What is a Relocation Appraisal?
A relocation appraisal is an estimate - a highly educated estimate - of the most probable sales price at which your home will sell in the current market within a reasonable length of time based on the market data (sales comparison) approach to value. The appraiser inspects the home, analyzes the factors that influence the market and reaches a value conclusion.

A "reasonable" length of marketing time depends on the condition in your community, but the Employee Relocation Council suggests that "..a reasonable period is typically up to 120 days unless market conditions indicate otherwise." The appraisal is made as of a specific date and the value estimate submitted should remain valid over the "normal marketing" time, assuming no market changes.

For better or worse, the value of your home does not remain the same. Its value today is probably not the same as when you bought it, and it probably won't be the same in six months or next year. Value appreciation was a fact of life in the 1970's, but that may no longer be true. In some parts of the country, property values have increased slightly, stayed about the same, or even declined.

The Appraiser and Selecting an Appraiser
Richard Cunningham has provided high quality professional relocation appraisals since 1972. The mission of the firm is to provide professional judgement in an accurate, personal and timely manner. The firm covers the Greater Kansas City Metropolitan Area - Johnson, Wyandotte, Leavenworth and Douglas counties in Kansas. Platte, Clay and Jackson Counties in Missouri. An independent appraiser provides an objective value estimate.

Selection process may be a recommendation or you may have to interview the appraiser. Ask the appraiser about their qualifications and experience. Richard Cunningham is a member of the Appraisal Institute, Employee Relocation Council (ERC) and Relocation Appraisers and Consultants, Inc. (RAC). These organizations require continual education in the appraisal and relocation process. The Appraisal Institute offers the "SRA" designation and the ERC provides the "CRP" designation which have been obtained by Richard Cunningham

The Appraisal Process
Different "approaches" can be applied in the analysis of real property. To value a single-family home, the market data (sales comparison) approach is the most commonly used. To apply this technique, similar homes in the area which have recently been sold are compared to you home. To be comparable, these homes should be similar to yours in size, style, condition, age and construction. If recent sales are scarce, then the appraiser may have to consider slightly older sales to look outside the immediate community to find comparables. Adjustments are made for any differences between the comparables and your home.

As appraisers gather and verify data about completed sales, pending sales (currently under contract), and listings, 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? Did favorable financing affect the price of the property and its sale?

Information about your home available from public records-e.g., the deed, taxes, zoning, transfers of ownership, restrictions, assessments-will be examined buy the appraiser. Neighborhood characteristics including the proximity to needed services such as schools, churches, and shopping will be studied. The appraiser will also consider the current market for homes like yours, buying trends that might affect a sale, and the availability and terms of financing, which influence people's ability to purchase homes.

To ascertain your home's condition and marketability the appraiser will make a personal inspection, examining the site, exterior design and appeal, interior appearance and decorating, plumbing, heating, wiring, maintenance and functional utility. An appraisal assignment requires an appraiser to report 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 your community considers all relevant data to produce an estimate of market value for your home. When the property is unusual or market information is limited, different appraisers may have diverging options. In most cases however, a narrow range of value will be reached. Appraising is an art and not a science and is the best considered judgment of a professional appraiser.

You Can Help the Appraiser...and Yourself
Don't hesitate to provide the appraiser with any information or records that might facilitate the appraisal process and lead to a proper value conclusion. Relevant factual data includes...

• A plat plan or survey of the house and land
• Your property deed, which contains a legal description of the property.
• Your most recent real estate tax bill
• Your mortgage, showing the type, terms, and whether or not it is assumable.
• A factual record of recent sales and listings in the neighborhood, which can be verified by the appraiser.
• Your title policy describing encroachments.
• A list of personal property to be sold with the house.
• A 'brag' sheet listing major home improvements and upgrades, the date of their installation, and their cost.

You may want to ask the appraiser some questions about the appraisal process. Professional standards of practice prohibit appraisers from discussing the details of the appraisal assignment with you if the appraisal was requested by your employer or the relocation management company. Nevertheless, they can tell you what appraisers generally look for and how different property characteristics will be weighted in the analysis.