These services are generally provided to Relocation Companies or Corporations that have an "In House" relocation department and offer home marketing assistance or home buying services to transferee's. This is a fairly detailed appraisal that is intended to accurately and realistically reflect all of the factors that have an influence on the marketability of a property. The purpose of the appraisal is to estimate the "anticipated sales price" of a property in its "as is" condition, given a "reasonable period of time" to market the home which is generally defined as up to 120 days. The estimated price should be reflective of the behavior of a well informed buyer with typical preferences and tastes. The estimated price should be on a "cash equivalent" basis, which is a price that is unaffected by any seller paid concessions.
There are several primary differences between most relocation appraisals and the mortgage appraisal:
- The estimate of value for most mortgage appraisals is based upon market conditions "as of" the date of the appraisal and does not include forecasting or the projection of current trends into the anticipated marketing period of the property as is the case in a relocation assignment. If prices are rising, this should be reflected in the appraisal and thus the value may be higher than that of a mortgage loan appraisal that does not include forecasting. If values have been declining, the appraiser must recognize that closed sales will produce too high of a value if not adjusted for the anticipated marketing time.
- While both appraisals generally are based upon the property's "as is" condition, the relocation appraisal must realistically reflect any personalization, and repairs that should be made in order to effectively market the home to the typical buyer.
- Relocation appraisals are based upon a "cash equivalent" valuation whereas a mortgage loan appraisal may reflect financing terms that are typical in the market but would have an effect of artificially inflating the value of the property.
- The relocation appraisal must also carefully reflect how certain features will market to the typical or majority of buyers in a given market. Swimming pools, tennis courts, stables, too few or too many bedrooms, and home style may all be marketability issues.
- If the typical marketing time for a property in a given market is 180 days, and the client needs the appraisal to reflect a marketing time of 120 days, the appraiser must reflect this request in the appraisal.
- The relocation appraisal also makes recommendations for repairs, improvements and inspections, so as not to delay in the sale of the home.
In summary, the relocation appraiser must place him or herself in the shoes of the typical buyer however must be truly aware of the condition and features of the property and comparables, understand the demographics of the neighborhood, and be knowledgeable of historical transactions, pending sales, and alternatives that are presently on the market. While such an appraisal may take a little longer to prepare and thus cost a little more, the results can be well worth the effort.
Key Benefits
 | Accurate valuation prevents from selling too low or listing too high |
| Reduced marketing time, means lower overall costs |
| Makes you aware of your direct competition and the window of opportunity. |
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