When a house is being sold by a relocation company, it means that the property owner has been or is being relocated by the company or business for which they work. Relo companies often prefer clean, contingent-free offers, which means less risk protection for buyers. By giving up contingencies, you can make your offer more attractive, but be careful to make sure there are no unexpected costs in the future. If you are thinking of making a clean offer, it is recommended that you consult a real estate agent.A relocation sale is when a relocation company is hired by a company to help their transferred employees move.
This could involve helping the employee hire movers and find a rental home, or if they are a homeowner, helping them sell their old house. When people are reassigned to a different workplace, it is usually required to sell their home. In a slow housing market this may take time they don't have, so relocation companies can help with selling.Whatever your interest (the relocated seller or the buyer with personal or investor interests), if you work through a relocation company, the contract will include a relocation addendum. The first sign to the buyer that the seller is working with a relocation company will be the words “relocation annex required” or “bank annex”, which tells them that the bank is the owner.
While relocation sales don't necessarily translate into quick-sale prices, buyers can count on the home to be priced right for their market.Relocation properties also tend to be in good condition because most relocation companies recommend necessary repairs or do them themselves. The relocation management company (RMC) used by the employer, such as Lexicon, then buys the house on behalf of the company and sells it to the buyer. After the owner and the relocation representative have signed it, the relocation representative signs the buyer's purchase contract and sends it back to the selling agent.Having the sale of a home as part of your company's relocation program can be a major benefit that makes the move more enjoyable for the employee, and gives the company an employee who is “on the ground and firmly planted in a new location”. Many companies go one step further and offer incentives to buy a home in their new city within the year of the move.
In some cases, this offer is negotiated verbally between the owner and buyer.It is important to note that both the relocation company and the home offered for sale are often referred to as “relos”. After the employer buys the house, the relocation company becomes the main party of the sale negotiations. The time it takes for a buyer to receive the contract signed by the relocation company depends on how complete it is when it is submitted for review and signature.Relocation companies offer a variety of services between coordinating moves and handling real estate transactions. While this works in favor of buyers, negotiation and paperwork may take longer, especially if the relocation company is out of state.
