1.32.13  Relocation Services Program

Manual Transmittal

November 27, 2013

Purpose

(1) This transmits revised IRM 1.32.13, Servicewide Travel Policies and Procedures, Relocation Services Program.

Material Changes

(1) We incorporated the changes resulting from new relocation services contract changes, including new terms and business processes.

(2) A summary of updates is listed below:

Item Section Explanation
1 1.32.13 3 (1), Authorities Deleted incorrect authority.
2 1.32.13.3 (1), Authorities Added correct authority.
3 1.32.13.5 (1) (o), Definitions Added a term for Contracting Officer's Representative (COR).
4 1.32.13.6, Acronyms Deleted acronym COTR.
5 1.32.13.6, Acronyms Add the new acronym COR.
6 1.32.13.7 (3), General Rules Revised paragraph.
7 1.32.13.9 (3) (b),(c) and (d), Residence Eligibility and Title Requirements Revised to match FTR requirements.
8 1.32.13.10 (1), Exclusion Clause Revised the exclusion clause according to the terms in the new contract.
9 1.32.13.11, Pre-Transfer Counseling Revised title to Pre-Counseling Services to reflect the title in the new contract.
10 1.32.13.13, Home Marketing Assistance (3) (e) Adds a new allowance for marketing assistance.

Effect on Other Documents

(1) This supersedes IRM 1.32.13, dated October 4, 2011.

Audience

All Divisions and Functions

Effective Date

(11-27-2013)


Robin L. Canady
Chief Financial Officer

1.32.13.1  (11-27-2013)
Overview

  1. This guidance is intended to assist employees using the relocation services contract. It helps you identify the benefits to which you are entitled and your options. Employees should use it as a reference tool when discussing their options under the relocation services contract with the Beckley Finance Center (BFC) relocation coordinators.

  2. IRS provides relocation services for transferring employees through a contract under the Government's Relocation Services Program. The use of specific services offered by the relocation services contractor is not an entitlement and must be approved by an IRS Deputy Commissioner.

  3. Under the Relocation Services Program, the Government pays a fee for services provided by the contracted relocation company. The type of service used and the property selling price determine the amount of the fee paid by the IRS.

  4. See IRM 1.32.13.31, Exhibit I, Summary of Services, for a list of services available through the relocation services contractor.

  5. See IRM 1.32.13.32, Exhibit II, Timeline for Key Relocation Actions, for a list of actions that occur during the sale of an employees home.

1.32.13.2  (11-27-2013)
Background

  1. IRS offers relocation services through Allegiance Relocation Services (ARS) under a contract with Department of Homeland Security (DHS) and is bound by all DHS established contract terms and conditions. IRS can not amend the contract.

  2. The Federal Travel Regulation (FTR) is the controlling source for rules governing Federal civilian relocations; Chapter 302 - Relocation Allowances, FTR, details Federal civilian relocation requirements.

1.32.13.3  (11-27-2013)
Authorities

  1. 5 USC § 5724c, Relocation Services.

  2. Title 41, CFR Chapters 300-304, Federal Travel Regulation (FTR).

1.32.13.4  (11-27-2013)
Related Resources

  1. IRM 1.32.1, Official IRS Local Travel Guide.

  2. IRM 1.32.11, Official IRS City-to-City Travel Guide.

  3. IRM 6.610.1, Hours of Duty and Work Scheduling.

1.32.13.5  (11-27-2013)
Definitions

  1. In this IRM, the terms below have the following meanings:

    1. Acceptance Period - A fixed period of time that employees have to accept an offer, beginning when employees verbally receive the Guaranteed Buyout Offer and lasting until the date employees accept the offer or until it expires, whichever is sooner.

    2. Adjusted Sales Price - The indicated price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.

    3. Amend From Zero Sale - This type of sale occurs when the employee receives an acceptable bona fide offer from a qualified buyer prior to completion of the appraisal process by the relocation services contractor.

    4. Amended Value Sale - This type of sale occurs when the employee receives an acceptable bona fide offer from a qualified buyer after the relocation services contractor has completed the appraisal process. The contractor amends its offer to match the qualified buyer's offer. If the sale to the outside buyer falls through, the Guaranteed Buyout Offer to the employee remains valid.

    5. Anticipated Sales Price - The price at which a property would probably sell, if exposed to the market for a reasonable period of time in "as is" condition, where payment is made in cash or its equivalent and where both parties are well informed and acting in what they consider their best interests.

    6. Appraisal - An estimate (opinion) of value prepared by an independent professional who is familiar with all the factors that may affect the sale.

    7. Appraisal Specialist - Relocation services contract employee who is responsible for ordering and reviewing the appraisals performed on a property.

    8. Appraised Value - A contract of sale extended to an employee to buy the employee's property based on upon the average of a specific number of appraisals.

    9. As Is Condition - The condition of the property at the time of the Broker Market Analysis and/or appraisal.

    10. BFC Relocation Coordinator - The primary IRS liaison who initiates the employee into the relocation program and serves as the IRS main point of contact between the employee and the relocation services contractor.

    11. Bona Fide Offer - An offer that is not contingent upon the sale of the potential buyer’s home and that can reasonably be expected to go to settlement at its original terms and conditions from an able and willing buyer within 60 days of execution of the offer agreement. The offer must not contain any contingencies except those providing that the purchaser must qualify for financing under terms or conditions generally prevailing in the marketplace at the time the offer is made and those providing that the seller must convey marketable and insurable title.

    12. Broker’s Market Analysis (BMA) - A real estate broker’s written market analysis of recent comparable sales and listings with suggestions for marketing strategies.

    13. Carrying Costs - Recurring costs applicable to the property including, but not limited to, mortgage interest, property taxes, and any outstanding liens or encumbrances.

    14. Comparable - A property which is equivalent to the subject property and which is used as the basis to establish appraisal value. Recent sales and competitive listings are two examples.

    15. Contracting Officer's Representative (COR) - An individual designated and authorized in writing by the contracting officer to perform specific technical or administrative functions.

    16. Equity - The appraised or amended value of a property less any outstanding mortgage balances, equity advance funds, pro-rations until vacate date on mortgage interest, taxes and homeowners association dues. Equity reflects any other deductions that are applicable, such as non-reimbursable items under the FTR.

    17. Equity Advance - When the relocation services contractor provides the equity due in advance of closing, usually for the purpose of closing on another home. It is calculated by subtracting the balance due on the mortgage and/or other liens from the appraised value of the home and pro-rating mortgage interest and taxes to the expected acceptance date or vacate date, whichever is later.

