Corporate Relocation: The Next Move
Timed Outline
V 1.0 1 of 4
Suggested Timing
Introduction….............................................................................................................................20 minutes
Module 1: The Corporate Relocation Landscape....................................................................65 minutes
Module 2: Developing Your Relocation Business..................................................................75 minutes
Module 3: Working with Stakeholders.....................................................................................50 minutes
Module 4: Relo Transactions....................................................................................................90 minutes
Module 5: Dollars and Sense....................................................................................................40 minutes
Module 6: Follow Up, Follow Through.....................................................................................25 minutes
Final Exam..................................................................................................................................45 minutes
Suggested Schedule
Introduction…...................................................................................................................8:30am – 8:50am
Module 1: The Corporate Relocation Landscape............................................................8:50am-9:55am
Break................................................................................................................................. 9:55am-10:10am
Module 2: Developing Your Relocation Business.......................................................10:10am-11:25am
Module 3: Working with Stakeholders..........................................................................11:25am-12:15pm
Lunch Break..................................................................................................................... 12:15pm-1:00pm
Module 4: Relo Transactions.............................................................................................1:00pm-2:30pm
Break................................................................................................................................... 2:30pm-2:45pm
Module 5: Dollars and Sense.............................................................................................2:45pm-3:25pm
Module 6: Follow Up, Follow Through..............................................................................3:25pm-4:00pm
Break................................................................................................................................... 4:00pm-4:15pm
Final Exam...........................................................................................................................4:15pm-5:00pm
Introduction
Introductions ……………………………….................................................................................
5 min
Course Learning Goals and Structure .............................................................................
How to Earn NAR’s Green Designation............................................................................
5 min
Introduction Reflection …………………………………….............................................................
Total
10 min
Corporate Relocation: The Next Move
Timed Outline
V 1.0 2 of 4
1. The Corporate Landscape
Why Do Companies Relocate Employees?
5 min
Internet Field Trip: Executive Job Posting Sites
10 min
Corporate Relocation Trends – Looking to the Future
5 min
Relocation Follows the Business Cycle
5 min
Why Should You Follow the Business Cycle?
5 min
Where Do Job Seekers Want to Go?
5 min
Internet Field Trip: U.S. Census Flow Mapper
10 min
The Typical Transferee
5 min
Do Employees Turn Down Transfers?
5 min
Outsourcing the Mobility Function
5 min
Total 65 min
2. Developing Your Relocation Business
Is the Relo Business Right For You?
15 min
Compensation
10 min
Relo Advantages
5 min
Do the Homework
25 min
Breaking into the Business
15 min
Practitioner Perspective: Developing Your Business
5 min
Total 75 min
Corporate Relocation: The Next Move
Timed Outline
V 1.0 3 of 4
3. Working with Stakeholders
Who are the Stakeholders?
5 min
Working Across Cultures
5 min
What do Relocation Companies Do?
20 min
Where Does the Real Estate Agent Fit?
15 min
Practitioner Perspective: Working Together
5 min
Total
50 min
4. Relo Transactions
Points of View
5 min
Working with Income Buyers
10 min
Get to Know Your Buyers
20 min
Group Moves
5 min
Time Frames
5 min
Moving Fast!
5 min
Match Your Services to the Buyer’s Needs
10 min
Rent or Buy
5 min
Finding the Right Home
5 min
Selling a Property – the Listing Side
5 min
Home-Selling Assistance Packages
5 min
The Company’s Perspective
5 min
Practitioner Perspective: Working with Relocating Buyers
5 min
Total
90 min
Corporate Relocation: The Next Move
Timed Outline
V 1.0 4 of 4
5. Dollars and Sense
Relo Packages – What Do Companies Pay For?
10 min
Rent or Buy Decisions
10 min
Tax Considerations for the Transferee
20 min
Total
40 min
6. Follow Up, Follow Through
Help Transferees Become Part of the Community
10 min
The Sure Thing – Repeat Business
5 min
Keep Doing Your Homework
10 min
Total
25 min
Exam ........................................................................................................................
