No matter what the relationship or the situation, in business; it?s all about the bottom line. When it comes to transferring employees, however, other issues, including home sales, enter into the mix. Employees facing transfer need to be aware of what they are getting not only from their employers relocation package, but also from their corporate relocation service.
With the economy beginning its slow return, executive relocations are following suit. With that, more companies are faced with constructing relocation (relo) packages, and helping employees and their families through relo services.
What?s being offered
Companies want to offer incentive for their employees, but also need to keep an eye on the tab. So what do employees need to be prepared for? Understanding the policy and its parameters.
Most businesses are aware of the stress a move can cause an employee and their family. They will want to offer compensation that makes the move worthwhile. Often a third-party corporate relocation service is brought in to handle the logistics. The actual moving expenses are typically covered. Where companies have more discretion revolves around an employees home sale.
Help in selling
If an employee needs to sell a home, they may be able to get closing costs taken care of by the employers; they may also buy down the interest rate on your new home, or offer a low-rate loan. Some companies even offer down payment assistance.
Third party relo companies may have a list of agents that can help you with home sale and purchase, and there are some that are licensed to do this themselves. This can save on the referral fee the company charges the realtor.
A relo company that can assist you in locating a new home may also have more leeway in their search, as they are not subject to the same guidelines as real estate agents. Assistance in selling a home may vary.
How it works
Often, according to Zillow Realty, once there is an offer, you, as the seller will sign over the grant deed to the relo company, making them the seller. Then that relo company signs the contract with the buyer. Throughout the process it?s important to be patient. Often the relo company will need to have its own contract and disclosure documents for buyers to sign.
Protection from loss
With the current state of the real estate market, many people heading into corporate relocation are faced with selling at a loss. Many employers will cover that loss. The best situation is a guaranteed buyout.
Many higher-level executives will receive this offer. If you, as the seller are unable to sell your property within a reasonable amount of time on your own, the relo company agrees to buy the home from you after an appraisal is complete. You are then free to relocate, while the relo company is responsible for selling the home it now owns.
If you?re being offered a relocation package, be sure you understand the parameters. Check out the relocation services company and determine exactly where they can help. It may be mostly about the bottom line, but knowing the line of compensation, moving reimbursement, and real estate assistance will help make the process easier to handle.
Are you facing corporate relocation? Learn what relo companies can do for you by contacting us today.
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