Tag: Home Sales

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Buy a Home Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Home Purchase

Virtual Agent Services: Helping Home Buyers and Sellers During COVID-19

Mature realtor holding open house" sign in front yard.

Home buyers and sellers can use a variety of virtual agent services during the current COVID-19 pandemic, if they find the right agent. A few select real estate agents offer a full suite of services to clients that are flexible and effective, meeting the demands of today’s real estate market. These virtual agent services are ideally suited to help ensure proper social distancing and other requirements necessary to protect buyers and sellers from exposure to COVID-19.

What are Virtual Agent Services?

GMS spoke with Erik R. Brown of Compass, Realtor®, TV host, speaker, and author of “One in a Million: Everything You Need to Know to Find the Best Realtor®.” Erik agreed to share his industry knowledge and market expertise on virtual agent services.

Erik notes that buyers are still buying, and homes are still selling, even during COVID-19. Many clients who were in the process of buying and selling prior to the pandemic have turned to virtual agent services. Many of these services had been in place prior to the precautions, often as part of a broader suite of exclusive marketing services. Additionally, newer tools have been created that leverage proven technology already in use in the real estate industry.

Ensuring Health and Safety with Virtual Agent Services

The health and safety of clients and communities is always a priority for the real estate industry. Erik states that these virtual agent services allow him to continue to provide the best-in-industry service that his clients deserve. Most services can be provided through digital, mobile, and social media platforms, enhancing their reach and visibility.

Virtual Agent Services for Buyers

  1. Virtual Neighborhood Walks let buyers explore new neighborhoods and communities, and help them see nearby local features such as parks, schools, and shopping centers
  1. Interactive Video Showings where a real estate agent will take buyers on a virtual journey through a home, noting specific features to enhance desirability and highlight items of interest to buyers
  1. Video Mail (V-mail) provides video directly to interested buyers so they have an immediate experience and memory of their first interaction with the home
  1. Live Virtual Buyer Events helps buyers see homes as they are used for cooking demonstration, game nights, or social events that bring life to the home and highlight unique features

Virtual Agent Services for Sellers

  1. Virtual Open Houses let sellers share their home with a targeted audience while showcasing key features to interested buyers across multiple platforms
  1. Dynamic Digital Listing Brochures helps highlight the most desirable features of a home in an immersive experience to help buyers see virtually everything of interest
  1. Digital Ads for Facebook & Instagram promote the home to a highly targeted audience with expertly designed ads optimized for the highest performance on the social media platform
  1. Real-time Digital Ad Insights capture ad campaign results quickly and easily, and let real estate agents act swiftly to market and sell the home
  1. Enhanced 3D Staging provides an upscale and sophisticated visual experience that increases appeal with high-end design and state-of-the-art visual staging technology

What Does This Mean?

As Erik notes, virtual agent services leverage proven technology to help home buyers and home sellers remain safe and protect their health during the current COVID-19 pandemic. These services also enable real estate agents to provide clients with best-in-industry solutions, valuable information, and superior results.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to provide solutions for their new hires and transferees who are looking to buy or sell a home. Our team can help your company understand how to leverage virtual agent services during the current COVID-19 pandemic. This will help employees to conduct successful real estate transactions while focusing on the health and safety of everyone.

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.

Contact our experts online to learn more about virtual agent services, or give us a call at 800.617.1904 or 480.922.0700 today.

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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Buy a Home Domestic Relocation Domestic Relocation Tips Home Purchase Relocation Management

What is a Home Relocation Appraisal?

Medium shot of a real estate agent showing and explaining property to a couple

Transferees participating in a home sale as part of their relocation package often submit to a Home Relocation Appraisal process. Since “Appraisal” is part of this term, transferees may think this will be an indicator of their home’s market value. However, this is not the case. A Relocation Appraisal is completely separate from a Home Mortgage Appraisal. From the purpose to the format, the differences are dramatic.

A review of the specific points of this report will clarify its purpose, intent, and use within a transferee’s moving process.

