appraisal review assignments earn experience credit in North Carolina.

In Rhode Island, a bank appraisal is an opinion of value prepared by a state-licensed or state-certified appraiser, and since January 1, 2007 the state has required appraiser licensure for most opinions of real property value. A realtor's comparative market analysis (CMA) is not an appraisal: licensed brokers and salespersons may give opinions of value for listing, purchase, or sale purposes, but they must not call those opinions appraisals. A CMA prepared by a broker therefore does not meet Rhode Island's definition of an appraisal.

A bank appraisal is an opinion of value prepared by an appraiser licensed or certified by the Virginia Real Estate Appraiser Board under the Uniform Standards of Professional Appraisal Practice (USPAP). A realtor's comparative market analysis is a valuation a licensed broker or salesperson may provide without an appraiser credential. Virginia law bars unlicensed persons from using the term "real estate appraiser," and any evaluation that is not an appraisal must state that it was not performed under USPAP.

A bank appraisal is performed by a state-licensed or state-certified appraiser following the Uniform Standards of Professional Appraisal Practice (USPAP), Washington's standards of practice. A real estate agent's comparative market analysis (CMA) or broker price opinion is not an appraisal; RCW 18.140.020(1) permits licensees to be paid for broker price opinions, but these products fall outside USPAP. Under 12 U.S.C. 3351, an unlicensed person may assist in an appraisal only under the direct supervision of a licensed or certified appraiser, who must approve and sign the final document.