Category: Home Purchase

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Buy a Home Global Mobility Home Purchase Relocation Best Practices

What to Do When Corporate Housing Prices Are Too High

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Minimalist designed living room interior scene in the evening

Looking at Short-term Housing Options

Corporate housing, also referred to as temporary housing, is a common benefit included in relocation policies. Corporate housing is a short-term housing option for transferees who might not have an established home available in their new destination. Typically available in 14-, 30-, 60-, or 90-day increments, temporary housing provides a transitional period for those relocating to a new location. Most temporary housing units come fully furnished, with kitchenettes, and are pet-friendly. 

Corporate housing may seem straightforward: a company covers temporary accommodations for employees while their permanent living arrangements are being sorted out. But what if finding long-term housing takes longer than anticipated? Or if the cost of corporate housing in the new location is significantly higher than budgeted? Are employees left to fend for themselves in finding a place to live?

While the specific answers to these questions will depend on the company’s relocation policies, many transferees may ask about Airbnb, VRBO, and other short-term rental options. Some companies may approve this idea and offer reimbursement packages for short-term rentals to employees who are relocating. However, there are some downsides to consider for companies that allow their employees these options, rather than covering the expenses for corporate housing. Those temporary housing options don’t offer the same coverage and come with more risk.  Additionally, it could ultimately result in the company incurring more expenses in the long run. Here is a breakdown of why the use of Airbnb and VRBO could potentially backfire on companies relocating their employees.

Potential Overpayment

When working with a relocation consultant on policies for transferring employees, corporate housing pricing is typically broken down to a per-employee, per-night basis. When third-party solutions are used (like Airbnb), and employees are allowed to seek their short-term housing options, many companies provide a predetermined amount of support. The amount provided may exceed the level of support needed by the employee for suitable accommodations, leading to overpayment by the company. In the end, the company might not be getting as good of a deal as it could be. 

In this scenario, the company could find that employees are pocketing the difference between their temporary housing allowance and the actual cost of accommodations. If an employee sees in the relocation policy that they qualify for a $X amount of benefits, then they can book something cheaper but still claim the entire amount and retain the balance. 

This type of support may also put some employees in tougher spots than others when it comes to finding affordable options. The flat level of support provided may not be enough to cover the cost of reasonable temporary living accommodations.

On the other hand, if your relocation program has corporate housing units that have been pre-selected and pre-approved, your expenses will be easier to anticipate, and you can ensure that you are offering the appropriate level of assistance to your transferees.

Billing Could Become a Nightmare

Companies that allow employees to use their relocation benefits for their housing could also end up in a billing nightmare. Many companies’ policies are not written to address the unique challenges that come with employees booking their accommodations through third-party housing providers. Without established limits and a streamlined expense reimbursement policy, an HR or accounting team may need to process numerous third-party vendors who utilize different billing methods. This could also result in the accounting department having to spend more time cutting reimbursement checks to each employee. 

One solution to address this issue is to have employees use company-approved corporate housing units that already have a direct billing arrangement in place. This ensures a more streamlined program when relocation specialists are already knowledgeable about the temporary housing options available.

Risk Considerations and Lack of Quality Control

Companies need their employees to have sufficient housing accommodations while relocating and starting their new positions. Allowing individual employees to book their third-party housing might expose them and your company to unnecessary risk. If an employee uses Airbnb or another company’s rental, there is no guarantee that the living accommodations will be clean, safe, or reparable at any given moment. 

For example, with a corporate housing apartment, if something were to go wrong, the company would have an established contract with the corporate housing company that covers items such as repairs. This provides for timely repairs or the replacement of malfunctioning equipment as soon as possible. With a third-party rental that the employee chooses, there is no way for your company to guarantee timely repairs or replacements contractually. This places more risk on the employee and your organization and is not likely to be covered in the employee’s relocation policy. The last thing a transferee needs to deal with while relocating for a company is the issue of where they are staying.

Additional examples of risk exposure that may arise through the use of vacation-style rentals include:

  • Property safety inspections
  • Lack of appropriate safety equipment (such as door/window locks and fire extinguishers)
  • No safety plans for documents in the event of a fire or natural disaster
  • Challenges around property insurance

Lastly, with third-party rentals, there may be little to no established check-in process. This can lead to complaints related to customer service or quality, as employees might be left scrambling if the check-in process goes awry. If the employee shows up at the rental unit and the unit is not sufficient, or they are told it is no longer available, it will put the employee in a challenging situation where they are left to their own devices.

The workaround for this pain point is to have transferees utilize corporate housing units approved by the company, where a predictable direct billing relationship already exists. Additionally, a more consistently applied program is made possible when the relocation specialists working with your transferees are already familiar with your temporary housing providers.

GMS Can Provide Your Employees With Suitable Corporate Housing

Airbnb and other rental companies like it are an excellent option for those seeking a vacation.  However, for companies that relocate multiple people annually for business purposes, this might not be the best option. Working with a qualified corporate relocation company, such as GMS, policies can be implemented to ensure your employees have suitable temporary housing units ready for them upon arrival in their new town or city. Contact us today online if you are prepared to start looking at corporate housing solutions for your relocation program or have any questions about temporary housing for your relocating employees.