    18. Exclusion Clause - A provision placed in a listing agreement in which the broker acknowledges that he/she earns no commission if the home is sold to the relocation company.

    19. Guaranteed Buyout Offer - The offer by the relocation services contractor to purchase an employee's principal residence. The offer amount is typically based on the average of two or more appraisals with a fixed acceptance period.

    20. Home That Cannot Be Financed - A home that does not meet applicable industry criteria for a mortgage loan, as determined by a reputable institutional lender, such as a bank, savings and loan, or mortgage company authorized to conduct business in the area; criteria for mortgage loans are not limited to particular types of loans, such as FHA, VA or loan eligible for repurchase under guidelines established by other organizations.

    21. Home That Is Not Insurable - A home that does not meet applicable industry criteria for the issuance of a standard homeowners insurance policy as determined by a reputable insurance company authorized to conduct business in the area or a home in which the employee does not hold insurable title, as determined by a reputable abstract or title company authorized to conduct business in the area.

    22. Inspection - A professional examination of a home’s major components which may include, but is not limited to, exterior, foundation, framing, plumbing, septic, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing, and interior.

    23. Listing Agreement - A contract between a seller and broker authorizing the broker to perform services involving the seller’s property or for the purpose of securing persons to buy, lease or rent property.

    24. Marketing Time - The average list-to-sell time for residential property in the area, calculated according to industry standards, as published by the applicable Multiple Listing Service (MLS) or other appropriate organization.

    25. Multiple Listing Service (MLS) - A marketing database set up by a group of cooperating real estate brokers to provide accurate and structured data about properties for sale and for rent.

    26. Property Legal Description - A description by which property can be located by reference to government surveys or approved recorded maps.

    27. Property Management - Services provided by the relocation services contractor that cover renting and maintaining property at the old post of duty.

    28. Property Management Counselor - The individual assigned by the relocation services contractor who works with the employee and the rental agent throughout the term that the home is in the program.

    29. Re-evaluation Process - An opportunity afforded to the employee to contest the Guaranteed Buyout Offer by providing additional objective information. The additional information will be evaluated by the original appraisers, which could result in a higher, equal, or lower Guaranteed Buyout Offer.

    30. Relocation Appraisal - The process by which the anticipated sale price of a residential housing unit, using the market data approach to value, is established for a relocating employee’s residence. The purpose of this appraisal is to establish the anticipated sales price for a transferee's residence.

    31. Relocation Services Contractor - A third-party supplier under contract with an agency to assist a transferred employee in relocating to the new official station.

    32. Relocation Services Counselor - The individual designated by the relocation services contractor to serve as the primary liaison between the relocation services contractor and the IRS relocating employee.

    33. Sales Comparison Analysis - An assessment which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions.

    34. Title - All interest held by the employee in the home. For purposes of the home sale portion of the relocation services contract, title means interest in real estate that is marketable and insurable under applicable state law.

    35. Worldwide Employee Relocation Council (WERC) - Trade association representing the relocation industry. The WERC creates policy guidelines and provides a forum for continuing education on all aspects of relocation.


1.32.13.6  (11-27-2013)
Acronyms

  1. The following chart contains acronyms that are used throughout this IRM:

    ACRONYMS DESCRIPTION
    ARS Allegiance Relocation Services
    AV Amended Value Sale
    AZ Amend From Zero Sale
    BMA Broker's Market Analysis
    COR Contracting Officer's Representative
    FTR Federal Travel Regulation
    GBO Guaranteed Buyout Offer
    GSA General Services Administration
    MLS Multiple Listing Service
    TCS Temporary Change of Station
    WERC Worldwide Employee Relocation Council

1.32.13.7  (11-27-2013)
General Rules

  1. The Relocation Services Program is designed to assist employees to relocate from one duty station to another. Its primary benefit is, known as the Guaranteed Home Sale service and is offered to employees who must sell their primary residence. It also offers other valuable services which can greatly help employees with their relocation. Some of these services are at no cost to both the Government and to the transferring employee. The Relocation Service Program is not mandatory, but may be used at the sole discretion of the transferring employee if authorized by the appropriate approving official.

  2. The employee has the option of selling the residence independently. If the employee uses direct reimbursement, IRS does not guarantee a sale at an appraised value nor does it purchase the property from the employee but it does reimburse some or all direct selling costs.

  3. If the employee is selling his/her home as part of the relocation process, IRS requires that he/she include an Exclusion Clause in the listing agreement with a real estate broker. See IRM 1.32.13.10, Exclusion Clause, for additional information.

  4. An employee may use the relocation services contract so long as sufficient time remains for the home sale settlement to be completed as required under 41 C.F.R. § 302.11-21. Generally, settlement must occur no later than 1 year after the day that an employee reports for duty at the new official station unless the employee timely submitted and was granted an extension as provided under 41 C.F.R. § 302-11.22 and 302-11.23.

  5. An employee may use the relocation services contract only for eligible properties that are properly titled. See IRM 1.32.13.9, Residence Eligibility and Title Requirements, for additional information.

  6. If there are any problems relating to the use of the contract, contact your assigned BFC relocation coordinator.

  7. IRS suggests that any househunting trips be delayed to the new station until the employee received a realistic assessment of the value of their residence at the old station. A Broker’s Market Analysis (BMA), appraisal, or an offer for the residence would provide such an assessment.

  8. If the employees residence is listed on the market as a mortgage short sale they should let their BFC relocation coordinator know before requesting to use the relocation services program.

  9. The use of the IRS relocation services contract requires the approval of an IRS Deputy Commissioner.

1.32.13.8  (11-27-2013)
Eligibility

  1. The following employees are eligible to use the relocation services contract:

    1. All executives (employees relocating to positions covered by either the IRS or the Chief Counsel Executive Resources Board).

    2. Employees relocating to management, management official, and other professional positions, when the move is in the best interest of the Government and not primarily for the benefit of the employee.

