Relocation and Destination Appraisals
OC.appraiser.net is one of the few appraisal firms that specialize in Relocation Appraising and Destination Appraisals for corporate transferees. Much of our residential appraisal practice over the last 2 0 years has focused on relocation appraisals.
Mr. Pettifer has earned the MAI and
Mr. Pettifer has been an active member of the Employee Relocation Council (ERC) for nearly 20 years. ERC is the prominent trade organization for the Relocation Industry and provides education and training for relocation professionals. Mr. Pettifer’s commitment to Relocation Appraising is evident by earning the Certified Relocation Professional (CRP) Designation and his active membership in
When a corporate employee or third party relocation company is required to hire a relocation appraiser, its critical for the success of the employee transfer process that a relocation appraiser with credentials and experience in relocation appraising be selected. A mistake often by homeowners is the selection of primarily mortgage appraisers that have minimal experience or training in relocation appraising.
By selecting our firm for your relocation appraisal, you are assuring a more trouble free move to your new job location with the confidence that an experienced local appraiser whose practice and training is focused on relocation appraisals was chosen.
Its often difficult for a Homeowner / Transferee to recognize the variation in appraiser skill level and select the appraiser with the specialized relocation experience necessary to consider all your home’s positive attributes in comparison to competitive residences
Displayed below are useful inquiries that can be asked by the homeowner to differentiate and select the most qualified relocation appraiser. We are confident that after interviewing different appraisers and hearing their responses and ours, you will be persuaded to select our firm for your relocation appraisal. We hope these questions are of some benefit to understanding of the relocation appraisal process and the important decision of selecting an appraiser.
Questions and Inquiries to help the Homeowner / Transferee select the most qualified and experienced Relocation Appraiser. OCappraiser.net’s responses to the same questions are displayed so the Transferee can compare our firm’s responses to other appraisers.
Mr. Pettifer started relocation appraising in the mid 1980’s.
OCcommercial.net has focused its residential practice completing relocation appraisals for over fifteen years. Our relocation appraisal volume varies depending on general business and economic trends as well as local housing markets. Corporate demand for relocation appraisals should continue to increase after low volume during the “hot”
Mr. Pettifer is a designated member of the Appraisal Institute, the largest and most prominent appraiser membership organization (www.ai.org). Mr. Pettifer is the Chair of the Southern California Chapter of the Appraisal Institute,
Mr. Pettifer holds two designations with the Appraisal Institute, the MAI and
Mr. Pettifer is an active member of the Employee Relocation Council (ERC). www.ERC.org is the major trade group for the relocation industry.
Mr. Pettifer holds the CRP Designation awarded by the Employee Relocation Council. The Certified Relocation Professional designation is earned by attending ERC educational classes and seminars and demonstrating knowledge in a broad range of relocation related programs and issues.
Mr. Pettifer is a member of Relocation Appraisers & Consultants or commonly known as
Mortgage Appraisal / Relocation Appraisal
The appraiser that you select must recognize the major distinctions between a mortgage and relocation appraisal. More importantly, the appraiser must have the experience and ability to properly evaluate, analyze and conclude within a small variance, the “anticipated sale price” or sale price of your home. Some appraisers have never acquired the skill that can only be obtained from experience, education and local housing market knowledge. Using an ERC and
The Relocation Appraisal Process involves the following items that most mortgage appraisers are not aware:
· Intended use: The intended use of the relocation appraisal is to assist an employer and/or third party relocation company the facilitation of the corporate employee relocation process.
· Purpose: The relocation appraisal is used to develop an opinion of the “anticipated sales price” of the relocating employee's home. Normal market value used in most mortgage appraisals is not a consideration.
· Value definition: Per the ERC Summary Appraisal Report, the definition of anticipated sales price is:
The price at which a property is anticipated to sell in a competitive and open market, assuming an arms-length transaction whereby:
1. the analysis reflects the subject property "as is" and is based on its present use as a residential dwelling;
2. both buyer and seller are typically motivated: both parties are well-informed or well-advised and acting in what they consider their best interests;
3. payment is made in cash or its equivalent;
4. a reasonable marketing period, not to exceed 120 days and commencing on the date of appraisal (inspection), is allowed for exposure in the open market. The analysis assumes an adequate effort to market the subject property; and
5. forecasting is applied to reflect the anticipated trend of market conditions and prices during the subject property's prospective marketing period.
The primary differences in a mortgage versus relocation appraisal are the marketing period, financing considerations, and the type of analysis (forecasting).
· Marketing period: The relocation appraisal's definition of anticipated sales price requires the appraiser to consider a "'reasonable' marketing period, not to exceed 120 days and commencing on the date of appraisal (inspection), is allowed for exposure in the open market. The analysis assumes an adequate effort to market the subject property." This means if a property's neighborhood or marketplace has typical marketing periods exceeding 120 days, the subject will need to be discounted through the forecasting adjustment.
· Financing: The mortgage appraisal requires cash equivalency with adjustments to the comparables if there are special or creative financing or sales concessions, but not for costs, which are normally paid by sellers. The relocation appraisal requires the appraiser to reflect a cash equivalency price with adjustments to the sales prices of the comparables. Dollar adjustments should be made for concessions such as: seller-paid points, buyer's closing costs, interest rate buy downs, seller financing or any other terms that influence the final sale price. These adjustments are not necessarily dollar for dollar and should reflect the effect on the sales price resulting from the concession.
· Analysis: The relocation appraisal considers a prospective analysis and the appraiser must consider a forecasting adjustment if the market is rising or declining. According to the ERC Summary Appraisal Report, the definition of forecasting is: ..."the process of analyzing historical trends and current factors as a basis for anticipating market trends. A forecasting adjustment is then applied to reflect any impact these trends will have on the subject property's marketing time and sales price."
To arrive at a forecasting adjustment, the relocation appraiser provides is required to provide detailed narrative, supply and demand factors and overall market conditions. The relocation appraiser examines other factors such as marketing periods, price reductions, past, current and forecasted inventory levels and current competition from new construction or REO properties.
· Physical Items: The relocation appraiser considers in significant detail the competitive condition, exterior appeal and design, interior décor, color scheme, recent upgrades/remodeling and the lack of or presence of deferred maintenance. These and other items are compared to comparable sales in your market on a line-by-line basis. If your home has been superiorly maintained , has recent upgrades or has a superior appeal to those sales as measured in the market, upward adjustments would be applied.
· Sale Comparables: The relocation appraiser is required to include at least three closed sales like a mortgage appraisal but the relocation appraisal due to its forward looking analysis, necessitates the inclusion and analysis of competitive listings and pending sales. Even a recent closed sale may reflect a sale price that is not relevant to the “anticipated sale price” of your home, 120 days in the future. It's critical for a relocation appraiser have the skill level and ability to derive and apply market change adjustments to dated transactions as well as forecasting adjustments for other than stable markets. This is critical in Southern California home markets, as some neighborhood home prices continue to rise, some are stable and a few are showing moderate declines from historic highs. A relocation appraiser that will not or does not have the valuation skills to properly evaluate local neighborhood value trends does not comply with ERC guidelines and should not be selected to complete your relocation appraisal.
se feel free to contact our office at any time if any questions arise or we can provide assistance and make your job move less stressful for you and your family.
Certified General Appraiser
Email - scott@OCappraiser.net