Watch for part 2, coming soon!
Relocation Listings are great opportunities for the savvy buyer.
Relocation listings are properties offered for sale because the owner is required to move for their job. The tip off is that you may see the phrase “relocation addenda required” or “corporate owned” in the property information package.
The seller is motivated, and the asking price has usually been carefully established by broker price opinions, appraisals and/or a 3rd party review process. The homes have sometimes been pre-inspected and copies of the reports are made available. Though the home may become vacant during marketing, these are not distressed properties. Move in condition (or better) is the norm. Some or all of the major selling costs may be paid by the owner’s employer, resulting a win-win negotiating scenario.
There are 3 basic types of Relocation Listings:
- Direct sale – this is handled very much like any other sale and standard local paperwork is used during the transaction. In these cases, any financial relocation benefits and sales support are provided to the seller in the background.
- Inventory property – this has been purchased by a Relocation Company to help the employee move to their new job assignment. These corporate owned properties are well maintained and priced to sell quickly. You negotiate with an unemotional seller who wants to get to an acceptable ‘bottom line’.
- Marketing assistance is the most common type of Relocation listing. These transferring sellers have the support of an industry specialist who provides referrals to Relocation certified Realtors and counseling on establishing an aggressive marketing strategy. Due to IRS guidelines, employer reimbursement of real estate commissions and other selling costs are taxable as income to the employee. For more favorable tax treatment, the owner may first transfer the property to the employer’s relocation services provider who will then pay the selling costs directly.
When making an offer on a Relocation listing, you will likely be presented with specific contract addenda and disclosures.
Watch for part 2 of this article to learn more about the buying process on a Relocation property.