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Corporate relocation tips Domestic Relocation Tips Home Purchase Relocation Best Practices

Preparing for Your Home Finding Trip: A Comprehensive Guide for Assignees

real estate agent showing a client homes on a house-hunting trip.
Real estate agent and businessman customer, Image taken at average residential area with multiple ownership block of flats type of buildings.

Moving for a job? Here’s how to get ready for a house-hunt trip in your new destination

Embarking on a home-finding trip can be both exciting and overwhelming. Whether you’re relocating for a job or personal reasons, preparation is critical to making your transition smooth. Here’s a detailed guide to help you prepare for your trip, covering essential considerations before you leave, activities to engage in, and necessary contacts.

Working with a full-service employee relocation company can be the best route for a transferee assignment as they can provide valuable support and resources. Here are a few things to keep in mind when getting ready for your first home-buying trip:

Before Traveling to Your Destination

1. Visa Status and Requirements

Before you embark on your journey, verify your current visa status. Understanding whether you can leave your current location without jeopardizing your new visa application is crucial. For instance, certain countries have specific exit requirements that could impact your ability to enter a new country later.

Additionally, check if you need a special visa for your destination. Many countries have specific entry requirements; for example, U.S. travelers may require an ESTA, while the UK has introduced a new travel visa that could impact your plans. Don’t forget about potential medical exams or vaccinations needed before you travel.

2. Planning for Your Family

When relocating, it’s vital to consider your family’s needs. Research the destination thoroughly. What are the best neighborhoods for families? Look into transportation options, banking facilities, schools, and shopping areas. Understanding your family’s interests—sports, arts, or outdoor activities—will help you find a community that suits everyone. This pre-trip research will save you time and help your family feel more at home in the new location.

While in Destination

3. Create a Planned Agenda

While you’re in your new destination, having a structured plan will make the most of your time. Collaborate with your Global Mobility Services (GMS) partner to draft an agenda that includes property viewings, neighborhood tours, and essential errands. Consider scheduling meetings with local realtors who can provide insights into the housing market, and take time to visit schools if you have children.

4. Engage in Activities

While your primary goal might be finding a home, explore local culture and amenities. Attend community events, visit parks, and check out family-friendly attractions. This will familiarize you with the area and help you gauge the community atmosphere and how well it fits your family’s lifestyle.

Essential Contacts

5. Build a Support Network

Establish a support network before and during your trip. Contact your assigned relocation coach, realtor, and central office for insights and assistance. Your GMS partner should prepare a list of contacts who can help answer any questions and facilitate a smoother transition. Having reliable resources at your fingertips can ease any uncertainties you may have.

6. Consider Employee Engagement

If your employer allows, consider visiting the office during your trip. This can serve dual purposes: engaging with your new workplace and counting it as a business trip, maximizing the efficiency of your travel. Discuss this option with your employer and see if it aligns with their policies.

Financial and Cultural Considerations

7. Understand Tax Implications

Relocating often brings about tax implications that can vary significantly between locations. Consult with a tax professional who understands the laws of both your current and new home. This will help you avoid surprises and comply with all necessary regulations.

8. Language and Cultural Training

If you’re moving to a country with a different language, consider enrolling in language classes or cultural training. Understanding local customs, etiquette, and primary language skills can significantly enhance your integration into the community and workplace.

9. Security Briefings

Finally, prioritize your safety by obtaining security briefings specific to your new location. Understanding the local environment, potential risks, and safety protocols will help you and your family feel secure and prepared for any challenges.

GMS Can Assist with Employee Relocation

A successful home-finding trip requires thorough preparation and a proactive approach. By considering visa requirements, planning for your family’s needs, engaging with local resources, and understanding the financial and cultural landscape, you can ensure a smooth transition to your new home. Embrace the adventure ahead; with the proper preparation, you’ll be on your way to a successful relocation.

GMS and their expert team of global mobility experts can help any company with employee relocation. We offer tailored solutions that cater to the unique needs of each employee and their family. From finding suitable housing to navigating local schools and healthcare options, GMS is dedicated to making the relocation seamless. Our team understands that moving to a new country can be overwhelming, so they provide comprehensive support every step of the way.

Moreover, GMS informs you about the latest regulations and policies affecting your move. This knowledge is crucial in avoiding pitfalls and ensuring local law compliance. Our commitment to staying updated means you can focus on settling into your new life without unnecessary stress.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Home Purchase

How to Overcome Housing Challenges During Relocation Process

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Happy real estate agent came to a successful agreement with a couple during a meeting in the office.

Learn how to navigate through real estate challenges while relocating for a job

Inventory shortages are still a significant issue in real estate markets nationwide. Buyers often find themselves in bidding wars, pushing prices above the listing price. Many are forgoing property inspections, risking purchasing a home with potential problems that may only surface later. 

