Why Aren’t You Working with a Realtor?
At the risk of sounding like an ad for the National
Association of Realtors (NAR), I find that I’m asking this question a lot these
days. I’ve even asked myself this question several times during the last few weeks
during my own home search and I’ve discovered numerous examples of why I should
be working with a Realtor instead of going it alone.
With the real estate market being so different within each
and every town throughout the United States, it is nearly impossible to make
good real estate decisions without the help of a knowledgeable, professional
Realtor. I was surprised to find that in the Boston area, many suburbs are
selling very well right now, while others just 20 to 30 miles south of the city
are overrun with foreclosures and short sales. And it is not just the large
cities that you might expect to be experiencing these problems. I’m talking
about previously “in demand” suburbs. In my recent search, I even found a condo
development in my hometown selling very well, while a similar newly constructed
complex just several yards away hasn’t even had its first sale, even though it
has been complete since 2009.
It’s really the story behind the story that a Realtor can provide
for a potential buyer or seller in a local marketplace. The national and local
web sites only tell a very small part of the local story. Without the ‘feet on the street’ that a
Realtor provides, consumers could be missing critical information about the
local market and how buyers, sellers, and builders are responding in the
current economic climate. Most buyers recognize that using a Realtor will typically
not cost them any out of pocket expenses as they are usually compensated
through the transaction by the seller. In the case of a seller, it’s the adage
of ‘you get what you pay for’, which in this case would be nothing if you try
to sell your home on your own.
If you decide to go with a discount broker model or online
services, be prepared for discounted service. In either case, you are only
shortchanging yourself.
Posted on 08/13/2010 in Domestic Relocation | Comments (2)
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Hot fun in the summer…
Ah…the joys of summer and
relocation! As everyone involved
with relocation knows—summer does not inspire images of leisurely days in the
sunshine.
For relocation management
companies, corporate relocation and human resource managers, and transferees
alike, the summer season is a blurry vision of moving vans, home sales, new
home searches, uprooting children, expense vouchers, paperwork galore, and
headaches. Guaranteed - transferees
look back on their “summer of relocation” and pray the memory becomes distant
before the next transfer! And the relocation management company celebrates a
successful season, enjoying the satisfaction from a job well done.
Extraordinary events and
challenges inevitably crop up during the summer crunch. Last minute moves,
challenging home sale closings, purchase hurdles and delays, and the rush for
getting transferees settled before the onset of fall and back to school.
I’ve always said that
someday I would like to write a book filled with anecdotes and essays on
relocation. Maybe about the cat that went to sleep in a bureau draw and woke up
in a moving van being unloaded in New Jersey; or the transferee who arrived
late at night to his temporary apartment only to discover there was something
definitely wrong—the clue being someone sound asleep on the couch; then there
was the appraiser who reported on the wrong home; or the buyer who did not
close and decided to move into the property anyway….the tales are endless.
And for all of that… and
having personally lived to tell the tale myself, both as a relocation
professional today and as a trailing spouse many summers ago…I can say without
hesitation, that surviving the summer of relocation offers a sense of
accomplishment and exhilaration!
And just as quickly as it
begins, the rushed days of summer are over…but not the stories…definitely…not
the stories!
Posted on 07/14/2010 in Domestic Relocation | Comments (1)
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“Why use a Relocation Department instead of placing referrals directly with an agent?”
This was a “hot” topic for
those attending the recent Worldwide ERC conference in Orlando, FL. Frankly, I am surprised by the amount
of time and energy that has been spent on this topic recently. The benefits of
working through a Relocation Director seem so obvious to me, but for the
“unenlightened” I will outline some of these benefits.
First and foremost,
relocation management companies (RMC) need an advocate at the brokerage firm. The
agent on “floor time” who happens to answer the phone may not always be the
best one for an assignment. Even if they are on a list of relocation trained agents,
the agent could really be much better as a listing agent than as a buyer’s
agent and how could the RMC possibly know who sells in a particular price
range, subdivision or condominium complex?