45 min
CORPORATE RELOCATION
The Next Move
STUDENT MANUAL
ii |
Copyright © 2019
NATIONAL ASSOCIATION OF REALTORS
®
IMPORTANT NOTE: The National Association of REALTORS®, its faculty, agents,
and employees are not engaged in rendering legal, accounting, nancial, tax, or
other professional services through these course materials.
If legal advice or other expert assistance is required, the student should seek
competent professional advice.
NATIONAL ASSOCIATION OF REALTORS
®
Member Development
430 North Michigan Avenue
Chicago, Illinois 60611 USA
Telephone: 312-329-8376
Toll-free: 800-874-6500 (U.S.)
| iii
TABLE OF CONTENTS
INTRODUCTION ..........................................................................................1
COURSE GOAL .............................................................................................. 1
LEARNING OBJECTIVES................................................................................ 1
COURSE STRUCTURE .................................................................................... 2
PRE-QUIZ: TRUE OR FALSE ........................................................................... 3
MODULE 1: THE CORPORATE RELOCATION LANDSCAPE ........................... 5
WHY DO COMPANIES RELOCATE EMPLOYEES? .......................................... 5
WHAT TYPES OF COMPANIES RELOCATE EMPLOYEES? ............................. 6
INTERNET FIELD TRIP: EXECUTIVE JOB POSTING SITES ............................. 8
CORPORATE RELOCATION TRENDS ............................................................ 9
RELOCATION FOLLOWS THE BUSINESS CYCLE ......................................... 10
CONSUMER CONFIDENCE – A LEADING INDICATOR ............................... 11
WHERE DO JOB SEEKERS WANT TO GO? ................................................ 12
INTERNET FIELD TRIP: US CENSUS FLOW MAPPER ................................... 15
THE TYPICAL TRANSFEREE ........................................................................ 16
DO EMPLOYEES TURN DOWN TRANSFERS? ............................................. 16
OUTSOURCING THE MOBILITY FUNCTION ............................................... 17
THE NEW CLASS OF SELF-RELOS .............................................................. 18
PRACTIONER PERSPECTIVE: THE NEW SELF-RELO .................................... 19
MODULE 2: DEVELOPING YOUR RELOCATION BUSINESS ......................... 21
IS THE RELO BUSINESS RIGHT FOR YOU? ................................................. 21
THE PERSONAL DIMENSION ...................................................................... 21
PROFESSIONAL ATTRIBUTES ...................................................................... 22
BROKERAGE SUPPORT ............................................................................... 24
COMPENSATION ....................................................................................... 24
RELO ADVANTAGES .................................................................................... 25
REFERRALS AND SPIN-OFF BUSINESS ........................................................ 26
DO THE HOMEWORK ................................................................................ 26
INTERNET FIELD TRIP: RESEARCHING ON THE INTERNET ........................ 30
SELF-ASSESSMENT: IS RELOCATION REAL ESTATE THE RIGHT CAREER
CHOICE FOR YOU? ..................................................................................... 31
HOW DO YOU MEASURE UP AGAINST THESE STANDARDS? IS THE RELO
BUSINESS RIGHT FOR YOU? ....................................................................... 32
PRACTITIONER PERSPECTIVE: DEVELOPING YOUR BUSINESS .................. 34
iv |
MODULE 3: WORKING WITH STAKEHOLDERS........................................... 35
WHO ARE THE STAKEHOLDERS? ................................................................ 35
WORKING ACROSS CULTURES ................................................................... 35
PRACTITIONER PERSPECTIVE WITH MERCY STIRLING DE DUENAS .......... 37
WHAT DO RELOCATION COMPANIES DO? ................................................ 38
CORPORATE RELOCATION PROGRAM SERVICES ...................................... 39
SPEND THE DAY WITH A RELOCATION COORDINATOR ........................... 40
WHERE DOES THE REAL ESTATE AGENT FIT? ............................................ 40
MODULE 4: RELOCATION TRANSACTIONS—MOVING IN, MOVING ON ... 43
POINTS OF VIEW ........................................................................................ 43
WORKING WITH INCOMING BUYERS ........................................................ 43
TECHNOLOGY’S IMPACT ON BUYERS ........................................................ 43
GET TO KNOW YOUR BUYERS .................................................................... 45
