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[SIZE=2]My company was just bought by one from out of state and is trying to convince me to stay on. They have been very accommodating and have even arranged for a 3rd party to purchase the homes of those willing to relocate. I don't have any experience in this area and wondered if any one out there would care to share their experiences.
Here is how it is suppose to work. The buyer will provide us a list of appraisers from which we will pick 2. The 2 appraisal are then averaged and that is the basis of the offer. The twist seems to be that the value will be adjusted to represent a home value after being on the market for 120 days. Well I haven't a clue how that impacts the price other than I know it will be less that day 1.
My home was $310K in 2001, $412 in 2006, and $355K (based on a mortgage appraisal) just 2 months ago. I am guessing the final will be around $325K. Any thoughts.
The company I just left offered us this option to stay with the company and move to other states. While I turned it down, most of my friends took it - because house sales in MI are dismal right now and it was a guaranteed (if delayed) sale.
Similar program to yours - but with two important caveats:
1) house only had to be on the market for 60 days. So, the value wouldn't have declined as much, and you'd be at most responsible for 2 more mortgage payments
2) They guranteed equity protection of up to $100K. So if your house appraised for $175K less than you paid for it, you'd only lose 100K. Important to note that this was only actual equity. Not paper equity. So if you bought your house for $100, it rose at the height of the madness to $500, but now you could only sell it for $150 - they wouldn't give you any more than that, because you weren't actually losing anything.
But it did protect those people who had just joined the company and had bought at the height of the bubble. Or at least, protected them to $100k.
I would see if the 120 day thing can be negotiated, that's the part that's really going to hurt you if you're in an area where the prices are rapidly falling.
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