A relocation home sale happens when a relocation company is helping with the sale of a home. There are a lot of opinions on this type of home sale and it can feel like a much more difficult task to a homebuyer.
What is a Relocation Sale?
A relocation sale is the sale of a home done with a relocation firm due to an employee relocating for their employer. This makes it the employer’s responsibility to hire the relocation management company that will sell the employee’s home for them. Some companies work primarily with military relocation and assign relocation specialists to the seller and their family.
Different Types Of Relocation Sales
There are a few different kinds of relocation sales. There is a direct reimbursement which is the most straightforward of the relocation sales. The employee will sell their home and submit closing cost fees to their employer for reimbursement. This will be considered income for the seller and either the seller or employer will pay the taxes. The next option is the buyer value option. This is usually a more affordable option for sellers and their employers.
The employee will market their home and find a buyer then the relocation company will purchase the home on the seller’s behalf and then sell it to the buyer. This will save the seller and relocation company on taxes. As the seller, you will still pay for closing costs and commission. The last type of relocation sale is the guaranteed buyout. A guaranteed buyout is when the relocation management company orders two appraisals of your home and in turn, purchases the home. With this option, the seller will need to have their home on the market for at least 30 days. If your home stays in the market longer than 120 days then the employer will be responsible for any necessary maintenance.
Are Relocation Homes Cheaper?
Relocation homes might not always be cheaper, but they are reasonably priced for the market. Relocation properties are typically in good condition because relocation management companies usually do any necessary repairs themselves before selling the home.
The main goal of a relocation management company is to get the home in the best possible condition for it to sell quickly once it hits the market.
Then Who Owns The Homes?
The seller owns their home and in some cases, the relocation company may offer to purchase the home entirely. However, usually, the home remains in the owner’s name while on the market.
So, How Do You Buy A Home From A Relocation Company?
Buying a home that is for sale through a relocation company is pretty much the same as other real estate transactions. As with anything, there are advantages and disadvantages. As a buyer, it is possible that you could get a better bargain from this situation. You will also benefit from the fact that these homes are usually well-taken care off and seller emotions won’t play a factor in the sale. When you purchase one of these homes, you will have more paperwork and documentation. You might encounter delays due to dealing with a corporation or you may be asked to close the sale quickly. These home sales are as-is and oftentimes do not accept contingencies as a part of the sale.
Even though a relocation sale can seem complicated in the beginning, it is manageable when you have the right people by your side to make your process as smooth as possible. Whether you are in this situation or looking to buy, sell, or invest in Mesa, AZ real estate, contact me! I would love to help you navigate your real estate needs.