GROUP MOVES ........................................................................................... 47
TIME FRAMES .............................................................................................. 47
MOVING FAST! ........................................................................................... 48
MATCH YOUR SERVICES TO THE BUYERS’ NEEDS .................................... 48
RENT OR BUY .............................................................................................. 49
FINDING THE RIGHT HOME ....................................................................... 49
SELLING A PROPERTY – THE LISTING SIDE ................................................ 49
HOME-SELLING ASSISTANCE PACKAGES .................................................. 50
THE COMPANY’S PERSPECTIVE .................................................................. 50
PRACTITIONER PERSPECTIVE: WORKING WITH RELOCATING BUYERS .... 51
MODULE 5: DOLLARS AND SENSE ............................................................ 53
RELO PACKAGES: WHAT DO COMPANIES PAY FOR? ................................. 53
RENT OR BUY DECISIONS .......................................................................... 54
TAX CONSIDERATIONS FOR THE TRANSFEREE ......................................... 55
INTERNET FIELD TRIP: TAX REPORTING ..................................................... 57
MODULE 6: FOLLOW UP, FOLLOW THROUGH ........................................... 59
HELP TRANSFEREES BECOME PART OF THE COMMUNITY ....................... 59
THE SURE THING: REPEAT BUSINESS ......................................................... 60
KEEP DOING YOUR HOMEWORK ............................................................... 60
RESOURCES .............................................................................................. 61
WEBSITES .................................................................................................... 61
| v
ACKNOWLEDGMENTS
The Center for Specialized REALTOR Education would like to express appreciation to
the following for their participation and contributions to the course revision process:
Mercy Stirling de Dueñas
CIPS, ABR, TRC, CNE
Guadalajara, Jalisco, Mexico
Dawn Lavka
Austin, TX
Nancy Shear
CRP, CRB, GRI, SRS, ABR
Oviedo, FL
Pat Strong,
ABR,ABRM.CRB,E-PRO,GRI,RENE,SRS,SRES, AHWD,CNHS,RFS,SFR,TAHS,ECO
BROKER,CREI
Tarpley, TX
vi |
MODULE
1
The Corporate Relocation LandscapeIntroduction
| 1
COURSE GOAL
Corporation Relocation: The Next Move provides students with knowledge of the
corporate relocation landscape that can be applied to help them recognize and
take advantage of business opportunities, as well as, create methods for developing
a relocation real estate niche, deliver positive results for all transaction stakeholders,
and gain valuable referrals.
LEARNING OBJECTIVES
MODULE 1:
1. Use data from statistical resources and business cycle indicators to
anticipate inbound and outbound relocation activity – for companies and
transferees – in your market area.
2. Identify companies that transfer employees as well as attract job seekers to
your market area.
MODULE 2:
1. Determine if relocation is a good business development choice for you as a
real estate professional.
2. Adapt your core real estate skills to serve company relocation clients and
customers.
3. Apply methods for seeking out relo business development opportunities in
your market area.
Corporate Relocation: The Next Move
2 |
MODULE 3:
1. Identify the stakeholders involved in a relocation and work to build and
maintain a successful working relationship with all stakeholders.
2. Respond to the concerns and priorities of corporate relo stakeholders.
MODULE 4:
1. Provide customer and client services to help transferees, working within the
parameters of their relocation benet packages.
2. Guide a transferee through the transaction process of buying, renting, and
selling a home.
MODULE 5:
1. Compare types of relo benets packages and incentives with transferee’s
motivations, choices, priorities, and time frames.
2. Help transferees evaluate the pros and cons of renting or buying a home.
3. Help transferees comply with the policies and procedures of their relocation
benet packages and advise them to consult with their tax specialist for IRS
tax reporting.
4. Keep up-to-date on how IRS regulations impact relocations for companies
and employees including self-relos.
MODULE 6:
1. Use client follow-up and information sharing to help transferees settle into a
new home and new community and enhance your value proposition.
2. Build repeat business and referrals by applying methods to follow up with
past clients.
3. Apply research methods to continue seeking out relocation business
opportunities in the market area.
