Relocating an Employee Within the United States

Appraisals

Most programs require the company or the employee to obtain an appraisal of the property.

An appraisal compares the property to other listings and sales in the appropriate geographical area to establish the value of the property. The analysis also considers broader factors such as:

• interest rates
• the general real estate market
• the local and national economy

The end product is a "best guess" of the current value. While this analysis does examine the condition of the home, it doesn’t include the employee’s mortgage balance or equity in the home.

Appraisals are judgments made by experts. But because people often have inaccurate ideas about the value of their homes, there will inevitably be differences of opinion. What’s the best way to solve this dilemma? Have more than one appraisal performed.

Q: What happens if the two appraisals are far apart?

A: A third appraisal may be performed. If the third appraisal is close in value to one of the first two appraisals, then the average of the two close appraisals are used. To find out about real estate appraisers, go to: American Society of Appraisers

Although good appraisals are expensive, they can save money and the feelings of the employee in the long run.

Here’s what could happen because of inaccurate appraisals…

It may be useful to obtain a Broker’s Market Analysis in addition to the appraisals. This is a real estate broker’s estimated fair market value for the property.