What's the Difference Between a CMA, a Broker Price Opinion, and an Appraisal in Texas?

A comparative market analysis (CMA) and a broker price opinion (BPO) are pricing estimates prepared by a real estate license holder; an appraisal is a formal opinion of value that only a licensed or certified appraiser can legally perform in Texas. The Agency Dallas provides CMAs and broker price opinions. We do not perform appraisals, and no brokerage legally can.

That one paragraph answers the question. The rest of this page explains what each document is, what Texas law says about the boundary between them, and — because a pricing opinion is only as good as the discipline behind it — exactly how The Agency Dallas builds and reviews its property valuation work before a number ever reaches a client.

What is a comparative market analysis (CMA)?

A CMA is the document an agent prepares when you’re deciding on a listing price or an offer price. It pulls recently sold, pending, and active properties comparable to yours and adjusts for the differences — size, condition, lot, renovation level, school boundary, street — to arrive at a supportable price range.

A CMA is a marketing and pricing tool. It is not a legal valuation, and in Texas it must say so in writing. The Texas Real Estate Commission requires that any written CMA, BPO, or price estimate given to a consumer carry this statement, verbatim, in at least 12-point type: “This represents an estimated sale price for this property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.” (22 TAC §535.17, adopted by TREC in November 2017.) If a pricing document you receive from any brokerage is missing that disclosure, that is a compliance problem, not a technicality.

What is a broker price opinion (BPO)?

A BPO is the same core exercise — comparable sales, adjustments, a supported price — typically ordered by a third party: a lender working a portfolio, a relocation company, an estate, an investor triaging assets. It is usually shorter than a full CMA and priced accordingly. Texas treats it identically under the rule above: a license holder may prepare it, the written disclaimer is mandatory, and it is not an appraisal.

What is an appraisal, and why can’t a brokerage do one?

An appraisal is an independent, formal opinion of value developed under the Uniform Standards of Professional Appraisal Practice (USPAP) by an appraiser licensed or certified by the Texas Appraiser Licensing and Certification Board (TALCB). Texas law — 22 TAC §535.17, referencing Occupations Code Chapter 1103 — prohibits a real estate license holder from performing an appraisal unless they also hold that separate appraiser credential.

The practical differences:

1. Purpose. An appraisal supports lending, probate, tax protest, divorce, and other decisions that need a defensible, independent value. A CMA or BPO supports a pricing decision.
2. Independence. The appraiser has no stake in whether the property sells or at what price. A brokerage preparing a CMA hopes to win the listing — which is exactly why review discipline matters (more below).
3. Standard. USPAP governs the appraiser’s methodology and reporting. A CMA has no equivalent binding standard beyond the TREC disclosure rule.
4. Who can sign it. Any Texas real estate license holder can prepare a CMA or BPO. Only a TALCB-licensed or certified appraiser can perform an appraisal.

When a client needs an appraisal — for a lender, an estate, or a Dallas Central Appraisal District protest — The Agency Dallas refers the work to an independent TALCB-certified appraiser. We do not perform it, shadow it, or grade it.

How does The Agency Dallas actually build a pricing opinion?

Here is the method, plainly, because a seller interviewing brokerages deserves to know how the number on the last page of the listing presentation was made.

1. Data source: NTREIS. Every comparable we use comes from the North Texas Real Estate Information Systems MLS — the same verified sold data every legitimate Dallas–Fort Worth brokerage draws from — supplemented by county appraisal district records and, where relevant, our own closed-file data.
2. Comparable selection over formula. Automated estimates fail in Dallas because the market is hyper-localized: a comp across a school-district boundary or a major thoroughfare is not a comp. We select comparables by micro-market, then adjust for condition, renovation vintage, lot, and functional differences — documented line by line.
3. A range, not a single flattering number. The work product is a supported range with a recommended list strategy, checked against current competition and absorption, not a point estimate engineered to be the highest number in the room.
4. Broker review before presentation. Every listing-price recommendation at The Agency Dallas is reviewed at the brokerage level before it goes to the client. The firm’s sponsoring broker holds Texas Real Estate Commission license #0607788; that review exists specifically to catch the failure mode buyers and sellers rightly worry about — a valuation tilted high to win the listing.
5. The market check afterward. Sale-to-list ratio is the public scoreboard for pricing discipline. Dallas homes have recently sold at a median 96.85% of list price (Orchard market data, trailing 30 days, August 2026), with the median single-family price at $404,900 in July 2026, down 1.7% year over year (MetroTex/Redfin, July 2026). A recommendation that can’t survive that environment isn’t a strategy — it’s a delayed price cut. We’d rather lose a listing appointment to a bigger number than list a home that sits.

That last point deserves to be said directly, because it is the standard critique of boutique brokerages: that pricing tilts optimistic to win business. It is a real failure mode in this industry. The countermeasure is not a slogan — it is the review step above, a written range instead of a single number, and a standing willingness to show clients the comps that argue against the higher price. Ask any brokerage you interview to show you the same.

When do you need which?

• Setting a list price → CMA from your brokerage. Free at The Agency Dallas as part of a listing consultation.
• Lender, portfolio, or relocation decision → BPO, if the ordering party accepts one; otherwise an appraisal.
• Mortgage, probate, divorce, tax protest → appraisal from a TALCB-certified appraiser. In Dallas a typical single-family appraisal runs a few hundred dollars; we covered the market in who does professional home appraisals in Dallas.
• Curiosity about your equity → start with a CMA; treat every online estimate as a screening tool, not a value.

If your home isn’t selling even with disciplined pricing, the mechanics and options are covered in what happens if your Dallas home doesn’t sell, and if discretion is the priority, see how off-market and private listings work in Dallas.

Frequently asked questions

Is a CMA from a brokerage free? Usually, yes. At The Agency Dallas a CMA is part of a listing consultation at no charge. A standalone BPO ordered by a lender or institution typically carries a modest fee. An appraisal is always a paid engagement with an independent appraiser, usually several hundred dollars for a Dallas single-family home.

Can The Agency Dallas do my appraisal? No — and no brokerage can. Texas law (22 TAC §535.17; Occupations Code Ch. 1103) restricts appraisals to TALCB-licensed or certified appraisers working under USPAP. We provide CMAs and broker price opinions, and we refer appraisal work to independent certified appraisers.

Why did my appraisal come in different from my CMA? Different purpose, different method, different date. A CMA recommends a marketing price in a live market; an appraisal defends a value to a standard. Small gaps are normal. A large gap usually traces to comparable selection — ask both preparers which comps they used and why.

How do I know a brokerage’s price opinion is honest? Ask three things: what data source the comps came from (it should be the MLS — NTREIS in North Texas), whether the recommendation is reviewed by anyone other than the agent who wants the listing, and what the firm’s recent listings actually sold for relative to list price. A firm with a real methodology will answer all three without flinching.

Does Texas require anything in writing with a price opinion? Yes. Any written CMA, BPO, or estimate of worth given to a consumer must include TREC’s verbatim disclaimer distinguishing it from an appraisal, in at least 12-point type (22 TAC §535.17). Its absence is a red flag.

Sources: Texas Administrative Code Title 22 §535.17 and TREC rule changes adopted November 2017 (Texas REALTORS®); Texas Occupations Code Chapter 1103; Orchard Dallas market report, trailing 30 days, August 2026; MetroTex/Redfin Dallas market data, July 2026.