CMA, List Price, Sold price, Appraised Value. Help! What does it all mean?

Real Estate Agent with RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax

Corolla NCBob: What is the difference between list price, sales price and appraised value? I want a thorough and long answer please. I am thinking about buying a home soon.

Steve: Bob, the list price is the seller's current advertised price for his property. The price that the seller sets could be at, above or below the property's market value.





Corolla NC

In a buyer’s market, when prices are flat and/or falling and there's a lot of housing inventory available, you could reasonably expect to offer at or below the market value.

Bob: How does the agent figure out the market value? Can’t we just go with what that really popular online estimating website says?






Wild horses in Corolla NC. Outer BanksSteve: Bob, the market value of your home of interest should be determined by your agent who will analyze the prices of recently sold comparable properties near that home, using what should be the “net” prices received by the sellers of those homes used for comparison.

By “net” price, I mean that any seller’s subsidy or monetary help the buyer receives back from the seller should be subtracted from the published sales price of properties being used for comparison.


 For example, if a comparable home sold for a sales price of $350,000 with the seller paying $10,000 of the buyer’s closing costs, the net sales price of that home is $340,000 not $350,000. Your real estate agent should be able to obtain and compile this data for you. It is a major part of her job.

 Wild horses in Corolla NC. Outer Banks
Do not rely on those auto generated online estimator programs or the like, they are notoriously prone to error because those folks may not be using the most current data and they cannot make adjustments for improperly recorded square footage in the tax records or listings, or the updates and condition of the subject properties.




In a tight market, every $5,000 makes a huge difference to you as buyer, and in our experience that is the closest that the public national programs can do…. usually they are more prone to error than that.


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Bob: I have heard the acronym CMA. What does that mean?


Steve:  It is a home pricing analysis tool that your agent should use to provide you with data you will use to determine your offer price.

It stands for Comparative Market Analysis. There is a CMA that most agents can compile from the local MLS in a relatively short period of time. These are very good for getting a “close” approximation of market value to use in comparing your homes of interest.

 Currituck Lighthouse Corolla NC

However,when you get down to writing an offer, if the properties that are being used as comparables are very different in style, lot size and square footage (this is often the case), the standard CMA may not be good enough.


Your agent should have the ability to do a spread sheet analysis using square footage records obtained from the tax records (which are often inaccurate and must be adjusted by experience) as well as provide you with a ratio of sold price to tax assessed value for all the properties being  evaluated for comparison with the home you are offering on.




This can take hours for her to prepare since the data does not auto load from the county's tax records and everything needs to be double checked for accuracy.

Corolla NC soundside


Once this is done, you will then be able to see what homes in the neighborhood have been selling for on a square footage basis as well as see how the net sales price to tax assessed ratio lays out for all the properties used in comparison.

With this data at your disposal, you as  buyer will be well armed for negotiations.




Bob: Man, that’s a lot to remember.



  Corolla NC outer banks.

Steve: Bob, don’t sweat it…experienced agents know how to do this.

In fact when you interview prospective buyer's agents you may want to ask them to show you an example of a spread sheet analysis they have done for previous buyers.


As far as the last part of your original question regarding appraised value…..the appraised value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales,  condition of the property, square footage and numerous other somewhat “subjective” factors.

Corolla NC soundsideIt is the basis for the mortgage lender’s valuation of the property and determines in large part what they will lend on a particular home.


Bob: That was pretty thorough.


Steve: Thanks Bob, when you actually see a detailed CMA you will be pleased..they are very cool and easy to understand.


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Why pay more and get less when selling your home? Jan and Steve Bachman of RE/MAX Gateway use professional photographers, create interactive photo floor plans, print full color brochures, and make an individual property website for your listing that goes out to 40+ public real estate search sites including, Trulia, Zillow etc.


We also create a custom photo tour that is sent to other agents and prospective buyers.



RE/MAX Hall of Fame, Platinum Club, A Washingtonian Magazine Top Agent 2018

Happy to Help. No Hassle, No Pressure.

Jan and Steve Bachman are full time Realtors® with RE/MAX, specializing in Homes for Sale in Fairfax, Loudoun, Prince William and Arlington Counties.




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Jack Mossman - The Nines Team at Keller Williams in Stockton
The Nines Team At Keller Williams - Stockton, CA
The Nines Team at Keller Williams in Stockton

Steve & Jan:  VERY good, the playscript dialog makes it clear and very easy to understand.  Thanks for sharing.

Aug 10, 2010 12:05 PM #1
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Steve...and that is just part of what we do.  I find it is the easiest part!

Aug 10, 2010 12:26 PM #2
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

Thanks Jack, my wife does an awesome spread sheet that works equally well for establishing list price for sellers and offer price for buyers. It answers almost all objections.


Bill, Yes is an opportunity to separate ourselves from the folks who do not prepare.

Aug 10, 2010 12:48 PM #3
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Howard County & Catonsville

Steve- I agree with Bob. You do not seem to have left out any details a seller may ask.

Aug 10, 2010 01:27 PM #4
Houman Shahi
Coldwell Banker Residential Brokerage - Irvine, CA

great dialog, I certainly enjoyed reading it.

Aug 10, 2010 05:02 PM #5
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

Can't we just go with what that really popular online estimating website says?

You had me rolling on the floor laughing at that one!

Aug 10, 2010 05:47 PM #6
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

Thanks Ellie, once we started using a spread sheet analysis, both the correct listing price for sellers as well as offer price for buyers was much easier to explain to all.


Thanks Houman, Much of what we all do is answer questions all day. I use that dialog style often in blog posts.

Aug 11, 2010 01:39 AM #7
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

Russel, The online estimating program might want to be my friend one day and I like to have friends. They do a decent job of giving an overview of neighborhood value but that is not good enough for our purposes as you intimated while on the floor :-)

Aug 11, 2010 01:42 AM #8
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Another example of how the bottom line in selling real estate is all about price.  Thanks for the post!

Nov 07, 2010 01:06 AM #9
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