This could lead to costly repairs, decreased property value, or issues during resale. Some states have non-refundable due diligence fees, while others require option money. Failing to meet contract requirements in these states can result in financial loss for the buyer. Sellers may prefer offers with fewer contingencies in states with refundable earnest money. Overall, navigating the real estate market in these conditions can be challenging for buyers and sellers alike.

This trend of homeowners staying longer has also been influenced by the uncertainty in the housing market due to the ongoing market changes. With the rise in remote work opportunities, many homeowners opt to stay put and improve their homes rather than go through the hassle of selling and buying a new property. This has further exacerbated the already limited supply of homes on the market.

As a result, potential buyers are facing stiff competition and bidding wars, especially in desirable neighborhoods. The combination of low inventory and high demand has increased home prices, making it even more challenging for first-time buyers to enter the market. Additionally, the increase in interest rates has made it more expensive to borrow money for a mortgage, further squeezing buyers’ purchasing power.

Overall, the current housing market is characterized by high prices, low inventory, and increased competition, making it a challenging environment for buyers and sellers. It remains to be seen how these trends will evolve in the coming months as the economy continues to change.

Why It’s Important to Work with an Agent Who Specializes in Relocation

Relocation management companies (RMC) recommend that relocating employees choose an agent from their approved real estate network. This ensures that the agent is knowledgeable about relocation policies and understands the intricacies of the moving process. By doing so, the relocating individual can make the most of the benefits offered through the home-sale program. Those who follow their company’s designated home sale program typically sell their homes faster, experience less stress during the move, and are prepared to start their new job upon arrival. 

By utilizing your home sale program provided by an RMC, the primary contact at your relocation company can manage the complete moving process for you – from the evaluation of your relocation needs to the transportation of your belongings and, ultimately, the completion of the sale of your home. Furthermore, relocation real estate firms will provide you with a list of potential agents to consider before making a decision, empowering you to make the final choice.

Real estate agents who lack experience in the relocation process may need to be more proactive, skilled in maximizing savings and profits, or knowledgeable about effectively utilizing relocation benefits. Their lack of understanding of corporate relocation procedures could delay selling your home.

Work with GMS to Overcome Relocation Challenges

Our Global Mobility Solutions (GMS) team has years of experience handling corporate relocations and understands the intricacies of selling a home during this process. We have a network of trusted real estate agents who are experts in relocation transactions and can help you navigate the entire process seamlessly.

By working with GMS, you can rest assured that your home sale will be handled efficiently and effectively, maximizing your savings and profits. Our team will work closely with you to ensure you fully understand all the relocation benefits and how to maximize them.

Do not let inexperience or a lack of knowledge about relocation procedures prevent you from selling your home. Contact us today to speak with one of our relocation specialists, who can provide you with the guidance and support you need to sell your house successfully during a corporate relocation. We are here to help you every step of the way.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Buy a Home Corporate Relocation Corporate relocation tips Global Mobility Home Purchase Relocation Challenges

The Benefits of a Preferred Relocation Real Estate Agent

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When meeting with the young family at the house showing, the mid adult female real estate agent reaches out to shake hands with the mid adult husband.

Pros of Using a Preferred Relocation Real Estate Agent

If your current employer has offered you a new position in a different city or state, or if you are accepting a new job in a new location, you probably have dozens of questions about the relocation process and how it works. Like most relocating individuals, one of the most prominent questions is most likely the concern about selling your home. 

Many transferees who are getting ready to move (or those still weighing options with an offer) often wonder if they are on their own for selling their house or if the corporate relocation company their employer is partnering with will do that. Going a level deeper, those moving then wonder if they are in charge of hiring their real estate agent. 

The answer to that question is simple: you have the power. Many relocation policies offer support when it comes to home-selling assistance. If home selling assistance is one of your relocation benefits, it is an excellent idea to capitalize on that. Now the question becomes, should I use a friend or family member to sell my home or be assigned a specialized relocation real estate agent? While many transferees may want to go with the first option, allowing the relocation specialist to handle the sale might make more sense. Here’s why:

Using an Experienced Relocation Real Estate Agent

Many relocation companies urge the relocating employee to select an agent from their vetted real estate network. They can then guarantee that the agent is familiar with relocation policies and will know the nuances of the relocation process. This will ensure that the transferee maximizes their benefits by taking advantage of every aspect of the home-sale program. Transferees that stick with their company’s established home sale program commonly sell their homes more quickly, arrive at their destination less stressed, and are ready to work. 

Leveraging your company’s home sale program, your relocation company’s point of contact can coordinate the entire move process for you—from the relocation appraisal to the moving of your household goods and, finally, the end of the sale of your property. Additionally, relocation real estate companies will recommend multiple agents for you to interview before deciding, placing you in control.

Real estate agents who are not experienced with the relocation process might not be as active, know how to maximize savings and profits or understand how to utilize relocation benefits properly. If they need more understanding of how corporate relocation processes work, this will slow down the sale of your home.