8 Specific Points of a Home Relocation Appraisal

1. What is the Intended Use?

The use of this report is to help facilitate the transferee’s move to another location. The results go to the client, not the transferee. Clients may review the information to help understand how long the home may be on the market before selling.

2. Who Conducts the Home Relocation Appraisal?

Trained and licensed real estate appraisal professionals who follow the ERC’s specific set of definitions and guidelines complete the Appraisal. The professional works for the client, and will use the Worldwide ERC® Summary Appraisal Form (updated 2010) to complete the Appraisal.

3. What are Critical Considerations?

In this report, design and appeal of the house are critical considerations. Since the Appraisal has a short time frame that relates specifically to the transferee’s relocation, these two factors will have a major impact on the relocation process.

4. What will the Report Provide?

This type of Appraisal provides an estimate of the home’s anticipated sales price. There is no correlation to any other figure or value; the Appraisal looks solely at the anticipated sales price.

5. What is the Timeframe?

Home Relocation Appraisals have a short-term focus. The decision making timeframe only covers up to 120 days. This accounts for the planning, review, and implementation of the transferee’s relocation process.

6. When Should Marketing for the Home Begin?

Marketing for the house occurs after the date of this report. As a result, the marketing plan for the home has no bearing on this Appraisal.

7. How does Marketing the House Relate to a Home Relocation Appraisal?

The marketing time for this report is not to exceed 120 days. This timeframe only reflects the period covering the transferee’s relocation process.

8. How Does a Retrospective Analysis Relate to a Home Relocation Appraisal?

A retrospective analysis for a Home Relocation Appraisal is an overall review of factors that could impact the Appraisal’s results, such as any risks that could affect the sale price of the home. This information is used for forecasting purposes. This is important for clients so they can understand aspects of the report that may have future budgetary impacts.

What Should Employers Expect?

Employers should expect that transferees who participate in a this type of sale program for their house may not understand the purpose of this Appraisal. Employers should understand that they are the client for this report. As such, they will receive the Appraisal from the professional. Employers should understand and communicate with the transferee that this report is not a Home Mortgage Appraisal.

What Should Employers do?

Employers should communicate guidance for their transferees who may have questions regarding their Home Relocation Appraisal. Employers should work with their Relocation Management Company to understand the Home Relocation Appraisal and how it relates to their company’s relocation and home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Home Relocation Appraisals. We can help your company understand how a Home Relocation Appraisal relates to your company’s home sale program.

GMS was the first relocation company to register as a .com, 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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn more about Home Relocation Appraisals from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Buy a Home Home Purchase

What are the BVO Program Benefits?

Happy African American family with two young children (4-5 years) waving in front of house with 'Sold' sign.

Many companies understand they can save money with the GMS Buyer Value Option (BVO) program. However, they are not sure of the other BVO program benefits. There are several benefits for clients beyond saving money. Reviewing the process will highlight several BVO program benefits for clients.

BVO Program Benefits #1: Cost Savings to the Client

A form of tax assistance known as tax gross-up helps offset the tax impact felt by transferees who receive reimbursements. This gross-up expense can add substantial costs, especially if a home sale generates reimbursement requests.

The GMS Buyer Value Option program avoids the costly process of “grossing up” dollars used to pay for the commissions and closing costs on the sale of a transferee’s home.

BVO Program Benefits #2: Risk Reductions for the Client

The home sale process carries some inherent risks. Importantly, the Internal Revenue Service requires putting the client at risk of owning the home in order to receive the tax benefit. If the home buyer does not proceed through to the closing and purchase the home, the client will be financially responsible until a new buyer is found.

Generally, the industry average of properties falling through during the sale process is up to 1.5%. However, GMS’ average over the past three years is less than 0.5%. As a result, clients that utilize the GMS Buyer Value Option program avoid risks of properties falling through prior to closing.

BVO Program Benefits #3: Time Savings for the Transferee

Transferees who participate in the GMS Buyer Value Option program are freed from the responsibility to attend the closing for their home sale. Transferees gain the freedom to focus on their new location and job responsibilities from the moment they leave their home.