COURSE STRUCTURE
A. Introduction
1. The Corporate Relocation Landscape
2. Developing Your Relocation Business
3. Working with Stakeholders
4. Relocation Transactions – Moving In, Moving On
5. Dollars and Sense
6. Follow Up, Follow Through
Introduction
| 3
EXAM
At the end of the course, students will take a 30-question multiple-choice exam
to document achievement of course learning objectives. The exam is open-
book, unless closed-book is required for continuing education credit. Successful
completion is 80 percent or better, a total of 24 or more correct answers.
PRE-QUIZ: TRUE OR FALSE
Test your knowledge of the Relocation market by writing T or F next to each
statement.
1. Nearly all relocations are to hire or retain talented individuals.
2.
Usually relocation companies buy the employee’s current home to
make the move easier.
3.
Some relocation offers include help nding the trailing spouse a
professional position in the new community.
4.
Realigning or restructuring of organizations may also be a factor in
relocation of personnel.
5.
Employees never change their minds about relocating once they
have been offered the option.
6. Most relocation candidates are senior executives.
7. Relocation is primarily used by only Fortune 500 companies.
8.
Domestic competition is one of the factors considered for
relocating key employees.
9. The state of the economy has a big impact on relocation.
10.
The usual timeframe for a transfer to be in place at their new
location is 120 days.
Corporate Relocation: The Next Move
4 |
PRE-QUIZ: ANSWER SOURCES
1. The primary reason for relocating employees is to hire or retain talent.
https://www.atlasvanlines.com/corporate-relocation/survey/2017/factors-
impacting-relocation.
2. In some cases, a corporation will “buy” the transferee’s home but these
offers are increasingly scarce. https://www.zillow.com/sellers-guide/how-to-
sell-your-house-for-job-relocation/.
3. When a spouse or partner must sacrice their job for the benet of the
transfer, the relocation company may offer assistance in helping them get
connected with potential employers. www.urbanbound.com/relocation-
statistics-to-know.
4. Another major reason for relocation is when an organization realigns its
structure such as in a down-sizing or acquisition. The Allied relocation
survey estimates that at least 20% of the survey respondents moved for
these reasons. www.allied.com/infographic/job-relocation-survey
5. It’s not uncommon for employees to change their minds about relocation
after visiting the new location if they feel the cost of living is too high or
it will be too much of a hardship on their family. www.fastcompany.com.
https://www.atlasvanlines.com/corporate-relocation/survey/2017/factors-
impacting-relocation.
6. While it used to be more common that executives were the primary
recipients of relocation services, now any employee who is deemed vital to
the organization can be offered these services.
7. Companies of all sizes in all industries utilize relocation to recruit and
maintain talent. www.allied.com/infographic/job-relocation-survey.
8. Domestic competition is one of the reasons that companies are compelled
to recruit talent and transfer talented employees to bolster their presence.
https://www.atlasvanlines.com/corporate-relocation/survey/2017/factors-
impacting-relocation.
9. Yes, the state of the economy plays a role in relocation. https://www.
atlasvanlines.com/corporate-relocation/survey/2017/factors-impacting-
relocation.
10. The usual timeframe for a transferee to settle into their new position is 30
days. www.urbanbound.com/relocation-statistics-to-know.
MODULE
1
The Corporate Relocation Landscape
| 5
WHY DO COMPANIES RELOCATE EMPLOYEES?
Why do companies go to the time, trouble, and expense to relocate employees?
The simplest answer can be found in the competition among businesses to hire,
develop, and retain talent. Companies may act assertively when they want to hire or
retain employees with particular knowledge and skills. Relocations are an important
component in achieving business goals and are driven by both internal and external
factors. What do companies achieve by relocating employees either individually, as
a group, or perhaps even entire companies?
EXPANSION AND GROWTH
Acquiring new talent or promoting from within
Applying workforce strength to grow a location
Starting up a corporation
Establishing new divisions and branches of existing companies
Establishing foreign subsidiaries
COMPETITIVE EDGE
Increasing competitive capacity to gain domestic or international
market share
Locating closer to suppliers or customers
STRENGTHENED CAPACITY
Facilitating business travel
Transferring knowledge and skills, gaining new ideas, fostering innovation
Corporate Relocation: The Next Move
6 |
Deploying or integrating technologies
Replacing workers who retire or leave
As economic conditions and corporate plans evolve, various internal and external
factors impact decisions on employee relocations. Take a look at the following list to
see what factors are affecting decisions today.
