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Hmmm....If they are paying the RE expenses and a 2% incentive then you'll probably come out better listing if you're in a stable market. You should interview 3 Realtors and their CMA will give you a pretty good idea of your net if you list.
Hmmm....If they are paying the RE expenses and a 2% incentive then you'll probably come out better listing if you're in a stable market. You should interview 3 Realtors and their CMA will give you a pretty good idea of your net if you list.
The thing is DOM is like 180 days; we want to be in our new destination in two months.
We have a new idea, hire appraisers ourselves to see what we could get before we initiated the guaranteed buyout process.
I've explained our idea in this thread below, What do you think?
I've tried to follow this thread. We had the same relocation incentives but probably a different mind-set than you. We were given three realtor choices from the relo company and they each did their schpiel and and then we got to choose. We had 90 days to sell on our own with the realtor and then were given an offer by the relo company based on appraisals--we could accept their offer or continue to try on our for another 60 days losing our incentives every 30 days.. During the appraisals, the appraisers gave me no information or hints so I could have a ball park idea on what to do. We had our house priced right in the middle of our market and the house was turn key. [Prior to moving to this home, we had another house on the market for 18 months and followed the market down finally selling for $200k or more lower than list price.] After 90 days, we didn't have any offers so we took the company's appraisal. Our break even was $780K and the appraisals averaged out at $740K. The appraisers have to take into account comps according to days listed and how the current market conditions are. We took the company offer (we also received $20K compensation from the relo company for selling at a loss). We still came out in the red but the house was originally listed May 2007 and it just closed May 2008 at $624K so in the end the relo company was stuck with holding costs and a $100k loss. I'm just glad it wasn't us this time. My advice is to look at the big picture and just walk away with as much of your dignity and finances intact and not lose too much sleep about it.
(we also received $20K compensation from the relo company for selling at a loss).
How did this work? What determines loss? Is it what you paid versus what you sold it for? What about upgrades? We paid $680K but the basement (2400sqft basement) wasn't finished adn there was no landscaping. We finished the basement (~$77K) and got landscaping (~$23K) so our breakeven is $780K.
We are in the process of buying a home that will be subject to loss compensation. Before we make an offer the company needs to appraise the home. Basically if you didn't enter into the program when you bought the house then you will not get anything now.
How did this work? What determines loss? Is it what you paid versus what you sold it for? What about upgrades? We paid $680K but the basement (2400sqft basement) wasn't finished adn there was no landscaping. We finished the basement (~$77K) and got landscaping (~$23K) so our breakeven is $780K.
This stuff doesn't matter to them. We purchased our house for $780k and we probably put another $20K into. We used it to purchase light fixtures, custom closets, new appliances, window treatments and landscaping. It was not entered into the equation. Our personal relocation clause had a loss clause in it that if the appraisal was less than the purchase price - they would pay up to $20k of the loss. The relo company is not looking at what you put into your house. They are just looking at comps in the area and days on the market. You should meet with a realtor behind your relo company's back and ask for the comps in the area. Until they walk into your house, they only know what's in the tax records. A realtor doesn't know that you finished the basement and did the landscaping. You don't have to give them any information about moving, etc, only that you are wondering if your house would sell and if it was worth it and what price they thought...
You will NEVER get your $23K back for your landscaping but the basement addition might add big dollars for you. The relocation company is not trying to protect you..only their investment.
This stuff doesn't matter to them. We purchased our house for $780k and we probably put another $20K into. We used it to purchase light fixtures, custom closets, new appliances, window treatments and landscaping. It was not entered into the equation. Our personal relocation clause had a loss clause in it that if the appraisal was less than the purchase price - they would pay up to $20k of the loss. The relo company is not looking at what you put into your house. They are just looking at comps in the area and days on the market. You should meet with a realtor behind your relo company's back and ask for the comps in the area. Until they walk into your house, they only know what's in the tax records. A realtor doesn't know that you finished the basement and did the landscaping. You don't have to give them any information about moving, etc, only that you are wondering if your house would sell and if it was worth it and what price they thought...
You will NEVER get your $23K back for your landscaping but the basement addition might add big dollars for you. The relocation company is not trying to protect you..only their investment.
Thank You for this information. I just looked at my company relo book and there is this benefit offered, up to $25K. There is something about "Capital improvements and additions, including contractor add-ons to newly constructed homes (such as pools and landscaping), are not included unless they are itemized on the HUD-1 settlement statement and included in the purchase price." So it looks like we are out of luck. The appraised value would be compared to the purchase prices of $680K, not $780K.
PS. My wife just looked at it again and it doesn't apply to new hires like I was when we bought in 2006.
Help!....we are just starting the relocation process. My husband thinks it would be best to fix everything in the house which includes putting in new windows and doors throughout the house. I am for only fixing anything that will need to be fixed to get a CO....which isn't much. If the relo company will probably end up buying our home and pricing it based on other homes in the area....none of which have new windows by the way....what should we do?
Hi, just curious we are looking at a house that is currently listed with the sellers at 234,000 they have a few months before the relocation company will buy them out..the house is appraised around 239,000 the average sales for other houses in the area 220,000..What price do you think we should offer and what price do you think the relo company will buy this house at..
You likely don't know what their buy out offer is, assuming they have one. There may or may not be more to it than the average of two appraisals.
If/when the sellers accept a buy out, the relo company takes the property into inventory and it will be sold. Average sale prices can be deceiving cause some are priced more and some less.
No telling what these sellers will accept. Your realtor should be able to advise you, assuming he/she knows the local inventory, market and urgency to move.
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