Acclimating to a new location can take as long as three months to one year. Not having to arrange a home sale or return for a closing lets transferees and their families settle in to life at their new location and gives them peace of mind. Time savings are valuable BVO program benefits that help the transferee and their family members. Clients also benefit, as the transferee can give full attention to their new position.

What Should Companies With a Home Sale Program Do?

Companies that currently reimburse employees for the commission and closing costs on their home sale should look into the GMS Buyer Value Option program. Home sale expenses are the only remaining tax-protected relocation benefit when a company utilizes the GMS Buyer Value Option program. Companies can save the tax gross up on the reimbursement, and gain additional BVO program benefits including:

  • No need for the employee to be at the closing of their home sale
  • No return trips necessary to attend the closing if your employee is already at the new destination
  • The employee can more quickly adapt to their new role and become an effective member of the team

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop their home sale and Buyer Value Option program. Our team can help your company understand how to gain access to all of the BVO program benefits.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to learn more about the BVO program benefits, or give us a call at 800.617.1904 or 480.922.0700 today.

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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Buy a Home Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase United States Economy

Winter Home Sellers More Likely to Find Serious Buyers

When it comes to the best season for home sales, winter home sellers are more likely to find serious buyers. Most people commonly believe spring is the most ideal season for home sales. As a result, sellers often wait until spring arrives to consider listing their home for sale.

Home sales during summer and fall lead to a reduction in market inventory. Sellers who wait for spring to place their home on the market further reduce the number of homes for sale in the winter months. As a result, winter home sellers gain a clear advantage. Less homes on the market allows their home to have greater visibility among serious buyers.

5 Specific Advantages for Winter Home Sellers

Beyond less competition from other homes, there are 5 specific advantages for winter home sellers:

1. Buyers in winter are serious buyers

Many people enjoy winter for its snow-filled beauty and wide range of outdoor sports such as ice skating, skiing, and sledding. However the season is also known for several major holidays, unpredictable and sometimes caution-producing weather, travel, and year-end work commitments. Only serious buyers would be looking for a home during this season. Buyers who make an appointment to see your home are not window shopping for homes as spring buyers often do. Rather, they are specifically interested in your home and its amenities. Winter home sellers can be assured that buyers truly want to purchase in the near term. Many times these serious buyers are relocating to take a new job or transferring to a new location with their current company.

2. Days on the market are less of a concern to serious buyers

Some home buyers use the number of days a home is on the market as an indicator. This indicator could mean any of several things, such as:

  • Condition of the home and property is not comparable
  • Location of the home is not desirable
  • Pricing compared to other homes on the market is not consistent
  • Seller does not have motivation to sell or is hard to work with

However, days on market is less concerning to serious buyers in winter. For example, winter home sellers whose home has been on the market since fall may benefit from buyer’s interest in working with sellers who are fully intending to sell.

3. Realistic decisions on pricing are easier to make during winter

Winter home sellers have an advantage when listing their home. Comparable homes on the market since the summer and fall seasons provide an excellent guide for realistic pricing. These home sellers often have adjusted their pricing to be consistent with or slightly below recent sales. This in turn will help them attract the right buyers looking for homes like theirs. Realistic pricing decisions for winter home sellers are easy to make by reviewing comparable homes.

4. Sellers who need to buy face less competition as they search for their new home

While buyers are searching for homes, winter home sellers gain from having less inventory for their home to compete with. At the same time, if those sellers need to buy a home, they also benefit from having less buyers to compete with. Sellers who must also buy have an advantage since winter holds down excess competition from other buyers. If they are the only ones looking at a specific home, chances are good that their offer will be taken seriously.

5. Spring season is just around the corner, just in case more buyers are needed

Some winter home sellers may not sell their home before spring arrives. The arrival of spring usually brings many more buyers into the market, including more families with children who want to plan moves during the summer. More buyers coming into the market means there will be more views of the home listing and perhaps more visits to the home. Winter home sellers may be seen as especially motivated to sell. As a result, homes should be freshened for the new season, and pricing should be reviewed to determine if it is still comparable or if adjustments must be made.

What Should Winter Home Sellers do?

