A formal appraisal is conducted by a licensed professional following USPAP standards. Appraisers typically use comparable sales from the past 6–12 months, with more recent comps (last 90 days) emphasized in shifting markets.

The process is highly structured and practical: the appraiser measures the home to confirm square footage, inspects interior and exterior condition, evaluates structure and systems, photographs key areas, and reviews features such as garages, pools, or views. They also analyze location factors and apply cost or income approaches when relevant. Findings are compiled into a standardized report with photos, sketches, market data, and a final value opinion. FHA appraisals follow the same process but place greater emphasis on safety and habitability standards for loan eligibility.

Zillow’s Zestimate, Redfin’s estimate, and similar models pull from massive datasets to generate quick value opinions. They are free, fast, and widely used by consumers, but their accuracy varies and can not be trusted. AVMs can’t account for condition, upgrades, or neighborhood nuances. Their best use is as conversation starters, not final answers.

A BPO is an estimate of probable selling price prepared by a licensed broker or agent. More detailed than a CMA but less formal than an appraisal, a BPO combines photos, neighborhood analysis, sales comps, and market data.

Agents may also use BPOs as a value-added service to win listings. While not binding in the same way as appraisals, BPOs carry credibility with lenders and financial institutions.

A CMA is an agent-prepared evaluation of likely market value based on comparable sales, current competition, and market conditions. Unlike appraisals or AVMs, a CMA is flexible, real-time, and client-focused. It is your opportunity to combine data with professional judgment and local knowledge.

Confirm square footage, lot size, bedroom/bath count, condition, amenities, and location factors. Verify through MLS, tax records, and ideally a walk-through. Utilize AI tools, such as Perplexity, to conduct in-depth research on the property.

Pull 3–10 recently sold homes within 3–6 months, similar in size, age, style, and location. The closer the match, the fewer adjustments you’ll need. Visit the comparable properties to get a better understanding of where the value came from. Contact listing agents directly for detailed information if needed.

Account for differences like square footage, bed/bath count, condition, garage space, upgrades, or views. Use local paired sales or price-per-square-foot benchmarks to make adjustments. Avoid stretching comps too far. Unique homes may need a wider geographical area or timeframe for the comparable sales.

Look at current actives, pendings, and expireds. Assess inventory levels, days on market, and sale-to-list ratios. Identify whether prices are rising, stabilizing, or declining.

Present a range, not a single number. Frame it as: “Based on current data, this home is likely to sell between $X and $Y.” You can provide different value scenarios depending on repairs and updates. This accounts for market variability and positions you as a professional.

An agentic AI can be built with direct MLS API access, along with a workflow framework. Contact your MLS for this type of access.

Platforms like Perplexity’s Comet and ChatGPT Agent Mode provide multi-step autonomous workflows with real time data connections. They plan tasks, call tools and APIs, and deliver outputs such as CMA drafts, client messages, and scheduled events. Unlike static AVMs, these agents execute end to end processes in response to goals you set.

Use Perplexity Deep Search for property and neighborhood research. Use ChatGPT to analyze MLS exports, clean data, and produce concise summaries and recommendation language for your CMA and client follow-ups.

When refining a CMA, these are the most common adjustments:

Your adjustments should be rooted in market data and clearly explained. Over-adjusting or stretching comps reduces credibility.

Agents who can clearly explain valuation gain immediate authority. Clients compare your CMA with Zillow or Redfin numbers. Sellers question why their neighbor’s home sold for a higher price. Buyers wonder why appraisals sometimes come in low. Your role is to bridge these gaps with logic, data, and communication.

Valuation is more than numbers. It’s storytelling. It’s framing why one house sells faster than another, why condition and timing matter, and why your guidance protects clients from costly mistakes.

The ability to deliver a confident, well-structured CMA is one of the most important skills an agent can develop. Pair data with narrative, integrate AI where it makes you faster and sharper, and always ground your valuations in transparency. When clients trust your numbers, they trust your advice.