1. “Don't Throw a Curveball” What's the Difference – Regular or Relo for Mortgage, Appraisal and Inspections?

2. “Don't Throw a Curveball” What's the Difference – Regular or Relo for Mortgage, Appraisal and Inspections? Panelists
Introductions, Erica Burton – Chase Moderator: Brit Bemis – Churchill Living Kathryn Graham – Abbott Labs Tony Dougherty – Aires Relocation Larry Sontag – Fidelity Residential Solutions

3. Agenda/Objectives The Home is a COMPLEX and AMAZING structure
Type of reports used for parties to a relocation home sale and why
INSPECTION - Relocation Property Assessment Report (RPA)
Purpose, scope, objective and definition
Differences between the RPA/Inspection and Buyers Report
INCLUSIONS and Considerations (WERC Protocols)
EXCLUSIONS and NON-Considerations (Outside influence)
APPRAISAL – Differences between Mortgage and WERC Appraisal
Mortgage Appraisal Form
WERC Summary Appraisal Form
Quick comparison of both appraisal forms
Q & A

4. The Home is a COMPLEX and AMAZING Structure (Mixes Fire & Water for 100 Years!)

5. Relocation Property Inspection & Appraisal Reports
There are multiple parties with each home sale. Balancing all their needs can be a ”CLIFF-HANGER”:
Transferee/Seller
Corporate Client
RMC
Buyer
Lender
For the relocation suppliers our customer is the corporate client
To help the client manage risk and cost, TWO industrywide accepted reports are used:
The WERC Relocation Property Assessment Report (RPA)
The WERC Summary Appraisal Report
Other parties to transaction – Buyer and Lender
These parties have different needs, motives and requirements
Therefore, they use their own report types

6. Relocation Property Assessment Report RPA – WERC Inspection
PURPOSE AND SCOPE - To provide a professional “opinion” of a relocating employees home and it’s immediate surrounding area in its “as-is” condition, as of the “date of assessment”, limited to the definition and guidelines established by the Client using a standard industry accepted Property Assessment document.
OBJECTIVE - To provide the Client with data about the employee’s home and immediate area, based on a visual assessment of items identified by category, in a Property Assessment document with supporting pictures, etc.
DEFINITION – A visual, “non-invasive” evaluation and status report of the items identified by category, reporting apparent defects (not including cosmetic deficiencies) that call for corrective action, limited to the following categories:
Structure
Unsafe or hazardous condition
Inoperative systems or appliances

7. RPA Inclusions and Considerations
Subject to purpose, scope, objectives, definition, policy & protocols established by WERC guidelines. THE Challenges – Why is RPA different from Buyer report? Functionality (Works or doesn’t work on “date of inspection” - AC example) Intended Use (Garage door is dented needs paint, but works as intended) Presence/Or Lack Thereof (Something breaks or is removed after inspection - Smoke detectors) Accessibility (Attic or crawl space inaccessible) Safety (Local code does not apply) Policy (Driven by RMC or Client Policy as well as RPA guidelines)

8. RPA Exclusions & NON-Considerations THE Challenges – Why is RPA different from Buyer report?
CHANGING CONDITONS
Time between inspection and sale, locals factors, personal tastes, vacant home, buyer views home 24 hours before closing
INFLUENCERS
Buyer’s Realtor and inspector offer input, buyers perception, etc.
EXCLUDED PHYSICAL PROPERTIES
Local code compliance, efficiency or future performance available to buyer, not in RPA
No Open Dialogue in RPA
RPA and Buyer’s reports serve completely different “Needs & Purposes”!
They naturally compete against each other

9. Appraisal Reports The differences between Mortgage and WERC Appraisals
Mortgage Appraisal – FNMA Form 1004/FHLMC Form 70
Uniform Residential Appraisal Report – Revised March 2005
Intended Use - Lender/Client - To evaluate property for a mortgage finance
Meets Uniform Standard of Professional Appraisal Practices
6 pages, 3 comps, valuation as of “date of appraisal”
Approximately 1300 data points of information
“Indicated” Value – Comparison/Cost/Income (If applicable)
Includes Cost Approach as well as Comparable Value
Contains street map and pictures of subject and comps
Appraiser sketch of the exterior buildings dimensions
Real estate purchase contract may contain Appraisal Rider
If property does not appraise for sales price, seller must accept lower appraised price, or buyer may void contact

10. Appraisal Reports The differences between Mortgage and ERC Appraisals
WERC Summary Appraisal Form
Intended use - Assist the employer with an “opinion of the anticipated sales price”
7 Page form developed by WERC - Revised in 2010
3 sales comps, PLUS 3 “Listings” comps
Approximate 1900 data points of information
Forecasted Trends Section (Predict the future using known data)
Marketing Time up to 120 days
Market Segment – Forecasting pricing increases or decreases in sales activity
Forecasting Adjustment - Historic trends and factors that require a price adjustment (If applicable) based on assignment marketing period (e.g., mood of market, season, economic and employment shifts, demographics trends, buyer profiles, etc.)
Value listed as “Anticipated Sales Price”
Typically “Two” appraisals using average of both, possible third if out of spread

11. Appraisal Reports Quick summary between Mortgage and WERC Appraisals
Relocation
Intended Use
Facilitate Mortgage Lending
Facilitate Corporate Relocation
Purpose
Estimate Market Value
Estimate Anticipated Sales Price
Form
Uniform Residential Appraisal (1004)
WERC Summary Appraisal Form (updated 2010)
Market Value
Exposure Precedes Date of Appraisal
Marketing Occurs AFTER Date of Appraisal
Decision Making
Immediate
Future (up to 120 days)
Marketing Time
None/Sold
days
Retrospective Analysis
No Forecasting
Forecasting Trends
Design
FNMA/FHLMC Guidelines
WERC Relocation Centric
NOTE: ALL appraisals are OPINIONS produced by human beings!

12. Any Questions?
Thank You!