What Does REO And Relo Mean?

[NC Values]

Keep seeing the terms, but dont know what they mean?

 

[Scott Kibler]

REO = Real Estate Owned; as in by HUD or a bank, a foreclosed property

RELO = Relocation; an appraisal assignment from a relocation company to be done on a special appraisal form with additional supplemental standards (not too clear on these myself as I have yet to do a relo report).

 

[Thomas Fiehler]

Courtney/Scott-The RELO appraisal is a different form supported by the ERC. There is more detail involved and the appraiser makes suggestions to put property in more marketable condition. I am working on one now and repairs I will call for are to paint bedrooms neutral color, touch-up exterior painting, and remove a pile of debris from back yard. When looking at this form, you will notice that the appraiser also lists 3 competing listings. Most compaines have guidelines that they want a marketing time of 90-120 days, so you need to consider current inventory along with absorption rates. If all listings indicate longer marketing times, then there is usuallu one thing to do-lower the price. Take some time to review this form and you will see its pretty self explanatory. The ERC offers seminars on their appraisal requirements and how to complete their assignments. B)

 

[Mike Garrett RAA]

Both assignments require additional work.

ERC form is more like a narrative report, it also asks the appraiser for forecasting.

REO appraisals are typically on a URAR form with an addendum for current listings (competition) and repair estimates.

Neither assignments should be given to new appraisers as they are more complex.