powhatan knuckle: What's The Difference Between a Corporate Move vs. a Consumer ...

There is not really any major difference.

But, read on because while the two terms essentially are the same at face value, there are differences in the actual home-buying and selling process for each type of move.

The Relocation Division of William Raveis Real Estate typically assists between 2000-3000 moves per year in the 4 states we service.? We have many sources from which we receive requests to help folks moving in or out of the area ? they are relocation management companies for ?corporate? sponsored moves, our broker network, Leading Real Estate Companies of the World? which are moves made on a voluntary basis for various reasons, our own corporate clients or our employee assistance program ?Home Plus.?? For any of these sources a common theme, whether corporate, sponsored or voluntary is the sale of the former home.

Roger Atchinson, Senior Vice President of Sales and Marketing for ReloDirect?, the corporate relocation management company of Leading Real Estate Companies of the World?, offers what we believe is a realistic summary of the impact of a ?relocation? for a corporate move or a consumer move in discussing the home-buying dynamic and the need for professional assistance of a quality Realtor.? Read the full article below.

Since 2008, the average U.S. citizen has been a witness to, or even an active participant in, one of the most devastating downturns the U.S. real estate market has ever experienced.? However, all of the statistics reported daily in the media may not have an impact until it is time to make a personal or corporate decision to relocate your family.

From a corporate perspective, we are witnessing a resurgence in relocation activity as the economy shows signs of rebounding.? Yes, it is still all about jobs and, while the unemployment statistics nationally remain weak, the growth in certain sectors (e.g. U.S. automotive, technology) indicates that positions requiring high tech skill sets are in high demand.? This trend is not a U.S.-based phenomenon, as the global economy is experiencing a ?war for talent? unlike anything ever seen before.? The impact on the need for skilled resources is being realized already in both the domestic and the international relocation marketplace.

Surveys of relocation professionals are forecasting an increase in relocation over the next year.? The reality is that the relocation industry has been experiencing an increase in activity for the past year, and to many the outlook is for continued improvement in relocation activity.

The Consumer Sector

The increase in demand in the corporate sector is also being realized in the consumer sector.? For several years, potential personal relocation has been on hold as home owners stay out of the real estate market.? The rationale is if the average home buyer waits for one to two years, the market may rebound, and the loss may not be as great.? While mortgage rates remain at all time lows, the access to money is not the same as before, which further discourages some home owners.

At long last, corporate transferees and those moving for personal reasons are becoming more accepting of the new realities in real estate.? Corporate transferees are less challenging with appraisal reports and broker opinions compared with just one to two years ago.? Savvy corporate relocation managers have been creating alternative or flexible relocation benefits that are seen as viable ways to manage around the many challenges confronted when relocating home owners.? A few of the programs being offered and accepted by transferees include:

1.) Providing incentives to rent instead of buy;

2.) Offering property management instead of home sale assistance;

3.) Delaying home sale assistance programs until a later date for fast track corporate transferees.

Local consumers are not as fortunate as corporate transferees in the respect that there are no benefits that would entice them to move.? However, what they do have working for them is time, which transferees often lack.? And this brings us back to the point that the local market has been on hold until the prospects of selling with a more favorable outcome can be realized.

While these dynamics are not inclusive, they represent a significant portion of what has been occurring in the corporate and consumer markets relative to decisions on relocating for career or personal reasons.? It goes without saying that nearly all decisions relating to relocation are made after considering the financial, family and lifestyle impact of the move.? The primary focal point for this decision is most often on the sale of the former home.

Home Buying Dynamic

However, when moving is being considered, whether it is a long distance corporate move or a local personal move, there is a home buying dynamic evolving that needs to be considered and should receive equal attention as the home selling process.? The understanding that homes are selling for less at

both the former and new locations is well recognized and is softening the economic reality for those who are selling today.? This economic safety valve is also tempered by the fact that there is a large inventory of homes on the market and that mortgage rates are at an all time low.? These factors suggest a neutral loss/gain scenario and an overall positive outcome for those willing to venture into the market at this time.? While renting for home owners who are relocating is at an all time high and is even being encouraged in policies by some corporate employers, the desire to purchase and be a committed member of the community is a strong emotional need for many.

So what is happening at the new location that needs to be taken into consideration when moving?

First, real estate is above all else a local industry.? That is why national statistics have little relevance when it is the consumer who is moving and a specific community is in mind because of specific factors that are important to that consumer ? whether schools, recreational options, medical facilities, and the like.? Therefore, national inventory statistics also possess little value.? An assessment of the new location today requires a deeper analysis than the number of homes on the market, absorption rates and local list-to-sale price ratios.

The Old Adage:? Location

What is important is location, location, location.? This does not mean, state or county.? It boils down to city and neighborhoods.? Within these criteria, what impacts the real situation of the market is the number of distressed properties for sale, and this is where the new reality is being realized.? Most home owners who are relocating, either local consumers or corporate transferees, are finding limited availability of ?move in condition? properties among all the short sale and foreclosure properties.? Distressed properties are uniformly poorly maintained.? Deferred maintenance becomes?more deferred.? As they say, a water leak will not repair itself and only gets worse over time.? These are ideal investor opportunities, but are not typically homes being sought by your local or corporate transferee.

In my own market, a very nice suburb, it has been reported in the press that because of a shortage of ?move-in condition? homes, bidding wars have been occurring where as many as six or seven bids have been received from different buyers on the same house.? While property values in this area still remain at below 2000 rates, the improvement in the employment market is driving increased demand, and values are beginning to edge upward, especially for well maintained homes for sale that are not ?distressed,? as in short or foreclosure situations.

Professional Assistance is Imperative

This new reality in home buying requires that buyers understand what factors are influencing the real estate market and rely on real estate professionals to educate them on finding the best solution.? Based on my findings, I can offer the following recommendations for home buyers.

A.) When listing your property, or purchasing a home, remember that you need to be objective and have experienced and successful professionals working on your behalf.? Your losses, if any, at the departing location need to be minimized, and your investment in the new location must be a well-informed one.? Stick with the pros who know what they are doing and can prove it.

B.) Research possible Realtors? and select one based on experience and results, especially in the field of employee relocation.? The real estate industry has downsized significantly over the past three years, weeding out many of the part time and poor performing agents.? Those Realtors? committed to servicing the employee relocation industry and the agents who understand the dynamics of working for transferees are the survivors and are in the best position to offer counsel.? They will have access to the largest possible buying pool.

C.) The largest company is not necessarily the best.? Technology has changed everything, including real estate.? Determine who is most relevant overall in your market, as well as the market where you will be moving.? A strong referral will help with the new reality of home buying you will experience at the new location.

D.) In most cases, avoid using friends or family if at all possible when buying or selling real estate.? As simplistic as it may seem, use only full time real estate agents.? Take into consideration?who they work for,?what are their credentials and?what is their sales record in the area of interest.? Ask and select from a competitive, objective pool of candidates.

When it is time to move, stay?positive, and avoid real estate statistics at a macro level. Partner with the best brokerages and agents in the community where you live or are moving to, and be open-minded when getting their professional expertise.? It will pay off in the long run.

For more information on the relocation market and for more of Roger?s opinions, please visit http://www.relodirect.com/ .