Home Valuation vs. Appraisal: What Is the Difference?

If you are thinking about selling, refinancing or simply curious, you have probably seen several different numbers for what your home is worth. They rarely match, and that is expected. Each one is built for a different purpose.

Automated online estimates

Instant estimates use public records and recent sales to produce a number in seconds. They are a reasonable starting point, but they cannot see your remodeled kitchen, your view, or the busy street behind the back fence. Treat them as a rough range rather than a price.

A comparative market analysis

A comparative market analysis, or CMA, is prepared by an agent. It looks at homes similar to yours that have recently sold, are under contract, or are currently for sale, and adjusts for differences in size, condition, lot and location. It is designed to answer a practical question: what price will attract buyers in today’s market?

A lender’s appraisal

An appraisal is ordered by the lender when a buyer is financing a purchase or an owner is refinancing. A licensed appraiser inspects the property and produces a formal opinion of value, which the lender uses to decide how much it will lend.

Why the numbers differ

• Purpose: a CMA helps set a list price; an appraisal protects a lender.
• Timing: markets move, and each report reflects the sales available when it was prepared.
• Detail: an in-person visit captures condition and upgrades that data alone misses.

Which one do you need?

If you are planning a sale, start with a CMA. It gives you a realistic price range and a sense of how your home compares with the competition. The appraisal comes later, once a buyer is in escrow.

Want to know where your home stands? Request a no-obligation home valuation and get a number grounded in local sales rather than an algorithm.