Three kinds of value
A comparative market analysis (CMA) is an agent's opinion of market value from recent sales and active listings. An appraisal is a formal valuation by a licensed appraiser, typically ordered by a lender. An online estimate is an automated model based on public data.
A CMA is not an appraisal and is not a guarantee of price. It is the practical tool used to set a listing price or an offer.
How a CMA is built
The agent selects similar recent sales near the property, adjusts for differences such as size, condition, floor, view and parking, and compares them with competing listings. For condos, the same building is the best source of comparisons.
The quality depends on the comparables chosen and on the agent's judgment of condition, which online tools cannot see.
The appraisal
The appraiser inspects the property and compares recent sales to estimate value for the lender. If the appraisal comes in below the contract price, parties may renegotiate, the buyer may add cash or the deal may end under its terms.
Pricing in line with comparable sales reduces appraisal risk.
Online estimates
Automated estimates can be useful as a first look, but they can miss renovations, views, the condition of the building and local factors. Treat them as a rough number.
Different websites often show different values for the same home.
For sellers
A realistic price attracts more buyers early. Overpricing can leave a listing sitting and force later cuts. Ask your agent to show the comparables, the adjustments and the range.
Review the market again if you receive no showings in the first weeks.
For buyers
Before you offer, ask your agent for comparable sales and the price history of the building and unit. Compare the asking price with recent closed prices.
A fair offer can still be lower or higher than the list price depending on demand.
Common mistakes
Relying on a single online estimate, comparing homes in different buildings, ignoring condition and assessments, and setting a price based on what you hope to receive.
Another mistake is using old sales in a fast-moving market.
Checklist
Collect the last three to six months of comparable sales. Compare the building, floor, view and condition. Adjust for upgrades. Check active and pending listings. Agree on a price range with your agent.
Next step
Ask us for a free CMA of your home or a property you plan to buy. Lidiya Tretyak is a licensed Florida real estate agent with Douglas Elliman and speaks English, Russian and Ukrainian; the first consultation is free.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
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