Out-of-Network Fees

In addition to the valuable experience that a vetted relocation-specialized agent can provide, it is better to use a relocation company’s agent because many relocation companies charge sizable out-of-network or referral recovery fees when agents outside their networks are utilized. Many companies state in their relocation policies that using an authorized agent is mandatory to receive your benefits. In this case, you will not be able to benefit from specialized home sale programs designed to help you sell as quickly as possible, for as much as possible.

Get the Most Out Of Relocation Real Estate Benefits

Selling your home is just one of the first steps to take for a successful relocation for you and your family. That is why working with relocation specialists who know how to get you the best deal possible for your home is vital. If you have any questions about relocation real estate benefits or need to contact a vetted agent who can guide you through the process, don’t hesitate to contact us online today. One of our team members will reach out to assist you with your questions.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Home Purchase Relocation Best Practices Relocation Challenges Relocation Management

2023 Real Estate Trends: States People Are Moving to and Why?

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Portrait of a young man carrying a box while moving house

These are the states that are seeing a significant increase in population and some possible reasons why

Relocating for professional or personal reasons can be an excellent decision for both. New beginnings bring new opportunities to advance your career or grow yourself in a new destination. For 2023, we will use real estate trends to predict which states people will migrate to.

But before we start to look at which states are drawing new people in, let’s review some of the significant factors in why people are looking for a relocation change.

Cost of Living and Affordability

Housing affordability is decreasing as Americans seek cheaper homes and cheaper living in other states/cities. 2022 saw many moving due to money/costs, but 2023 looks to have a more steady housing market, making moving possible for many.

Americans searching for economic stability evaluated the financial implications of city vs. suburban life. Remote work has enabled many who live in costly cities to transition to cheaper places without giving up job prospects. This U.S. relocation trend explains the growing number of people departing urban regions for the suburbs.

Remote Work Options

Since the Covid-19 pandemic, most previously office-based companies have moved to either full-time remote work or hybrid schedules with remote work options. Now that many people in the workforce have the opportunity to work remotely, they now can choose to live wherever they want. 

In the past, employees would have to live within driving distance of their office to be at work on time, which made significant cities the apparent hotspots in the country. But with people able to log into work from the comfort of their homes, they are looking for homes in less crowded destinations. 

In 2023, working from home will be a permanent fixture for many companies. This will have employees seeking a new destination they have always wanted to live in. States with warmer weather and cheaper costs of living are the prominent front runners for those looking to move this year while working remotely.

Top States People are Moving to in 2023

2022 saw significant growth in certain states, trends that may repeat in 2023. Those with more room, cheaper living and remote work will be the best spots to reside in America. Here are the top four states people are migrating to in 2023:

1) Arizona

Arizona’s year-round sunny weather makes this an obvious destination for those looking to relocate to a place for outdoor activities. The Phoenix suburbs are growing in population yearly, with towns in the East Valley like Mesa and Gilbert leading the way. Hiking and golfing are activities that can happen in Arizona any day of the year.

And if taking in the sun by the pool or on the golf course isn’t something you’d want to do every day, northern and eastern Arizona have plenty of forests to explore with four-season weather. And let’s not forget the great wonder of the world, the Grand Canyon, which is a driving distance from the Phoenix area, for a weekend getaway.

2) Georgia

Georgia anticipates a rise in population. This Southern state has an impressively low unemployment rate of 2.9% compared to the national average. Furthermore, the cost of living and taxes are relatively low, making it an attractive place to live. 

Living in urban areas such as Atlanta and Savannah offers many job prospects due to the presence of renowned corporations like Home Depot, UPS, Delta Airlines, and Coca-Cola. When not working, Georgia’s inhabitants can explore the Chattahoochee-Oconee National Forest by hiking, camping, or biking, or visit the Georgia Aquarium, meander around the City Market in the Landmark District, or take in spectacular sights at Rock City atop Lookout Mountain.

3) Idaho

Idaho has a high population growth rate due to its desirable mountain location and low crime rate. People are moving into the state, particularly to the city of Meridian, faster than they are leaving. Those looking for more space and a good job have the opportunity to join a thriving economy in Boise, one of the top U.S. cities for job-seekers. People nearby enjoy going to well-known places in the state such as Craters of the Moon, Sawtooth, Lake Coeur d’Alene, and Shoshone Falls Park.

4) North Carolina

North Carolina’s low cost of living and substantial job opportunities have attracted many people. Areas like Charlotte and Raleigh have experienced population growth in recent years. Research Triangle Park comprises Oak City, Durham, and Chapel Hill, a hub for science and technology and great for young STEM professionals.

Asheville is one of the top cities to live in in the South. One of the locals’ favorite activities is bird-watching at Cape Hatteras, hiking Chimney Rock State Park, and driving the Blue Ridge Parkway.

Keep Up with GMS for Real Estate Trends

As the industry leader in relocation services, Global Mobility Solutions (GMS) always stays up with industry trends and news. Real estate trends are not only something our relocation experts monitor but study. We take great pride in knowing that our team always strives to gain as much global mobility knowledge as possible. 

