The longer I am in the business, the more I see relocation deals pop up in Colorado. In 2012, many companies spent on average $70,000 per person to relocate new hire that is also a homeowner. Relocation can be stressful for a realtor with lack of experience dealing with relocation companies. I’ve run into some bumps in dealing with relocation companies and I would like to share some of my wisdom on how relocation works.
On the buying side, it’s important to know exactly who you are dealing with when it comes to putting together a relocation deal. With a normal resale deal, your are primarily dealing with the seller and there is a lot of emotion involved. In a relocation deal, you are dealing with a company and there is zero emotion. For the company, it’s all about the bottom line.
Since the bottom line is the only thing that matters, companies will negotiate credits towards prepaid items and closing costs instead of having work done on the home. It’s important to know that these credits may not even be close to the amount needed to repair the work. Remember zero emotion.
On the sell side, the relocation company will take possession as the owners of the home after
A) you’ve been relocated or
B) if you find a buyer before you take the relocation companies buyout amount.
If you find a buyer first. You may be entitled to even receive a bonus towards your buyout amount.
The flipside is the relocation company will have their own inspection done on the property. There’s a good chance they may require the current homeowners to fix everything that appears on the inspection report before they take possession. This can be a very costly to the seller.
Ultimately it’s important to know that doing a relocation deal is not like a normal resale transaction. There’s no emotion involved, it’s all about the bottom dollar, and can be a very smooth process. It can also be a buyer’s nightmare depending upon the condition of the house and the relocation company involved.
If you’re thinking about relocation after the first of the year and you need a real estate team that understands the ins and outs of relocation deals, then give us a call. Working with experts can ensure that your relocation goes as smoothly as possible.