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We are starting a cross-country relocation (husband is staying within same company) and have gotten the preliminary information and financial numbers from the relo company. I understand the selling side of things, but am not clear if we will be able to use any agent when we purchase our new home. We knew this move was likely coming, and spent some time out west this summer - we found an agent (met him at an open house, of course) we love who is VERY knowledgeable about the area we are moving to, and want to make sure we can still use him to find and purchase a home. Not only have we already used up his time, but the market out there is ridiculously hot and I want someone who knows it well. Is it typical for relo companies to also require you use one of their approved agents, or require a percentage from our buying agent as a referral fee? I'd also hate for that to happen.
We are starting a cross-country relocation (husband is staying within same company) and have gotten the preliminary information and financial numbers from the relo company. I understand the selling side of things, but am not clear if we will be able to use any agent when we purchase our new home. We knew this move was likely coming, and spent some time out west this summer - we found an agent (met him at an open house, of course) we love who is VERY knowledgeable about the area we are moving to, and want to make sure we can still use him to find and purchase a home. Not only have we already used up his time, but the market out there is ridiculously hot and I want someone who knows it well. Is it typical for relo companies to also require you use one of their approved agents, or require a percentage from our buying agent as a referral fee? I'd also hate for that to happen.
Yes, most relo companies demand their own agents at both ends. Now, that being said, the only way to know about your relo-company is to ask.
No matter which agent you use, they will most likely have to pay relo a referral fee.
I'd ask your Relo company if you can use your agent. They will most likely check to see if his company is in their network and if so, and he agrees to the referral fee, you have a good chance of being able to use him. I'm not sure if he will have to be relo certified or not. Of course, any agent can refuse to take a Relo client if they don't want to pay the referral fee.
I usually tell my clients that they owe me TWO REFERRALS since I have to pay the referral fee!!! (Just kidding, of course!).
It varies on your relocation package. I work about 80% relocation into my area. The vast majority can use whatever agent they want and they submit their HUD1 for reimbursement, and I don't pay a single referral fee. A few require a referral fee on the buying side, but not most. I relocated a Google exec and even his package didn't require a referral fee on the buy side, just the sale side.
And just know, you are not required to use any agent they recommend. No one can be forced on you. You can use whomever you want, as long as the agent you use is willing to work with your relo company.
Thank you all very much for your replies! They have been very illuminating. We emailed our rep at the relo company and they stated even on the buying side that we are required to use an agent that is (their company) "recommended and approved" whatever the heck that means.
They have also explained to my husband that we will have exactly two choices on the selling side - they will vet and have market analyses done by 2 agents, and we will have to pick one of those agents. If we have an agent that we would like to use, we will have to submit that agent's name, and if they meet the criteria then we will only have that agent and one of theirs to choose from.
I am really leaning towards trying to get a lump sum for relo and forgoing the relo company entirely. This just sucks. I really, really, really do not want to have to ask my buyer's agent if he wants to kick back a huge part of his fee for the privilege of representing us, when he did all the work to land us as clients on his own.
As an aside, my MIL and BIL are both brokers (one retired, one commercial) so I have a lot of empathy for what agents go through in general! Makes me a little more extra loyal, and a little more extra-picky on agent quality.
I really appreciate you guys taking the time to answer questions on this forum
You can call the shots. You just have to be persistent. It's not hard to get on a relo company's "approved" list. Just tell them that you want YOUR agent and to get them on the list. I did this recently for a listing. It was MY client, but they got a buyout. The relo company sent three different fools out that didn't know what they were doing. Seller was persistent and told them that I knew his neighborhood better than anyone. They caved, got my info and I'm on their precious "list" now.
Hate doing relo though, because they take so stinking much. Almost not worth it.
For the buyer's side, same thing. Tell them their referred agents don't know the area and aren't helping. Are you getting a huge payout from them on the buyer's side? If not, just tell your agent of choice what the relo company is paying you and ask if they can match it. Lots of times they can. I had a USAA buyer that was getting a "deal" from them. Few thousand dollars. I was actually able to pay them slightly MORE than USAA, and still not have my commission pillaged by the relo company.
I rarely work relo anymore because i just can't stand someone sitting in an office across the country telling me how to do my job, and then taking my money.
"Recommended and Approved" means the agents agreed to pay the referral fee.
Most companies do have minimum experience requirements for agents who do relocation. They usually try and find you someone compatible with decent experience.
I recently had one of my previous clients call to tell me that they were moving and their company wanted the names of 2 agents to submit BPOs but if my company was part of their approved companies, they "could" use me.
Of course, they wanted me and they apologized for me having to pay the relo fee. If these were not MY CLIENTS, I usually do not take a relo client because I don't have the time and then having to submit weekly and monthly reports to them is so time consuming.
I had the choice of whether or not to say yes. You should give your agent that chance.
Anyway, after having the property listed for 10 days, I got a call from a buyer and I showed the home, explained dual agency and sold the home!
There is no relo fee paid on the buyer's side!
So...of course I'm happy that I didn't have to do all the reports AND I got to sell my own listing! Dual agency is difficult but being a control freak, it also means I know what is going on at all times!!!
So...give your agent the option of taking the listing or not.
I agree. If you're persistent with your relo company and your agent(s) agree to pay the referral fee then there's no reason you can't use who ever you want. Offer the job to your agent and let them decide if they want to take it.
Usually, they limit listing presentations to 2 agents. However, if you tell them you didn't like either then they'll send you more to choose from. In the end, you're the client and they want you to be happy. The last thing they want is for you to go complain to your company about the terrible job they're doing. The relo company is not going to risk losing the whole account over it.
Woohoo! Husband's company is willing to pay the relo company's "non-compliance penalty" (I believe is what they called it) so that we can use our choice of realtors on the buying end and selling end so that worked out well On the selling end we are just receiving a lump sum which will not be grossed-up but since we have a family realtor AND broker and we'll have a little more flexibility with where we price it, hopefully that will be a wash. I'm very happy for our buying agent too - I never did have to have that conversation about the relo company fee. Thanks again for your advice!
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