If you are considering a relocation for you and your family, contact us today to see if you can take advantage of our Employee Choice Program. If you are an HR or hiring manager looking to create or update relocation policies for your company, set up a free consultation with one of our business development managers.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Home Purchase Labor Force Relocation Best Practices Relocation Challenges

What Is an iBuyer?

Fastest-selling housing markets

Explanation of an iBuyer and why transferees shouldn’t use them

There is no doubt that selling or buying a home can be complex. More prominent real estate companies started buying and selling homes through iBuying. This newer way to sell houses and property popped up. 

But what is an iBuyer? How does it work? Is it worth it for me to sell my home to one? 

An iBuyer, in simple terms, is a real estate company that leverages technology to buy and sell homes in hopes of making a quicker sale than the traditional real estate process would. The main reason is that with iBuyers, people can buy and sell homes almost entirely online, and the buyer may never even step foot in the house before signing the dotted line. 

While some iBuyers have been around since 2014 but mainly due to the Covid-19 pandemic, iBuyers started to take a hold of a decent portion of real estate transactions. The main reason is that home buyers and sellers could show or search for houses online and take virtual tours. Then they could make offers and complete the process online before getting to their new destinations.

iBuyers vs House Flippers

Many people confuse iBuyers as being in the same realm as house flippers. Flippers typically buy properties at low prices and then relist the house for a higher price in hopes of making a profit. 

iBuyers look for homes that are more market-ready than those houses flippers purchase. iBuyers tend to make a more fair offer for what the property is worth during the market’s value. Fees are short. All iBuyer companies have fees worked into their submission. 

Should I Use an iBuyer?

Often, people who are in a hurry to get to their new destination turn to iBuyers. They think that because their process is more accessible than the traditional way, they can be on their way sooner. But relocating for a job, using an iBuyer, is probably not the best route because you could be leaving money on the table. 

If you are relocating for a new position, the first step is to review any relocation benefits offered by your new company. For example, employee relocation packages often offer home buying and home selling programs. This means there could be special programs that help moving employees sell their current homes and buy a new house in their new destination. 

When employees take a relocation job, they often think they will not have enough time to sell their home before their start date. This would make many believe that an iBuying company is the way to go. But any reliable relocation management company (RMC) would strongly side against iBuyers. 

Advantage of an RMC over iBuyers

Some of the most sought-after relocation benefits are home sale programs. In basic terms, relocation home sale programs provide assistance to homeowners so that they can move to their new city for the desired or assigned start date. Each RMC will have different terms and conditions for its offered real estate programs. But most programs will include payments to cover real estate commissions and closing costs. Therefore, every home selling assistance program differs depending on the seller’s/buyer’s situation. The type of program a moving employee can use also depends on relocation policies specified in the employee’s offer letter. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. 

Each of these programs offers different advantages to transferees. Direct reimbursement is the most common program. This home-selling program is where the employee will list and sell their home on their own and be reimbursed by their new company for closing costs and other fees. 

The BVO program is where the RMC will buy the home from the moving employee and sell it to a buyer with a competitive offer. Finally, the GPO program is the handiest; this is where the employee will list and try to sell their home independently. If, after a set amount of time (typically 30-120 days), the employee is unable to sell their home, the RMC will purchase the home from the employee so that they can make it to their start date on time.

GMS Employs Real Estate Experts

Global Mobility Solutions (GMS) has been the industry leader in relocation since 1987. We’ve assisted in millions of moves since and have taken pride in making a seamless relocation process with top-notch customer service. We understand that selling a home in a tighter time frame adds to stress. 


That is why GMS only employs the best real estate experts to help our clients sell and buy homes promptly while getting checks next to all their needs on their list. With over 30 years of experience, GMS knows how to get relocating employees moved on time without leaving too much money on the table. For more information on our home-selling programs, please reach out to set up a free consultation on how GMS can help. Or check out our Knowledge Base for more insight on other services GMS can offer those looking to relocate for a new job.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Buy a Home Home Purchase

Real Estate Trends: 5 Challenges Home Sellers Face

Fastest-selling housing markets

Some of the most common obstacles home sellers have to hurdle

Selling a home to move on to bigger and better opportunities can be an exciting time. But anyone who has bought or sold a home before knows that can be a long and tedious process. When selling a house or property, often the seller is under some sort of time restriction. They could be closing on their new living arrangement, maybe they’re moving for a new job with a strict start date, or need the equity from the old house for their new property. No matter the case, sellers usually don’t have a lot of time to be held up when trying to complete the transaction. 

