While more and more people are working from home every day, businesses continue to shift and change the way they conduct day-to-day operations. Within this is the need to relocate employees in favor of global mobility. 

If you find yourself in this situation you may need to sell your house fast for relocation before starting work in your new location. Relocating when you own a house is a challenge but here are some of the steps you’ll need to follow before putting your house for sale for relocation. 

Determine What Your Home is Worth

When you need to sell your house fast for a relocation, you don’t have as much time to think about home equity, curb appeal, and the fact that you planned to do quartz countertops next year; you have to sell now. 

You want to make sure that whatever you end up selling your house for, it will cover the cost of any remaining mortgage balance plus selling expenses. Expect those expenses to cost anywhere between 5-10% of the overall balance on your mortgage. 

The last thing you want is for the relocation to put you in a bad spot financially. If anything, you should come out better than you went in. 

Using a home value estimator is a great tool to help you quickly get an idea of what your home is worth. 

Of course, you may still want to get a relocation appraisal or have a comparative market analysis done on the home to ensure you’re selling it for what it’s worth. If you can, don’t invest any new money into your home and sell it as it is. You’ll want to have as much cash on hand as possible during and after the relocation when you find yourself in an unfamiliar place. 

Take a Look at Relocation Packages 

The cost of relocating can range from a few thousand dollars to over $100,000. Having relocation packages in place for employees is a great way to ensure that everything is covered and there are no bottlenecks in the process. 

Keep in mind there are quite a few ways to go about this. There are four primary options:

• Lump Sum Relocation
• Managed Executive Relocation
• Relocation Bonus
• Relocation Reimbursement

Let’s talk briefly about each of these: 

Lump Sum Relocation Package

This is a traditional relocation package where an amount of money is set aside for each employee to help pay for their moving expenses from A to Z. These can cover closing costs, realtor fees, long distance movers and packaging fees, shipping costs, materials, and even time missed at work. 

Executive Relocation Package

An executive relocation package pertains to the moving costs and expenses of the upper-management of a business. In some cases, you could be tasked with moving the corporate headquarters and as a result, you need to help with long-term storage, vehicle shipment, and temporary housing for executives. 

Relocation Bonus 

A relocation bonus is generally used in situations where the overall relocation package isn’t enough. It can cover unexpected expenses like penalties for breaking a lease or a higher cost of living in the area the employee is moving. 

Relocation Reimbursement 

A reimbursement works similar to the regular relocation package but instead, the employee will pay for everything out of pocket and the employer is responsible for paying them back. This helps ensure that the employee doesn’t run out of money but issues arise when they don’t have enough of their own money to cover the cost of moving. 

Can You Deduct Moving Expenses? 

Whether you’re the HR Manager, General Manager, or Entry-Level Employee, you’re not eligible to deduct moving expenses related to a job. This may come as a surprise to some people but the Tax Cuts and Jobs Act of 2018 removed your ability to be able to deduct these expenses. 

That said, if you’re an active military member, you are eligible to deduct moving expenses. This is the only situation where you can. 

Look at the Current Real Estate Market 

While this isn’t something you or anyone has control of, you’ll still want to look at the current real estate market and use your findings to help figure out how your home sale and purchase process will go. 

Markets fluctuate up and down with seller markets followed by buyers markets so no matter which way you cut it, you’ll likely do fine on one end or the other. For example, in 2022 houses only stay on the market for an average of 38 days.  

What does this mean for you? It means that the sooner you start the process, the sooner you’ll be able to sell and you won’t have to worry about paying for a house you won’t live in anymore. 

Sell Your House Fast for Relocation: Your Options

When it comes to actually selling your house for a job relocation, you have a few different choices. 

1. Cash Offer

If you’re in a hurry due to corporate requirements or whatever else may be motivating you, getting a cash offer can be a great way to get out quickly. According to Allied Moving Services, nearly 42% of relocating employees only had 0-30 days to settle in before they had to start their new job. 

That doesn’t leave much time for loan applications, open houses, showings, and inspections. In a traditional home buying situation, it can take as long as 60 days for the buyer to actually close on your house. 

When advertising the sale of your home, accepting only cash offers is a much faster way to sell. The downside is, you’ll need to be content with accepting much lower offers because cash offers will generally come from investors. 

Selling the house “as-is” is also an option if you’re concerned about the condition of the home. If you want to be able to forgo inspections to speed up the process, selling the house “as-is” requires buyers to purchase the home without requiring you to fix anything. 

2. Hire an Agent

The second option is the more traditional route and what you’ll want to do if the company provides a decent relocation package. Try to hire an agent that specializes in relocations or moving homes quickly. If you’re unsure about how to find someone like that, we work with agents who do this type of work all the time. 

Take a lot of great pictures, try to improve your curb appeal, and do whatever you can with the time you have to improve the overall appearance of the home. This will make the sale more desirable and will likely drive more buyers in your door. 

3. Rent it Out 

Have you ever considered being a long-distance landlord? Perhaps the market is looking good for rentals and you don’t mind the idea of being responsible in exchange for making a little extra money every month. 

