Appraisal vs Comparative Market Analysis (CMA)
A CMA is a pricing tool prepared by a real estate agent to help a seller set a list price. It is not an independent valuation and is not accepted for lender, legal, or CRA reliance.
What's actually different
| Dimension | Appraisal | CMA |
|---|---|---|
| Who produces it | Licensed appraiser bound by CUSPAP | Real estate agent — no valuation designation required |
| Independent of transaction? | Yes — appraiser has no financial interest | No — agent typically hopes to win the listing |
| Cost | $400 – $1,500 | Usually free |
| Defensible at CRA / court | Yes | No |
| Used by lenders | Yes | No |
| Methodology disclosed | Yes — comparable adjustments shown | Rarely |
- •Any reliance use — lender, CRA, lawyer, court, executor.
- •Initial list-price discussion with your listing agent.
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An appraisal is a documented opinion of value by a licensed professional based on inspection and comparable analysis. An AVM is a statistical estimate from sale records and property attributes — fast, cheap, and inappropriate for most legal, lender, and tax uses.
These are complementary — not substitutes. An appraisal estimates market value; a home inspection evaluates the physical condition of the building's systems.
A property tax assessment is a mass-appraisal value produced by a provincial assessment authority for tax calculation — it lags the market, often uses an out-of-date base date, and cannot be used as evidence of current market value.
A BPO is a price opinion provided by a real estate broker, typically for lenders managing distressed or REO assets. It is faster and cheaper than an appraisal but is not produced by a designated appraiser and is excluded from many regulated uses.
Appraisals come in three inspection scopes — full (interior + exterior), drive-by (exterior only), and desktop (no inspection, all data from records and photos). The scope must match the intended use.