Real estate trends change constantly throughout the year. With that being said, any real estate agent can tell you that no two real estate transactions are the same as so many different challenges can arise. No matter the situation, everyone loses out if the challenge stalls or derails the deal altogether. Here are some of the most common challenges faced when selling a home:

1) Keeping Emotions in Check

Probably the hardest part of selling a home is letting go of the time, money, and effort put into building and maintaining it. It’s not uncommon for sellers to have a hard time letting go of the house that their family has lived in for years and the memories created while living there. Many times, sellers will want to artificially inflate the price of the home due to the time and money they spent on upgrades or repairs over the years. Sellers have to remember that to buyers, this doesn’t mean nearly as much to them from an emotional attachment standpoint. The only way to overcome this is to be 100 percent sure it’s time to sell the family home and move on. Keep reminding yourself that it’s a business transaction at this point, not an emotional decision. 

It can also be easy for those selling to be worried about seller’s remorse. The easiest example is the seller may be scared that if they sell the home for X amount, it could be worth Y amount just a few days later. Working with an experienced agent or team who knows the latest real estate trends can help make sure that the final sale price is fair, profitable, and sustainable.

2) Real Estate Market Conditions

When selling a home, obviously the goal for the seller is to make as much profit as possible. But listing price when selling a home can be a crucial step in the process. If listed at too high of a price it could keep potential buyers away. If at too low of a price, the seller might miss out on a chance to capitalize on earnings. It is important to know local market prices and how to effectively market your property in the current housing market.

There are so many factors that determine what each local real estate market looks like. Is it a buyer’s market? A seller’s market? Is the house located in an area where it is better to sell in spring or winter? How many houses are for sale in that area? 

Again, each market will be different so it’s hard to generalize supply and demand for an entire area. But if possible, it’s a good idea to study your local market for a few weeks, if not months, leading up to the listing of your home. The best way around this challenge is to work with a mortgage broker and real estate team who know the mark front and back.

3) Finding a Reliable and Certified Real Estate Agent

There are a few different types of specialty real estate agents that can assist with a specific type of home sale. For example, if you are moving for a new job and are utilizing a relocation package, it would probably be in the best interest to use a relocation-specialized real estate agent. These agents generally hold relocation-specific certifications, such as Worldwide ERC’s CRP certification. This certification showcases that the agent is deeply familiar with the nuances surrounding corporate mobility and how it can impact the real estate process. Additionally, these agents will be familiar with specialized home sale programs that are common in the relocation industry, such as the Buyer Value Option or Guaranteed Purchase Offer.

It’s worth noting that if your company is providing you with relocation benefits, you may need to utilize a specific network of vetted real estate agents in order to qualify for your benefits. If you’re unsure, it’s best to check your relocation policy or get in touch with your relocation specialist (GMS Relocation Coach).

4) Prepping the Home for Listing

For anyone selling a home, this challenge could involve some manual labor or some money for repairs. In order to fetch the best possible price for your home, it should be “show ready”. If there are any repairs or upgrades that the house needs, it’s a good idea to get those out of the way before marketing the home for sale. If not, sellers run the risk of having a sale held up due to negotiations about the repairs with the buyers and their agent. However, in a seller’s market, when buyers are more desperate to get a deal done, you may be able to negotiate to leave some minor repairs for buyers to tend to after the sale is complete.

5) Unrealistic Buyer Expectations/Needs

On rare occasions, you may be faced with potential home buyers who simply have unrealistic expectations. This can cause sellers additional stress and potentially derail the deal. The only advice to be given here is to remember this is a business transaction and if the deal isn’t right then walk away and be patient for new buyers.

GMS Stays Up to Date on Real Estate Trends

Global Mobility Solutions (GMS) has been helping individuals and families relocate since 1987. Our expert team stays up to par on real estate trends throughout the US and Canada to ensure that our clients’ employees are successful when trying to buy or sell a home. We want to make sure that moving is as smooth as possible and assign dedicated Relocation Coaches to each employee to guide them during the relocation process. If you have any questions about our industry-specific benchmarking studies or need more info on the relocation process itself, please reach out to us today.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Buy a Home Domestic Relocation Trends Home Purchase

Real Estate Trends: iBuyer Looks to Sell 7,000 Homes

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African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Zillow Is Done Flipping Homes with iBuying Methods

Over the last two years, many U.S. states saw a large surge in their housing market. In some cases, those selling houses, condos, and townhomes were asking more than double what they originally paid. Those prices were met by a frenzy of buyers who were looking to buy anything they could as quickly as possible. In many cases, the typical home resulted in a bidding war. 2021 was a great year to sell a home, and for many investors, it was a great year to flip a home. 

Flipping homes has been a money maker for those who know what they’re doing for a long time now. Buy a property, put some money into repairs or upgrades, then sell the home six months later at a sizable profit. As the real estate market was so fierce this year, some real estate companies started buying up properties just for the sake of selling them. 

However, as markets across the country have shown signs of leveling out, some real estate organizations have been caught with an overstock of inventory. A major name making recent news on this front is Zillow Group Inc.

Better known as simply Zillow, the online home buying and selling site is looking to unload about 7,000 houses after buying too many properties to flip. Zillow is seeking about $2.8 million in total for all 7,000 homes, which are being shown to investors now. If all these houses can be sold, it would put a huge dent in Zillow’s overflow inventory. 

