What distinguishes an appraisal from a broker's price opinion (CMA)?

• A. A CMA is a formal, USPAP-guided valuation by a licensed appraiser.
• B. An appraisal is a formal, USPAP-guided opinion by a licensed appraiser.
• C. An appraisal is an informal market analysis by a seller's agent.
• D. A CMA is an informal opinion provided by the lender.

Answer: (B)

The main distinction being tested is the level of formality and the standards that govern the value opinion. An appraisal is a formal valuation performed by a licensed appraiser and completed under USPAP, with thorough analysis and documented support for the value. A CMA, or broker's price opinion, is an informal price opinion prepared by a real estate broker and not guided by USPAP, typically used for listing or negotiation purposes rather than as an official, defendable value. That’s why describing an appraisal as a formal, USPAP-guided opinion by a licensed appraiser best captures the difference. The other choices misstate who prepares it, the formality, or the standards involved.