Certified Relocation Professional (CRP) Practice Exam

The intended use of a relocation appraisal according to ERC is to assist whom?

1. The employer in calculating a cost of living allowance

2. The seller in obtaining financing

3. The employer in facilitating the employee relocation process

4. The seller with a marketing strategy for the house

The correct answer is: The employer in facilitating the employee relocation process

The correct answer highlights that the primary intended use of a relocation appraisal, according to the Employee Relocation Council (ERC), is to assist the employer in facilitating the employee relocation process. This function is critical because when a company relocates an employee, it needs to understand the value of the employee's current home to make informed decisions about relocation packages, including buyouts or reimbursements for home sale. By providing a clear assessment of a property’s value, the appraisal helps the employer estimate costs associated with the relocation and structure an appropriate support package for the employee. This ensures that employees are fairly compensated for their home sale, which can significantly affect their decision to relocate and their overall satisfaction with the relocation process. While assisting the employer is paramount, other aspects of relocation appraisals may include considerations for financing or marketing strategies, these are not the main focus for the appraisal in the context of employee relocation. The involvement of the employer is crucial since they bear the financial responsibilities and are invested in a smooth transition for the employee, which underscores the role of the relocation appraisal in this context.