Relocation: Condition and Price

Would you be interested in move in condition homes with recent updates that can be purchased for sixty five to seventy five cents on the dollar? Have an agent show you some relocation company owned homes.
What does a Relocation company do and why do they own homes? Short answer; they assist transferring employees with their move. For instance, if Jane Doe has accepted a job promotion that would move her from Glencoe, IL, to Grapevine, TX her company may provide a relocation package to her. The Relocation Company will hire the Realtors, Attorneys, Home Inspectors, and other services to make Jane’s move easier. In some cases the Relocation Company will guarantee the sale of Jane’s home within a specific time period. Should it not sell they will buy it from her; this is known as “taking the buyout option”.
Since the market has cooled in recent years, relocation firms have a tremendous amount of real estate in their portfolios. These homes are pure liability. Utilities, interest, maintenance, insurance payments on hundreds of homes can be millions of dollars a year. As a result there is a lot of pressure to get them sold. The companies will typically improve condition AND lower price until it goes under contract.
This is where you the savvy real estate investor come in. Being fully approved for any finance you need is the leg up you will need. Identify the home and use your leverage, offer a quick close (maybe 10-15 days) in exchange for a lower price. Just like Foreclosures, it might take a few days to get a response, so be patient. After your offer is accepted, go forward with your property inspections. It has been my experience that unlike foreclosures, relocation companies will work with you on home inspection issues.
Are these opportunities harder to find? Yes, in fact many times the only way to know is word of mouth. Any full time agent who prides themselves on knowing the inventory should be able to readily identify these great deals for you. So get your mortgage ready, contact your Realtor and get out there before the coming spring buyers beat you to these great deals.
Next up: Short Sales