San Diego Relocation Appraisal
Number One Relocation Appraisal Team in San Diego
If you want a committed and expert team of relocation appraisal specialists who will go the extra mile for you, then you need to get in touch with Burke Appraisal Services Inc. today. Our passion for what we do is second to none and, trust us, you won’t be disappointed.
Three Main Differences Between Relocation and Mortgage Appraisals
At Burke Appraisal Services Inc., one of the questions that we receive most commonly from our residential clients is to explain the difference between relocation and mortgage appraisals, and in all honesty, it is easy to see why this is the case. The reality is that there is a significant degree of overlap between both of these appraisals but that does not mean that they are identical. In fact, there are many differences between the two, and three of the most important can be found below:
- Intent: The first, and maybe most significant, difference between these two types of appraisals is intent—but what does this mean? So, in a normal home purchasing situation a mortgage appraisal is used and the reason for this is that it is the standard analysis of market trends that is designed to facilitate a loan and balance the risk for the mortgage company. This type of appraisal develops and provides an opinion of current market value based on closed sales in that locality. By contrast, a relocation appraisal is looking to find out the anticipated sale price of a property. What makes this different is that the anticipated sale price is a value designed for future sales and takes into consideration that the home could be in inventory rather than not.
- Comparable Properties Used: In the completion of a mortgage appraisal, the process can be brief and just use closed comparable sales. However, the relocation appraisal is far more comprehensive than this, and can often include competitive listings and pending sales as well as just competitive sales. The fact that so many employees are finding themselves in low-inventory markets means that it now makes more sense to use those pending sales as well as those competitors to determine the most accurate anticipated sale price possible.
- Type of Analysis Completed: When we at Burke Appraisal Services Inc. undertake a relocation appraisal in San Diego, the process can often involve the inclusion of forecasting. What is important to note is that forecasting is exclusive to relocation appraisals and is not a part of mortgage appraisals. It involves discounting or marking up the value of a property in relation to how it reflects current and future trends. On top of that, all our appraisals of this nature also include market-change adjustments. So, if your employee has seen appreciation in their market, past sales are then adjusted upwards to reflect this market increase.
Perhaps the most important thing to remember when it comes to relocation appraisals is that they are designed to determine the value of a future buyer rather than a current one, and that is what you really need to keep in mind.