TOP FACTORS IMPACTING EMPLOYEE RELOCATIONS IN 2017
1
INTERNAL FACTORS
Changes in corporate structure
Expansion efforts
Company growth
EXTERNAL FACTORS
Lack of local talent
Economic conditions
Domestic and international competition
WHAT TYPES OF COMPANIES RELOCATE EMPLOYEES?
Relocations are in the news when a major corporation announces its’ intent to move
to a new facility or open a new plant in another city. When cities compete to be the
winning location for that move, it is also big news. Even technology start-ups get
plenty of media attention. But, the majority of corporate locations never receive
media attention because they involve individuals – current employees, new hires, or
small groups.
Over the past few years, Aetna, General Electric, and McDonald’s all relocated their
ofces from the suburbs into the city to make themselves more appealing to younger
workers who prefer an urban setting.
According to U.S. News & World Report, 22% of people relocated for work based on
a promotion while 51% of transferees moved for “personal career development.”
2
The next page lists some of the largest US employers in various categories. Do
these companies have locations in your market area? Have they announced they
are expanding operations or building a new facility? Have they developed a new
technology? All of these signal the potential for relocation activity.
The Internet Field Trip that follows this list allows you to explore job posting sites
for executive positions. This also provides a wealth of information for potential`
relocation activity.
1 Annual survey of Corporate Relocations Policies, Atlas Van Lines, 2017, www.atlasvanlines.com/
corporate-relocation/survey/2017/factors-impacting-relocation
2 U.S. News & World Report, June 12, 2018, https://money.usnews.com/careers/company-culture/
articles/2018-06-12/should-i-relocate-for-my-job
Module 1: The Corporate Relocation Landscape
| 7
FIGURE 1.1 TOP US EMPLOYERS BY CATEGORY
3
RETAILERS
Walmart, Amazon, Target, Kroger, Home
Depot, Walgreens, Albertsons, Lowe’s, TJX
TECHNOLOGY
IBM, Cognizant Technology Solutions,
United Technologies, Dell Technologies,
Oracle, Apple
RESTAURANTS/FOOD SERVICE
Yum China Holdings, Starbucks, McDonald’s,
Aramark, Darden Restaurants
SHIPPING FedEx, UPS
AEROSPACE Boeing, Lockheed Martin
FINANCE
Wells Fargo, JP Morgan Chase, Bank of
America, Citigroup
AUTO MANUFACTURING Ford Motor, General Motors, Lear
HOSPITALITY/ENTERTAINMENT
Walt Disney, Marriott International, Hilton
Worldwide
TELECOMMUNICATIONS AT&T, Verizon
FOOD PROCESSING PepsiCo, Tyson Foods
HEALTH CARE MANAGEMENT/
BIOTECH/ PHARMACEUTICALS
United Health Group, HCA Healthcare,
Johnson & Johnson, Tenet Healthcare,
Abbott Laboratories
ENERGY Exxon Mobile, Chevron
TRANSPORTATION American Airlines, Delta Airlines
CONGLOMERATES
Berkshire Hathaway, General Electric,
Comcast, Honeywell International
This is only a partial listing of employers. Check the most current Fortune 500 report
for a complete list.
3 Fortune 500, 64th edition, http://fortune.com/fortune500/list/ltered?sortBy=employees&rst500
Corporate Relocation: The Next Move
8 |
INTERNET FIELD TRIP: EXECUTIVE JOB POSTING SITES
Job postings for executive positions point to possible relocation activity. An
Internet search quickly reveals executive recruiting rms in your market area. Forbes
magazine produces a “best of” list for executive recruiting rms. Here are a few
sites to get you started:
www.heidrick.com
www.lucasgroup.com
www.roberthalf.com
WHAT EXECUTIVE RECRUITING FIRMS ARE IN YOUR AREA?
WHAT TYPES OF COMPANIES ARE RECRUITING EXECUTIVES?
WHAT POSITIONS ARE THE COMPANIES RECRUITING?
