20 Inspection Questions        Relocation        Relocation Transferees       Appraisal Underwriting

Employee Relocation appraisal assignments constitute a significant portion of our business.  All relocation appraisal reports are computer generated in and can be delivered in a variety of electronic and hardcopy formats. Our committment to technology offers relocation professionals the flexibility to request, transmit, and receive service orders and status reports rapidly and at any time.  Our area of coverage for relocation appraisals is Bloomington/Normal, Illinois and the McLean County area.  We do not extend out into adjacent counties for relocation assignments.

What is a Relocation Appraisal?

A relocation appraisal is an estimate of the anticipated sales price the transferee's home will sell in the current market within a reasonable length of time, based on sales comparison analysis. Marketing time depends on the conditions in our community, but the definition of anticipated sales price indicates "a reasonable marketing period, not to exceed 120 days and commencing on the date of appraisal (inspection), is allowed for exposure on the open market."

As appraisers gather and verify data about completed sales, pending sales (currently under contract) and competing properties, 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?

Information about the transferee's home available from public recordse.g., the deed, taxes, zoning, transfers of ownership, restrictions, assessmentswill be examined by the appraiser. Neighborhood characteristics including the proximity to needed services such as schools, employment centers and shopping will be studied. The appraiser will also consider the current market for homes like the transferee's, buying trends that might affect a sale and the availability and terms of financing that influence peoples ability to purchase homes.

To ascertain the transferee's homes condition and marketability, the appraiser will make a personal inspection, examining the site, exterior design and appeal; interior appearance and layout; plumbing, electrical, heating and cooling systems; maintenance and functional utility. The appraiser reports 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 the transferee's community considers all relevant data to produce an estimate of the anticipated sales price for your home. When the property is unusual or market information is limited, different appraisers may have diverging opinions. In most cases,  however, a narrow range of value will be reached.

Whats in the Appraisal Report?

The final value estimate must be fully documented and supported in a written appraisal report. All pertinent data about the transferee's property relevant to the appraisers analysis should logically point to the value conclusion. These elements should be found in any comprehensive, professional appraisal report. 

• An adequate legal description of the subject property
• The purpose or reason for the appraisalin this case, to estimate for the transferee's employer, the relocation firm, ort the transfereethe relocating homeowner the anticipated sales price, based on the sales comparison approach to value
• The date on which the appraisal was made, known as the effective date of appraisal 
• All pertinent data about the property, including photos of the transferee's home and the comparables used, a neighborhood map, and a floor plan
• The reasoning by which the final value estimate was reached, which includes application of the sales comparison analysis
• The appraisers certification that the property has been inspected, the value conclusion is impartial and the appraisal fee is not contingent upon the amount of the appraised value

The Destination Appraisal

Because your transferee may not be familiar with their new community, a "destination" (or "pre-purchase," or "origination") appraisal of the home they want to buy will reveal some interesting observations about its investment value. Naturally they want to purchase a home that meets their physical and emotional needs, but they should also view the purchase as an investment that will remain stable and even appreciate.

Obtaining a destination appraisal is a win-win strategy for you and your employee. It can guarantee both of you that their chosen destination home will be a good investment, should they be faced with another transferand saleat a later date. They may gain from any appreciation, and you may minimize any losses, should your company purchase their home for resale.

 

A destination appraisal will require the cooperation of all parties involved. You might suggest that transferees include in their purchase contract a clause that makes the purchase contingent on an appraisal of the home. If the broker and the seller can be convinced that their cooperation will hasten a sale at the most probable sales price, then the process can benefit all parties. They should let the broker know that a destination appraisal will be made, and urge the broker to share information that the appraiser will need.

Without a professional appraisal, some transferring buyers have paid more than they should have, or purchased less-than-desirable homes.

 

Frequently Asked Questions

• What kind of appraisals do you do? 
• How do I choose an appraiser?
• 20 Inspection Questions
• Directory of Relocation Service providers 
• What geographic area do you cover?
• How much do appraisals cost?
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