Introduction to CMA's and BPO's

Introduction to CMA's and BPO's

What are the differences?
What are the similarities? 

     Recently, Realtors have started using the phrase 'Broker's Professional Opinion' to replace the term CMA.  When you look in your Transaction Desk, as provided by GLVAR, you will notice the 'CMA' form does not appear. However, in Fusion, the term CMA still appears multiple times. This can be confusing for a new agent.

    For the most part, the two terms mean the same thing. Either way, you will be analyzing a home. And, you will be evaluating a home's value in the current market. Keep it simple in your mind.  Tell yourself, they the basically the same thing.  However, remember 'BPO' tends to carry a higher expectation of information. For a 'BPO', you will do considerable more research.  'BPO's are more deeply detailed than 'CMA's.

     Many Realtors still  use the term 'CMA', when presenting an analysis to clients, or potential clients. When Realtors  use the term 'CMA' they tend to have a more relaxed  informal approach.  The Realtor may choose to use the Fusion Cloud 'CMA'.  Or, the Realtor, may design his/her own format. And, still other Realtors will be very informal. The very informal Realtor may simply print the client sheets as provided in the Fusion MLS.  and let the client make up their own mind, for pricing.

      One major difference in a CMA, over a BPO is that the Realtor will control the format or design, for a  'CMA'.  The Realtor will decide how detailed the report will be. The Realtor will decide if the report will address matters such market conditions, what repairs are needed, is the area a high rental rate neighborhood, what is the rate distressed properties?  Or, the Realtor may choose to compare recent sales prices, only.

    In our CMA lesson, we will start with basic comparative sales information. We will focus on size, age, and proximate sales.  'CMA's generally are  focused on location, sales prices of comparable homes,  and  physical condition.  'CMA's do not discuss how close the home is to schools, golf courses, nor churches. That could imply steering. Focus on the home characteristics, like brick walls, finished driveways, etc.

      As professionals, we can not ignore obvious signs of distress. For example, we will point out old roofs, large concrete cracks, visible mold, non working pool pump, and leaks. These factors are obvious.  Pointing out obvious defects are part of risk management, and due diligence. However, we will not make estimates. We will not provide opinions for repairs, and costs. We will not go deeply into detail.  'CMA's are not intended to replace a home inspection, nor an appraisal. Usually, all the information can be found in the Fusion MLS.  A Realtor can opt to use the Quick CMA produced in the Fusion system.


     Most mortgage companies will use the term BPO, over CMA.  Mortgage companies tend to expect more information, than the average private person. Many mortgage companies, and lenders will ask you to use their company form. The company form will have specific questions.  Therefore, you will find that people will use the term BPO, they have a higher expectation of information.

     As the lessons progress, we will delve into more detailed information. We will  create 'BPO's,we will research comparable sales, just as we did with a 'CMA'.  In addition, we will research into information that is not provided in our Fusion MLS site. For example, we will address pay off information, 2nd mortgages, liens. We will more closely analyze the physical condition, and chronological age of the home. We will address surrounding foreclosures, repair costs, neighborhood rental rates, and sales trends. We will analyze how these factors affect the re-sale value of a home.