The company also stated that they will try to sell the houses to several different buyers instead of in a single bulk transaction. It is yet to be seen what this challenge could do to Zillow financially, but a report from KeyBanc Capital Markets noted that 650 of the homes for sale showed an asking price of about two-thirds what they were purchased for.

What is an iBuyer?

The premise of iBuying is to purchase low, renovate quickly, and sell for a profit. Zillow, along with competitors Opendoor and Offerpad, leads the real estate market in iBuying. iBuyers work directly with home sellers to offer an instant cash amount for the home with the idea that it removes the stress and hassle of home selling from the homeowner. Additionally, the homeowner no longer needs to deal with the traditional real estate process.

However, while an instant cash offer on your property sounds like a win, it should be noted that the seller does get stuck with some fees that can range up to 7 or 8 percent of the sale price. Additionally, as the iBuyer needs to remain profitable, their instant cash offers may be lower than what an independent sale might raise on the market. On average, iBuyer costs can be higher than the home sale costs from the typical home sale model that many are familiar with, resulting in less money in your pocket once all is said and done.

Housing Inventory Overstocked through iBuying

So how did Zillow get too many homes in their inventory? 

Zillow attempted to obtain as many properties as possible to take advantage of the inventory-starved real estate market that many states have been dealing with. In many of these markets, prices were rising quickly at record-breaking speeds. 

As iBuying can be a very quick home-sale process, Zillow quickly went beyond their limits as many people were more than happy with the cash offers that were being quoted during the high housing market spike. Zillow spokespeople have suggested that it was a faulty algorithmic model used for iBuying homes quickly and selling them even quicker, the reason why the company was so quick to purchase so many properties. 

Today, due to this overstock of properties and a loss of net dollars, Zillow has made multiple announcements that they will no longer partake in iBuying practices. This means no more home flipping for the company. It will take several business quarters for Zillow to fully step out of the iBuying markets. 

However, while an instant cash offer on your property sounds like a win, it should be noted that the seller does get stuck with some fees that can range up to 7 or 8 percent of the sale price. Additionally, as the iBuyer needs to remain profitable, their instant cash offers may be lower than what an independent sale might raise on the market. On average, iBuyer costs can be higher than the home sale costs from the typical home sale model that many are familiar with, resulting in less money in your pocket once all is said and done.

How Does Housing Inventory Affect Relocation?

When moving to a new city, housing market prices and inventory will have an impact on an employee’s ability to purchase a home. Due to the hot housing market, homes are still selling quickly and at industry high prices, causing some relocating employees to be either outbid or outpriced from purchasing a home. This is causing some buyers to spend longer periods of time finding a home that meets their needs and raises concerns about temporary living accommodations during the home finding process.

For those that receive relocation benefits from their employer, the option of short-term temporary/corporate housing can serve as an important stepping stone during the move. Industry best practice shows that providing temporary housing benefits for 30, 60, or 90 days is a critical benefit that allows your transferee to find a more permanent home. 

Global Mobility Solutions team of workforce mobility experts are ready to help analyze your relocation program and assist in the development of competitive policies. Our real estate program and comprehensive home-sale assistance programs provide a balance of excellent service quality and increased selling prices. Our trustworthy network of relocation real estate agents are relocation certified and are skilled in working with employees that are relocating for professional reasons. Contact us today with any questions you may have about real estate trends or relocation services.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Corporate relocation tips Domestic Relocation Tips Global Relocation Global Relocation Tips Home Purchase Household Goods

How to Relocate During the Rush Moving Season

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heavy traffic moving at speed on UK motorway in England at sunset.

Tips for Staying Ahead of Peak Moving Season

The middle of May until about Labor Day weekend marks the peak moving season in America. During these months, moving companies and relocation specialists see substantial increases in those looking to relocate. During this time, thousands of people try to get their families moved into their new homes as quickly as possible. Many factors come into play, but the primary two are summer weather and summer vacation. It’s tough to argue that it’s much easier to move when the weather is great. Additionally, summer break is an ideal time for those moving as a family to get the kids settled into their new home before the new school year kicks off. 

When relocating for work, it is not always up to the transferee when their household goods move can take place. Many employees have a firm “report to work” date that drives their relocation timeline. It could also come down to their relocation policies and the benefits that are provided to them by their employer. 

When it comes to summer moves, it is best to get ahead of the busy moving season. Here are some tips on how to get a headstart.

The Advantages of Planning Ahead

With so many Americans moving within this tight timeframe, there are several advantages to getting a head start on this rushed window: 

  • Less stress: staying ahead of the curve when it comes to moving can help alleviate some of the stress that comes with moving. If everything is planned out, it helps assure that things will go more smoothly.
  • Cost savings: if you can book ahead of time, or move out before the busy season, moving companies are more likely to work out better pricing with both customers and suppliers. 
  • Time: while relocating dates are not always up to the transferee, trying to get a jumpstart on the process can help assure the transferee’s household goods and vehicles can be transported, by the moving company, on dates that work for them. 
  • Flexibility: If dates, costs, or anything else needs to be changed or canceled, having time to do so is key.

