Appraisal, Sale Price, CMA, Comps and Assessed Value: Which Number Is Which?
Five terms, five different numbers, and five different people behind them. Here is what each one means, who is responsible for it, and who pays.
The quick take
Five terms get mixed up constantly, and each one answers a different question. The sale price is what the buyer and seller agree on. An appraisal is a licensed appraiser’s opinion of value for the lender. A CMA is your agent’s opinion of what a home is likely to sell for. Comps are the recent sales those opinions are built from. The assessed value is the county’s number for property tax. They are often different numbers for the same house, and that is normal.
Why these get confused
All five are about “what a home is worth,” so people use them interchangeably. But they are made by different people, for different reasons, at different times. A buyer can hear all five in a single week: a CMA before making an offer, a sale price when the offer is accepted, an appraisal from the lender, the assessed value on the county tax notice, and comps in every conversation along the way.
The five terms side by side
| Term | Who creates it | Who pays | What it is used for |
|---|---|---|---|
| Sale price | Buyer and seller, through negotiation, with their agents | The buyer pays it to the seller at closing | The deal itself, and the basis for some closing costs and the excise tax |
| Appraisal | A licensed appraiser, working independently. The lender orders it | Usually the buyer, as part of the loan costs | Tells the lender how much the home supports as collateral |
| CMA (comparative market analysis) | A real estate agent or broker, for their client | Usually no charge as part of working with an agent | Pricing a listing, and deciding what to offer |
| Comps (comparable sales) | Pulled from MLS and public records by whoever needs them | Usually no charge | The evidence behind a CMA, an appraisal and often an assessment |
| Assessed value | The county assessor, on the county’s own schedule | No one pays for the value. The owner pays property tax based on it | Calculating the property tax bill |
Sale price
The sale price is the one number that is actually a decision. It is whatever the buyer and seller agree to in the purchase contract. It can be above or below the list price, the CMA, the appraisal and the assessed value. Nobody tells the parties what it must be, and no one can set it for them. Your agent advises, but the buyer and seller make the call. Because it is a negotiated price, it is also the number that becomes recorded history for the home and the next set of comps.
The sale price also drives money. It sets some of the closing costs, and it is the basis for the Washington real estate excise tax, which the seller pays at closing. A higher price means a higher excise tax bill. We cover how that works in our Closing terminology post.
Appraisal
An appraisal is a formal opinion of value written by a licensed appraiser, usually when a buyer is using a loan. The lender orders it, because the lender needs to know the home supports the loan amount if something goes wrong later. Appraisers are expected to work independently, and your agent, the seller and the buyer do not choose the number.
Who orders it: The lender. Buyers do not normally pick the appraiser.
Who pays: Usually the buyer, as part of the costs of getting the loan.
Who does it: A licensed appraiser. It is a formal report, and it relies on comps adjusted for differences in size, condition and features.
What you get: Under federal rules, the lender must give you a free copy of the appraisal promptly, and no later than three business days before closing. Ask for it and read it.
No loan, no appraisal: A buyer paying all cash is not required by a lender to get one, though some buyers order one anyway.
The appraisal is where the other numbers meet reality. If it comes in below the sale price, the buyer faces an appraisal gap. Read more in our post The Appraisal Gap: What Happens When the Home Appraises Low.
CMA (comparative market analysis)
A CMA is an agent’s opinion of what a home is likely to sell for, built from recent comps and the current competition. It is more informal than an appraisal. A good CMA looks at condition, updates, lot, view and timing, and often gives a range rather than a single number.
Who does it: A real estate agent or broker, usually for a seller who is pricing a listing or a buyer who is deciding what to offer.
Who pays: Usually no one. Agents typically prepare it as part of working with you. Ask if you are unsure.
What it is not: An appraisal. A lender does not use it in place of one, and it is an opinion, not a guarantee.
Comps (comparable sales)
Comps are recent sales of homes similar to yours in size, age, condition and location. They are the raw material. Agents use them to build a CMA, appraisers use them to support an appraisal, and owners use them to challenge an assessed value. Because someone has to decide which sales are truly similar, two people can look at the same neighborhood and choose different comps. That is one reason their numbers can differ.
No single person is responsible for comps. Whoever is making the opinion chooses them, and a good professional can explain why those sales were picked and what was adjusted.