Winter home sellers should consider placing their home on the market. Those who are able to do so benefit from serious buyers, less competition, and the ability to have their home ready to sell early in spring if they have not yet sold. Something to keep in mind is that a few markets exhibit stronger buying patterns during the winter season. Scottsdale, Arizona winter home sellers often experience the best home sale outcome by listing their home for sale in January.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients and their transferees with real estate needs when it comes to relocation. We can help your company understand how to obtain the best advantage for home sales and purchases, whether selling a home during winter as part of a relocation by leveraging the GMS Buyer Value Option (BVO) program, or buying from winter home sellers in a new location.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices for winter home sellers from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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
Domestic Relocation Home Purchase

What is the Buyer Value Option Program, and How Does it Work?

Family With Children And Pet Dog Outside House On Moving Day

Companies can save money with the Buyer Value Option program. However, many companies are not aware of what this program is, and how it actually works. Global Mobility Solutions (GMS) has many clients who use this program. As a result, our clients have much success and higher satisfaction levels for new hires and transferees.

What is the Buyer Value Option Program?

Most corporations use a form of tax assistance, known as tax gross-up, to help offset the tax impact felt by the transferee receiving reimbursement. The gross-up expense can add substantial costs.

The GMS Buyer Value Option program lowers costs from income tax gross-ups associated with the reimbursement of transferee real estate closing costs.

The GMS Buyer Value Option program avoids the costly process of “grossing up” dollars used to pay for the commissions and closing costs on the sale of a transferee’s home. Typically, commissions and closing costs are associated with the sale of a transferee’s home. These two expenses represent the majority of the total costs incurred during a relocation. Reimbursement to a transferee of these expenses is considered taxable compensation by federal and state authorities.

How Does the Buyer Value Option Program Work?

Once a transferee receives a valid offer to purchase from a 3rd party buyer, and after GMS has been able to verify that all contractual terms are customary, the transferee turns the sale of the home over to GMS. GMS purchases the home from the transferee and subsequently transfers the home to the 3rd party purchaser. All closing costs and realtor commissions are paid by GMS and billed directly to the employer. Since the transferee does not incur any home sale expense, regular reimbursement of these expenses is not required.

The Buyer Value Option program allows the transferee to move quickly, and maintain their focus on the new job and community rather than on the sale of their home. Once their home is turned over to GMS, the transferee relinquishes all obligations including attending the actual closing. GMS manages the entire sale and closing process on behalf of the transferee. Transferees gain peace of mind with the knowledge that GMS is handling the sale of their home. They can also focus on their new home and enjoy their new surroundings.

What is the Buyer Value Option Process?

  1. Employee lists home with the help of GMS
  2. Similar to a traditional sale in the transferee’s eyes
  3. Once a buyer is found, GMS transfers the title from seller to GMS
  4. GMS sells to the outside buyer at closing
  5. The client is billed 10% for commission and closing costs prior to closing, eliminating the transferee’s out-of-pocket costs
  6. Home sale is closed by GMS
  7. Equity is wired in full to the transferee’s account of choice after closing
  8. GMS refunds the difference back to the client
  9. To complete the transaction there are strict IRS guidelines that must be followed

How Does the Buyer Value Option Program Reduce Risks for Clients?

The Internal Revenue Service requires putting the client at risk of owning the home in order to receive the tax benefit. If the buyer falls through prior to closing, the client will be financially responsible until a new buyer is found.

  • On average, 1.5% of properties fall through within the industry
  • However, less than 0.5% have fallen through in the last 3 years at GMS

How Do Employees Save Time?

The GMS Buyer Value Option program does not require the transferee to appear at closing. This lets the employee focus on their position and objectives, while settling in to life in their new community.

How Does a Company Save Money With the Buyer Value Option Program?

Since tax gross-ups are not required, companies can achieve significant savings. In order for an employee receiving a $24,000 home sale reimbursement to net the actual amount of the reimbursement and not feel an impact on their take home pay, it will cost a company $43,800. This cost can escalate even further if a company elects to take an individual’s actual tax bracket into consideration.

