Home Buying in Central>Question Details

Nicole, Home Buyer in Central, IN

How flexible on price are relo companies on homes they have bought out?

Asked by Nicole, Central, IN Tue Jun 17, 2008

We could close in 2 weeks - live in Indiana. Any past experience/example is great!

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Hello, I quite often work with Relocation Company homes. Sellers know to place the home in excellent condition prior to placing their home on the market. Two agents give their pricing opinions, they must be very close in their market values, or the Relocation Company will order a full appraisal. What the sellers paid for the property is listed in the county tax records, usually located on a county website. I have found that once a home is "bought out" by a corporation, they are very open to offers. There is extra paperwork on a company owned home, but often there has been an inspection of the home for the buyer to review. The termite letter has been written and again given to the potential buyer for review. The title work has been done, so no surprises there. Give a little extra time, about ten days, to get your paperwork returned from the buy out company. It is smooth sailing from there: no surprise repairs, the sellers have moved out, the home is clean and you have a wealth of information from inspections. Good Luck buying your new home! Imogene Thomas, CRS,GRI,ABR,CRRS,SRES,Broker Assoc. with Carolina One Real Estate
1 vote Thank Flag Link Mon Jul 14, 2008
Dear Nicole:
Our company markets a lot of "Inventory properties" and in many cases the flexibility is a lot less than what is thought.
The process begins with the actual homeowner trying to sell the home themself for a period of time thru a Realtor who is acting on behalf of both a seller and a relocation company.
Prior to the beginning stages, the home is appraised for a possible buy-out by the seller's company. When the home does not sell then obviously their company purchases it. However, the home will have been on the market for 60-90 days and the the buy-out price is that of the appraisal, which was done when the home was originally put on the market by the seller. And in the current state of the market, more than its current value.
Therefore, signifying that the buyer (corp.) paid too much money and must try to recoupand ultimately giving the corp. little flexibility. Especially if they had just purchased it.
So therefore, timing is everything and if the home is on the market longer the corp will lower the price but that flexibility from the seller is still not there.
It also takes a fairly long time for that corp. to respond to an offer because of the layers it must go thru to get an answer. Those 2 weeks you are talking about matbe the time it takes to even get an answer.
It is quite an arduous task to but if it is the house you want make an offer and see where it gets you.
I would ask how long it has been on the market, what was the original asking price and if you can, find out what the originals sellers buy-out was. That info will help you immensely. Good luck.
0 votes Thank Flag Link Tue Jun 17, 2008
It all depends on the market in the area where the home is. The relo company does not want the house and they will work with you. They may not come across that way, but they will. Just hang in there. You are in the drivers seat. You are a buyer and you are ready to close. I have a guy in Indiana you can call or email to get a feeling for relo companies there. Let me know if you would like is contact info.
0 votes Thank Flag Link Tue Jun 17, 2008
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