The direct answer
An appraisal, comparative market analysis (CMA), automated valuation model (AVM) and broker price opinion (BPO) can all inform a real-estate decision, but they differ in purpose, process, professional responsibility and limitations. They should not be presented as interchangeable products.
Appraisal is a defined professional assignment
An appraisal develops a value opinion under applicable appraisal standards and regulatory requirements. The report identifies the assignment conditions, scope, evidence and value conclusion.
To apply the approach to an editable scenario, use the Property Value Calculator. For the neighboring question, explore Commercial Property Valuation Calculator.
CMA and BPO serve different market purposes
Real-estate professionals may use comparable listings and sales to estimate a likely market range or support brokerage decisions. Their legal scope and permitted uses can vary by jurisdiction and should not be represented as an appraisal when they are not one.
AVMs are model outputs
An AVM uses data and statistical or algorithmic methods to estimate value. Its usefulness depends on data quality, model design and the property. A model can be a useful screening tool without replacing property-specific professional judgment where an appraisal is required.
Worked example
An AVM may estimate $510,000, a broker CMA may suggest a $495,000–$520,000 listing range, and an appraisal may conclude $505,000 for a specified effective date. The differences reflect distinct methods, evidence and intended uses rather than a requirement that one number always be correct.
Common mistakes and limitations
Do not label an AVM, CMA or BPO an appraisal merely because it outputs a property value. The distinction matters for user expectations and regulated uses.
User-entered comparable estimate only; not an appraisal, AVM or live-market valuation.
Frequently asked questions
Can an AVM replace an appraisal?
Not in every context. Whether it can be used depends on the decision, applicable requirements and the reliability of the model and data.
Is a CMA an appraisal?
No. A CMA is generally a brokerage market analysis and should not be represented as a professional appraisal.
Sources and further reading
The article’s examples are illustrative arithmetic. The references below provide context for operating, valuation or transaction concepts; they do not endorse the assumptions or the calculator.
- IRS — Instructions for Form 709 (2025) — real property valuationComparable-sales concept and adjusting for differences in date, size, condition and location.
- IRS — Publication 551 (12/2025), Basis of AssetsFair-market-value concept and use of similar-property sales as evidence.
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