Jan
12

Buying a home from a relocation company?

Question: Buying a house thats selling thru a relo company?
I’m interested in buying a house that is listed for sale at $ 425K. The price was reduced from $ 450K. I tried to do some research and found out that the house was purchased in the late 199o’s for $ 230K (not that it has much to do with the current value). I know that the owners were company-relocated and a relocation company is now handling the sale of the home.

I think the house is slightly overpriced. 

Is there any place where I can find out how much the relo company paid the owner? This information would be incredibly helpful in determining the offer I make on the house. Would $ 385K be too low-ball of an offer (90% of asking price)?

Answer:

It is not a matter of how much the house was purchased for in the 1990’s or even how much the relo company paid the homeowner.

If you are really interested in that house, I suggest you get an experienced Realtor to provide you with comps of active properties and recent  sales.  That’s the kind of information the relo company will use in deciding on offers.  Every market is different. Guessing percentages is not a way to determine a property’s value. Find out whats going on in that area and then you can make an offer with the values as a guide.

Add your own answer in the comments!

About Kristofer Nance

Kristofer Nance, Real Estate Broker with Nance & Associates, Realtors in Fredericksburg VA
Owner/Agent of Nance & Associates, Insurance.

Comments

  1. No, unless you have access to information provided by Title companies. Even then the relo company would have had to take title to the property for that information to be accessible.

    Since you are dealing with a company and not an emotional home owner, write the offer you feel comfortable with. If you are too low, the relo company will probably not counter. If you are close then you may get a counter offer. The relocation company has already paid for an appraisal and a BPO (broker price oppinion). They have a game plan for the time being, they know the market is slow, now the trick is to write an offer that will trigger a counter……..you can always counter their counter.

    Ted
    Realtor
    Simi Valley, CA

    P.S. I’m an emotional home owner myself!

  2. VolunteerJim says:

    You probably have as much information right now as you’re going to get.

    Based on my experience with relocation firms they typically do not actually take title to a house until just before closing with a new buyer and often not even then.

    Generally a relocation company’s goal is to sell a house as quickly as possible for the best price they can get. The longer it sets on the market the more flexible they become on price and terms.

    A lot of relo firms are also affiliated with mortgage companies and will sometimes cut you a better deal if you get your loan through their affiliate.

    If you’re not already obligated to work with a particular Realtor I would find one that understand how relocation moves work and how to apply that to your advantage.

    For example some companies that hire relo firms to manage their employee’s moves guarantee that employee will not lose money on the sale. For you that means you could actually buy the house for less than the current owner paid for it and the relo company will eat the difference.

    An offer 90% below asking would not be out of line for a house that has been on the market for 90 days or more, especially if they’ve had a price reduction from 450 to 425.

Speak Your Mind