What You Need To Know About Relocation Appraisal

A relocation appraisal is a type of property appraisal specifically conducted when an employee is being relocated by their employer. It is used to determine the fair market value of the employee's current home to facilitate the buyout process by the employer or a relocation company. Here are some key insights about relocation appraisals:

1. Purpose: The primary purpose is to provide an objective estimate of the home's value to ensure a fair and accurate buyout price, helping the employee sell their home quickly and move to the new location without financial loss.
   

2. Process: The appraisal process for relocation is similar to a standard home appraisal but may have additional requirements set by the relocation company or employer. This includes a detailed inspection of the property and an analysis of comparable sales in the area.

3. Timeline: Relocation appraisals often have a faster turnaround time compared to regular appraisals to accommodate the quick timelines involved in job relocations.

4. Two Appraisals: Sometimes, two independent appraisals are required to ensure accuracy. If the values differ significantly, a third appraisal may be commissioned to reconcile the differences.

5. Market Trends: The appraiser will consider current market conditions, trends, and any factors that might affect the property's value in the near future.

6. Report: The appraisal report will typically include a detailed description of the property, photos, floor plans, a neighborhood analysis, and a comprehensive comparison with recently sold homes in the area.

7. Cost: The cost of a relocation appraisal can vary but is often higher than a standard appraisal due to the quick turnaround and additional requirements.

8. Role of Employer: Employers or relocation companies usually handle the logistics and costs associated with the relocation appraisal, making the process smoother for the employee.

Having a good grasp of the details of relocation appraisals can contribute to a more seamless transition for employees and aid employers in better overseeing the relocation process.