Certified Relocation Professional (CRP) Practice Exam

In a situation where two appraisals and a broker market analysis are ordered, what is the most likely action taken by the relocation management company if the values differ?

1. Make an offer of $122,500 to the transferee

2. Make an offer of $123,333

3. Average the two highest of the three values

4. Order a third appraisal

The correct answer is: Order a third appraisal

When faced with differing values from two appraisals and a broker's market analysis, the relocation management company will typically seek to resolve the discrepancies to ensure a fair and accurate valuation. Ordering a third appraisal is a common practice in this scenario, providing an additional perspective on the value of the property. This approach helps to clarify any inconsistencies and allows the company to make an informed decision based on a broader range of data. Having a third appraisal means that the relocation management company can compare a new valuation against the existing ones, thereby providing a more reliable determination of the property’s worth. This avoids relying on a potentially skewed or inaccurate figure from one of the initial appraisals or analyses, ensuring that the transferee receives a fair offer. Using averages or making immediate offers based on the existing values without further verification could lead to errors in valuation. Thus, securing a third appraisal is a prudent action that aligns with best practices in the relocation industry.