What's the Difference Between CMA & Market Value?

Real Estate Agent with DFW FINE PROPERTIES 0506509

by Patricia Feager, 5/20/2018


In the State of Texas a CMA (Comparative Market Analysis) is an opinion of "an estimate of the probable selling price of a property." For this analysis, it is wise for sellers to use a local Real Estate licensee who can guide and determine a strategy for listing price. The advantage to the owner of the property is to see the active and sold competition within the immediate current and past three month scope. Knowing that sales are a moving target, an experienced Agent who knows the area and the business works with the Seller to adjust list price accordingly, if needed. Other factors to consider are as follows:


  • Location

  • Property Condition (Interior and exterior)

  • Curb Appeal

  • How it compares to similar homes in the neighborhood within 1 mile radius

  • Taking probable consideration for availability of similar properties outside 1 mile radius


Why Use An Experienced Local Agent 

  •  Overestimated list price contributes to price reductions

  • Market Trends by on-line Real Estate databases, i.e., Zillow are guesstimates

  • Perception of list price is subjective

  • Sellers need to understand the objective logic for list price

  • Gossip or on-line databases contributes to misperception, stress, and regret 

  • Nobody wants to leave money on the table at closing

How Does the Central Appraisal District Compare


A home owners property tax burden is decided by locally elected officials who estimate property taxes before property taxes are due. In the State of Texas, the Appraisal District (government body) decided on tax estimates using last year's tax rates for the taxing units on owners property. For example, Notices of Total Estimated Tax was mailed out in April with a deadline for filing a protest by May 18, 2018. If an owner did not make a protest or request a hearing (beginning May 22, 2018) than taxes will be based on the government entities total estimated Tax to be paid before December 31, 2018, or before the deadline stated on the tax bill before penalty charges are included.


How does Central Appraisal Districts Determine Market Value for Taxes

The Texas Property Tax Code, Section 1.04 defines market value for property taxes as follows:  "Price for which a property would transfer for cash or its equivalent under prevailing market conditions if:


A) Exposed for sale in the open market within a "reasonable time to sell"

B) Knowledge by Buyer/Seller for use and purpose to which property is used with "enforceable restrictions"

C) Both Seller and Purchaser "seek to maximize their gains and neither is in a position to take advantage of the other"


It is important to know employees of an Appraisal District do not enter homes to determine condition. Taxes may be based on drive-by employees using cameras who do not get out of the vehicles to inspect properties for the entire county. The total assessed value is based on estimates on data available to the local government institution. A licensee by the State of Texas is an Independent Contractor sponsored by a Broker or is a Broker that  represents the buyer and sellers in home sales trained in the business for helping consumers. Unlike a paid government employee, a licensee representing buyers and sellers only gets paid if a property sells depending on terms of the Listing Agreement. 


For further information, for example how do Appraisers from Appraisal Management Companies differ when it comes to "Appraised Value" for borrowers, if you don't have a signed representation, let me know and we can consult further, or use your local Agent licensed by the State. 


Patricia Feager  



Posted by

Texas Law requires all license holders to provide the Information about Brokerage Services form to prospective clients.

Real Estate Commission Consumer Protection Notice  


 dfw fine properties



                                        2900 W Southlake Blvd, Suite 180
                                        Southlake, TX 76092
                                        Office: 817-748-4800/FAX: 817-748-4900

                                         Patricia Feager
                                                        Cell: 469-449-9858

                                                        TEXT: 469-951-4758


Certified Pricing Strategies; Mastering the CMA
Certified Military Relocation Specialist
Certified Negotiation Expert
ertified RE Probate Specialist

"With self-discipline most anything is possible." --- Theodore Roosevelt 





This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Real Estate General Information
Texas Real Estate
Local Expert
HyperLocal Neighborhood and Community Posts
selling price
appraisal district

Spam prevention
Show All Comments
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is very good information to share with prospective home sellers.

May 20, 2018 11:20 AM #1
Patricia Feager
Selling Homes Changing Lives

Roy Kelley - Thank you! 

We live in a world of information overload and it's easy for consumers to get confused by information overload. I'm finding a lot of people are depending on what their FaceBook friends say. That makes it challenging, sometimes, more difficult and confusing when Agents consult with them professionally. 

Receiving confirmation from peers in the Industry is greatly appreciated. Thank you!

May 20, 2018 11:35 AM #2
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Excellent topic, Patricia. Here in NC the courts have ruled pursuant to law suits that we not call it market valuations if we are not appraisers.

May 20, 2018 01:18 PM #3
Patricia Feager
Selling Homes Changing Lives

Nina Hollander - Thank you! It's the same here in TX, we are not allowed to call it market valuations if we are not appraisers either. My reference to Market Values was in the context of the Central Appraisal District. We have to be very careful in our words too. 

Have a wonderful day!

May 20, 2018 03:14 PM #4
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Patricia Feager - There is a lot of good information for both buyers and sellers to understand. Your sellers should appreciate your knowledge and hire you based on your expertise. This is just one area that shows what a great job you will do. 

May 20, 2018 04:02 PM #5
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hello Patricia - an experienced local real estate professional along with a well-prepared CMA is an excellent combination. 

May 20, 2018 06:06 PM #6
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

There are so many entities that give evaluations and none are the gospel and all subject to error. I was able to get a tax assessment lowered by $100,000 a couple of years ago. That really helped the homeowner in paying taxes.

May 20, 2018 07:23 PM #7
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Patricia Feager

Selling Homes Changing Lives
Thinking about Moving to North Dallas?
Spam prevention

Additional Information