Good sales associates, in
addition to being knowledgeable about the local market, are often, by their
very nature, aggressive, independent thinkers. The Relocation Director can
often rein them in and convince them to follow the corporation’s relocation
guidelines, which often include tight timeframes for appointments and reporting,
along with list price restrictions and referral fee payment. The transferee
also has an ally in the Relocation Director as they are there to ensure top
customer service and a smooth transaction. They are available to objectively
answer any transferee questions and to act as a resource should there be any
difficulties in working with the assigned agent. In rare cases, when the
selected agent and the transferee do not “click”, the RMC and the Relocation Director
can work together to quickly step in and facilitate a change in agents on
behalf of the transferee avoiding a potentially awkward situation.
Finally, all of the best
area overview presentations that we have seen for group move meetings have come
from the Relocation Departments within the real estate companies. I cannot
imagine an individual agent having the resources or the time to put something
together that would be on par with what I have recently seen. Not to mention
the time and effort put in by the Relocation Directors in the scheduling of bus
tours and area overviews for these group moves.
I really could go on and on,
but you get the point. It’s time to put this topic to rest as this model has
obviously stood the test of time and proven its value many times over to
corporations, relocation management companies and transferees alike.
Posted on 06/3/2010 in Domestic Relocation | Comments (0)
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Penny Wise and Pound Foolish?
We’ve all heard the phrase ‘Penny Wise and Pound Foolish’ before and I think it has taken on a new meaning recently within the relocation industry. It seems that the focus has shifted from everyone working together to make the transferee’s move as painless as possible to everyone (including the transferee) working “solo” to find the cheapest possible price for any given service. It reminds me of another one of my favorite phrases, “You get what you pay for.”
I’m thinking along the lines of drastically discounted listing services which charge a fraction of what a full service real estate brokerage would charge at a time when full service brokerages may struggle to sell the home even with their myriad of resources and expertise, just because of the economic conditions in the U.S. And, it’s just not relative to real estate, we have heard a lot about transferees seeking out low cost moving services and temporary housing through the Internet. When everything aligns and all is just as promised there are definitely savings, unfortunately, in many cases inexpensive goods and services purchased on the Internet are not always as they appear. Anyone reading this can probably recall a recent story about a furnished apartment “reserved” on the Internet that never really existed or a mover booked on the web that never actually showed up. It reminds me of another one of my favorite phrases, “Buyer beware!” We’d love to hear your opinions/stories on this topic as well.
Posted on 04/13/2010 in Domestic Relocation | Comments (1)
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A Baby Boomer's View on Technology in Today's Business
For some Baby Boomers, technology driven processes, particularly around customer service, immediately inspire a negative head shake, as was evidenced in a lively dinner discussion I was recently engaged in with a group of friends. As we asked ourselves why that is, we came to the consensus that there seems to be an innate reluctance of our generation to surrender control to technology.
Baby boomers, who are identified with ideals of strong social change, are followed by two generations, Gen X and Gen Y, accustomed to and expectant of immediate gratification in relation to communication. Mind you, this realization caused many in our group to cringe at the thought that our minds could actually be closed off to keeping up with the times. We recognize that, in today's business environment, of which we are all active professionals, technology improvements and process streamlining are the catalysts for not just efficiency, but also consistency of service. They are also becoming more and more of a standard expectation from the end customer. And to a large extent, we all benefit from the daily joys of technology (email, web etc.), so we asked, "Where is our reluctance coming from?"
After some initial discussion, we determined that our reticence comes from simply wanting the reassurance that customer service never loses the human touch. It's the recognition that a successful customer experience is a combination of both technology and a live person at the other end of the line: to be assured that there is a 'voice' that will listen when a need or situation cannot be dissected by a link, an email, or a 'please press 3' self-service option. For the baby boomers around the table that evening, our realization was the confirmation that technology and touch need to work together, and we all would hazard a guess that even the millenials would agree.
