Employee Relocation
Time is money
This is never more true than when you or your company need an appraisal of your “old” home when you’re relocating
Being transferred to a new location by your company is an exciting change. However, it can be very involved and stressful. The Appraisers at Accurate Appraisals U.S.A. understand this and are here to make the home appraisal portion of this transition as smooth and stress-free as possible.
We understand that you’re concerned with getting the proper home valuation. You will have many questions throughout the process. We are here to help answer those questions.
We have outlined some of the more common questions and provided answers. We will be happy to expand on any of the answers. Our goal is that you have a comfortable understanding of your questions.
The senior Appraiser at Accurate Appraisals U.S.A. has been performing Employee Relocation Appraisals since 2005. Lonnie Heward has completed training through the Employee Relocation Council for this discipline.
Lonnie has achieved the highest license level possible in the appraisal industry of Certified General. He has been licensed in the industry since 1996.
Throughout his career, he has performed appraisals of residential and commercial properties in multiple states. He has experience in a variety of market conditions. Currently, his holds a license in Arizona to perform appraisals.
Differences Between Residential Appraisals and Employee Relocation
On the surface, and employee relocation appraisal looks similar to a residential appraisal. Both deal with houses. The differences come with how the appraisal gets reported, its intended use, and other factors.
Reporting Style
Mortgage appraisals use the Uniform Residential Appraisal Report (URAR) form. It analyzes the site of the property and its physical characteristics. Employee relocation appraisals use the ERC Summary Appraisal Report. This report has six pages with similar features to residential appraisals. However, the report requires more analysis in narrative sections of the report.
Purpose
Mortgage appraisals determine an opinion of the market value of a property. Employee relocation appraisals predict the price of relocating an employee.
Intended Use and User
A mortgage appraisal assists lenders in evaluating a home for underwriting purposes. Typically, the client or lender are the intended users of these appraisals.
Employee relocation appraisals’ intended users are either the employer or the relocation management company. They use these appraisals to facilitate employee relocation to a new location.
Analysis
Mortgage appraisals use historical data when calculating value. They look at the purchase price of the home.
They look over any inspections or renovations. With an employee relocation appraisal, the Appraiser uses forecasting.
Using forecasting, they determine the prospective value of the move. ERC Appraisers look at current market conditions and assume future market conditions based on that data.
Comparables
One of the biggest differences between mortgage and employee relocation appraisals is their use of comparables. Properties that have similar characteristics to the intended property are comparables.
Mortgage appraisals require three closed sales for comparables. These sales should have closed either six months prior to the appraisal. They cannot have closed more than twelve months ago.
Employee relocation appraisals do not put limitations on comparables. Any closed sale can be used.
The best comparables are properties with similar models on the same street. The comparable should be inspected by the same Appraiser.
Common Employee Relocation Questions
Here are a few common questions you may have in regards to employee relocation.
What are ERC appraisals?
Understanding ERC appraisals requires an understanding of who ERC is. The Worldwide Employee Relocation Council oversees employee mobility for companies around the world. ERC offers perks for membership, including training in ERC appraisals.
Do I really need an Appraiser that is familiar with ERC appraisals?
Yes, you need an Appraiser that is familiar with ERC appraisals. Preferably one who was trained in the ERC appraisal process. Not all appraisals are the same.
ERC appraisals contain components that are not included in standard lending appraisals. These components include forecasting to determine a future selling price.
Most other appraisal types rely on historical data. They look for a current value, not a future selling price. Experience and training in this area is very important to the process.
How long will the appraisal take?
The appraisal is made up of numerous parts, some of which you will participate in others you will not. You can expect the ERC Appraiser to spend ample time at your home.
They will thoroughly inspect and notate all aspects of your home. Many photos will be taken of your home. These will be photos of any areas that have deferred maintenance.
The Appraiser will also take photos of any areas of improvements you have done to your home. Extensive notes will be taken and any information you have prepared will be collected.
Once the inspection finishes, the ERC Appraiser will have a thorough dialog with you (or your representative) about the property. This will include the history of changes and updates.
At this time the Appraiser will listen to all your questions and thoroughly answer them. Keep in mind, you can ask the Appraiser anything.
They will let you know if they can answer the questions now and let you know the topics they can’t discuss with you.
Your involvement in this process (the inspection) will take between 45 min to 2 hours. The time depends on the elements of your home and the amount of discussion you wish to have with the Appraiser.
The completion of the report will take a number of days. However they typically reach completion within 7 days of the inspection.
I have received a call from another Appraiser is this normal?
Yes, in most cases there will be at least two ERC appraisals ordered on your property. This ensures the most accurate and consistent collection and reporting of data.
The Relocation Company compares and reconciles the different appraisals. In many cases, additional questions are sent out to the Appraisers for further comments.
If the two appraisals are vastly different, the Relocation Company will order a third appraisal.
Will I get a copy of the appraisal?
Maybe. The client in most cases is the Relocation Company. It will be their decision to share the appraisal or the results with you.
The Appraiser cannot share the appraisal with you or the content of the appraisal with you without written consent from the Relocation Company.
Can I give information to the Appraiser?
Yes, and we encourage this. As with any appraisal, the more information the Appraiser has, the more thorough report they can complete.
Keep in mind you have been in your home for multiple years. The Appraiser will be there for 1-2 hours. You will have far more information about your home than they can see during the inspection.
In addition, you sometimes have inside information about other properties that have sold that the Appraiser does not have access to.
You may have further questions, please ask. Our staff will be happy to answer any of your questions.