Where this fits on the exam
| Official syllabus topic | Valuation and Market Analysis: Appraisals; CMA and Broker Price Opinions |
|---|---|
| Official PSI area | Valuation and Market Analysis |
| Published weight | 8% of the national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.
Side-by-side comparison
Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.
| Decision dimension | Appraisal | CMA | BPO | AVM |
|---|---|---|---|---|
| Producer | Credentialed appraiser for the assignment | Real estate licensee | Broker or licensee where law and assignment permit | Algorithm using data and a model |
| Purpose | Supported opinion of value for a defined intended use | Listing or offer strategy and market positioning | Price opinion for a permitted client purpose | Rapid automated estimate or risk input |
| Output | Appraisal report under applicable standards | Comparative market analysis | Broker price opinion | Model estimate with confidence and data limits |
| Main limitation | Scope, data, assumptions, and effective date | Not an appraisal | Not an appraisal and subject to state boundaries | Can miss condition, unique features, or poor data |
Decision rule
Georgia-specific distinction
Worked example
Scenario. A listing agent reviews recent sales and current competition to recommend a listing range to the seller.
Reason it through. The purpose is marketing strategy within the brokerage engagement, not a regulated appraisal assignment.
Answer. The analysis is a CMA.
Common exam traps
- Calling every value estimate an appraisal
- Ignoring intended use
- Assuming an AVM inspected the property
- Presenting a CMA as independent appraisal evidence
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1A listing licensee reviews recent nearby sales and current competing listings to recommend a list price range to the seller. What has the licensee prepared?
- A. An appraisal, because it states a range of value
- B. A comparative market analysis for pricing strategy
- C. An automated valuation model, because it uses sales data
- D. A broker price opinion, because a broker supervised it
Show answer and explanation →
Answer: B. A comparative market analysis for pricing strategy
The licensee compares sales and competing listings to help the seller choose a listing price, which is a CMA's purpose. A value range alone does not make the work an appraisal. Appraisal assignments have their own scope, standards, and applicable credential requirements, and a broker's supervision does not determine the product's classification.
- A. Incorrect. A value range does not turn a pricing analysis into an appraisal. The purpose here is the seller's listing strategy.
- B. Correct. The analysis compares sales and competing listings to recommend a listing range. That is the ordinary purpose of a CMA.
- C. Incorrect. A licensee prepared the analysis. Using sales data does not make it an automated model estimate.
- D. Incorrect. Broker supervision alone does not distinguish a BPO from a CMA. The described client listing-price analysis is a CMA.
Question 2A website shows an instant value estimate for a home within seconds, and no one has visited the property. Which statement about this estimate is accurate?
- A. It must be signed by a certified appraiser before anyone may view it
- B. It counts as an appraisal once a lender publishes it online
- C. It replaces the need for a CMA whenever the home is listed
- D. It can miss condition and unique features the model cannot see
Show answer and explanation →
Answer: D. It can miss condition and unique features the model cannot see
An AVM is an algorithm's estimate built from data and a model, so nothing has inspected the home. Condition, upgrades and unusual features can escape it, and poor data weakens it further. Treating it as an appraisal ignores who produced it and for what purpose.
- A. Incorrect. An automated estimate is not automatically a credentialed appraisal. A website may publish a model estimate without an appraiser signing it.
- B. Incorrect. A lender's publication does not convert an algorithm's estimate into an appraisal. The method, assignment, and applicable requirements still matter.
- C. Incorrect. An AVM can help inform pricing, but it does not necessarily capture condition, current competition, or features considered in a CMA.
- D. Correct. A model uses available data and assumptions. It may miss interior condition or unusual features that an inspection and local analysis would identify.
Question 3A Georgia salesperson prepares a CMA for a seller and wants to advertise it as "our certified appraisal of your home." Why is that a problem?
- A. Because a licensee may not present a CMA as an appraisal
- B. Because a CMA may be shared only after the listing expires
- C. Because a CMA becomes an appraisal only once the broker signs it
- D. Because a CMA must be approved by a lender before release
Show answer and explanation →
Answer: A. Because a licensee may not present a CMA as an appraisal
The salesperson prepared a CMA for listing-price guidance. Calling that work a certified appraisal misrepresents the product and implies an appraisal credential and assignment the facts do not establish. A broker's signature does not convert the CMA into an appraisal.
- A. Correct. A real estate license does not authorize the salesperson to label a CMA a certified appraisal. The advertised description misstates the product and credential.
- B. Incorrect. A CMA helps a seller decide on pricing and can be shared during a listing. There is no waiting-until-expiration rule here.
- C. Incorrect. A broker's signature does not supply the appraiser credential or convert a pricing analysis into an appraisal.
- D. Incorrect. A CMA for a seller does not require lender approval before release. The problem is advertising it as a certified appraisal.
Ready to move on?
You have this distinction down when all of these are true.
- Define every compared term without using the other term as the definition.
- Rebuild the comparison table from memory.
- State the decision rule and Georgia distinction without notes.
- Solve the worked example after changing one key fact.
- Explain the rule or fact that makes each distractor wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Sales Comparison Versus Cost Versus Income Approach. The next article shows how a real appraisal reaches its value, walking through the sales comparison, cost and income approaches and which one an appraiser relies on for a given property.
Return to the complete exam-concept library or the Valuation and Market Analysis hub.