Property Valuation

In South Dakota, what is the primary difference between an appraisal and a competitive market analysis (CMA)?

AA CMA is more accurate than an appraisal
BAn appraisal is a formal valuation by a licensed appraiser; a CMA is an informal estimate by a real estate agent✓ Correct
CAn appraisal is required only for commercial properties; a CMA is for residential
DA CMA is required by lenders; an appraisal is optional

Explanation

An appraisal is a formal, licensed opinion of value required by lenders for mortgage transactions. A CMA is an informal estimate of market value prepared by a real estate agent to help price a listing.

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