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Difference Between Fair Market Value And Cma

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Is there a difference between "fair market value", "property value" and a "CMA? The answer lies in who you ask. There are several similarities with real estate terms. A Mortgage Company might prefer one term over another. A Real Estate Company might use a more common term in their daily activities. For the customer, it is important that they grasp a basic understanding of the property value terms used in today's market.

Fair market value - The amount that a willing and able buyer would pay for a property based on current market conditions and comparable properties.

Comparable Market Analysis (CMA) - The most common method of determining the current value of a home based on condition, location, and recent sales data.

Appraisal - An opinion by a third party to determine the value of a subject property based on condition, location, and recent sales data or comparable market analysis. An appraiser is said to represent the party who pays for their services. However, the appraisal value has no bearing based on this representation. …show more content…
Home equity - The fair market value of a home, less any unpaid mortgage balance or liens against it. Equity increases over time as the mortgage is paid down and the property value appreciates. It is the portion of a home's value that the borrower actually owns. For example, if a home's fair market value is $250,000 and a mortgagor owes $175,000 on the mortgage, the homeowner has $75,000 in home equity.

Property tax - An ad valorem (tax) levy imposed by state or local government authorities on real estate. A governmental entity requires an appraisal of the value of the property and the tax is assessed in proportion to the determined

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