What to Do If Moving Dates Are Not Up to the Transferee

Moving for a new job or promotion does not always give the transferee the power of when to plan for a move. Oftentimes, relocators might be forced to ship out during the peak moving season. When this happens there are some options, first off it is highly recommended to work with a relocation services company. Employers who have built out stable relocation policies typically already have these services available and many relocation companies provide moving employees with relocation coaches to aid the move. If the employee does not have access to such services, they should review their company’s relocation policies and offer letters to understand what moving costs may be covered. 

Work with the Best to Avoid Stress

Moving is a stressful process just to go across town, but relocating to a new city and state can be an extremely complicated process, not to mention doing so during moving companies’ busy seasons. Working with an experienced relocation service company can do much more than just getting your household goods from point A to point B, they can assist in real estate needs and other relocation services. Connect with GMS today to discuss how we can help move employees and their families in a safe, timely fashion.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Buy a Home Home Purchase

2020 New Home Sales Rising Faster Than Supply

Woman with dark hair and white shirt, man with dark hair and blue shirt, both looking at blueprints, in front of new construction, as they pursue a plan toward 2020 New Home Sales

2020 new home sales are rising faster than home builders can replenish their supply. Sales of new homes rose to its highest level in over 14 years during the month of August. As a result, there is a very low 3.3 months’ worth of inventory. Generally, the new home sales market is considered “balanced” when there is a six month supply of new homes for sale.

Home buyers can expect to see rising home prices. However, the greatest demand is at price points below $300,000 for first-time home buyers. In hot markets such as Orlando, Florida, new residential construction rose by 22% from August 2019 to August 2020. Across the United States, much of the rising cost is attributable to a severe housing shortage. Builders have not kept pace with demand for several reasons. Many still have fears ever since the 2008 market crash. Also, they may have difficulty in building due to zoning issues or neighbor concerns about parking and density.

Home Builders Facing High Lumber Prices, Other Constraints

  1. Lumber futures reached a record high of $1,000 per 1,000 board feet in September. The commodity has been the top-performing major raw material during 2020, due to high demand from home builders and home owners undertaking do-it-yourself (DIY) home remodeling projects.
  2. Buildable lots have been in low supply, hampering 2020 new home sales. As early as January, 40% of single-family builders reported the supply of lots was low, and 18% reported the supply as very low. Because of the low supply, lot prices have been increasing, and lot sizes have been decreasing.
  3. Construction workers continue to be in short supply. The Home Builders Institute recognizes a shortage of workers. This shortage is due to increasing demand for housing and a low supply of existing homes for sale. Skilled workers are retiring from the home building industry. However, not enough new workers coming into the field to replace those who are retiring.

New Construction Loans for 2020 New Home Sales

Transferees looking for a new construction loan should be aware of how it differs from a traditional mortgage loan. Tim Hofmann, Vice President, Construction Lending Administration Manager at TIAA Bank previously shared that a new construction loan has the following features:

  1. Can be thought of as a specific dollar amount “line of credit”
  2. The length of a new construction loan coincides with the time to build the home, usually around 12 months.
  3. Home builders/borrowers obtain funds by submitting requests for draws to the lender.
  4. New construction loans are not sold off to investors; they remain within the lender’s portfolio.
  5. Each draw request is accompanied by an interest payment at that specific time on what is drawn.
  6. Following completion of the home build, the lender grants a mortgage for the new home.
  7. The new mortgage issued by the lender results in paying off the construction loan balance.

What Does This Mean for 2020 New Home Sales?

Transferees seeking a new construction loan to build a home should first review their current financial arrangements with a qualified lender. Depending on their financial circumstances, transferees with mortgages on their current home may still be able to qualify for a new construction loan. Lending requirements will determine if they can qualify for a new construction loan while still holding their current mortgage debt.

What Should Employers do?

Employers that have transferees who are seeking a new construction loan for their relocation should direct them to speak with qualified lenders and financial advisors for guidance on 2020 new home sales. They should also direct them to speak with an experienced and qualified Realtor® who can assist them in determining where they want to live in the new location.

Employers should also review and benchmark their relocation policy with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations involving new home sales are ideal sources for policy updates and best practice information. They will also understand the reasons why employers should always encourage transferees to buy instead of rent.

There may be some necessary relocation policy enhancements to allow for exceptions that arise from transferees who want to obtain a new construction loan. The 2020 real estate market balance between supply and demand is not equal. As a result, pricing, availability, and speed of real estate transactions may impact the ability of transferees to obtain financing. These same issues may also hinder transferees’ ability to arrange new home sales in their most preferred locations.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for transferees looking to purchase a new home. During the challenging 2020 new home sales market, it is important for employers to provide new hires and transferees with guidance and resources. This will help employers ensure a smooth and successful relocation process.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn how to help transferees maneuver through the 2020 new home sales market, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand new construction loans for relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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