Appraisals for relocation and refinancing are each completed for a different intended use. Each appraisal is based on a different definition of value, with its own specific guidelines that affect the development of the valuation.
The relocation appraisal is based on an anticipated sale of the property during a defined, reasonable marketing period and the analysis considers what market trends and conditions may impact the property while it is exposed for sale. The mortgage appraisal is based only on a retrospective analysis of past sales transactions and reflects normal market conditions.
While the procedures followed in each type of appraisal are similar, an appraisal to facilitate corporate relocation must reflect “Anticipated Sales Price,” not “Market Value.”
Source: “World Wide ERC”