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Anyone know how corporate owned homes work? Are they eager to sell?
How much can you negotiate on price? I'm sure the prices are inflated, aren't they?
I went to see a home today that was corporate owned. The realtor said they (corporation) was eager to sell.
Well, in my experience, the prices aren't inflated. (I've been on both sides, as a listing agent for a corporate owned home and a buyer's agent.) But it probably depends on the individual relocation company and, indeed, the individual relocation officer - the agents simply provide them with a Broker's Market Analysis that they use to set the price, and it's based on homes that are NOT corporate owned that reflect the actual market.
They're not usually keen on holding inventory, so they tend to price aggressively, at least the ones I've dealt with have.
One question: was it your buyer's agent or the listing agent that said they were eager to sell?
Are you for sure that the Relocation Company actually already OWNS the house? Your buyer's agent STILL might be presenting the offer to the original buyers.
Ours isn't "corporate owned", however " our" buyers would have to actually buy the house through our relocation company. We are dealing with one of the largest relocation companies( Cartus). Cartus had our agent make sure that our asking price was based on comps and what prices sold for recently!
1. We have to get an offer and accept it. Then the relocation company buys it from us THEN THEY sell it to the sellers.
When our company handles the contract with the buyers it is a HUGE HUGE amount of paper work involved on the buyers end that must be signed. ( I guess at least in our case). We already had a deal fall through because the buyers couldn't get financed and I saw the contract.
We got low balled at first because the buyer "thought" he was just dealing with the relocation company and could "steal" the house. Soon enough the buyer realized that they were only going to get a little off.
Just be prepared and make an offer based on what YOU think the house is worth and you would be happy with. Ask for comps in the area. Good luck with your choice that you make about the house.
Cartus is the company that I've worked with as the listing agent. Yes, there's a lot of extra paperwork involved. Especially on the agent's side - we have to do a VERY extensive BMA for Cartus before we even know if we're going to get the listing.
Right now I'm working on the buyer's side for an offer we're about to make on a corporate owned house. They sent us the docs that had to be reviewed and initialed and included with the offer - these were just disclosures, for the most part, and they came to 60 pages, and then I got another email with even more pages that hadn't been included in the original email. That's just to make an offer, mind.
You should definitely get your agent to provide you with good comps - trust that the sellers, and especially the relo company, have received those and you need to have the same kind of information to work with.
Location: Danbury CT covering all of Fairfield County
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I know all about the Cartus paperwork, since they are headquartered in my town & know some people that work there. There is a ton of paperwork that needs to be done for them, as well as for your own brokerage relo department if they have one.
Corporate ( relo) -owned properties are usually the best values in my area. It's very tough for an individual sell to compete with them.
In traditional relocations, the owner has a financial incentive to sell on their own. Most did so, in better markets.
The relo company will order 2-3 appraisals and the buy-out becomes the average. I have yet to see a corporate-owned property sell for more than the buy-out which says something about the seller's price.
I would not hesitate to put a buyer into a corporate-owned home. They are well maintained and all significant inspection issues are addressed.
If it fits your needs and you like it-make an offer on it. I wouldn't think, however you are going to be "stealing" just because it is a relocation because ultimately they did have to pay for a buyout it sounds like. They are losing out money each month,but they aren't going to just give it away. I could be wrong,however.
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