By The Liz Clark Team
Four different sources will give you four different numbers for the same house, and all four can be defensible. An online estimate, a tax assessment, an appraisal, and a comparative market analysis each answer a slightly different question. Knowing which question you're asking is the fastest way to land on a number you can act on. Here's how each method works and where each one shines.
Key Takeaways
- A comparative market analysis is the method most sellers start with, and it's what we prepare before listing.
- A licensed appraisal is the number a lender relies on to approve financing.
- Automated estimates are useful for a rough range and improve with better local data.
- Assessed value serves a tax purpose and answers a different question than market value.
What Is a Comparative Market Analysis?
A comparative market analysis, or CMA, is an agent's estimate of value built from recent sales of comparable homes nearby. We look at what actually closed, adjust for differences in size, condition, and location, and arrive at a range supported by real transactions.
The adjustments are where the skill lives. Two Chestnut Hill twins on the same block can justify different numbers once you account for a finished third floor or an updated kitchen.
What Goes Into a CMA
- Recent closed sales — the most weight goes to comparable homes sold in the last few months nearby.
- Adjustments for differences — square footage, lot, condition, and updates all get priced in individually.
- Active and pending listings — what a buyer could choose instead, which shapes what they'll pay for yours.
- Local pattern recognition — how quickly similar homes moved and where they landed against asking.
How Is an Appraisal Different From a CMA?
An appraisal is a formal valuation performed by a state-licensed appraiser, and it's the number a mortgage lender relies on. Where a CMA guides your pricing strategy, an appraisal protects the lender's collateral.
Both look at comparable sales, so they often land close together. The appraisal simply carries different weight, because financing depends on it.
When You'll Encounter Each
- Before listing — a CMA sets your asking price and your expectations for the range of offers.
- After going under contract — the buyer's lender orders an appraisal to confirm the agreed price.
- Refinancing — an appraisal establishes current value for the new loan.
- Estate and tax matters — a formal appraisal is typically the documentation that's accepted.
Are Online Home Value Estimates Accurate?
Online estimates come from automated valuation models, which apply an algorithm to public records and recent sales. They're a reasonable starting point, and they've improved considerably, particularly in areas with steady sales volume and consistent housing stock.
Northwest Philadelphia gives them more of a workout. Chestnut Hill holds a wide mix of ages, styles, and lot sizes, and the details that move value most here are the ones an algorithm can't see from the street.
What an Algorithm Can and Can't See
- Public record data — square footage, bed and bath count, lot size, and sale history all feed the model.
- Recent nearby sales — the more comparable transactions in the area, the tighter the estimate.
- Interior condition — a renovated kitchen and an original one often look identical in the data.
- Position and outlook — the corner lot, the view over the Wissahickon, the quiet block versus the busy one.
What About Your Property Tax Assessment?
Your assessment is the figure the City of Philadelphia uses to calculate property tax, and it answers a different question than market value does. Assessment cycles and methodology mean the two figures often sit apart, in either direction.
That gap is normal rather than a signal. We'd treat the assessment as useful context and build your pricing from current comparable sales instead.
How to Use Each Number
- Assessed value — for understanding your tax bill and evaluating whether an appeal makes sense.
- CMA — for setting a list price and planning your move with a realistic range.
- Appraisal — for lending, refinancing, and any situation that calls for formal documentation.
- Automated estimate — for a quick early read while you're still deciding whether to sell.
Frequently Asked Questions
How do you find out what your house is worth?
Start with a comparative market analysis from an agent who sells in your neighborhood. We build ours from recent closed sales nearby and adjust for the specifics of your house, which produces a range you can price against.
Is a home appraisal the same as market value?
They're close cousins rather than twins. An appraisal is a licensed opinion of value used mainly for lending, and market value is what a ready buyer will actually pay in current conditions.
How much does it cost to get a home value estimate?
Our comparative market analysis is complimentary, and you can also start with our
online home valuation tool. A formal appraisal is a paid service arranged separately.
Reach Out to The Liz Clark Team Today
A good valuation is the foundation for every decision that follows, from timing to preparation to your list price. Getting it right early makes the rest of a sale considerably calmer.
We've sold hundreds of homes across Philadelphia, and our office sits on Germantown Avenue in Chestnut Hill. Reach out to us at
The Liz Clark Team for a comparative market analysis on your home, or start with our
home valuation tool for a quick first look.
