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Audrey, Both Buyer and Seller in Sacramento area

What exactly is a "relo" property?

Asked by Audrey, Sacramento area Mon Sep 17, 2007

I have been looking at homes with an agent, and the one I really like is a "relo" property owned by a "relocation company." What is that exactly?

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To add to Jim's comments regarding disclosure, often times relo companies will not agree to the arbitration and mediation clauses in the purchase agreement...just FYI...so make sure to completely satisfy yourself as to the property's condition.
2 votes Thank Flag Link Mon Sep 17, 2007
Erin Stumpf, Real Estate Pro in Sacramento, CA
MVP'08
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We have a few in our market - typically a corporate employee is transferred out of state, employee must -sell home - it doesn't sell in the alloted time frame & the corporation buys it from the employee - per their compensation package.

Fairly simple - not like an REO or BPO...
2 votes Thank Flag Link Mon Sep 17, 2007
A Relo property is one that is held by a 3rd party relocation company. The owner has been transferred and their employer has made arrangements to buy them out. Usually there is two deeds created: one from the owner to the relocation company and a second one from the owner to new buyer. The property is held and maintained by the relo company until a buyer comes along.
Web Reference: http://pamwinterbauer.com
1 vote Thank Flag Link Mon Sep 17, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
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Because the relocation company did not live in the house they do not have much knowledge about the condition of the house other than reports that have been given to them and the previous sellers disclosure.

So the property disclosure may "innocently" fail to disclose all the facts about the property's condition. They are not trying hide anything... they just don't know. Since you like the house, you should not let this stop you or slow you down. Just do your due diligence inspections and inquiries.

As with any purchase you should fully investigate the condition of the property using an inspector (s) of your choice.
1 vote Thank Flag Link Mon Sep 17, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Audrey, As the previous agents have answered, it has to do with an employee who is transferring due to their job. The reason that it is stated sometimes that it is a"relo" is that there are sometimes certain restrictions that the company who is paying for the relocation impose, such as which title or escrow company may be used, or certain special forms they want filled out. Often, they use specific realtors to list the property.

Hope this helps.

Patti Phillips
800-680-9133
1 vote Thank Flag Link Mon Sep 17, 2007
The seller works for a company that provided him/her with an incentive to move, often called a relocation or "relo" package. Sometimes the seller's employer will purchase the property from the seller and then engage the services of a preferred realtor (a realtor they have contracted with) to sell the property.
1 vote Thank Flag Link Mon Sep 17, 2007
Hello Audrey. A relo property is one that the relocation company purchased from an employee. Employers contract with relocation companies when they hire or transfer an employee. The relocation company usually first tries to sell the property, but when they can't do so within a specified time, they purchase the property from the employee for a predetermined price. This is usually a good thing for the employee as they can then purchase a new house at the new destination. I hope this helps.
Web Reference: http://www.go2kw.com
1 vote Thank Flag Link Mon Sep 17, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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It is a relocation property. It is a benefit some employer offer to their employees to help with moving.

http://getprequalified.com/article/105260/answers_by_edgar/w…
0 votes Thank Flag Link Wed Jul 30, 2008
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