Perhaps you have been promoted to a higher-level position in the company for which you currently work. The new job involves moving to a new city. Alternatively, maybe you have decided to pursue an entirely new professional opportunity in a different part of the country from where you currently live. Either way, you are looking at a relocation, for you and your family. If you own a home in the area where you currently live, getting a relocation appraisal can significantly streamline the moving process.
Like any other type of home appraisal, a relocation appraisal is meant to give you an idea of how much your home is worth. However, the monetary value that a relocation appraisal gives you can be significantly different from a mortgage refinancing appraisal. Even if the two types of appraisals were conducted at the same time, they would likely yield different findings.
How is that possible? The most dominant factor is timing. A home appraisal for mortgage financing or refinancing is meant to calculate the value of the home under normal market conditions. It looks at retrospective data to see how much the house in question was sold for in the past. It then factors in inflation, depreciation, and other variables to arrive at an estimated market value.
A relocation appraisal is different. Most relocation processes are relatively urgent. If you are moving for work, you probably only have a few weeks (or maybe a couple of months) to get your affairs in order and relocate. You need to get to the new city for your new job, which means getting your house on the market (and hopefully selling it) as soon as possible.
When you get a relocation appraisal, your appraiser will take this sense of urgency into account. Instead of looking at normal market conditions, the appraiser will consider current market conditions and trends. Usually, this process involves finding homes that have recently sold in your area. These properties are comparable to yours in size, style, features, age, and condition. By looking at data from these similar dwellings—including sale price, days on the market before sale, an initial asking price—the appraiser can get a sense of the current market demand and
value for your style of home. These findings, paired with an inspection to verify the condition of your home, provide you with an appraisal amount.
In the simplest of terms, a relocation appraisal is not about finding market value in “normal market conditions,” as most appraisals are. Instead, this type of appraisal is meant to give you an estimated sale price of your home right now. Any relocation appraisal will be conducted with the goal of helping you sell your home within a “reasonable length of time.” This “reasonable length of time” is usually 120 days or less from listing.
A relocation appraisal, in other words, can tell you how to price your home so that it sells quickly. A quick sale can give you the funds to buy a new home in your new town. It also means that you don’t have to deal with the stress of owning property in a place where you no longer live.
At Authority Appraisals, we have helped thousands of people and families execute fast and stress-free moves. For more information please Contact Us, if you are ready to get started please complete our Order an Appraisal form and we will be in touch with you a free appraisal quote.