By utilizing the GMS Buyer Value Option program there is no tax gross up, and a company saves $19,800. Since the transferee does not have to appear at closing, companies also save on return trip costs.

What Should Companies With a Home Sale Program Do?

Companies that are currently reimbursing employees for the commission and closing costs on their home sale should look into the GMS Buyer Value Option program. Home sale expenses are the only remaining tax-protected relocation benefit when a company utilizes the GMS Buyer Value Option program. Companies can save the tax gross up on the reimbursement, and gain additional benefits including:

  • No need for the employee to be at the closing of their home sale
  • No return trips necessary to attend the closing if your employee is already at the new destination
  • The employee can more quickly adapt to their new role and become an effective member of the team

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop their home sale and Buyer Value Option program. Our team can help your company understand how it can save the tax gross up on home sale reimbursements.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your interest in the GMS Buyer Value Option program, or give us a call at 800.617.1904 or 480.922.0700 today.

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 Relocation Challenges

What are the New Real Estate Business Models?

New building residential house purchase apartment concept. Stylish full family with two kids sitting on carpet, mom and dad making roof figure with hands arms over heads

What are the new real estate business models? Global Mobility Solutions’ 2019 Forum included a presentation by Ken Jenny, Executive Director, tranCen.com, Inc. Ken is an expert in the residential real estate industry. He has over 38 years of diverse and progressive experience in brokerage, MLS, franchising, online marketing, business processes, and technology. This experience includes an emphasis on executing tangible ways to improve the consumer real estate experience. From being a real estate agent to a corporate executive to an independent industry advisor, Ken has examined and designed effective change strategies for nearly every aspect of the residential real estate industry. Ken’s relentless consumer-first thinking addresses the ever-changing challenges facing the industry today.

Ken’s previous positions include the COO of Coldwell Banker Residential Affiliates, the CMO of Prudential Real Estate, and the CEO of RealEstate.com. Ken introduced attendees to new real estate business models and their implications for business and consumers.

What do New Real Estate Business Models Look Like?

Ken noted how new real estate business models differ from the current real estate business models. In effect, these new models offer custom solutions to what they perceive as the customer’s pain points in the current business models. Several key differences include:

  1. Easier processes for the seller
  2. One buyer (the alternative company) to work with
  3. Increasing the speed to closing

In Global Mobility Solutions’ White Paper: 2019 Industry Update – Talent Mobility, Real Estate, Household Goods, and Immigration, our experts explain these key differences in further detail. A full review of the many aspects of using a licensed and experienced Listing Agent are presented. These aspects are then compared to using an alternative company. A few important points to note about new real estate business models include:

  • Homes often must meet several restrictive criteria
  • The alternative company is the only buyer
  • Offers are negotiated using online real estate data
  • Closing statement is net of service fees (averaging 6.5%), inspection costs, and repair costs

As a result, our team of real estate experts developed the following guidelines. These guidelines are helpful for sellers who may be considering using a new real estate business model:

Sellers may want to use an alternative company and not a Listing Agent if they:

  1. Are not cost conscious.
  2. Desire to choose their own closing date.
  3. Feel comfortable relying on online real estate data.
  4. Are willing to market their home to only one buyer (the alternative company).

Sellers may want to use a Listing Agent and not an alternative company if they:

  1. Are cost conscious and seeking to lower any repair costs.
  2. Are able to work with a closing date negotiated with a Buyer, contingent on several components including appraisals and financing.
  3. Prefer a licensed professional appraiser to determine the value of their home.
  4. Desire a licensed real estate professional to negotiate the sale of their home for top dollar.
  5. Feel comfortable relying on a licensed and experienced personal representative that looks out for their best interests.

How are the Best Real Estate Companies Responding to New Real Estate Business Models?

Global Mobility Solutions chooses to work with the “best of the best” in our partner networks. In real estate, our partners must consistently meet stringent service levels. They must also deliver exceptional customer satisfaction as measured by customer surveys. As a result, GMS real estate partners provide unparalleled levels of service and satisfaction to our clients and their relocating employees.

