A CMA, Comparative Market Analysis, is a market value estimate of a property that is based on an analysis of comparable properties sold and for sale in the neighborhood.

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Comparable properties or sales comparables are recently sold properties that are similar to the subject property and are used in determining the market value of the subject property. Real estate agents and appraisers both use the sales prices of properties in the neighborhood that are similar in size, age, and general condition to determine market price for a property.

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For starters, CMA is prepared by a real estate agent to give an estimate of the market value of a property to the potential seller or potential buyer of a property. An appraisal is prepared by a licensed appraisal, mostly for the benefit of a lender who is looking to lend on a property. An appraisal is a more detailed analysis that cost a few hundred dollars. Whereas, the CMA is usually prepared by agents for free for their valuable clients.

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Fair market value is the value your home commands in comparison to similar homes on the market.

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Special circumstances that lower the fair market value are three types of obsolescence (physical, social & economic) and personal situations such as death, divorce, illness, or job loss. An example of physical obsolescence is a home with three bedrooms and only one bathroom or a home with only one car garage. Social obsolescence is having a home in a nonresidential setting like next to a store or across from a gas station. Economic obsolescence is having a home located in an area that has been bypassed economically, for example, an area of high unemployment.

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An appraisal is an opinion of value as of a specific date.

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An appraisal is done by a qualified professional recognized by your lender as providing approved appraisals.

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Your lender orders an appraisal.

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Usually the buyer pays for an appraisal.

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On an average, appraisal for a typical residential property costs around $350. Your loan provider or your real estate agent can inform you about the exact cost of the appraisal for the type of property you are purchasing.

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There are four elements of value in an appraisal. They are demand, utility, scarcity, and transferability. Demand is the number of buyers who are ready, willing, and able to buy your property. Utility is the use a property has. Scarcity is the number of properties on the market. Transferability is the transfer of clear title from the seller to the buyer.

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There are 3 types of appraisals:

1. Certified appraisal
   A certified appraisal is performed by a certified appraiser, one who has been recognized as a Member of the Appraisal Institute (MAI).
   
   
2. Market data appraisal
   A market data appraisal compares what price similar homes have sold for.
   
   
3. Cost approach appraisal
   A cost approach appraisal looks at what the replacement cost would be to rebuild a home and adds to that the cost of the land.

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Median price is determined by picking the price of a property offered for sale, that falls exacting in the middle of all the homes for sale in a specific geographical area at any given time. For example, if $300,000 is the median price in a particular county, half the homes in that county are priced below $300,000 and the other half are priced above $300,000.

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Average price is determined by adding the sales prices of all properties sold in a specific geographical area during a specific period of time and then dividing that total number by the number of properties sold in that area.

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Appreciation is the increase in the value of a property.

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Equity is the difference between property's market value and the unpaid mortgage balance (and other liens, if any).

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Appreciation represents the increase in the value of a property over period of time. The equity represents the difference between the market value and the mortgage balance owed on the property.

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