    3. Employees relocating to non-professional positions when the move is involuntary.

1.32.13.9  (11-27-2013)
Residence Eligibility and Title Requirements

  1. Relocating employees may use the relocation services contract for the home that serves as their principle residence only. The following properties are not considered eligible residences for purposes of contract use:

    1. Mobile/Manufactured homes.

    2. Cooperatives.

    3. Houseboats.

    4. Homes that are uninsurable.

    5. Homes that cannot be financed by FHA, VA, or other conventional financing programs.

    6. Homes on which construction has not been completed.

    7. Homes that do not comply with state and local codes.

  2. The FTR requires that the title to the home be held in one of the following manners:

    1. Your name alone.

    2. Jointly in your name and one or more members of your immediate family.

    3. Solely in the name of one or more members of your immediate family.

  3. For titling purposes, immediate family members include:

    1. Spouse, excluding divorced, or legally separated spouses. Changes in marital status may affect your eligibility.

    2. Domestic partner.

    3. Children of the employee, of the employee’s spouse, or of the employee’s domestic partner, who are unmarried and under 21 years of age or who, regardless of age, are physically or mentally incapable of self-support. The term children includes natural offspring, stepchildren, adopted children, grandchildren, legal minor wards, or other dependent children who are under legal guardianship of you, your spouse, or domestic partner; and unborn child(ren) born and moved after the employee’s effective date of transfer.

    4. Dependent parents (including step and legally adoptive parents) of the employee, of the employee’s spouse, or of the employee’s domestic partner.

    5. Dependent brothers and sisters (including step and legally adoptive brothers and sisters) of the employee, of the employee’s spouse, or of the employee’s domestic partner, who are unmarried and under 21 years of age or who, regardless of age, are physically or mentally incapable of self-support.

  4. The FTR also stipulates certain "eligible" title circumstances. If the title search, ordered by the relocation services contractor for your property, indicates someone who appears to be “non-eligible” based on the regulations, the relocation services contractor will seek clarification.

  5. During the initial call with your relocation services counselor, you will be asked who holds the title to the home. It is important to notify the relocation services counselor of any conditions you are aware of regarding your interest in the property. Should a title condition exist, based on the FTR, whereby a non-eligible person owns an interest in your residence, you will not be able to continue in the program.

  6. If your home has land in excess of that which reasonably relates to the residence site, IRS will pay the relocation services contractor the proportional share of the contract fees which relate to the residence site.

1.32.13.10  (11-27-2013)
Exclusion Clause

  1. The purpose of the exclusion clause is to preserve the right to sell your home to the relocation services contractor, if necessary, without incurring a real estate commission. However, if you sell your home through the home sale program, you pay no closing costs. If the relocation services contractor acquires the property, the relocation services contractor will pay the real estate closing costs. This is a tax advantage to you per the amended value sale process. Agents who work with relocating employees are familiar with this type of clause:

    Exclusion Clause

    It is understood and agreed that regardless of whether or not an offer is presented by a ready, willing and able buyer:

    (1) No commission or compensation shall be earned by, or due and payable to broker(s) until sale of the property has been consummated between seller(s) and a buyer, the deed delivered to the buyer and the purchase price delivered to the seller(s), and
    (2) The seller(s) reserve the right to sell the property to_________ (Name of contractor) or (Name of any other party to be covered by this exclusion clause) (individually or collectively a "Named Prospective Purchaser" ) at any time. Upon execution of a Name Prospective Purchaser and me (us) of an Agreement of Sale with respect to the property, the listing agreement shall immediately terminate without obligation on my (our) part of any Named Prospective Purchaser to either pay a commission or to continue this listing.

    Note:

    Without the clause, you will not be able to enroll in the program.

1.32.13.11  (11-27-2013)
Pre-Counseling Services

  1. Pre-counseling services are available at no cost to employees who have already decided to take a transfer as well as employees who are still in the decision-making process.

  2. Pre-counseling services can assist with:

    1. Reviewing property and employee eligibility requirements.

    2. Explaining the program services available.

    3. Providing information that may help avoid decisions that result in out-of-pocket expenses.

    4. Exploring both rental and purchase options at the new duty station.

1.32.13.12  (11-27-2013)
Broker's Market Analysis

  1. The Broker's Market Analysis (BMA) is a method of evaluating recent comparable sales and listings and helps assess the value of a property. It also provides the relocation services contractor with information regarding the local market conditions.

  2. The relocation services contractor contacts a reputable local real estate professional and requests a BMA. This is completed on a Worldwide Employee Relocation Council (WERC) Broker's Market Analysis and Strategy Form.

  3. The BMA is not an appraisal, nor is it used to determine the Guaranteed Buyout Offer.

  4. The relocation services contractor will provide two BMAs at no cost to you, or the IRS.

1.32.13.13  (11-27-2013)
Home Marketing Assistance

  1. Under this program, the relocation services contractor assists relocating employees in finding a buyer for his/her property while in the relocation program.

  2. In order to be eligible for Home Marketing Assistance, you must list your home with a real estate broker. The percentage of the real estate commission in your listing agreement should equal the standard rate charged for the area. You are responsible for the cost of any commission above the standard rate.

  3. The relocation services contractor will work with you and your agent to generate an offer for your home. Relocation services counselors are available to help with the process of:

    1. Selecting a qualified real estate agent.

    2. Setting a list price.

    3. Promoting and advertising your home.

    4. Handling the offer negotiation process.

    5. Recommending repairs or improvements to enhance salability.

1.32.13.14  (11-27-2013)
Home Sale Assistance

  1. The Home Sale Assistance Program includes the following programs:

    1. Guaranteed Home Sale/Guaranteed Buyout Offer (GBO).

    2. Amended Value.

    3. Amended from Zero.

    4. Closing Assistance Only.

  2. IRS expects you to market your home until you:

    1. Receive an independent offer.

    2. Accept a Guaranteed Buyout Offer from the relocation services contractor.

    3. Decide to take your home off of the market and not sell at the present time.

  3. Once IRS notifies you that you have been approved to use the Home Sale Assistance Program, a relocation services counselor will contact you to explain the program. After this initial phone call, you will receive an introductory packet containing forms, documents and instructions on the relocation program. You will be asked to provide the property's legal description, as well as other specific property information.

  4. Under the Home Sale Assistance Program, you are required to sign and return a homeowner's property disclosure and lead paint disclosure statement. If there is no state disclosure form where you live, you and any co-owners are required to complete and sign the relocation services contractor property disclosure statement.

  5. When you are in the Home Sale Assistance Program, you can:

    1. Obtain an outside buyer, sell your home, close on your own and file for direct reimbursement.

    2. Obtain an outside buyer and use other services provided by the relocation services contractor prior to accepting a Guaranteed Buyout Offer. The degree of assistance for your sale that you may receive from the relocation services contractor depends upon when this occurs. See IRM 1.32.13.26, Obtaining an Independent Buyer, for additional information.

