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Relocation Appraisals: What’s Not to Like? - read story
> Relocation appraisals are one of the most challenging, yet fulfilling
appraisal assignments an appraiser can undertake. They are challenging because
you will be tested and evaluated on your ability to predict future events.
Fulfilling, because the terms of the assignment generally require you to really
examine the market, get paid enough to do a complete analysis and also because
the relocation company will generally follow up with you with a 'report card' of
your track record for accuracy.
Generally, relocation companies are not interested in market value. The purpose
of the appraisal is usually to develop an opinion of the 'Most Probable Sales
Price' under specific circumstances. The specific circumstances usually include
considering a marketing time not to exceed XX days.
Your opinion is developed by consideration of comparable sales and competitive
listings. Verification of data, especially terms of sale along with interior
features and decor is of the utmost importance. A good relationship with a
number of real estate brokers and salespersons is a plus. Finding the
neighborhood specialist will work in your favor, along with examination of
interior photos and virtual tours from your MLS.
It's common for the relocation company, at least in my market, to obtain at
least two independent appraisals. The opinions of Most Probable Sales Price must
fall within the company's accepted range. If they vary by too much or if there
are significant differences in gross living area calculations and market data,
you will be getting calls from them.
In my experience, the folks at relocation companies are real pros. They know
their business, they know appraisals and they want accuracy. I generally insist
on twice the amount of time they expect for turnaround (I'm a slow and thorough
appraiser) and usually I negotiate a fee about 25% to 30% more than they expect
to pay. Because of the time involved and the length of the appraisal report,
your minimum fee should be two-three times what you charge for a Fannie Mae
1004. Take a relocation appraisal course from one of the relocation companies or
the ERC. You need to become familiar with forecasting and "neutralizing." -
Francois K. Gregoire