What is a "relo addendum"? (Leesburg: foreclosure, relocation company)

[ACWhite]

I have seen this term on some home listings. However, I don't understand what it means. Searching on the web hasn't been very helpful. Can anyone explain how these work? Should a buyer stay away from a house with this on the listing? Thanks.

[mlv311]

It's a relocation addendum. I wouldn't say you need to stay away from these homes. Several years ago we purchased a home that had a relocation addendum without incident, but you should definitely be aware of what it contains because it may affect the terms of the purchase contract.

[Mark Sr.]

In most instances it is when a corporate relocation company has assumed some or all of the duties of selling home for a seller whose has had a job transfer. Part of the employment package has a provision for protecting the employee from being stuck with a home that they have to sell from their new place of residence.

The relo company may now own the home and the addendum attempts to disclose this fact and also exclude them from any liability for past issues with the home. Chances are the relo company is a national company based out of state and it does not want to become proficient with the different RE regulations, contracts, laws, etc., of all 50 states.

I have seen many sellers, knowing that the relo co. will assume their home if it does not sell by the time they relocate, price their home way too high initially. They hope the dream buyer will come along. That usually does not happen and nowadays many relo homes sell at a loss.

-Mark

[5stones]

This is how our old house in Leesburg is listed. As Mark says it simply means that the seller couldn't sell thier home in the time needed before they needed to be in the new city and the relo compnay bought it from them.

With the Market the way it is in NOVA it's hard to sell your home quickly even if priced right. We had 90 days from finding out about the transfer to being in the new city for the job. Not alot of time to get a house ready and on the market etc... So, you will see MORE homes owned by a relo company in a slow market.

Just read the addemdum carefully. It's not A FORECLOSURE!

[ACWhite]

Thanks, everyone, for these helpful explanations.