Issue link: https://www.e-digitaleditions.com/i/927891
26 Broker Market Analysis (BMA) Buyer Value Option (BVO) Carrying costs Client Cost of Living Allowance (COLA) Also called a Broker's Price Opinion (BPO) or Competitive Market Analysis (CMA), this is the real estate broker's opinion of value based on comparable properties which have been sold, are under contract, or are currently for sale. It is not an appraisal and is generally used only as a benchmark to verify appraisal values, or to establish list price for pre-marketing programs. "BMA" is the term most commonly used, as this is the name given to the industry-standard form used for this purpose and developed by the Employee Relocation Council (Broker Market Analysis and Marketing Strategy Form). Situation in which an outside buyer is obtained while being marketed by the transferee. There are no appraisals or inspections by a third- party company and no intent by the corporation to buy the home. However, when an acceptable offer is received, a third-party company offers to purchase the property upon the same terms, and it is handled as a two-closing process in order to obtain the same favorable tax treatment as in amended value transactions. Often these two closings are simultaneous or within a day of each other. NOTE: If the sale does fall through after the third-party contract is executed with transferee, the corporation will end up with an inventory property Expenses incurred by the corporation/third-party firm while maintaining and managing a property until it is re-sold; includes mortgage interest, insurance, utilities, taxes, maintenance and typically averages 1.5% of the value of the home per month. This term refers to either the seller or the buyer depending on the type of agency being practiced in real estate, but in relocation, it also refers to the corporation or relocation company from whom the broker receives the relocation assignment. Salary supplement paid to the transferee under some corporate relocation policies. It is applied when the destination area's cost of living is more than the origin city. Payments are usually limited to a certain period of time – most commonly three years – and decrease each year during that period. The COLA can be for all living costs or just for housing.