Pros and Cons of Relocation Packages - Richmond VA Real Estate

Pros and Cons of Relocation Packages - Richmond VA Real Estate

Pros and Cons of Relocation Packages - Richmond VA Real Estate You just landed that big promotion and have been offered a SWEET relocation package from your employer, but now what? Relocation deals can be amazing for the recipient. Take it from me as my husband and I have moved COUNTLESS times on the dime of the company. Let's take a look at the pros and cons of relocation packages - Richmond VA real estate.

PROS on a Relocation Package

The biggest benefit of a relocation package, in my opinion, is that many packages, not all, will pay for the commission of your Richmond VA real estate agent. If you have a $300,000 house to sell, that is an $18,000 savings right there! And, many packages will also cover closing costs on the purchase of your new home, allowing you another $9,000 of savings on a $400,000 price tag. Who wouldn't want to save all this money?! Another pro is many relocation packages will also pay for movers, yet ANOTHER big savings. When my husband and I had moved to a different state the company paid $10,000 or more to move our belongings. Score! In addition, some deals will even pay for temporary housing while you hunt for that home sweet home. WOW! Another pro of a relocation package is you will be assigned a specialist to assist you every step of the way so you shouldn't be left in the dark if you get someone on-point.

Cons of a Relocation Package

With all these savings there certainly couldn't be a downside, right? Well, it depends on the situation. The biggest drawback I see is many relocation companies will only let you work with one of their "approved" Realtors. While a dime a dozen, we have approximately 5000 Richmond VA real estate agents servicing our local area, many are not on that approved list. Why? Various reasons. One reason is some agents don't want to take a haircut in pay. Whatcha Talkin' About, Willis? Yes, the dirty little secret is most relo companies will take 40%, or more, of the Realtors commission. Seems fair? Let me ask you this: would you have taken that promotion if your company said you could only have it if YOU took a 40% pay cut? Another reason is the relo company won't allow your agent on the list. You had a rockin' agent in the past, want to use them again, but the relocation company won't allow it. WHY? In the most recent example I can share, I was not approved to be on the list because 50% of my business does not come from relo. They got me there, and 50% will NEVER come from relo. I say this because I could never build a thriving business if 50% received a 40% reduction in pay. Simple math. So the big question is who does that leave representing you? Often times it will be newer agents hungry for business. I know, you are confused because how can a newbie have that much business to have 50% come from relo? Well, the individual agent may not have that in their experience BUT their brokerage just so happens to have a relocation company of their own, therefore the agent benefits from the numbers of all the agents in that brokerage. Example, ABC real estate doesn't have a relo department. Sally, their top agent, wants to represent a seller but the relo company won't let her because they say she doesn't have enough experience. XYZ does have a relocation company within the brokerage and John, with 3 sales to his name in the last year, is assigned to the seller. Hmm... As you can see in the above example, you may be saving money on commission but the old adage holds true in many cases: You Get What You Pay For. Big deal, you still save money, right? Not if your relo package doesn't state that they will purchase your property after so many months on the market and if your house just sits and sits on the market. You could actually LOSE money by having to reduce your price over and over until it finally sells.

Making the Most Out of Your Relocation Deal

So, what can you do? The power is in YOUR hands and that of your employer. When you first receive your benefits package for relo, ask for a list of their approved real estate agents. See if the Realtor you would like to work with is on that list, they very well may be. Some very good agents are with brokerages that have relocation companies and will take the business. If your agent is not on the list, make a request. (Last year one of my sellers successfully negotiated to have me represent them and I, in turn, got them 102% of their list price in 4 days!) If the relocation company will not honor that request, which is not right to me but that's another blog post, then talk with your company. Your company hires the relocation company and they should know if you are not satisfied. If you still can not get anywhere working with your top choice, interview the heck out of the real estate agents the relocation company sends to your house. Ask them how they will market your property, their average days on market, how many homes they have sold in the last year, what they know about your neighborhood, etc. Don't just take the first agent "assigned" to you, be picky. This is, after all, one of your largest investments and you want to protect that!

Best Richmond VA Realtor

Searching for the best Richmond VA Realtor to represent you, relocation package of not? Contact me, Shannon Milligan at RVA Home Team with Keller Williams Realty, to discuss your unique circumstance! Image courtesy of Stuart Miles at FreeDigitalPhotos.net.

Post a Comment