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RELOCATIONThe Relocation Appraisal What is a Relocation Appraisal? A "reasonable" length of marketing time depends on the condition in your community, but the Employee Relocation Council suggests that "..a reasonable period is typically up to 120 days unless market conditions indicate otherwise." The appraisal is made as of a specific date and the value estimate submitted should remain valid over the "normal marketing" time, assuming no market changes have occurred. For better or worse, the value of your home does not remain the same. Its value today is probably not the same as when you bought it, and it probably won't be the same in six months or next year. Value appreciation was a fact of life in the 1990's, but that may no longer be true. In some parts of the country, property values have increased slightly, stayed about the same, or even declined. The Appraiser and Selecting an Appraiser Selection process may be a recommendation or you may have to interview the appraiser. Ask the appraiser about their qualifications and experience. Richard Champagne is a member of the Appraisal Institute, Employee Relocation Council (ERC) and Relocation Appraisers and Consultants, Inc. (RAC). These organizations require continual education in the appraisal and relocation process. The Appraisal Institute offers the "SRA" designation and the ERC provides the "CRP" designation which have been obtained by Richard Champagne The Appraisal Process As appraisers gather and verify data about completed sales, pending sales (currently under contract), and listings, they study the terms of the sales closely: How long were the homes on the market before they were sold? Were the sellers able to wait for the highest possible offer or did conditions require an immediate sale? Did favorable financing affect the price of the property and its sale? Information about your home available from public records-e.g., the deed, taxes, zoning, transfers of ownership, restrictions, assessments will be examined buy the appraiser. Neighborhood characteristics including the proximity to needed services such as schools, churches, and shopping will be studied. The appraiser will also consider the current market for homes like yours, buying trends that might affect a sale, and the availability and terms of financing, which influence people's ability to purchase homes. To ascertain your home's condition and marketability the appraiser will make a personal viewing, examining the site, exterior design and appeal, interior appearance and decorating, plumbing, heating, wiring, maintenance and functional utility. An appraisal assignment requires an appraiser to report the "as is" condition of the property as of the inspection date. Should there be a question concerning a specific mechanical or structural component, the appraiser may suggest an inspection by an expert. A qualified professional appraiser with experience in your community considers all relevant data to produce an estimate of market value for your home. When the property is unusual or market information is limited, different appraisers may have diverging options. In most cases however, a narrow range of value will be reached. Appraising is an art and not a science and is the best considered judgment of a professional appraiser. You Can Help the Appraiser...and Yourself
You may want to ask the appraiser some questions about the appraisal process. Professional standards of practice prohibit appraisers from discussing the details of the appraisal assignment with you if the appraisal was requested by your employer or the relocation management company. Nevertheless, they can tell you what appraisers generally look for and how different property characteristics will be weighted in the analysis. The mortgage company provides funds to secure your home. The mortgage company has an appraisal done by an appraiser on staff or an outside appraisal firm. What does an appraiser do? What is an SRA? Licensing |