Module 1: The Corporate Relocation Landscape
| 9
CORPORATE RELOCATION TRENDS – LOOKING TO
THE FUTURE, WITH AN EYE TO THE PAST
Business leaders experience up and down cycles of condence in the economy
which in turn affects their businesses. What lessons can be learned from the
economic downturn of 2008-2009 which deated business optimism and
consequently the volume of relocations? While it’s in the past, this time period is
important. When surveyed during “good times” in 2006, corporate CFOs cited
cost of labor as a top concern; two years later during the downturn, top personnel
concerns shifted to maintaining morale and productivity.
As the economy recovered, corporate plans for growth expansion and hiring all
went on the upswing too. As a result, personnel concerns shifted away from worker
morale and productivity to nding ways to attract and retain qualied employees.
The relocation volume ticked upward as companies competed for talent and
relocated current employees to grow business and remain competitive.
How is business condence affecting relos today? Take a look at the two graphs on
the next page. You can see the variations in relocations that took place for small,
medium, and large employers in 2017 and consider projections for 2018. How can
you take advantage of these projections in your market area?
FIGURE 1.2 ACTUAL RELOCATIONS 2017 (AS COMPARED TO 2016)
FIGURE 1.3 PROJECTED RELOCATIONS 2018 (AS COMPARED TO 2017)
4
4 2018 Corporate Relocation Survey, Atlas World Group,
https://www.atlasvanlines.com/corporate-
relocation /survey
Corporate Relocation: The Next Move
10 |
RELOCATION FOLLOWS THE BUSINESS CYCLE
Relocation activity tends to follow the business cycle. Predictable indicators that
point toward improving business optimism imply a willingness to invest in relocation
activities. The classic business cycle moves through four phases.
CONTRACTION
The economy begins to slow down. Businesses lay off workers, postpone
investment in growth and hold on to cash. Consumers lose jobs and spend only on
the necessities. This indicates impending recession.
TROUGH
This phase indicates the economy is at its lowest point and has reached a recession.
RECOVERY
The economy begins to grow. The employment picture brightens as companies
sense an uptick in business and begin hiring more employees. Consumer
condence rises and there is increased spending beyond just the necessities. This
indicates expansion.
PEAK
The economy hits the maximum point and a time of “irrational exuberance” may
lead to asset bubbles like an overheated stock market or housing market. Investors
search for opportunities which oods markets and causes asset prices to climb to
unsustainable levels.
FIGURE 1.4 RELOCATION BUSINESS CYCLE
According to Fidelity Investments, as of January 2019, further maturing in the US
and global business cycles is likely to heighten uncertainty. In addition, while global
growth continues to expand, the outlook has deteriorated and activity levels have
likely passed their peak. Fidelity predicts that elevated volatility is likely, which leads
investors to diversify their portfolios.
Module 1: The Corporate Relocation Landscape
| 11
The US consumer is viewed as strong with low unemployment, accelerating wage
growth, and manageable nancial obligations. Historic trends show that consumer
and business spending grow late in the cycle and fall after the onset of recession –
with housing construction tending to decline ahead of recession.
5
Are the homes in your market area following these trends? How do these trends
affect the relocation industry?
Explore the various diagrams on the following pages showing consumer condence
levels and investor mentality indicators. The correlations between these business
indicators and relocation activity are clear.
CONSUMER CONFIDENCE – A LEADING INDICATOR
Want to track the business cycle? The Consumer Condence Index, released
monthly by the Conference Board, is a reliable leading edge indicator of the
business cycle.
Where is the US economy in the business cycle? As of December 2018, the
Consumer Condence Survey showed a decrease following a moderate decline
in November. While expectations for job prospects and business conditions
weakened, it was still suggested that the economy will continue expanding at a
solid pace in the short-term.
FIGURE 1.5 CONSUMER CONFIDENCE INDEX
6
(AMPLITUDE ADJUSTED, LONG-TERM AVERAGE = 100 JAN 2014-DEC 2018)
5 Fidelity Investments, January 16, 2019, Viewpoints, https://www.delity.com/viewpoints/market-and-
economic-insights/quarterly-market-update
6 OECD (2019) Consumer condence index (CCI), https://data.oecd.org/leadind/consumer-condence-
index-cci.htm
Corporate Relocation: The Next Move
12 |
INVESTOR MENTALITY
Economic activity is reected in the mentality of investors. In turn, the various levels
of investor mentality affect relocation activity.