Posted on 03/3/2010 in Domestic Relocation | Comments (2)
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The relocation home inspection was clear, how can the buyers be asking for all these repairs?
Unfortunately, this is something relocation professionals hear all too often from their clients during an inventory home sale transaction. So why is it that a buyer’s home inspection always seems to be so much more thorough than the inspection done by the relocation company? It helps to first take a look at the scope of both inspections.
A relocation home inspection, known in the industry as a Relocation Property Assessment is done primarily to provide a professional opinion of the relocating employee's main dwelling and its immediate surrounding area in its "as is" condition as of the date of assessment, limited to definitions and guidelines as established by the corporate client. It is a visual, non-invasive evaluation detailing apparent defects (not cosmetic deficiencies) that call for corrective action limited to three categories:
- Structure
- Unsafe or hazardous conditions
- Inoperative systems or appliances
A General Home Inspection performed for a potential buyer, on the other hand, contains many opinions that the Relocation Property Assessment does not, i.e., deferred maintenance, “potential” problems that may develop in the near future, code violations, and many minor, possible even cosmetic items. The scope of this inspection is so that a potential buyer can get a full and complete picture of the whole house that they may be purchasing, which is why it is sometimes referred to as a “whole house inspection”.
Since the two inspections have very different scopes and are done for very different purposes there are often many perceived “discrepancies” between the two reports. It is important for relocation professionals to understand the differences between these two, very different reports so that they may educate their corporate clients and provide professional advice to them to hopefully keep the deal together. This should be everyone’s goal in today’s real estate environment.
Posted on 02/16/2010 in Domestic Relocation | Comments (0)
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Strategies for Building a True Business Alliance: Relocation
Balanced scorecard, service level agreements (SLAs) - we have all become familiar with these terms as key drivers to successful partnerships. According to a recent study by McKinsey & Company, only half of all joint ventures are successful to both partners. Why is this?
Let’s look at relocation management companies (RMC) specifically. SLAs based on key performance indicators are traditionally incorporated to measure and define operational and contractual touch points. Metrics are agreed to between the partners where the RMC will bear monetary “penalties” for service levels below a specific percentage indicator.
So, why do half of all partnerships fail? Partnerships between corporate clients and RMCs need to become true alliances where both parties gain something from the relationship - a balanced scorecard approach. SLAs should be designed as balanced measurements to relocating employees and their companies as well as the RMC. If RMCs meet or exceed the established metrics, the reward to the RMC should be more than simply not having to pay a penalty. So the key here is building an alliance where both parties benefit from achieving operational targets - an alliance between two parties engaged and committed to developing and maintaining the relationship. The monetary metric at stake should not be the driver or definition of the relationship; rather, a symbolic measure where both parties are saying “we are invested and committed in this relationship”.
For the corporate client that could translate into a cost effective, well-run relocation program that also yields employee satisfaction. For the RMC, it is creating and maintaining a strategic engagement.
Today’s business environment presents unique challenges. Developing successful business alliances, where both parties support common goals, is the key to creating a lasting relationship; and avoiding the repetition of the up-front costs, complexity, and disruption associated with procuring and implementing that initial engagement is a win/win alliance.
Posted on 01/4/2010 in Domestic Relocation | Comments (2)
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Spouses are People Too!
They may be called “trailing” spouses, partners, or significant others; regardless of the label these individuals are an integral part of any relocation. As we continue to navigate our way out of a recession, and with predictions remaining ominous for unemployment in 2010, many spouses/partners are experiencing vast challenges in securing employment in their new destination, leading to resurgence of spouse/partner assistance services.
Spousal/partner assistance is no longer about just assisting with finding employment. Today’s requirements also include life transition coaching or career transition coaching. Whether it’s identifying internships or researching self-employment opportunities most accompanying spouses/partners want to find something meaningful to do even if it is not income producing. Activities like furthering their education, learning a new language or skill, or getting involved in volunteer work that may leverage their background and enhance their experience may also be very satisfying alternative.
