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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Today’s homebuyers are familiar with traditional home sales and short sales. But few know about another type of sale: a relocation sale of a home that’s on the market because of an employee’s out-of-town job transfer. While the process for buying these homes is slightly different, a relocation sale, or relo, can have distinct advantages for buyers. What is a relo
A relo is a home sale that is completed with the help of a relocation firm. These firms are hired by companies to help their transferred employees move. A relo firm might help the transferred employee hire movers and find a rental home. If the employee is a homeowner, the relo firm might help the employee sell the old home. Sales assistance is done in two stages. For the first few months the home is on the market, the house usually remains in the employee’s name, with the relocation company providing advice on pricing and marketing. If the home isn’t sold during that period, the employee’s company may totally or partially buy out the property, freeing the employee to buy a home in the new location. After the employer buys the house, the relocation company becomes the chief party in sale negotiations. “Once the company takes over, the buyer has an advantage, since they’re dealing with a seller who has no emotional attachment to the property,” says Kim Skumanick, a first vice president with the Pennsylvania Association of Realtors and an agent with Lewith and Freeman Real Estate in Clarks Summit, Pa. “It becomes more of a business transaction than an emotional process.” Negotiations may be simpler and shorter than normal seller-to-buyer transactions, Skumanick says. Are relo properties cheaper
While relocation sales don’t necessarily translate into fire-sale prices, buyers can count on the home to be fairly priced for its market, says Michael Nimer, chief operating officer of OneSource Relocation, a relocation firm in Marietta, Ga. “If we buy a home for $200,000 for a client, our goal is to get as close to that $200,000 (as) possible,” Nimer says. “We’re not trying to make more money, just trying to get back the money we spent.” Relocation properties also tend to be in good condition because most relocation firms recommend needed repairs or do the repairs themselves. “Our job is to get the home in the best possible condition,” Nimer says. “In today’s market, we want to have every advantage possible.” How to buy a relo
Buying a relo property isn’t that different from any other traditional sale, says Adam Kruse, a real estate agent with Hermann London in St. Louis. However, buyers should prepare for a few twists. With normal home sales, the back-and-forth on pricing can last just a few hours as sellers and buyers hurriedly consult with their real estate agents. But relocation firms typically operate during business hours and might not be available to respond to a weekend offer until Monday, Kruse says. Make an offer, but be prepared to wait a few days. Buyers are always advised to line up their financing before they start looking for homes, but it’s especially important when buying a relo property, Skumanick says. “They need to show that they are prepared and in a good position to buy,” she says. Buyers should have a ready source of earnest money they can quickly send to the relocation firm, says Tonya Hamilton, vice president of relocation at Prudential Woodmont Realty in Brentwood, Tenn. If you need to sell your current home before buying another, you should take care of that before trying to buy a home being sold by a relocation firm, Nimer says. “We typically don’t like to take a contingent sale,” he says. “We want a nice, clean sale if at all possible.” If your current home is under contract with a buyer but has not closed yet, that’s usually acceptable, but be prepared to provide copies of your sales contract and information on the expected closing date. Relo sales typically require buyers to sign additional riders and amendments to minimize the relocation company’s liability, Kruse says. “Instead of eight pages with one signature, it’ll be 16 pages with 10 signatures, for example,” he says. The relocation firm may also provide the buyer with additional disclosures, such as the results of radon and water testing, which should be inspected carefully, Hamilton says. She adds that buyers should still get their own inspections done. Related Links: Related Articles: More On Homebuying
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