Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Tuesday, October 5, 2021

Different types of home valuations - appraisal by a licensed appraiser, CMA, BPO, AVM by NAR, Mary Cummins

From the National Association of Realtors. I agree with their brochure, definitions and chart. I was a Realtor for many years when I also worked as a broker. I added the cost of each on the bottom. 


The appraiser is the independent, impartial, and objective professional in the mortgage transaction. An appraiser develops an appraisal which is a credible, reliable, and supported opinion of value. An appraisal is typically used by the lender in a home purchase transaction; this assists in the lender’s decision to provide funds for a mortgage. While the lender is technically the owner of the appraisal, as a borrower you still have certain rights:

•  You have the right to obtain your own appraisal, even  if you are paying cash for a property. 

•  You have the right to know what type of valuation  service is being ordered for your loan.

•  You have a right to make an appraisal a contingency  in your sales agreement.

A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! The appraiser will observe the property, analyze the data, and report their findings to  their client. The client may be the lender, borrower, or  other third-party.

An appraisal ordered by a lender is for the benefit of the lender to ensure that the collateral they are using to securitize the loan is sufficient. An appraisal is not a home inspection. While all appraisals are valuation services, not  all valuation services are appraisals.


Appraisal Report

Hybrid or Bifurcated Appraisal

Desktop Appraisal



Automated Valuation Model AVM



Appraiser and/or Non-Appraiser

Appraiser and/or Non-Appraiser

Broker or Sales Agent


Computer Generation Algorithm 


An opinion of value that is developed by a licensed appraiser in compliance with the Uniform Standards of Professional Appraisal  Practice (USPAP).

It is an unbiased, independent, objective, impartial, credible and reliable opinion of value.

A third-party performs the property inspection and provides the information to the licensed appraiser who uses this information, as well as other data, to complete the appraisal in compliance with USPAP.

A valuation performed without an interior or exterior inspection of the property by an appraiser or any 3rd party. All research is based on information from tax records, MLS data and other reliable sources.

Comparative Market Analysis, or CMA –Commonly prepared by a real estate agent to help their client determine a reasonable listing or purchase nprice for a property. CMAs do not comply with USPAP.

Brokers Price Opinion,or BPO – Commonly prepared by a real estate broker to determine price (not value), BPOs are  traditionally associated with short sales, foreclosures and/or relocations. BPOs do not comply with USPAP.

Evaluation – An opinion of value for use by a lender. An evaluation does not have to comply with USPAP and does not have to be completed by a licensed appraiser.

An AVM is a mathematical model which estimates real estate property value. AVMs were designed to speed up the valuation process and reduce costs. Using algorithms and previously collected information, a value estimate is computer generated. Results may not be credible if adequate and relevant data is unavailable. An AVM is an evaluation, which is not an appraisal. Both Fannie Mae and Freddie Mac offer AVM- based valuations. Lenders may refer to this as an appraisal waiver. Borrowers have the right to reject the waiver and request an appraisal report.

Level of Inspection







Level of Valuation

Most Comprehensive





Least Comprehensive


The first three cost money and the last three are free. A full interior/exterior inspection appraisal by a licensed, real estate appraiser is about $350-$550 but could be higher if it's a large, custom home. You receive a full report with measurements, photos and the valuation. Hybrids are supposed to be cheaper but they seem to cost the same and don't save time for anyone. A desktop appraisal runs about $300-$400 but could be higher if it's a large, custom home. Two to four units, apartment buildings, raw land, commercial, retail, warehouse, industrial property, business appraisals ... cost more. My price list is in my website . I charge less than most. The average for Los Angeles, California for an average size home is $350-$500 per this survey as of September 2021. Lenders generally charge more as they have to pay the AMC who pays the appraiser. The AMC keeps part of the fee which is why it costs more. 

CMA and BPO are okay if you know and trust the real estate agent and just need a range in order to list the property. I've run into a few who intentionally listed the property low to sell to a friend or double end the deal to get both the buyer and seller's commission. While there are a few scammers in every profession there are many reputable agents out there. Ask your friends.

AVMs are okay if you are only looking for a wide range, ballpark figure for curiosity sake. They admit they are not reliable for homes at the lower and higher ends of the price, size, condition and age ranges. They may be okay for a newer average sized tract home or condo in good condition. 

Link to NAR brochure in pdf format.

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.

Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

No comments:

Post a Comment