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Tried to search online as much as I can to find out about this company.
I'm negotiating on a house that was an employee relo.
From my understanding, the house was a "buy out". In other words - correct me if I'm wrong - SIRVA had an assessment done on the house, and then bought it from the employee? So SIRVA technically owns the house now and is selling it? Or does the employer that hired SIRVA own the house?
Reason i ask is - SIRVA would obviously due their due diligence on a house before buying it, since they have to resell it now (e.g. have the employee make repairs). Furthermore, I'm assuming SIRVA would try to buy the house for the lowest possible price they could. Apparently, my offer is coming in below the price that SIRVA bought the house for -- so says the listing agent. I would assume the price that SIRVA paid is not visible on MLS for me to verify a bluff?
There is no definitive answer. Each employee that receives a relo package that involves SIRVA receives a different relo package.
A couple of things you can assume: SIRVA did an appraisal or had 2-4 broker price opinions done before paying the owners. Typically a relo company such as SIRVA will not let an employee list much above that appraisal or the average of those broker price opinions. SIRVA does not buy it at the lowest price. They buy it at a price that is "fair" to the person being relocated.
Again--SIRVA may now own it, or an actual person may own it. It will vary based upon the relo package the owner's company offers. Given that you said it was a buy out, SIRVA probably owns it.
Whether the agent is bluffing--who knows? I doubt it. Agents that work with relo companies are typically paying the relo company a big %age of the commission. They just want it sold as there is often a lot of weekly paper work with relo companies, and they are taking a big cut in their paycheck.
Whether or not you can find out the purchase price depends upon your local area. Many areas in the country make sales prices public information through the assessor's office or something similar. It would not be available to you in the MLS just as any sale may/may not be available to you.
If you're looking for a bargain, relos are typically not a source of such.
Sirva will buy & record the deed before your deed is recorded. Like a one two punch. They will not buy is for the lowest amount possible. They are hired to pay market value so the employee can move with piece of mind.
As was said, there are many options. I have known relo companies to be in control even when the seller still owns the property, to want to be the ones that see all the many many pages of facts on paper, things normally mostly spoken, and updates to them weekly on reams of paperwork. I have known them to act experienced when they have no idea how things go in an area. I have known them to actually accept the low list price of a realtor they have already worked with...but when the owner complained and said they have a better realtor in mind they said well, we'll try her, etc.
I have never known any, including sirva, to charge the listing company less than 40% back to them, a 40% referral fee. So it works best if a realtor wants to work with them in bulk or if the realtor presents well but is new and trying to build up business or get a sign in a certain neighborhood.
Right now, a friend, who hates the process, is working with them only because the sellers are friends and want him.
i just wanted to do some due diligence before potentially going contingent on this property, as the seller (Sirva?) ended up countering at a price that is significantly below the price that Sirva bought the house for from the employee. so i guess that's a good thing. the supposed purchase price does seem believable -- however i have lived in the community for 30 years and know for a fact the house would never sell on the market at this price, despite it being the fair market value that two assessors valued it at. i guess the thing i'm having a hard time wrapping my head around is that Sirva would buy a house for X amount of dollars and then resell it for a 15% loss 5 months later -- hence my skepticism. does the employer pay off the difference? and to clarify, the realtor did specifically state "the owner accepted a buy out from Sirva".
Once again, EVERY repo package is different, but I never ran into a situation that the employer paid the price difference.
If anything, SIRVA or the employer would pay the employee a "bonus" if the property was sold in a certain amount of time. This allowed the employee to take a lower offer and still come out financially sound. It also prevented the property from languishing on the books.
As others said, don't worry about the price SIRVA paid or why, etc. If you want the property make an offer and go from there.
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