These partners combine the best aspects of the current business model with the best features of the new real estate business models. As a result, they are able to deliver truly outstanding outcomes for our clients and their transferees. In order to enhance current marketing programs, GMS partners may use Virtual StagingTM to provide 24/7 access to homes without any inconvenience to the current owner. To speed the closing process, GMS partners may use Electronic Closing Platforms (eClosing). These platforms include features such as remote online notarization and eSignatures. GMS real estate partners offer a “restomod” approach to their real estate businesses, incorporating the best aspects of traditional real estate business models and the best aspects of new real estate business models.

What Does This Mean?

Companies that encourage transferees to buy instead of rent should be sure to provide their relocating employees with the best service in the industry. By using a combination of traditional and new real estate business models, the GMS real estate partner network delivers outstanding performance. Transferees with home sales and purchases will gain the advantages of advanced technologies and faster processes. They will also retain all the benefits of working with licensed and experienced real estate agents.

What Should Employers do About the New Real Estate Business Models?

Companies should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs provide extensive solutions when it comes to relocating new hires and transferees who need to sell and buy homes using new real estate business models. Companies should review their relocation programs. This will help ensure they have a competitive advantage. Also, it will ensure their program provides the highest level of relocation benefits and services for their employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how they can provide exceptional real estate services to their new hires and relocating employees. Our team can help your company understand how to leverage the benefits of a partner network that represents the “best of the best” in the real estate industry for your transferees.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss new real estate business models, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Buy a Home

8 Differences Between a Relocation Appraisal and a Mortgage Appraisal

Portrait of mixed raced couple sitting together with bills, calculator and digital tablet calculating their expenses

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Appraisal for their home. This type of appraisal has a different purpose and use when compared to a Mortgage Appraisal. An understanding of these differences will help clients as they work with their Relocation Management Company to manage a successful relocation.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on the differences between a Relocation Appraisal and a Mortgage Appraisal.

What are the Differences Between a Relocation Appraisal and a Mortgage Appraisal?

According to Mark A. Gronke, Fidelity Residential Solutions points to 8 specific differences between a Relocation Appraisal and a Mortgage Appraisal. Clients should understand what these difference are, and how they relate to their company’s relocation program. These differences cover broad areas including purpose, use, marketing, and analysis of the appraisal:

Purpose of the Appraisal

  • A Relocation Appraisal will provide an estimate of the anticipated sales price. By comparison, a Mortgage Appraisal will provide an estimate of the home’s market value. Some homes may appraise for more than the contract sales price during a Mortgage Appraisal. This only looks at the anticipated sales price, not the value of the home.
  • The decision making timeframe for a Relocation Appraisal is short term. The timeframe only covers up to 120 days. This accounts for the planning, review, and implementation of the transferee’s relocation process. A Mortgage Appraisal has a decision making timeframe that is long term. The timeframe may cover up to 30 years, the life of a 30 year mortgage. Mortgage lenders look into the future to ensure the home’s value will remain intact over the life of the mortgage.

Use of the Appraisal

  • The intention of a Relocation Appraisal is solely to facilitate corporate relocation. The client receives the report. The client may be looking at indicators that relate to how long the home may reside on the market. By comparison, the intention of a Mortgage Appraisal is to facilitate mortgage lending. A mortgage lender receives the Mortgage Appraisal. The lender may be looking at indicators that refer to the value of the home and its condition. They also may be looking at other factors when considering lending on the property.
  • A Relocation Appraisal would be completed using the Worldwide ERC® Summary Appraisal Form (updated 2010). This would be completed by a trained and licensed real estate appraisal professional following the ERC’s specific set of definitions and guidelines, who is working for the client. A Mortgage Appraisal would be completed using the Uniform Residential Appraisal Form (1004). This would be completed by a trained and licensed mortgage appraisal professional, who is commonly working for a licensed Appraisal Management Company.
  • A Mortgage Appraisal notes the design and appeal of a home. By comparison, a Relocation Appraisal emphasizes design and appeal as critical considerations. Since the Relocation Appraisal has such a short time frame of only up to 120 days, these factors may have a major impact on the corporate relocation process.