    3. Cancel out of the program.

    4. Accept the Guaranteed Buyout Offer from the relocation services contractor.

    5. Allow the Guaranteed Buyout Offer to expire at the end of the 60 calendar day offer acceptance period.

1.32.13.15  (11-27-2013)
Choosing an Appraiser

  1. Within one working day of being referred by the BFC relocation coordinator, the relocation services contractor will provide you with a list of qualified independent appraisers with whom the relocation services contractor regularly does business in the area of your old residence. You select three appraisers, in order of preference. The relocation services contractor will order two independent appraisals based on your selection. You may choose from the relocation services contractor’s list, or you may choose appraisers who are not on the list. If you select an appraiser that is not on the list, the relocation services contractor will verify the appraiser’s experience, qualifications, and availability to complete the appraisals with the required time limits.

  2. Appraisers on the list are qualified local appraisers who have demonstrated a high degree of professionalism in researching and evaluating information to determine the most probable sales price.

  3. All appraisers must have professional designation or be certified through nationally recognized organizations such as the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers. The appraisers follow the guidelines of the Worldwide Employee Relocation Council (WERC) to assure independence and impartiality. These guidelines establish the following as appraiser requirements:

    1. The appraiser has no financial interest in the property.

    2. The appraiser has not appraised the property within the previous six months.

    3. The appraiser derives his or her primary source of income from the appraisal of single family homes rather than brokerage or commercial appraising.

    4. The appraiser is not designated as the listing real estate broker.

  4. All contact with an appraiser shall be in writing and transmitted via fax, email or U.S. mail. The appraiser provides copies of all correspondence to the relocation services contractor and, upon request, to the Contracting Officer's Representative (COR).

1.32.13.16  (11-27-2013)
Appraisal Process

  1. The relocation services contractor orders appraisals with the first two appraisers chosen. These appraisers call you to schedule appointments, to be executed within 10 working days if possible.

  2. The relocation services contractor provides the appraisers with written instructions regarding the appraisal assignment. These instructions cover time frames for a verbal and written report, parameters for the appraisal based on the IRS contract, and billing information. In addition to the contract parameters, the appraisers follow the WERC guidelines, as outlined on page one of each appraiser’s report.

  3. The appraiser is responsible for estimating the Anticipated Sales Price for a relocating employee’s residence. The anticipated sales price may or may not be the same as the market value of a property. Please see IRM 1.32.13.33, Exhibit III, Differences Between Mortgage and Relocation Appraisals, for a chart which outlines the distinctions between these types of appraisals. The appraiser is not evaluating what it would cost to construct your residence (cost approach) or for what it would rent (income approach).

  4. The appraiser takes the following factors into account when preparing the report:

    1. Overall market conditions, including economic.

    2. Supply and demand of available housing.

    3. Available financing and terms.

    4. Property assessments.

    5. Zoning.

    6. School district.

  5. More specific to your home, the independent appraiser takes into consideration the following:

    1. Neighborhood.

    2. Proximity to services and schools.

    3. Location.

    4. Interior and exterior condition.

    5. Decorating.

    6. Functional appeal and other factors listed in the WERC appraisal guidelines.

    7. Size of your home.

  6. The appraiser uses comparable sales data that is contiguous to the property. The comparables selected by the appraiser must be in the same neighborhood, development, subdivision or complex. If an appraiser, in his/her opinion, cannot identify acceptable comparables within those parameters, he/she is required to notify the relocation services contractor prior to completing the appraisal. Your relocation services counselor will discuss this with you.

  7. The appraiser is allowed to use foreclosures, distress sales, or auctions as comparables should this situation arise.

  8. The appraiser compares your home and features to recently sold comparable homes. Starting with the sales price of each comparable, the appraiser adjusts up or down on each applicable factor and then arrives at an Adjusted Sales Price for each comparable. Using this data, as well as considering the listing data, the appraiser uses his/her judgment to determine the value that reflects the price upon which a typical seller and buyer are most likely to agree.

1.32.13.17  (11-27-2013)
Relocation Services Contractor's Appraisal Review

  1. The relocation services contractor property specialist reviews the completed appraisal reports for mathematical errors or errors of fact. Errors of fact include material mistakes regarding items such as dates and prices of comparable sales, measurements of properties, and other objective data.

  2. If the appraisals differ by more than 5%, the relocation services contractor arranges for a third appraisal. See IRM 1.32.13.19, Guaranteed Buyout Offer, for additional information.

1.32.13.18  (11-27-2013)
Inspection and Repairs

  1. The relocation services contractor may order an inspection of the property even before the appraisal process begins, and later as recommended by the appraisers.

  2. The inspections are primarily to determine if the property meets eligibility requirements of the contract and if the property is in conformity with Federal, State, County, or local customs and/or laws.

  3. Depending on the circumstances, some examples of inspections ordered for the property include, but are not limited to, a structural inspection, a roof inspection, a well inspection, and inspections of the property's various systems such as heating, electrical, plumbing, septic. Some inspections are to detect the presence of various substances including, but not limited to, termites, radon gas, urea formaldehyde foam insulation (UFFI), asbestos insulation, and fire retardant treated (FRT) plywood.

  4. As the property owner, if your township or municipality requires an occupancy inspection, you need to arrange for the locality to inspect your property for any repairs and reinspections to pass title.

  5. If an inspection report reveals that repairs are necessary, the relocation services contractor will contact you directly to discuss which repairs you must complete.

  6. The relocation services contractor can obtain estimates of costs from established, reputable repair service firms or you can obtain repair estimates on your own and bear all costs associated with the repairs and reinspection.

  7. The relocation service counselor will contact you if an inspection reveals a condition that makes the home no longer eligible for the Home Sale Assistance Program. You will be given the opportunity to correct the condition. You have five calendar days to elect one of the following:

    1. Delay receipt of the Guaranteed Buyout Offer for up to 30 calendar days of receiving verbal notice from relocation services contractor of the ineligible condition and correct the condition within this 30 calendar day period. The relocation services contractor will provide you with estimated repair costs.

    2. Receive the Guaranteed Buyout Offer contingent upon completion of the repairs by a qualified repair contractor. The contingency requires the completion of repairs within 30 calendar days of receipt of the Guaranteed Buyout Offer.

  8. You may complete the repairs yourself or hire someone else to complete them for you. Repairs completed by you, or by someone else on your behalf, are subject to reinspection to determine if they have been satisfactorily completed. You must provide the relocation services contractor with copies of all paid receipts for completed repairs.

