Appraisal vs CMA (Competitive Market Analysis)

When do I need an appraisal?  

The IRS requires appraisals for Estate Planning purposes.

Divorce and dissolution-of-partnership require appraisals. 

Appraisals are performed by licensed real estate appraisers.  

Daniel Peele is licensed as a State Certified General Real Estate Appraiser RZ 887.


When should I order a CMA to support the valuation of a property?

Before making an offer.  Your offer should be based on recent prices paid, not on the listing price.

Before Listing your property for sale.  Listing too high will "tarnish" the legitimacy of your pricing.

Mr. Peele is a seasoned valuation expert with a reputation for honesty.  He is also a RE Broker.

Cost of a CMA can be as low as $400 for a simple owner-occupant property. 

Please go to 

Responsible Valuation Policy

(National Association of Realtors)

Purpose of Valuation Policy

This document serves as the National Association of REALTORS® statement of federal policy on

valuing real property. It serves as a guide for members and staff in advocacy efforts for federal

legislation and regulatory policy. This statement of policy, aside from the National Association of

REALTORS® Code of Ethics, is not in any way an attempt to impose new or additional standards of

practice or behavior on members of the National Association of REALTORS®.

Standard of Practice 11-1

When REALTORS® prepare opinions of real property value or price, other than in pursuit of a

listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall

include the following unless the party requesting the opinion requires a specific type of

report or different data set:

  1. identification of the subject property

  2. date prepared

  3. defined value or price

  4. limiting conditions, including statements of purpose(s) and intended user(s)

  5. any present or contemplated interest, including the possibility of representing the

  6. seller/landlord or buyers/tenants

  7. basis for the opinion, including applicable market data

  8. if the opinion is not an appraisal, a statement to that effect (Amended 1/10)

Responsible Valuation Policy


  • Persons who perform appraisals of real property shall be licensed or certified by their respective

  • state regulatory agency and the appraisal shall be conducted in accordance with standards

  • established in the Uniform Standards of Professional Appraisal Practice (USPAP).

  • No person with an interest in the mortgage transaction shall compensate, coerce, extort,

  • collude, instruct, induce, bribe, or intimidate a person, appraisal management company, or firm

  • for the purpose of causing the appraised value to be based on anything other than the

  • independent analysis of the appraiser.

Non-Appraisal Opinions

  • Non-appraisal opinions, such as Broker Price Opinions (BPO) and comparative market analyses

  • performed by REALTORS® shall contain, at a minimum, the information specified in Standard of

  • Practice 11-1 of the National Association of REALTORS® Code of Ethics except where the party

  • requesting the opinion requests a specific type of report or different data set, or where the opinion

  • is developed in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer.

    Among other uses, these non-appraisal services can help determine listing prices and are used to

  • estimate potential selling prices of a property. Except where exempted or prohibited by the National

  • Association of REALTORS® Code of Ethics, state, local or federal law, they should include the disclosure

  • of a review of the subject property, subject neighborhood review and analysis, local and regional

  • market information and trends, and a description of comparable properties that are similar to the

  • subject property. Any non-appraisal opinion that does not provide the aforementioned components

  • shall be disclosed by the provider of the service. Non-appraisal opinions must make it clear to the

  • intended user that it is not an appraisal.

  • Non-appraisal opinions shall be prepared by a real estate licensee or registered, licensed or certified

  • appraiser. A licensee completing these services for a client is not necessarily assured of receiving the

  • listing of the property.

  • Generally, in conjunction with the purchase of a consumer’s principal dwelling, BPOs may not be used

  • as the primary basis to determine the value of real property for the purpose of a loan origination of a

  • residential mortgage loan secured by such property.

  • When not restricted by law, non-appraisal opinions may be appropriate for many real estate

  • transactions, such as short sales, foreclosures, and loan modifications.

  • In adhering to Article 11 of the REALTORS® Code of Ethics, consideration must be given to the

  • intended use and intended user when developing any valuation.

  • A comparative market analysis (CMA) is generally used to provide information to sellers or buyers in

  • determining listing price or offering price.

  • A Commercial Real Estate CMA cost between $400 to $950

  • A CMA is similar to a BPO in that it provides an estimated value of the property.

  • However, a CMA is much more focused on comparable properties and supports value

  • based on properties that have sold recently.


MAI, what is it?  ASA, what is it?

Appraisal Institute is a Trade Association that promotes the MAI designation. 

American Society of Appraisers is a Trade Association that promotes the ASA designation

Florida Real Estate Appraisal Board (FREAB) regulates Appraisers through the enforcement of the Uniform Standards of

Professional Practice promulgated by the Appraisal Foundation.  


Trade Associations do not regulate appraisers, they promote ethics and education.

Membership in a Trade Association has no bearing on an appraisers qualifications.

U.S. Courts do not require membership in a trade association as a qualifying criteria.

Lenders do not require membership in a trade association as a qualifying criteria.

Each Court & Lender sets their own criteria for appraiser qualifications.


What should I look for when hiring a Commercial Real Estate Valuation Expert?

Access to the Multiple Listing Service (MLS) system, especially for outlying counties

MLS is a proprietary data system accessible only to "Realtors"

Access to "Comps" data from CoStar, a world-class global access information platform

"Comps" is the premier data subscription service for sale comps and rent comps.  


How are residential and commercial property appraisers licensed ?


Commercial RE appraisers and Residential RE appraisers have different licenses.

Commercial real estate appraisers can appraise both residential and commercial real estate.

Residential appraisers are limited to single family & multifamily properties up to four units.


Is there a list of Real Estate Service Providers that I can refer to?  Yes....

Examples include residential appraisers, private lenders, surveyors, environmental

consultants, lawyers and many more............

Yes, please visit the "RE Related Services" page on this website. 

(407) 286-5584 (Office) or 407-230-1023 (Cell)

3956 Town Center Blvd, Orlando, FL 32837

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