With many large companies having business projects across different locations, talented employees have an opportunity to relocate and work in different areas. While relocating gives employees the unique opportunity to meet and work with different people from different geographic locations, it also presents some unique challenges. The move is often an added stress when the relocating employee needs to deal with the stress of selling his/her home before moving.
To minimize the pressure, some thoughtful employers opt to purchase the property. But at what price should they buy it? This is where the relocation appraisal usually comes in. If you are trying to figure out how a relocation appraisal relates to your company’s home sale program, Hooks and Associates can help.
A relocation appraisal is a type of appraisal that provides an estimate of a residential property’s anticipated sales price. So, how does a relocation appraisal differ from the usual mortgage appraisal? The first obvious distinction is that a mortgage appraisal is used to facilitate mortgage lending, while a relocation appraisal is used to facilitate corporate relocation.
Unlike the usual mortgage appraisal that develops an estimation of market value based on past market conditions, a relocation appraisal essentially develops an evaluation of a home’s likely value in the near future. In other words, the type of analysis used for relocation appraisals is prospective analysis (forecasting), as opposed to the retrospective analysis used in mortgage appraisals.
While the marketability period stated in mortgage appraisals is long, the marketability period for relocation appraisals is short, not exceeding 120 days. An anticipated sales price gives a more up-to-date reflection of the current market trends. Factors that may affect the outcome of the relocation appraisal include new construction competition, historic price trend, and mortgage interest rate.
You should note that a relocation appraisal requires different methodologies and forms than a mortgage appraisal. It is much more comprehensive and requires more research. It is common for a professional appraiser to spend an hour or more inspecting the subject residential property. An appraiser needs to find out a variety of aspects, including interior design, landscaping, improvements, and any deficiencies. Evaluating all these things is crucial in developing an accurate opinion of the anticipated sales price.
At Hooks and Associates, we have helped thousands of companies obtain accurate relocation appraisals in Palos Verdes and South Bay Communities. We are known for providing exhaustive evaluations and comprehensive reporting, while maintaining a high degree of accuracy. We are fully committed to helping you determine the anticipated sale price of a property so you can make smart decisions during the sale process.
Our Certified Appraiser, John Hooks, is a member of the Worldwide Relocation Council, and has pledged to abide by the USPAP rules for developing and writing ethical and objective property appraisals. Anyone in need of an accurate and unbiased relocation appraisal can rely on us to provide what many other appraisers fall short on.
If you have any questions regarding relocation appraisals, click here to contact us or call us at 310-791-144 today.