Of course, your home will have to meet a few unique sets of criteria to be affordable enough for most renters. Certain cities are also more popular for renting than others. 

Remember that being a landlord is hard but if you’re living in another state you’ll likely need to hire a property management company to oversee everything and be able to fix things at the house when you’re not there. 

4. Hire a Relocation Company 

Relocating and selling your house for a job relocation is one of the most stressful things you can do and when you’re forced to do it in a hurry, it doesn’t get any easier. Hiring a relocation company like ARC Relocation can really help soften the blow. 

We can help in the following ways: 

• Assess your relocation needs and choose candidates likely to succeed.
• Create effective relocation policies to attract and keep the best employees.
• Get a great deal on employee shipping and transportation.
• Sell and buy homes—we’ll even buy the property ourselves.
• Help employees settle in their new location—from finding a home to learning the language.

The difference is, we do this work every single day and if it can happen, we’ve seen it before. If you need to sell your house fast for relocation, learn more by booking a free consultation today with one of our relocation experts! 

More often than not, you may find Relocation properties, or “Relos” as they are often called, available at attractive prices. Naturally, those unfamiliar with relocation companies may ask how is buying a house from a relocation company different from the regular buying process.

In reality, buying a house from a Relocation company is not an entirely different process. But there are a few details that you need to be aware of since different Relocation companies have different modes of working. 

Once you know the pros and cons of buying a property from a Relocation company, it is possible to find a great deal.

What is a Relocation Property?

One of the biggest challenges for a relocating employee is selling the old home to the right buyer. This is where a Relocation company, which is a third party hired by the employer, steps in to assist the employee with the move. 

The seller and the company negotiate for the house and during the sale, it can be owned by the Relocation company or by the seller. Usually, the company covers expenses like appraisal fees and attorney fees which can help the seller looking to avoid closing costs during a property sale.

Such a home is termed as a relocation property and real estate transactions for it are conducted through the Relocation company and not through real estate agents. 

Apart from assisting employees in selling their current homes, the company also helps with the move and the process of buying a new home. The main objective is to make the process of relocation easier for the employee and save them time and money during long-distance moves. 

Now, a seller may expect the Relo company to sell the house quickly and deliver the money. But, what if they are unable to sell the property within the time period?

In such cases, the employer may accept the risk and acquire the entire property through a guaranteed buyout option that ensures the employee a sales price. If there is no buyout option while Relocating, the employee deals with the Relocation risk.

Since a Relocation company provides a broader range of services than a moving company they can make the process of moving less of a headache. So, for an employee, including the services of a Relocation company while negotiating a moving package is a good choice.

Benefits of Buying a House From a Relocation Company

While the popular belief is that Relocation properties are cheaper, it is not so in reality. However, there are a few pros of buying a Relocation company real estate. Take a look.

• Most Relo companies want to get a quick return on their investment and are well aware of the market. So even if you do not get a steal of a deal, you can expect a fair price tag on the property. In some cases negotiating aggressively is possible as these companies are not looking to make the highest profit.
• Since the company works with a professional mindset, there are no emotions involved with the selling process to complicate the negotiations. Getting emotions out of the way is a good way to complete the selling process quickly.
• Most Relo companies ensure that the house is in good shape to make the sale as quickly as possible. This means they will spend money to make the necessary repairs prior to selling.

Downsides of Relocation Company Properties

While buying a Relo property, it is best to sell your old home first. Quite simply, Relo companies will not give you extra time if you are awaiting closing with a buyer.

Also, Relo companies will not waste time on non-serious buyers. Since they are looking to make a quick sale, they are interested in buyers with solid finances.

Apart from that, here are a few downsides of dealing with Relo company properties.

• In most cases, buying a Relo property involves additional paperwork. Since they tend to minimize their liability there will be additional riders, disclaimers, and contract documentation that you will have to sign. This will stretch out the buying process.
• Since these companies have a corporate structure they do not have extended working hours like real estate agents. So, they will not work through weekends to reply to your queries at the earliest.
• Most Relo companies prefer no-contingency offers which can be a risky move for buyers. In such cases, you should consult an experienced real estate agent to find out the contingencies that you will need.
• Some Relo properties are sold as-is by the companies. This means that the cost of repairs for the home will be more than the money made from sales. It is best to avoid buying such properties as repairing costs can add up quickly.

How to Save Money When Buying a Home

Even with property values skyrocketing, there are some effective ways to save money while buying a relocation property. Listed below are a few that you can make use of.

• Choose an experienced real estate agent who is a first-rate negotiator and is committed to their client’s cause of saving money. The right agent can help you locate properties of great value and help in listing down inspection and appraisal contingencies to protect you from overspending.
• Try to time your home purchase so that it does not fall in the peak house-hunting season. The right season when sale prices drop varies depending on the location and you can take the advice of agents who can point out the offseason period
• Consider making a higher downpayment to lower your mortgage interest loan. Additionally, this can help you to save on private mortgage insurance (PMI). There are ways you can save for a house down payment and make more savings in the long run.
• Set an ideal price range and try to find a home that is at the lower end of your budget. A more affordable home may be smaller in size, but, it will not only allow you to make a higher down payment but will bring down your property tax bill as well.

