Are you trying to price a Roswell home or plan a competitive offer and keep hearing about CMAs and appraisals? You are not alone. It is easy to mix them up, and the differences can impact your price, your negotiations, and your loan. In this guide, you will learn exactly how a CMA compares to a licensed appraisal in Roswell, when to use each, and what to do if the numbers do not match. Let’s dive in.
CMA vs. appraisal: quick definitions
- Comparative Market Analysis (CMA): An agent’s informed opinion of value based on recent comparable sales, plus active and pending listings and local market trends. It helps you set a listing price or plan an offer. A CMA is not an appraisal.
- Licensed Appraisal: A formal, written valuation by a state-licensed or state-certified appraiser. For most mortgages, lenders require an appraisal that complies with USPAP and lender rules. The appraisal helps the lender manage risk and set the loan amount.
Who prepares each and how they differ
- Who prepares a CMA: A Georgia-licensed real estate agent or broker. The format can vary by agent, but a strong CMA uses recent nearby sales, pending and active listings, and market metrics like days on market.
- Who prepares an appraisal: A Georgia state-licensed or state-certified appraiser. For loans connected to Fannie Mae, Freddie Mac, FHA, VA, USDA, or other federally related lending, the appraisal must meet strict standards.
- Standards and documentation: A CMA is an advisory tool, not bound by USPAP. An appraisal is a formal report with a property description, neighborhood analysis, comparable sales with detailed adjustments, photographs, certifications, and a reconciled final value.
Data sources used in Roswell
Both CMAs and appraisals rely on similar raw data, but with different methodologies.
- Shared sources: Local MLS data used by Roswell agents, public property records, Fulton County Board of Assessors data, and recorded recent sales.
- On-site review: Appraisers usually inspect the property’s interior and exterior. Agents may tour the home or rely on verified MLS and public data when preparing a CMA.
- Local nuance: In Roswell, small neighborhood differences can matter. Proximity to Historic Roswell, lot size variations, finished basements, and recent renovations often drive adjustments. The more unique the home, the more care is needed in selecting true comparables.
When to use a CMA vs. an appraisal
- Use a CMA when:
- You are preparing to list and want a pricing strategy and timing plan.
- You are a buyer planning an offer and want to know if the price is competitive.
- You want a quick, informal value check for planning purposes.
- Use an appraisal when:
- You are getting a purchase mortgage or refinancing.
- You need a formal valuation for divorce, estate, tax, or litigation.
- A lender or court requires a state-licensed or certified appraiser’s report.
- Who pays:
- CMAs are typically ordered by sellers or buyers seeking guidance. Many listing agents provide them as part of their service.
- Appraisals for purchase loans are usually paid by the buyer as part of closing costs. For other purposes, the requesting party pays.
How each affects price, negotiations, and financing
- Pricing strategy: A strong CMA helps you set an appropriate list price. If comparable sales support your target price, you can list with confidence. If the data points lower, you might price more conservatively or plan structured price reviews.
- Negotiation leverage: CMAs can justify list prices, price reductions, or counteroffers. Buyers can use CMAs to set offer ceilings and to judge whether to include appraisal contingencies or additional cash reserves.
- Financing rules: Lenders base the loan amount on the appraised value, not the CMA or contract price. If the appraisal is lower than the contract price, the buyer’s loan amount may be reduced, which creates a gap to solve.
What happens when CMA and appraisal differ
- If the appraisal comes in lower than contract:
- Renegotiate the price toward the appraised value.
- The buyer can bring additional cash to cover the shortfall.
- Request a lender reconsideration of value by submitting stronger comparables or new information.
- If allowed by the lender, seek a second appraisal.
- If you have an appraisal contingency, the buyer may cancel or renegotiate per contract terms.
- If the appraisal is higher than contract:
- The buyer benefits from stronger equity and a loan amount tied to the higher value up to lender limits. Sellers typically proceed as agreed.
A Roswell example scenario
You list a renovated single-family home near Historic Roswell. Your CMA shows three recent sales in the same subdivision that support a list price of 950,000. After multiple showings, you accept a 960,000 offer with an appraisal contingency.
