Relocation properties offer value, benefits

April 08, 2009 · Posted under Steve Bauman · Tagged with as is clause, home sale contingencies, relocation properties, steve bauman

Everybody is looking for a deal in this challenging real estate market. Short sale and foreclosure properties offer certain financial advantages but often come with some risks and many headaches.

One often overlooked source for a good deal is the relocation property. Relocation properties are homes where a Seller has been transferred and the employer now is paying the insurance, utilities and mortgage. The employer also is paying to have the snow plowed and the lawn mowed and all those other fun homeowner duties. Relocation companies are brought in by the employer to oversee these properties and negotiate a sale on their behalf.

Both the relocation company and the employer are anxious to sell the home quickly and often price them to do so. This presents a wonderful opportunity for the home buyer.

Besides value, relocation properties have other advantages. Unlike foreclosure properties, relocation properties typically are clean, well-cared-for homes. Typically, they have not been neglected nor damaged by the prior owners. These properties also are vacant and available for quick occupancy.

Offers are timely presented and responded to quickly by relocation companies unlike banks in short sale or foreclosure situations that sometimes take days or weeks to respond.

There are some quirks with dealing with relocation properties:

• No home sale contingencies. Offers contingent upon you selling your existing home will be rejected by the relocation company. However, if you have an accepted offer on your home, the relocation company will consider an offer that is written contingent upon its successful closing.
• Your offer must be in writing. Only written offers will be considered. However, counter offers are made verbally until agreement is reached.
• Pre-approval letter. A pre-approval letter for the amount to be borrowed must accompany any offer.
• Corporate client review. Even though you have reached a verbal understanding with the relocation company, your offer is still subject to review by the employer.
• Signature delay. Once the employer has agreed, it still may take a few days for the relocation company to sign and return the Offer. Contingency deadlines do not begin until the signed documents have been delivered from the relocation company so there is no need to conduct your home inspection or order an appraisal until after you receive a copy of the signed offer.
• “As is” clause. Virtually all relocation addenda include a clause that absolves the relocation company from any liability from the transaction. The relocation company is not making any representations as to the condition of the home. It is imperative that you have a reliable home inspector evaluate the property.
• Repair credits. If issues arise from the home inspection, most relocation companies will offer credit to offset the cost of repair.

Relocation properties are an attractive avenue to explore if you have been searching for a well-cared-for home at below market value.

We currently have a fantastic home at 2 Fox Run, Oconomowoc Lake, WI, that really illustrates the savings available with relocation properties. This well-cared-for four bedroom, four bath ranch on 3-plus acres is currently listed for $798,731. The list price is a whopping 44 percent less than the village’s estimated fair market value of $1.41 million. The house is located in a subdivision, the Ponds of Pabst Farm, full of million dollar plus homes.

How do we know so much about relocation homes? The three agents who make up the Bitterberg Group have more than 70 years of combined real estate experience, with career sales of almost $800 million. Each year about 60 percent of our business is relocation.

We have a list of all relocation properties available through Shorewest and would be more than happy to see if any of these are a fit for you. Just call me at 262 786-4001, ext. 103 or email me at bitterberggroup@shorewest.com and let’s see if we can help you find a sharp relocation property that meets your needs.

Posted By: Steve Bauman

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