Another great option is to take advantage of the ARC Realtor Rebate when you sell or purchase a home. When you work with an ARC-affiliated agent (which are available everywhere) you get a cash rebate which is a percentage of the agent’s earned commission.

ARC has a large network of experienced agents that you can choose from. Unlike other rebate programs, the ARC Realtor Rebate has no caps and a quick 2-day turnaround time.

Final Thoughts

All in all, you can expect great service and professionalism from a Relocation company. In case your Relocation package includes the service of Relo company, we suggest that you grab the chance.

Before fixing on a Relocation company real estate, make sure that you understand the pros and cons of doing business with them. Also, do your own research on the real estate prices in the area before negotiating with the Relo company.

In case you need any support to take in the pros and cons of a Relocation home sale program, the ARC Relocation team is here to support you. No matter the type of Relocation assistance you are looking for, you can depend on our comprehensive Relocation services to guide you through the process.

A BMA in real estate stands for a Broker’s Market Analysis. It’s a method used to determine the value of a home during a relocation. It’s often confused with other home valuation strategies like BPO, CMA, and appraisals but it’s quite different and there is a reason why it’s used primarily in relocations. 

In this quick reference guide, we’ll cover what a BMA is in real estate and how it applies to your relocation. 

What is a BMA in Real Estate? 

A BMA or Broker’s Market Analysis came into play when relocation companies started using Broker’s to list and sell their relocation client’s home. At the time, this process was exclusive to the relocation industry and was essentially a more basic and much quicker form of an appraisal. 

The Broker would compare the house to other similar ones on the market to come to the conclusion of the final listing price to sell the property within a specific period of time. 

What makes this different from a Comparable Market Analysis or CMA is the timeline. 

Since relocation companies are generally working on a tight deadline to sell a home during the moving process, the price that the BMA comes to would likely be lower than a CMA because of the urgency behind the sale. 

What is a BPO?

What does BPO stand for? It stands for Broker Price Opinion and it’s considered to be a step up form a CMA and can be ordered from a lender, homeowner, or bank to determine the price of a home being sold as a result of a business relocation. 

This process is still less expensive than an appraisal because of the person preparing it. Since it’s not being performed by a certified appraiser, it’s actually illegal in some states. The adjustments are limited on a BPO which can skew the value of the home in one direction or the other. 

What is a CMA? 

A CMA or Certified Market Analysis is prepared by a Licensed Realtor to determine the best sales price of a home based on the current market. 

The main thing that separates this from the previous two options is that it focuses less on the features and improvements of the home and more on the current market. 

Adjustments are made based on square footage of the comparable properties then compared to other properties of similar size that have sold recently within a certain mile range of the house in question. 

This is considered a highly standard procedure and if you’re hiring a real estate agent for relocation to help during the relocation process then chances are, this is the type of valuation you’ll receive. 

How Does an Appraisal Compare? 

As appraisal is considered the most comprehensive way to determine the value of a house and what it should sell for in the current market. 

This is because it combines all the elements of each option into one. It uses the current market conditions, recent sales, comparables, and every detail about the house in question. 

During an appraisal, a Certified Residential Appraiser will go into the house and take an extensive look at all the details of the home rather than just factor in the square footage and exterior appearance. 

Factors like the age of the roof, condition of the windows, hot water heater, heating source, foundation, and updates will all play a major role in the actual value of the home compared to other sales in the neighborhood. 

How These Apply to Relocation 

A BMA in real estate is one of the most common options for a relocation. If you or your team members are in the midst of relocating and you have employees that need to sell their home, part of the relocation package could include the business purchasing these homes and selling them. 

It’s also important to remember the timeline and why a BMA has an impact on this. If you’re relocating employees in 30 days and they’re securing a home in their new location, this opens a small window of opportunity for you to sell their existing home to ensure that the company doesn’t have to take a hit. 

No appraisal licensure or accreditation is required for a BMA so it’s also much easier to perform one quickly.

How to Decide What You Need 

Depending on the situation, it often comes down to cost. An appraisal can help you get the most for the sale of a home but it can also take the longest to complete and it will cost the most to get the appraisal performed. 

If you’re looking to save some money and time, a BPO or BPA will be the easiest way to determine the value of the home but it doesn’t factor in various details such as comparable internal features of homes that only a Certified Residential Appraiser would have access to. 

A Certified Market Analysis is one of the simplest options because you’ll likely need to have a real estate agent help you during the relocation process. They’ll perform a CMA to determine the value of the property compared to what is currently selling and they’ll settle on a price from there. 

What’s most important is to understand that you don’t need to go at it alone. Whether you’re the General Manager, HR Manager, or an employee with the company; hiring a professional relocation company can take a lot of this off your back. 

We specialize in helping businesses of all sizes to relocate, and we can assist in every step from A to Z. We have a proven process that helps you sell off the homes and relocate smoothly while ensuring you preserve as much of your relocation lump sum as possible. 

To learn more about ARC Relocation, schedule a free consultation today by clicking here.