Assessed value
The assessed value is the county’s estimate of the property’s value, used to calculate property tax. In King County, the Assessor sets it each year and mails a value notice. Each property’s share of the property tax bill is based on its assessed value. It is not an opinion of what the home would sell for today, and it does not decide the sale price or the appraisal.
Who does it: The county assessor, not your agent, lender or an appraiser you hire.
Who pays: No one pays for the value. The owner pays property tax, which is calculated from it.
If you disagree: You can appeal to the King County Board of Equalization. The petition is due by the later of July 1 of the assessment year or 60 days from the mailing date on your value notice. Check your notice for the exact date, because it is strictly enforced.
One house, five numbers
Take a home that is listed for $825,000. Here is how all five might look. These numbers are invented to show how they differ.
- The county assessed value on the tax notice is $720,000.
- The listing agent’s CMA suggests a range of $810,000 to $830,000, based on comps from the last few months.
- Those comps are four recent nearby sales between $803,000 and $834,000.
- The buyer and seller agree on a sale price of $825,000.
- The lender’s appraisal comes in at $815,000, using its own comps.
Nothing is wrong here. Each number answers a different question. The $10,000 difference between the sale price and the appraisal is an appraisal gap, and that is the one that affects the deal, because the lender will lend based on the lower figure.
Who is responsible for what
| Question | Answer |
|---|---|
| Who decides the sale price? | The buyer and the seller, together |
| Who decides the appraised value? | The appraiser, independently. The lender orders it |
| Who prepares the CMA? | The agent or broker, for their client |
| Who chooses the comps? | Whoever is making the opinion: the agent, the appraiser or the owner |
| Who sets the assessed value? | The county assessor |
| Who pays for the appraisal? | Usually the buyer, as part of the loan costs |
| Who pays for the CMA? | Usually no one, as part of working with an agent |
| Who pays property tax based on the assessed value? | The owner |
| Who pays excise tax based on the sale price? | The seller, at closing |
From our experience
We have seen owners surprised that their county tax value was well below what their home sold for, and buyers surprised that an appraisal came in under their agreed price. In both cases the numbers were doing their jobs. They just had different jobs.
What this means if you are buying
- Use the CMA and the comps to decide what to offer. Do not use the assessed value as a guide to the price.
- Expect the lender to order an appraisal, and plan for what you would do if it comes in below the sale price.
- Ask for your free copy of the appraisal and read it.
- Remember that the assessed value is not the same as what your property tax will be, and that it can change after you buy.
What this means if you are selling
- Ask your agent for a CMA with the comps behind it, so you can see why a price makes sense.
- Do not price your home from the assessed value. It serves a different purpose.
- Be ready for the appraisal. If it lands below your sale price, the buyer may ask to renegotiate or bring more cash.
- Remember that your sale price sets your excise tax, so ask your agent for an estimate of what you will net.
- Keep records of updates and improvements. They help an agent and an appraiser see what makes your home different from the comps.
Questions to ask your agent
- Which comps did you choose, and why those?
- How is your CMA different from what an appraiser will do?
- How likely is it that this home appraises at the sale price?
- What is the assessed value, and does it matter for this decision?
Want the full list of terms?
See our plain-English glossary of real estate terms: www.kellyazzarello.com/jargon
Questions? We are glad to help.
If any of this raises a question about your own situation, reach out. If you need an answer faster, call and we will talk it through.
Kelly Azzarello Real Estate | Compass
Email: kelly@kellyazzarello.com
Phone: (425) 830-6457
Web: www.kellyazzarello.com
Sources and credits
We looked to NWMLS first and then Compass. Neither publishes a plain-language comparison of these terms, so the points above draw on the sources below, in our own words. All dollar figures are invented examples. General information only, not legal or financial advice. Confirm current details with your agent, lender or the county, since rules change.
- Northwest Multiple Listing Service (NWMLS)
- Freedom Mortgage, Comparative Market Analysis
- Consumer Financial Protection Bureau, Delivery of appraisals under the ECOA Valuations Rule
- King County Board of Equalization, Appeal Property Tax
- Manaky, Property Tax Appeals in King County
- Washington Department of Revenue, Real Estate Excise Tax