According to a recent Permits Foundation Survey, almost 90% of expatriate spouse/partners were employed before the assignment, while only 35% worked while in the host country. And, of those 35%, 75% noted that they wanted to work. Also noted in the survey is that 80% of spouse/partners say that their own employment and career was an important factor in the decision to reject or accept an assignment, reinforcing the need for spousal/partner support.
While there is not much data on U.S. based relocation activity, it’s assumed that the numbers would not be too far behind. Considering that the average dollar amount to provide this service is approximately 2% of the total relocation cost for intra-U.S. relocations and less than 1% of the total relocation cost for a global assignment, spousal/partner acts as an additional layer of ‘insurance’ to ensure a successful transition.
Posted on 12/9/2009 in Domestic Relocation | Comments (4)
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Why was my bank appraisal so much higher?
Anyone involved in a relocation can tell you that a bank appraisal and a relocation appraisal result in differing values. Always a hot topic with employees and employers alike, it’s important to understand the dynamics of each.
The intended use of a relocation appraisal is to assist an employer in facilitating the employee relocation process by establishing a future anticipated sale price; whereas, the intention of a bank appraisal is to determine the present value for mortgage lending purposes. Please keep in mind that the relocation appraiser is trying to predict the future and tell us what they feel the home can sell for within 120 days. On the other hand, a bank wants to verify the present market value as collateral for a loan that could run 30 years.
The methodologies required for both appraisal types also vary widely. A relocation appraiser must consider market changes since the date a comparable sale closed in addition to determining present market trends and then forecast how those trends will affect the future sale of the property. A mortgage appraiser is not required to consider these factors. Additionally, a relocation appraisal requires a prospective analysis and a mortgage appraisal is a retrospective analysis only.
Most likely your home is your biggest asset. As an employee being relocated, our advice would be to get involved in the appraisal process; interview the appraisers up front; ask questions; and provide data to the appraisers that you feel is pertinent—your real estate agent can assist with all of this.
As a corporate relocation professional, we advise that you encourage your relocating employees to take the time to understand and insert themselves in the process.
Posted on 11/3/2009 in Domestic Relocation | Comments (0)
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Successful Relocation Relationships: It’s all About the Partnership
As relocation professionals, we all know that relationship building is a critical key to our overall success; and the layers of relationships run deep - transferee and counselor; account manager and client manager; relocation management company and ancillary service partners.
Merriam-Webster defines partnership as “legal relation existing between two or more persons contractually associated as joint principals in a business.” Working together as joint principals in a partnership is an on-going process and often presents numerous challenges. While continuous effort is required from all parties in the areas of ongoing communications, building and trust and collaboration, the rewards of this work yield a profitable partnership where all parties yield both a professional and personal return.
Relocation management companies in today’s marketplace are selected by corporate clients based on several key factors including: service model, technology platform and aptitude, price, and the overall depth of organization; however, these components, though essential, cannot and should not overshadow customer service. Without the key component of personalized and professional customer service to both the transferee and the client, the other evaluation factors, do not yield a return for the corporation.
The measure of a true partner is not what they do when things go right, but what they do when things go wrong. Working within a corporate relocation there are a multitude of moving pieces and, as such, service issues will arise. It’s what the relocation management company does or does not do in these circumstances that truly differentiation their performance and demonstrate their commitment to the overall success of the partnership and thus the corporate relocation program.
We work with client managers from the initial discussions through annual reviews to ensure that our presentation and evaluation is based on the principals of created a successful partnership. We also apply the same philosophies when working with our domestic and global service partners. Striving to convert existing client/vendor or client/supplier relationships to true partnerships is a win-win for all parties. A strong foundation built on mutual respect, trust, and extraordinary efforts toward the common goal of a well-run program will result in a true partnership where all stakeholders benefit: transferring employee, the corporate client, and the relocation management company.
Posted on 10/2/2009 in Domestic Relocation | Comments (1)
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