Marketing Time and Market Value

  • For a Relocation Appraisal, the marketing time is not to exceed 120 days. This timeframe only reflect the period covering the relocation process. A Mortgage Appraisal’s marketing time does not have a limit, as it does not correspond to a specific, time-defined process. While there may be specific dates related to mortgage terms, the ability to change those dates or accept a lower interest rate in return for paying additional points could extend the timing, if the mortgage lender is in agreement.
  • Marketing a home occurs after the date of a Relocation Appraisal. However, a Mortgage Appraisal is conducted after a home has already been on the market. By the time a Mortgage Appraisal is conducted, there could have been changes to the marketing program or a host of any number of other factors. This information may impact the market value of the home, and in turn the Mortgage Appraisal.

Retrospective Analysis 

  • A retrospective analysis for an appraisal is an overall review of factors that could impact the appraisal’s results, such as any risks that could affect the sale price of the home. The client will use the information for forecasting purposes. A Mortgage Appraisal does not provide for any forecasting in a retrospective analysis. A Relocation Appraisal, however, includes a forecasting component. This is important for clients so they can understand aspects of the Relocation Appraisal that may have future budgetary impact.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program may not understand the differences between a Relocation Appraisal and a Mortgage Appraisal. The employer should understand that they are the client for the Relocation Appraisal. As a result, the employer will receive the Appraisal from the professional. Employers should understand that the Relocation Appraisal is not a Mortgage Appraisal.

What Should Employers do?

Employers should communicate guidance for their transferees who may have questions regarding their home’s Relocation Appraisal. Employers should work with their Relocation Management Company to understand the Relocation Appraisal and how it relates to their company’s relocation and home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Appraisals. We can help your company understand how a Relocation Appraisal relates to your company’s home sale program.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Categories
Home Purchase Relocation Programs

7 Helpful Tips for Transferees to Prepare for a Relocation Property Assessment

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Property Assessment. This Assessment is designed to provide helpful information for the client regarding the home’s condition. While not labeled as a home inspection, the Assessment entails a full review of the home by a professional who is fully qualified to perform the Assessment.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on this topic.

How Should a Transferee Prepare for a Relocation Property Assessment?

According to Mark A. Gronke, Fidelity Inspection & Consulting Services provides seven helpful tips and recommendations for transferees to follow. These recommendations will allow the Relocation Property Assessment process to proceed in a quick and efficient manner. Prior to the Assessment, transferees should ensure the following:

Ensure Everything is in Working Order 

  1. Check fixtures and lightbulbs to ensure all are in working order.
  1. All utilities must be on for the Assessment, including any pilot lights for natural gas-fed appliances such as water heaters, stoves, and clothes dryers. Check appliances to ensure all are in working order.
  1. Consider servicing all furnaces and air conditioners prior to the Assessment. This will ensure these systems are in working order and may provide a written statement regarding system function.

Compile Records of Repairs

  1. Compile records and evidence for all repairs completed by qualified professionals and technicians. If desired, provide this information to the professional who is conducting the Assessment before it begins.

Provide Clear and Direct Access

  1. Provide clear and direct access to the home’s water heater, air conditioner, furnace, and electrical panels. If you store boxes and other items nearby, move them away so the professional conducting the Relocation Property Assessment can easily reach these areas and appliances.
  1. Ensure the professional conducting the Assessment has three-to-four feet of open space from all garage walls and all foundation walls. This will let them see electrical outlets and the condition of the walls and finishes. Be sure to clear boxes and furniture from storage areas, under any staircases, and crawl spaces. All of these areas should allow clear access during the Assessment.
  1. Remove leaves and snow, and clear away shrubs and brush along the exterior foundation of the home. Any wood piles, trash cans, or bins kept along the side of a home should be moved away from the home’s perimeter.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program understand their responsibilities to ensure clear and direct access to their home for the professional conducting the Assessment. The client for the Relocation Property Assessment is the employer, and they will receive the Assessment from the professional. Employers should understand that the Relocation Property Assessment is not a Home Inspection Report.

