CRPA Stakeholder Roles & Service Delivery 3 — Questions and Answers
Question 1: Which of the following best describes the 'buyer value offer' (BVO) program in corporate relocation?
- The employer offers to buy the home at the appraised value if no outside buyer is found within a set period
- The employer guarantees to buy the home only after an outside buyer makes an offer, then substitutes as buyer (Correct answer)
- The employer pays all buyer closing costs on behalf of the transferee's new home purchase
- The RMC negotiates a discounted purchase price from an outside buyer on behalf of the transferee
Correct answer: The employer guarantees to buy the home only after an outside buyer makes an offer, then substitutes as buyer
In a BVO program, the employer steps in as the buyer only after an outside buyer has made an offer, avoiding the employer holding inventory.
Question 2: When two independent relocation appraisals differ by more than the policy threshold, what mechanism is typically employed?
- The higher value is automatically used to protect the transferee
- The lower value is used to protect the employer's financial exposure
- A third appraisal is ordered and a reconciled or averaged value is determined (Correct answer)
- The corporate HR director selects the value that aligns with budget
Correct answer: A third appraisal is ordered and a reconciled or averaged value is determined
Most ERC-aligned programs call for a third appraisal when two appraisals diverge beyond a set threshold, with reconciliation per policy.
Question 3: What is the primary reason relocation appraisers use only arm's-length sales as comparable transactions?
- USPAP prohibits the use of non-arm's-length sales in any appraisal
- Non-arm's-length sales may not reflect true market value due to atypical motivations (Correct answer)
- ERC guidelines require at least three arm's-length sales within 90 days
- Lenders will not accept appraisals containing distressed or foreclosure comparables
Correct answer: Non-arm's-length sales may not reflect true market value due to atypical motivations
Non-arm's-length sales involve motivations (foreclosure, family transfers) that distort market value and are excluded to ensure accuracy.
Question 4: Which stakeholder is responsible for coordinating the physical inspection of the transferee's property during a relocation appraisal?
- The corporate employer's real estate department
- The RMC, which schedules access with the transferee (Correct answer)
- The appraiser independently contacts the transferee to set inspection
- The destination city's relocation office
Correct answer: The RMC, which schedules access with the transferee
The RMC typically schedules and coordinates property access between the appraiser and transferee to ensure smooth service delivery.
Question 5: A relocation appraiser discovers the subject property has an underground oil tank that was not disclosed. What is the appropriate action?
- Ignore it since environmental issues are outside appraisal scope
- Value the property as if the tank does not exist and note no extraordinary assumptions
- Note the presence of the tank, invoke an extraordinary assumption about its impact, and recommend environmental remediation assessment (Correct answer)
- Decline to complete the appraisal until a Phase I environmental study is provided
Correct answer: Note the presence of the tank, invoke an extraordinary assumption about its impact, and recommend environmental remediation assessment
Appraisers must note observed adverse conditions, use extraordinary assumptions where appropriate, and recommend expert follow-up.
Question 6: Under ERC guidelines, the appraiser's forecasting period for a relocation appraisal typically represents expected marketing time within how many months?
- 3 months
- 6 months (Correct answer)
- 12 months
- 24 months
Correct answer: 6 months
ERC guidelines generally target a 0–6 month forecasting period reflecting the expected marketing exposure for a competitively priced property.
Question 7: Which party typically reviews the relocation appraisal report before it is presented to the corporate client or transferee?
- The transferee's personal attorney
- The RMC's appraisal review team or coordinator (Correct answer)
- The destination lender's underwriting department
- The local assessor's office
Correct answer: The RMC's appraisal review team or coordinator
The RMC performs an administrative and technical review of appraisal reports to ensure quality and compliance with program guidelines before delivery.
CRPA Stakeholder Roles & Service Delivery 3
Which of the following best describes the 'buyer value offer' (BVO) program in corporate relocation?