  9. The IRS is not liable for any part of the cost of the repairs or reinspection and may not be billed for such, either directly or indirectly.

1.32.13.19  (11-27-2013)
Guaranteed Buyout Offer

  1. Upon completion of the appraisal process, the relocation services contractor may or may not make a Guaranteed Buyout Offer to purchase the property. The relocation services contractor is required to make every effort to make the offer within 30 calendar days from date of the selection of appraisers. There are reasons why this time period is not always sufficient (for example, if a third appraisal is required). The COR can grant extensions when justified.

  2. The relocation services contractor calculates the offer amount by averaging the two appraisals. If the relocation services contractor obtains a third appraisal, the contractor calculates the offer amount by averaging the two highest appraisals.

  3. The relocation services contractor delivers the Guaranteed Buyout Offer by phone and email within two working days. The written offer includes copies of all appraisal and inspection documents.

  4. You have 60 calendar days from the telephone offer to accept or reject the Guaranteed Buyout Offer. The relocation services contractor and the COR can mutually agree to extend the acceptance period for an additional 15 days.

  5. If you rent your home, the tenant must vacate the property prior to your acceptance of the offer.

  6. If you reject the offer, you may be able to reenter the Home Sale Assistance Program for up to two years, upon approval by your BFC relocation coordinator. However, IRS requires you to repay the IRS for all relocation-related costs, such as for appraisals or inspections, before you can reenter the program.

  7. If you cancel services or allow your offer to expire, IRS pays the relocation services contractor for any justifiable direct costs incurred, such as for appraisals and inspections. If you then decide to sell the residence independently for direct reimbursement, you will receive copies of the appraisal and inspection documents from the relocation services contractor. You may use the documents in completing your independent sale of the property, providing that the time for use of the documents has not expired. If you elect not to use the documents, and incur additional expenses for the same or similar services, this will be at your expense. If the time for the use of the documents has expired, you may claim reimbursement for these or similar expenses through the direct reimbursement method.

  8. If you intend to accept the contingent Guaranteed Buyout Offer, but your property requires repair, the relocation services contractor will inform you which repairs are required. After this discussion, you will have five calendar days to have the repairs and reinspections completed. You are solely responsible for ensuring that the home is brought up to standards set by the applicable law, ordinance or code and providing all repair receipts to the relocation services contractor. See IRM 1.32.13.18, Inspection and Repairs, for additional information.

1.32.13.20  (11-27-2013)
Request for Reconsideration

  1. If you disagree with the amount offered by the relocation services contractor for purchase of your residence, you may request in writing that the relocation services contractor reconsider the offer.

  2. You should file your written request for reconsideration as soon as possible after carefully reviewing the written appraisal reports but not later than 30 calendar days after the relocation services contractor made the offer.

  3. The relocation services contractor provides you with written instructions for submitting a reconsideration request with the Guaranteed Buyout Offer.

  4. The BFC relocation coordinator cannot change an appraisal or a Guaranteed Buyout Offer. IRS representatives cannot initiate the reconsideration process on your behalf.

  5. Since the relocation services contractor is required to make an offer based solely on appraisals by independent appraisers, the success of a request for reconsideration depends on whether or not your request convinces the appraisers to change the appraised value.

  6. Focus on identifying any factual errors in the appraisal reports. You should identify each specific error, with an explanation why the item is in error. The appraisers will reconsider the value based on the correct information.

  7. You may also submit information on additional comparable properties that have sold within the last six months or as recently as those sales used by the appraiser.

  8. At no time should you contact the appraisers directly to try to obtain a change in value or answers to questions regarding the appraisals.

  9. The relocation services counselor explains the appraisers' decisions to you and then sends you a copy of the written appraisers' explanations. If one or both appraisers agree with your reconsideration and increase the appraised value(s), you will receive a new contract of sale reflecting the higher offer. If, upon review, one or both appraisers determine a lower appraisal value or that no change in value is warranted, your Guaranteed Buyout Offer and contract of sale will not change.

  10. The reconsideration process is completed prior to the expiration of the 60 calendar day acceptance period. An extension of the acceptance period of up to 15 calendar days may be granted to complete the reconsideration process. However, you must have complied with the time period for submission of your request for reconsideration.

1.32.13.21  (11-27-2013)
Vacating the Property

  1. The vacate date is established when you accept the Guaranteed Buyout Offer, and is no later than 45 calendar days from the date of acceptance.

  2. After accepting the relocation services contractor's offer, you are responsible for:

    1. Maintaining the property in substantially the same condition as at the time of appraisal.

    2. Paying all maintenance, utility, insurance, mortgage and related costs for the property until you vacate.

    3. Leaving the property in broom-clean condition when you vacate. A representative of the contractor may inspect the property within three (3) calendar days of vacating to identify damage. All costs incurred by the relocation services contractor in connection with removing debris will be billed back to you.

  3. Upon vacating, you are relieved of all further maintenance and carrying costs on the property. If, after vacating the residence, you receive a bill for taxes or any other expenses for which you are no longer responsible, please notify the relocation services contractor immediately.

  4. You are responsible for canceling your homeowners' insurance and all utility services, as of the vacate date or acquisition date, whichever is later.

  5. When the relocation services contractor acquires the property, a deed transferring the title to the contractor is completed.

  6. If you do not vacate the residence by the agreed upon date, cause damage that must be repaired, or remove items which were calculated in the appraised value and must be replaced, you are required to return to the relocation services contractor a calculated portion of the equity within five working days of the relocation services contractor's written request. The relocation services contractor notifies the BFC relocation coordinator if any of these situations occur.

1.32.13.22  (11-27-2013)
Responsibility for Mortgage

  1. Upon acquiring the property, the relocation services contractor pays off the mortgage within 31 calendar days of acquisition. In most cases, the relocation services contractor pays off all mortgages or other obligations secured by the residence, except as required by a higher offer transaction. The relocation services contractor reserves the right to review this provision in the event interest rates rise substantially and result in an adverse cost effect for the relocation services contractor and IRS. If this should occur, the relocation services contractor notifies you in advance.

  2. The relocation services contractor protects your credit rating through its prompt payment of the mortgage. In the event that the relocation services contractor makes a delinquent mortgage payment, the relocation services contractor bears the cost of any late charges. In addition, the relocation services contractor promptly responds to any adverse credit reports with written mortgage payment indemnification notices. In the event that you make any delinquent mortgage payments, then you must bear the cost of any late charges.

