Appraisal Challenges in the U.S.: What They Mean for Relocation Managers
Posted by: Ken Eng, Director, Supply Chain Management
The relocation industry has been concerned with several market factors that have been affecting the appraisal process in the U.S., and we anticipate further impact to the appraisal process in 2017 and beyond. The number of trained appraisers that have knowledge of, and experience using, the Worldwide ERC® form has declined by almost 30% since 2008. The financial crisis caused many appraisal firms to trim down, but in general, the average age of appraisers has been rising for many years. Without a steady stream of new appraisers to take their place, appraisers that are experienced in using the ERC form and appraisal concepts are now in short supply.
With the demand for real estate being quite active due to low interest rates, banks are competing for appraisers as well. This combination of factors is causing turn times, meaning the amount of time required from authorization to delivery of the written report, to exceed historic norms. As a result, delays are occurring in all areas of the market.
What Do Relocation Managers Need to Know?
Cartus is doing everything possible with our suppliers to ensure a steady flow of qualified appraisers. We are in close contact with our suppliers to receive alerts as soon as they are aware of any potential delays, and we consult with our clients to alert them of the situation and that delays are possible. In certain situations, companies may also consider alternative methods of valuation. We are well versed in alternative methods of valuation to meet the needs of clients and relocating employees (e.g., BMA for Value (one or two), or one appraisal versus two).
If you have any specific questions or concerns, please reach out to your Cartus representative. We will continue to monitor this situation and update you as updates are available.
Additional Resources for U.S. Relocation Managers
If you didn’t have a chance to attend Cartus’ Worldwide ERC® webinar, Tips and Tools for Understanding the U.S. Real Estate Market, and Its Impact on Your Relocation Program, listen to a recording or view a PDF of the presentation. In the webinar, Tom Lacey of Cartus and Anthony Cristaudo of Cartus Home Loans discussed the current market, and tips and tools to help manage expectations for your transferees and your organization.