Have You Ever Bought a House from a Relocation Company?

Question

We're currently house shopping and came upon a property that we really love.  Upon submitting an offer, we were told that the sale is going to go through a relocation company and we have to redo the offer and sign all sorts of binders.  I've never personally worked with such a company on a deal and I was curious what others have experienced.

A few things I've discovered:

- These deals sound like they may be easy on paper (less emotional seller), but it seems like they are far more complicated.

- Contracts are almost completely in the favor of the seller (relo company) and there is little negotiation room on changes to their paperwork.

In the end, we're probably walking away from this one because of the restrictive nature of the contracts.

What is your experience?

Chad Duval · Answer

@Joshua Dorkin There was more paperwork with my purchase, but nothing (from this relo company) seemed totally stacked against me. The company was in a rush to get the property off their books so they were very willing to negotiate. They covered $5k worth of repairs and all my closing costs. I had a great experience!

Mike Hibbs · Answer

Personally my wife and I have relocated 4 times, and had to sell our home through a relo company.  The home will have TWO (Typically) appraisals done, so the relo company has a good idea on it's value.

From my experience as a Agent, I have seen relo homes sell at a discount due to the fact the relo company no longer wants to maintain the payments and the home.  Similar to a bank owned home.

I would let the fact that the home is a relo deter you, just be ready to sign a lot of documents stating the relo company owns the home, and they may be stuck on 'number' due to the appraisals.

If important to you, I MAY be able to dig up some paperwork for Cartus Relo, so you are able to read the verbiage.

Account Closed · Answer

@Cheryl Farley just helped one of our investors purchase a home in Atlanta from a Relo company.  There were several extra Addenda that the relo company required, including a Radon Compliance letter and Relocation Addendum.  The deal was about 20 days from offer to closing.  Nothing too difficult.

David Krulac · Answer

@Yinan Q.

Its only a seller's market in certain areas.  In other areas it is still a buyer's market, depends on where you are!

Yinan Q. · Answer

We bought our first house through a relocation company in 2010. Given the market downturn, it was pretty much a buyer's market. It was fairly easy to negotiate with the relo company and we got the price down to our target range.

Those days a long gone and the market now is totally different. I am sure they know that too. So I am not surprised by what you described. In the end, it is a seller's market now.

Joshua Dorkin · Answer

Had my atty look over the contract yesterday -- he agreed that the relo contract had some fundamental flaws.  We'll see how things proceed, but thanks again for the feedback all!

Steve Babiak · Answer

Somebody else. He bought close to where I live; when I was digging up comps to appeal property taxes on my house, I came across that purchase. The tax assessor rep had mentioned that quite a number of people used that example in their tax appeals :)

Kent Verge · Answer

My best purchase to date came from a relocation company. I made an offer the day it hit the MLS (a Thursday) that expired the next day at 5PM. They asked me to extend the offer through the weekend (lol!), and I refused. The ended up accepting it anyway. If I remember, their contract was definitely in their favor on several terms, but it ended up being a great deal nonetheless.

Joshua Dorkin · Answer

Thanks for the feedback guys!  I really appreciate it.

David Krulac · Answer

All the properties that I have bought from relocation companies have been in superior condition.  One the painters were just finishing up painting the entire house the first day I looked at it.  I put in an offer that day!

Mechanicals were also superior in the houses, recent HVAC, central air, and good roofs.  There was no deferred maintenance like REOs.

I did have an in as I knew well an appraiser hired by the RELO companies.  The relo co. had very strict criteria, as they did not want the ultimate selling price to be much different than the appraisal value.  If the appraiser deviated more than a couple of %, they would be fired and not get more appraisal assignments.

Have You Ever Bought a House from a Relocation Company?

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