The lender’s appraiser tours the home, notes the renovation quality, and selects three comparables. The appraisal returns at 940,000, lower than the contract price. Here are common next steps:
- Your agent sends additional, closer-matching comps, renovation invoices, and notes about days-on-market trends to the lender for reconsideration of value.
- The parties renegotiate. The seller reduces the price to 950,000 and the buyer brings 10,000 in additional cash to bridge the gap.
- If the lender permits, a second appraisal is ordered. If the second appraisal supports 950,000 or higher, financing proceeds smoothly.
The key is fast, data-backed action. Strong local comparables and documentation can make a difference.
What to ask your agent or appraiser
- Questions for your agent about a CMA:
- Which comparables did you use and why are they most similar?
- What adjustments did you make for square footage, lot size, and renovations?
- What price range do you suggest and what is the recommended list price?
- What is happening with days on market and inventory in this part of Roswell?
- Questions for an appraiser:
- Did you inspect the interior and exterior?
- Which comparables were used and how were they adjusted?
- Were there any property condition or data factors that affected value?
- If there are relevant sales we know about, what is the process to share them for reconsideration?
Note: Appraisers cannot be pressured to reach a target value. Any request must focus on factual data.
Seller checklist: prepare for pricing and appraisals
- Recent improvements list, with dates and costs.
- Permits and final approvals for additions or major work.
- Property disclosure, survey, and any HOA documentation.
- Access notes for the appraiser, including upgrades that are not obvious.
- A list of recent nearby sales you believe are good comps.
Buyer checklist: strengthen your offer and plan for the appraisal
- A CMA that shows realistic comps and a clear price range.
- Your planned appraisal contingency strategy and cash reserves.
- Awareness of active and pending listings that may affect perceived value.
- Notes on meaningful differences such as finished basements, lot size, or parking.
- A plan to respond quickly if the appraisal is low.
Timing and cost expectations in metro Atlanta
- CMA: Turnaround can be same day to a few days, depending on complexity and access to recent neighborhood sales.
- Appraisal: Commonly arrives 3 to 10 business days after order and inspection. Fees vary by property type and complexity and can be higher in metro areas than rural markets. Confirm current timing and fees with your lender.
How to strengthen your case in Roswell if an appraisal is low
- Provide better comps: Focus on the same subdivision or a similar community within about a quarter to half a mile if possible, and within the most recent six months.
- Document value-add work: Share renovation invoices, permits, and before-and-after photos that support condition adjustments.
- Highlight relevant features: Finished basement, usable outdoor living, parking upgrades, and lot utility can justify adjustments when truly comparable sales reflect them.
- Act fast: Lender reconsideration or a second appraisal follows set procedures and timelines. Prompt, factual submissions get the best results.
Bottom line for Roswell buyers and sellers
Use a CMA to price smart and move with confidence. Expect the appraisal to determine how your loan is structured. When the numbers differ, the path forward is about data, documentation, and decisive communication. If you want a data-driven CMA, a clear offer or pricing plan, and hands-on guidance from contract to closing, reach out to Gretchen Lennon. We will help you plan each step and position you for the best outcome.
FAQs
Can I use a CMA to get a mortgage?
- No. Lenders generally require a state-licensed appraisal for mortgage underwriting. A CMA is an agent’s opinion and is not acceptable for loan approval.
Why might an appraisal differ from my agent’s CMA in Roswell?
- Appraisals follow standardized methods and lender rules, weigh verified closed sales most heavily, and include on-site inspection. CMAs are less formal and may use different comps or give more weight to pending and active listings.
Who can legally perform an appraisal in Georgia?
- Only state-licensed or state-certified appraisers. Agents can prepare CMAs but cannot represent those opinions as appraisals.
What are my options if the appraisal comes in low on my Roswell purchase?
- Renegotiate the price, bring additional cash, request a lender reconsideration with stronger comps, seek a second appraisal if permitted, or rely on your appraisal contingency to cancel or renegotiate.
Are online valuation estimates reliable for Roswell homes?
- They can be a helpful starting point but may miss unique features, recent renovations, or tight neighborhood nuances. Use them for screening, then rely on a CMA and, when required, a licensed appraisal for decisions.
