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There are two ways you can determine the current value of your home – through a professional appraisal or a comparable market analysis (CMA). What’s the difference? A professional appraisal is performed by a licensed appraiser. While both are considered an opinion of value, an appraisal is a formal process that uses three approaches to determine the value of your home. The Cost Approach is derived from a calculation of the cost to replace the home, less depreciation and other factors, plus the land value. The Income Approach is pertinent to investors which involves estimating what an investor would pay based on the income produced by the property. The most common and accurate approach is the Sales Comparison Approach. This involves providing a comparison to other similar homes located nearby that have recently sold.