Transferees participating in a home sale as part of their relocation package often submit to a Home Relocation Appraisal process. Since “Appraisal” is part of this term, transferees may think this will be an indicator of their home’s market value. However, this is not the case. A Relocation Appraisal is completely separate from a Home Mortgage Appraisal. From the purpose to the format, the differences are dramatic.
A review of the specific points of this report will clarify its purpose, intent, and use within a transferee’s moving process.
8 Specific Points of a Home Relocation Appraisal
1. What is the Intended Use?
The use of this report is to help facilitate the transferee’s move to another location. The results go to the client, not the transferee. Clients may review the information to help understand how long the home may be on the market before selling.
2. Who Conducts the Home Relocation Appraisal?
Trained and licensed real estate appraisal professionals who follow the ERC’s specific set of definitions and guidelines complete the Appraisal. The professional works for the client, and will use the Worldwide ERC® Summary Appraisal Form (updated 2010) to complete the Appraisal.
3. What are Critical Considerations?
In this report, design and appeal of the house are critical considerations. Since the Appraisal has a short time frame that relates specifically to the transferee’s relocation, these two factors will have a major impact on the relocation process.
4. What will the Report Provide?
This type of Appraisal provides an estimate of the home’s anticipated sales price. There is no correlation to any other figure or value; the Appraisal looks solely at the anticipated sales price.
5. What is the Timeframe?
Home Relocation Appraisals have a short-term focus. The decision making timeframe only covers up to 120 days. This accounts for the planning, review, and implementation of the transferee’s relocation process.
6. When Should Marketing for the Home Begin?
Marketing for the house occurs after the date of this report. As a result, the marketing plan for the home has no bearing on this Appraisal.
7. How does Marketing the House Relate to a Home Relocation Appraisal?
The marketing time for this report is not to exceed 120 days. This timeframe only reflects the period covering the transferee’s relocation process.
8. How Does a Retrospective Analysis Relate to a Home Relocation Appraisal?
A retrospective analysis for a Home Relocation Appraisal is an overall review of factors that could impact the Appraisal’s results, such as any risks that could affect the sale price of the home. This information is used for forecasting purposes. This is important for clients so they can understand aspects of the report that may have future budgetary impacts.
What Should Employers Expect?
Employers should expect that transferees who participate in a this type of sale program for their house may not understand the purpose of this Appraisal. Employers should understand that they are the client for this report. As such, they will receive the Appraisal from the professional. Employers should understand and communicate with the transferee that this report is not a Home Mortgage Appraisal.
What Should Employers do?
Employers should communicate guidance for their transferees who may have questions regarding their Home Relocation Appraisal. Employers should work with their Relocation Management Company to understand the Home Relocation Appraisal and how it relates to their company’s relocation and home sale program.
Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Home Relocation Appraisals. We can help your company understand how a Home Relocation Appraisal relates to your company’s home sale program.
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Learn more about Home Relocation Appraisals from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.