When an estate owns a house, someone has to put a number on it, and value can mean three different things. An appraisal, a Broker Price Opinion (BPO), and a Comparative Market Analysis (CMA) are three different tools that answer three different questions. Here is the plain-English difference, who produces each one, and when an estate or estate attorney needs them.
The three tools, in plain English
- Appraisal: a formal, documented opinion of value produced by a state-licensed appraiser using approved methodology. Lenders, courts, and tax authorities often require one because it carries formal weight.
- BPO: a value opinion produced by a real estate broker or experienced agent, quicker and less formal than an appraisal, often used by lenders, short sales, and some estate decisions.
- CMA: an informal pricing analysis produced by an agent, built from sold comparables, active listings, and local market knowledge, used mainly to price a home for sale.
Who produces each one
An appraisal comes from a licensed appraiser, a regulated title, and follows approved methodology. A BPO comes from a broker or experienced agent, often on a lender-provided form. A CMA is the everyday work of a listing agent and usually the first tool a family sees. Guy Courtney Steib holds the Certified Probate Real Estate Specialist (CPRES) and Certified Probate Expert (CPE) designations and works probate and estate properties across Cypress, Katy, and the Greater Houston area, so his CMAs account for condition, vacancy, and estate timelines.
What they are used for, and why an attorney needs them
An estate needs the right kind of value at several checkpoints: the initial inventory, distribution between heirs, estate tax and court filings, and whether to hold or sell. A formal appraisal is the document the court and the parties can lean on, and when a figure will be filed or argued, formal weight matters. A CMA or BPO gives a fast, realistic picture of what buyers would pay, so the estate can price and plan with confidence.
- Inventory and court filings: an appraisal, formal and defensible.
- Pricing and sale strategy: a CMA, reflecting current market conditions.
- Lender and short-sale situations: a BPO, faster and less expensive.
The practical next step: a CMA
If the real question is what this house would sell for, the practical next step is a CMA from someone who works estate sales every week. In What Is the House That I Just Inherited Really Worth? we walk through why online estimates and tax appraisals miss the mark, and how a hands-on CMA gives the estate a fair value it can plan around and defend to the family.
Frequently asked questions
The same few questions come up in almost every estate; your attorney confirms what your case requires.
Do I need a formal appraisal for probate in Texas?
Not always. Texas handles probate county by county, and what a court, lender, or tax authority requires depends on the estate. Many uncontested sales move forward on a CMA or BPO, but a formal appraisal is often wanted when a figure will be filed or argued. Ask your attorney what your estate requires.
Is a Zestimate or tax appraisal the same as market value?
No. Online estimates and county tax appraisals are produced at scale from public data, and neither sees the condition, updates, or buyer demand for this specific house. Treat them as starting points, never as the number a buyer would write on a contract.
Who typically pays for an appraisal or BPO?
Whoever needs it: the lender that orders a BPO, the executor or attorney who orders an appraisal, or the seller's agent who provides the CMA as part of the service. Where an appraisal is required, the cost may be a proper estate expense; the attorney can confirm.
Can a real estate agent provide an appraisal?
No. An appraisal comes only from a state-licensed appraiser using approved methodology. An agent can provide a BPO or a CMA, professional opinions of value, but neither carries an appraisal's formal weight.
What is the real difference between a BPO and a CMA?
Both are agent-prepared opinions of value. A BPO is usually ordered by a lender, often for a short sale, on a set form, while a CMA is an agent's working analysis for pricing a listing. They overlap, and both are faster and less formal than an appraisal.
When should an estate call an appraiser versus an agent?
Call an appraiser when the value will be formalized, filed, or disputed. Call an agent when the estate needs to price the home and plan the sale.
Guy Courtney is a licensed Texas real estate professional, not an attorney. Nothing on this site is legal advice. For advice about your specific situation, always consult a licensed attorney.