  3. Should the offer involve the assumption of the existing mortgage on the property, you are required to sign a written release of liability that protects the relocation services contractor, should the purchaser of your property default in any way on the assumption loan at any time in the future. The relocation services contractor will not indemnify you if the purchaser defaults. The ultimate responsibility for the assumption loan lies with you. You remain responsible for the mortgage (in the event of default by the outside buyer) as with any other assumption.

1.32.13.23  (11-27-2013)
Disbursement of Equity

  1. Upon your acceptance of the Guaranteed Buyout Offer, the relocation services contractor prepares a Statement of Equity, prorating all debits and credits applicable to the property through the vacating date.

  2. When the relocation services contractor calculates your equity, it uses the Federal Travel Regulation (FTR) to determine reimbursable expenses and does not reduce your equity by the amount of any items reimbursable under the FTR.

  3. The relocation services contractor disburses 100% of your equity, normally within five working days after the relocation services contractor receives and signs your Contract of Sale (the acquisition date) if you have vacated the property. If you have not vacated, you receive 90% of your equity.

  4. The relocation services contractor sends the equity payment via electronic funds transfer or wire transfer, whichever method you prefer.

  5. Final equity is reduced if any trash, debris, firewood, paint, or chemicals remain in the house after you vacate.

  6. If the outstanding mortgage balance and any other encumbrances on the property exceed the Guaranteed Buyout Offer, you must remit the difference to the relocation services contractor via electronic funds transfer or wire transfer at the time you accept the Guaranteed Buyout Offer. The relocation services contractor estimates the deficit at the time it makes the purchase offer. The relocation services contractor sends any refund upon final computation of the equity within five working days of the acquisition.

  7. The relocation services contractor will send you Form 1099S, Proceeds From Real Estate Transactions, for the calendar year that includes the date of closing for a real estate transaction, as required by the Internal Revenue Code, Section 6045(e). If you receive Form 1099S for any other reason, please contact your BFC relocation coordinator immediately.

1.32.13.24  (11-27-2013)
Equity Advance

  1. During the 60 calendar day Guaranteed Buyout Offer period, the relocation services contractor may advance up to 100% of the available equity (as established by the Guaranteed Buyout Offer), for the purpose of closing on a residence at your new location. The relocation services counselor confirms the signed purchase agreement on your new home by either requesting a copy of it or by contacting your real estate agent.

1.32.13.25  (11-27-2013)
Equity Deficit

  1. An equity deficit occurs when the total amount of the outstanding mortgage balance, property taxes, and homeowners association dues exceeds the offer amount.

  2. In order to process the acquisition of your property, a relocation services counselor will request a certified check for the equity deficit to accompany the acceptance paperwork.

  3. You must remit any deficit amount to the relocation services contractor within five working days of the acquisition of the property. The relocation services contractor will not complete the acquisition of the property until it receives the deficit funds owed.

1.32.13.26  (11-27-2013)
Obtaining an Independent Buyer

  1. If you obtain an independent offer after your acceptance into the Home Sale Assistance Program, you may take advantage of the following services:

    1. Amend From Zero (AZ) Sale.

    2. Amended Value (AV) Sale.

  2. Under the AZ and AV programs, you sell your home to the relocation services contractor who then sells the property to the outside buyer. The difference between these programs is based on where you are in the appraisal and offer process. The benefit to you is that you receive the equity in the property within five working days after you complete the sale to the relocation services contractor if your home is vacant. This will occur once the buyer has removed any nonallowable contingencies and the relocation services contractor has received all required paperwork.

  3. Additional benefits include:

    1. The relocation services contractor completely handles the sale to the outside buyer so you do not have to be present at settlement.

    2. You do not have to use your own funds for settlement expenses and then be reimbursed.

    3. The relocation services contractor pays your real estate agent for you.

  4. The relocation services contractor reduces the equity for:

    1. Real estate commissions in excess of the standard for the area.

    2. Non-reimbursable seller concessions to which you have agreed.

  5. You should contact the relocation services contractor as soon as possible after you find a prospective buyer so that the relocation services contractor can review the offer terms and counsel you in negotiations. Do not sign any outside sales contract until you have notified the relocation services contractor and discussed the possibility that the outside offer might qualify for one of the programs under the contract.

  6. Prior to acceptance for any of the higher offer programs, the relocation services contractor reviews all outside offers in detail.

1.32.13.26.1  (11-27-2013)
Amend From Zero Sale

  1. This sale may occur when you receive an acceptable bona fide offer from an outside buyer prior to the completion of the appraisal process conducted through the relocation services contractor.

  2. Since the relocation services contractor has not yet received the appraisals, it obtains a Broker’s Market Analysis to benchmark the reasonableness of the outside offer. You cannot enter into a contract or sign any agreement document with the outside buyer.

1.32.13.26.2  (11-27-2013)
Amended Value Sale

  1. This sale may occur when you receive an acceptable bona fide offer from an outside buyer after the relocation services contractor has completed the appraisal process. The relocation services contractor may have also tendered you a Guaranteed Buyout Offer.

  2. If you are successful in finding an independent buyer willing to pay a net purchase price equal to or greater than the Guaranteed Buyout Offer, then you should not sign any documents (including counter-offers) or accept earnest money. The relocation services contractor cannot work with the sale if you have done either.

  3. The relocation services contractor asks you and your agent to submit information relative to the purchase offer and the buyer's qualifications.

  4. Your relocation service counselor reviews the offer:

    1. To determine if it is bona fide and if the buyer is qualified based on the written information submitted. The counselor uses the Guaranteed Buyout Offer as a benchmark to evaluate the reasonableness of the outside offer price.

    2. For any expenses or concessions that are deemed non-reimbursable under the Federal Travel Regulation. A few examples of non-reimbursable items include repairs as a result of a buyer’s inspection, points, homeowner’s warranty, real estate commission in excess of the standard for the area, decorating allowance, and buyer closing cost allowance.

  5. If the offer involves the assumption of your existing mortgage on the property, you are required, in writing, to sign a release of liability which protects the relocation services contractor should the purchaser of your property default in any way on the assumption loan at any time in the future. The ultimate responsibility of the assumption loan would lie with you.

  6. Once the relocation services contractor receives and reviews all of the required documents and any non-allowable contingencies have been removed, your relocation service counselor instructs you to amend the Guaranteed Buyout Offer to the value of the independent offer and complete acquisition of your property.

