October 19, 2009
How do relocation real estate buying programs work?
Alyse asked:
So we’re interested in buying this house. However, there’s an agreement by the seller with a relocation real estate company, to buy the house from them if they can’t sell it after a period of time. We found out we made an offer that is lower than the relocation company. So are we working with the seller or the relocation company? And is this not worth it? Seems the relocation company did not incorporate the expected decline in home prices. It needs a lot of upgrades and needs some repairs too — the reason our offer was also agressive. Any thoughts? Advice? thanks!
Relocation To Atlanta
So we’re interested in buying this house. However, there’s an agreement by the seller with a relocation real estate company, to buy the house from them if they can’t sell it after a period of time. We found out we made an offer that is lower than the relocation company. So are we working with the seller or the relocation company? And is this not worth it? Seems the relocation company did not incorporate the expected decline in home prices. It needs a lot of upgrades and needs some repairs too — the reason our offer was also agressive. Any thoughts? Advice? thanks!
Relocation To Atlanta
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Comments on How do relocation real estate buying programs work?
9:07 am
Relocation To Atlanta
My dealings with relo companies have been mixed. It used to be more common for companies to offer relocation packages to employees of a *certain position*. The benefits to the employees can vary widely.
Sounds like you are dealing with a buy-out. That’s a pretty sweet deal for the transferring employee. Typically, an appraisal is done and the employee and the company reach an agreement of a buy-out price. At that point, there is little incentive for the transferring employee to negotiate the price down from what the company has agreed to pay.
At this point, you will typically do all negotiations with the owner, not the relo company. Some times, after the property is under contract between the owner and a buyer, but, just before closing (a couple of days), the relo company will buy out the owner and then closing documents and will show the relocation company as the seller of record. Just depends on the deal the owner (transferring employee) has.
You may just have to wait and see if you can negotiate with the relo company AFTER the buy-out. It may take a while until the relo company recognizes that the asking price is too high. Then you may be able to negotiate a lower price.
Good luck.