What is the difference between a market analysis and an appraisal?

A market analysis (CMA) is an agent's informed pricing opinion used to set a listing or offer price, usually free and fast. An appraisal is an independent, state-licensed valuation a lender relies on, typically costing $300–$600 and taking several days.

Is a CMA the same as an appraisal?

No. A CMA is advisory and not binding; an appraisal is impartial and is what a lender uses to size a loan. They can produce different numbers.

Which one do I need to sell my home?

Start with a market analysis from your agent to set the price. A formal appraisal usually happens later, ordered by the buyer's lender once you are under contract.

LOKAL / Guides / Real estate market analysis vs appraisal

Guide · Basics · Updated May 2026

Real estate market analysis vs appraisal

Both put a number on a home, but they are not interchangeable. A market analysis (a CMA, done by an agent) is an informed pricing opinion; an appraisal is a licensed, independent valuation a lender relies on. Here is how they line up.

Side by side

Comparative market analysis vs appraisal
	Market analysis (CMA)	Appraisal
Who performs it	A real estate agent or broker	A state-licensed appraiser
Main purpose	Set a listing or offer price	Confirm value for a lender
Independence	Advisory, tied to winning/serving the client	Independent and impartial
Typical cost	Usually free from your agent	Roughly $300–$600, paid by the buyer
Is it binding?	No — an opinion of price	Used by the lender to size the loan
Data used	Recent comps + current market trends	Comps + a formal, inspected methodology
Turnaround	Same day to a couple of days	Several days to a week+

When to use each

Use a market analysis when you are deciding what to list at, what to offer, or whether it is a good time to sell. It is fast, free and grounded in what is actually selling — especially when paired with current market trend data.

Use an appraisal when a lender is involved (almost every financed purchase), when settling an estate or divorce, or any time you need an impartial value that will stand up formally.

The trend layer both rely on

A comp is only as good as the market it sits in. Knowing whether your metro is rising, cooling or flat — and whether it is a buyer's or seller's market — sharpens both a CMA and your read on an appraisal. LOKAL puts that trend layer on one page for 43 US metros, refreshed monthly from the Redfin Data Center.

Questions

What is the difference between a market analysis and an appraisal?: A market analysis (CMA) is an agent's informed pricing opinion used to set a listing or offer price, usually free and fast. An appraisal is an independent, state-licensed valuation a lender relies on, typically costing $300–$600 and taking several days.
Is a CMA the same as an appraisal?: No. A CMA is advisory and not binding; an appraisal is impartial and is what a lender uses to size a loan. They can produce different numbers.
Which one do I need to sell my home?: Start with a market analysis from your agent to set the price. A formal appraisal usually happens later, ordered by the buyer's lender once you are under contract.

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Data: Redfin · Redfin Data Center. Verify against your local MLS before quoting figures.