1.32.13.27  (11-27-2013)
Closing Assistance

  1. If you sign an outside sale contract prior to entering into the Home Sale Assistance Program or prior to the completion of the appraisal process under the program, you may be eligible to use the relocation contractor for Closing Assistance.

  2. Under this program, the relocation services contractor manages the sale process and closing with the outside buyer, including disbursing the equity to you.

  3. The advantage of this program is that it allows you to focus on your move and relocating to your new post of duty.

  4. You remain the seller of record and are responsible for all decisions related to the property.

1.32.13.28  (11-27-2013)
Rental Property Management

  1. Property management services are programs provided by private companies for a fee, which help an employee to manage his/her residence at the old official station as a rental property. These services include, but are not limited to, obtaining a tenant, negotiating the lease, inspecting the property regularly, managing repairs and maintenance, enforcing lease terms, collecting the rent, paying the mortgage and other carrying expenses from rental proceeds and/or funds of the employee, and accounting for the transactions and providing periodic reports to the employee.

  2. The service is available through the relocation services contractor and real estate brokers.

  3. The service assists employees who are relocating but have decided to maintain their homes at the old post of duty.

  4. The service is currently available to employees who relocate to a foreign duty station or are in temporary change of station status.

1.32.13.28.1  (11-27-2013)
Determining the Market Rental Value for Your Home

  1. The relocation services contractor contacts a local agent to meet with you at the property to evaluate the rental value. The local agent determines rental value by reviewing recent rentals and current available listings along with property and general market conditions. These factors, viewed together, allow the agent to formulate an estimated rental value. The local agent assists with the rental marketing of the home through the applicable multiple listing service (MLS) or local newspapers.

1.32.13.28.2  (11-27-2013)
Property Insurance

  1. Your homeowner's insurance policy may not allow for vacancy periods greater than 30 or 60 days. The relocation services contractor offers owner/landlord/tenant coverage that would cover any vacancy.

1.32.13.28.3  (11-27-2013)
Securing and Screening Tenants

  1. The relocation services contractor works to secure a qualified tenant and runs a credit check on each prospective tenant to ensure that the tenant is credit worthy and can make the monthly payments.

  2. If the relocation services contractor cannot find suitable tenants within a reasonable period (usually two months), you may withdraw from the agreement.

1.32.13.28.4  (11-27-2013)
Negotiating and Managing the Lease

  1. The relocation services contractor negotiates the lease on your behalf. The contractor provides a copy of the standard lease to you in advance to review. Both you and the relocation services contractor approve any major changes to the lease. Once the terms of the lease have been agreed upon and the lease signed, the relocation services contractor’s property management counselor forwards a copy to you. Please note that state and local regulations may require modification or provisions to be added to some aspects of the lease.

  2. The relocation services contractor then administers the lease on your behalf, in accordance with IRM 1.32.13.28.4, Negotiating and Managing the Lease, including:

    1. Collecting rent.

    2. Communicating with the tenant.

    3. Notifying you of any delinquency problems.

  3. The relocation services contractor acts as a “single point of contact” for repairs, maintenance, or requests by the tenant.

1.32.13.28.5  (11-27-2013)
Account Reconciliation

  1. Each quarter, the property management counselor provides you with a statement of receipts and disbursements that reflect the rental income received and any mortgage, insurance, utility, tax, or repair payments the relocation services contractor makes on your behalf. The statement reflects income received and expenses incurred and paid for the period, as well as any credit or deficit balance (the amount relocation services owes you or the amount, if any, owed by you to the relocation services contractor). If a balance is due to you, the property management counselor will deposit it in your account. If a balance is due from you, the relocation services contractor expects prompt payment.

1.32.13.28.6  (11-27-2013)
Property Inspections

  1. Before the tenants move in, your property management counselor contacts you to arrange the first property inspection. After your belongings have been removed, the inspector will photograph the home and complete a room-by-room report of the property’s condition. During this first inspection, the inspector records the:

    1. Condition of the home before it is occupied by tenants.

    2. Inventory of items you are leaving in the property such as appliances and window treatments.

    3. Need for further repairs, cleaning, or cosmetic work to improve the home's marketability.

  2. The property management counselor coordinates four property inspections per year to ensure that the home is in good condition. These inspections alternate between complete (interior and exterior) and exterior-only. During an inspection, the property management counselor and/or broker record the condition of the property in detail, using written reports and photographs as necessary. If needed, the property management counselor and/or broker conduct additional inspections to determine if major repairs are required or to check completed repairs.

  3. In an emergency, the property management counselor and broker immediately inspect the home and contact you as soon as an assessment of the condition is prepared. The property management counselor forwards to you a full report of all inspections, along with the recommendations, comments, and photographs.

  4. When a lease ends, the property management counselor and broker arrange for an inspection at the time the tenant vacates to determine if a full or partial return of the tenant’s security deposit is appropriate.

  5. Upon your request, the property management counselor and inspector can coordinate repairs and cleaning and issue a final statement to you.

1.32.13.29  (11-27-2013)
Destination Services

  1. The relocation services contractor provides destination services at your new location. You may contact the relocation services contractor directly to obtain the free services below:

    1. Home Renters Assistance.

    2. Home Buyers Assistance.

    3. Mortgage Counseling.

    4. Mortgage Pre-Qualification.

  2. A Destination Specialist meets with you to discuss your:

    1. Relocation timeframe.

    2. Specific preferences.

    3. Any special needs you or your family may have.

  3. This information is used to build a profile to identify potential homes for sale and/or rent based on your preference.

1.32.13.29.1  (11-27-2013)
Home Renters Assistance

  1. The relocation services contractor provides you a Home Finding Kit, and refers you to a rental agency.

  2. Depending on the locale, the rental agent or real estate agent showing rental properties may charge you a fee. The relocation services contractor notifies you if there is a charge, prior to placing you with that agency. This fee is a non-reimbursable item, which means that you are responsible for the payment directly to the rental agency should you use their service.

1.32.13.29.2  (11-27-2013)
Home Buyers Assistance

  1. As with the Home Renters Assistance program, the relocation services contractor provides you a Home Finding Kit, along with a list of homes in the new area.

  2. The relocation services contractor identifies a qualified real estate agent to provide you with an orientation to the area and help you locate the communities and neighborhoods for you to visit on your househunting trip.

1.32.13.29.3  (11-27-2013)
Mortgage Counseling

  1. The relocation services contractor assigns a loan specialist to assist you in understanding the types and amounts of loans available in your destination, as well as referring you to local sources.