What Should Employers do?

Employers should communicate guidance for their transferees on how to prepare for a Relocation Property Assessment. Employers should work with their Relocation Management Company to understand the Assessment and how it relates to the home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Property Assessments. We can help your company understand how a Relocation Property Assessment relates to your company’s home sale program.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Buy a Home Home Purchase

Why Home Sellers Should Consider Placing Their Home on the Market During Winter

happy family against a country housebeautiful family against the background of the house

Some home sellers have a lot of flexibility when it comes to selling their home. As a result, they may be able to choose to place their home on the market during a season they believe is best. A common notion is that spring is the best season for home sales. But is this notion always true, in all locations? And if not, what other season might be best for home sales?

3 Reasons Why Late Spring/Early Summer is a Good Season for Home Sellers

There are several reasons why late spring/early summer is a good season for home sales:

  1. Buyers tend to come out in larger numbers after winter
  2. Families with children prefer to move when school is not in session
  3. Homes with extensive landscaping tend to have more curb appeal during spring and summer

Many home buyers in areas that have four seasons prefer to look for homes when the weather is nice. It’s a great time for buyers to get outside, after hibernating during much of winter to avoid snow and cold weather. Many home buyers use spring and summer as seasons to see what is new in nearby homes and gain ideas on how to spruce up their own home. Also, buyers with children understand they need to finalize contracts and be ready to move soon after the school year ends, usually in May or June.

3 Reasons Why Late Spring/Early Summer is Not a Good Season for Home Sellers

Just as there are several reasons why late spring/early summer is a good season for home sales, there are also several reasons why it is not:

  1. There is more competition from other homes on the market
  2. Home sellers with average homes have more difficulty capturing buyer’s attention
  3. More buyers tend to look at days on market as an indicator of home desirability

Just as some buyers prefer to venture outside after a long cold winter, so too do many other buyers. Greater competition often helps create a stronger position for home sellers, who benefit when buyers compete for their home. Insufficient levels of affordable homes in several markets, strong competition, and rising prices result in many buyers sitting out the late spring/early summer season. Also, many home buyers in late spring/early summer have no specific timeline and want to visit many homes at a leisurely pace.

5 Reasons Why Winter is a Good Season for Home Sellers

While late spring/early summer has both good points and bad points for home sellers, winter offers several distinct benefits:

  1. Winter home buyers are serious buyers
  2. Determining a realistic listing price is easier
  3. Serious buyers are less concerned about days on market in winter
  4. If you need to buy as well, you have less competitors to beat for your next home
  5. Spring will soon bring more buyers

Buyers in winter often tend to have specific needs and timelines driving their search. This means they are serious buyers, and not just a typical late spring/early summer home tourist. Home sellers can be assured that buyers truly want to purchase in the near term. Often these buyers are relocating to take a new job or to transfer with their current company.

Listing prices tend to better reflect actual market demand during winter. Some home sellers may inflate their listing price in late spring/early summer to test the waters for a higher price. By comparison, winter prices tend to be set to draw serious buyers with specific knowledge about the area, location, amenities, and comparable home prices. Buyers are less concerned with days on market than they are about the home’s features.

Winter home sellers whose home has not yet sold will benefit from the rapidly approaching spring season. As long as their home is still staged for buyers, they are perfectly poised for buyers venturing outdoors during spring.

What Should Home Sellers do During Winter?

Home sellers should consider placing their home on the market during winter. Those able to do so benefit from serious buyers, less competition, and the ability to have their home staged to sell early in spring if it has not yet sold. Also, some markets exhibit stronger buying patterns during winter. For example, Scottsdale, Arizona home sellers have been experiencing their best market during November for both lowest number of days on market and best selling price. Mortgage brokers also tend to be less busy during winter months. As a result, homes are able to move to close at a faster pace.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients and their transferees with their real estate needs when it comes to relocation. We can help your company understand how to obtain the best advantage during the winter home sellers’ market, whether selling a home as part of a relocation, or buying a home in a new location.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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