  2. A national mortgage lender in the new area will assist in your search of market rate financing.

  3. The relocation services contractor provides general information regarding the real estate market, advice on planning a home search, referral to national mortgage lenders, and research on family requirements (including schools, child care, community life) for major cities when available.

1.32.13.30  (11-27-2013)
Mortgage Pre-Qualification

  1. The relocation services contractor refers you to national mortgage lenders who are available to work with you to determine the size mortgage you can afford, and to arrange to have a mortgage pre-approved for you. This service is provided at no cost to you or the agency.

  2. Advantages of pre-qualification include:

    1. Understanding mortgage products that suit your financial objectives.

    2. Knowing how much mortgage you qualify for, and the amount of your monthly payment.

    3. Arranging pre-approval for a given mortgage amount so your home purchase can be expedited.

1.32.13.31  (11-27-2013)
Exhibit I

  1. The following provides a summary of services:

    Summary of Services
    Service IRM Reference Section Approvals Required Forms Required Fees
    1. Pre- Counseling Services 1.32.13.11 No - Employee can contact contractor directly None No
    2. Broker's Market Analysis 1.32.13.12 No - Employee can contact contractor directly None No
    3. Home Marketing Assistance 1.32.13.13 No - Employee can contact contractor directly None No
    4. Home Sale Assistance
    a. Guaranteed Buyout Offer 1.32.13.19 Yes Yes Yes - percentage based on accepted offer
    b. Amend From Zero Sale 1.32.13.26.1 Yes Yes Yes - percentage based on accepted offer
    c. Amended Value Sale 1.32.13.26.2 Yes Yes Yes - percentage based on accepted offer
    d. Closing Assistance Only 1.32.13.27 Yes Yes Yes - percentage based on accepted offer
    5. Rental Property Management 1.32.13.28 Yes Yes Initiation fee and monthly flat rate

1.32.13.32  (11-27-2013)
Exhibit II

  1. Should you have questions concerning Relocation Services, please contact BFC Relocation at:http://cfo.fin.irs.gov/IntFinMgmt/PolicyProcedures/Relocation/BFC_Relocation_Coordinators.doc

  2. The chart below describes the actions that occur during the sale of an employee's home.

    Timeline for Key Relocation Actions
    Action Due date
    Relocation Services initiates contact with employee. 1 working day after Relocation Services receipt of the IRS written order of request.
    Relocation Services provides the employee with a list of at least 6 qualified appraisers and recommends that the employee select 3 appraisers. 2 working days after receipt of the written order of services.
    Employee designates 3 appraisers, in order of preference, to Relocation Services. Within 5 working days of the employee’s receipt of the Relocation Services-provided list of qualified appraisers.

    Note:

    If the employee does not provide his/her selections within this time period, Relocation Services suspends the relocation process until it receives the list from the employee.

    Relocation Services places order for appraisals. Within 1 working day after the employee provides his/her list of selected appraisers.
    Appraisers submit reports to Relocation Services. Within 7 working days from the date of the appraisal.
    Relocation Services orders any inspections requested by an appraiser. Within 1 working day of the request from the appraiser.
    All appraisal and inspection reports must be completed. Within 30 calendar days of the date of the employee’s selection of the appraiser or the date of Relocation Services receipt of the IRS written order for services, whichever is later.
    Relocation Services makes a verbal offer to the employee. Within 2 working days of the completion of the written appraisal process.
    Relocation Services mails the written offer to the employee. Within 2 working days of the date that Relocation Services makes the employee a verbal offer.
    If desired, employee corrects all repairs identified in inspection. Within 30 calendar days from the date of the verbal offer.
    Employee accepts/rejects offer. Within 60 calendar days from date of the verbal offer.
    Employee vacates home. Within 45 calendar days from the date the employee accepts the offer.
    Relocation Services disburses equity. (a) For non-vacated properties, 90% within 5 working days of receipt of acceptance and execution of the contract sale, with the balance paid within 5 working days of the date the property is vacated.
    (b) For vacated properties, 100% within 5 working days of receipt of acceptance and execution of the contract sale.
    Relocation Services assumes mortgage. Within 31 calendar days after purchasing the property.

1.32.13.33  (11-27-2013)
Exhibit III

  1. The chart below outlines some of the differences between relocation and mortgage appraisals.

    Differences Between Mortgage and Relocation Appraisals
    Mortgage Appraisal Relocation Appraisal
    Reporting format: Completed on Uniform Residential Appraisal Report (URAR), a two page report that is a comprehensive analysis and physical characteristics of the property Reporting format: Completed on Worldwide Employee Relocation Council (WERC) Summary Appraisal Report, a six page report that uses techniques similar to those used for the mortgage appraisal
    Intended use: Facilitate mortgage lending Intended use: Facilitate corporate relocation
    Purpose: Develop an opinion of the market value of a property Purpose: Develop an opinion of anticipated sales price of a relocating employee’s home
    Market value: The probable price which a property should bring in a competitive and open market. Exposure time precedes date of appraisal Anticipated sales price: The price at which a property is anticipated to sell in a competitive and open market. Marketing time occurs after date of appraisal
    Marketing period: Reasonable time that is allowed for exposure in the open market without limit, could be over two years Marketing period: Reasonable time that is allowed for exposure in the open market not to exceed 120 days
    Financing considerations: Cash equivalency, no adjustments for normal seller costs which are normally paid by sellers Financing considerations: Cash equivalency, adjustments to the sales price of the comparables and financing concessions such as: seller points, buyer’s closing costs
    Type of analysis: Retrospective analysis: looking at historical data as of the date of sale and no forecasting Type of analysis: Prospective analysis: forecasting adjustment
    Decision making: Uses a long term analysis for the life of the mortgage loan (up to 30 years); Lower risk Decision making: Provides short term investment for home entered in the relocation service program (up to 120 days); Higher risk
    Items for consideration: Identifies: condition, design, and appeal Items for consideration: Emphasizes: condition, design, appeal, interior décor, repairs, and improvements
    Comparables: Requires three closed sales to compare the subject property Comparables: Requires closed sales without limitation, competing properties, and encourages the use of pending sales if the information can be verified
    Photographs: Front, rear, and street scene of the subject property of comparable sales Photographs: Front, rear, street scene, and interior views of the subject property; any adverse conditions and inspection concerns; factors within view from the subject property that significantly affect marketability either favorably or unfavorably; comparable sales; competitive listings


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