FIGURE 1.6 INVESTOR MENTALITY CYCLE
WHY SHOULD YOU FOLLOW THE BUSINESS CYCLE?
Not every area of the country is in the same place in the business cycle at the same
time. Consider the difference between rural Kentucky and the city of Los Angeles
in terms of local economy. The phase of the market cycle in your area (trough,
recovery, peak, or contraction) impacts business decisions which includes new hires
and current employee transfers.
The obvious times companies are more likely to launch expansion plans and recruit
new hires is during the recovery and peak phases of the business cycle. Yet, even
down times can produce relocation business opportunities as companies restructure
and reposition their human resource assets.
Ironically, in times of a down business cycle, it may be the perfect opportunity to lay
the groundwork for developing this business niche. When the business cycle starts
going up, you will be well positioned to grow as relocation transactions increase.
WHERE DO JOB SEEKERS WANT TO GO?
Understanding the ow of relocations into and out of your market area gives you
a valuable data tool for business planning. Is your market area near one of the top
metro areas that attract job seekers? Remember, the list of top metro areas doesn’t
include every area that might be attractive to employees. Consider that there
are major employers located far away from large population centers – Walmart is
headquartered in Bentonville, Arkansas, with a population of about 50,000.
There is a rich stream of data available to you for free and it’s compiled by the US
Census Bureau. The Flow Mapper provides county-level data on numbers moving
in and out, salary ranges, and occupations. You can highlight your county and then
look at other counties around the country for a snapshot of relocation activity. The
Internet Field Trip in this section provides an opportunity to test drive this powerful
data tool.
Module 1: The Corporate Relocation Landscape
| 13
TOP CITIES FOR JOB SEEKERS
The Top 15 cities are also identied on the next page and are indicated with an
orange circle on the map. These cities include:
7
1. Pittsburgh, PA
2. St. Louis, MO
3. Indianapolis, IN
4. Cincinnati, OH
5. Hartford, CT
6. Boston, MA
7. Memphis, TN
8. Raleigh, NC
9. Cleveland, OH
10. Detroit, MI
11. Kansas City, MO
12. Washington, DC
13. Birmingham, AL
14. Chicago, IL
15. Columbus, OH
7 The Ladders, October 17, 2018, “These Are the 25 Best Cities If You Are Looking for a Job.” Ladders/
Business News & Career Advice, 17 Oct. 2018, www.theladders.com/career-advice/these-are-the-25-
best-cities-if-you-are-looking-for-a-job
Corporate Relocation: The Next Move
14 |
MAP OF THE TOP CITIES
This most recent listing of the top cities indicates that the majority of popular cities
are in midwest and northeastern states.
8
FIGURE 1.7 PERCENTAGE CHANGE IS REAL GDP BY STATE, 2018
8 Map: U.S. Bureau of Economic Analysis, “Gross Domestic Product by State, 2nd quarter 2018,” news
release (November 14, 2018), https://www.bea.gov/news/2018/gross-domestic-product-state-2nd-
quarter-2018
Module 1: The Corporate Relocation Landscape
| 15
INTERNET FIELD TRIP: US CENSUS FLOW MAPPER
Map the ow of people moving into and out of your market area.
1. Go to http://owsmapper.geo.census.gov
2. Fill in your county
3. Select a data set, for example, choose 2008-12 for occupation
4. Scroll over other counties, particularly those around the top cities for job
seekers to see the number of movers from or to other counties.
WHAT ARE THE RELOCATION TRENDS IN AND OUT OF YOUR
MARKET AREA?
WHAT ARE THE TRENDS IN THE TOP CITIES FOR JOB SEEKERS?
HOW CAN YOU USE THIS INFORMATION IN BUSINESS PLANNING?
Corporate Relocation: The Next Move
16 |
THE TYPICAL TRANSFEREE
What are the characteristics of a typical transferee? Historically, the popular image
of a corporate relocation was a young, ambitious “corporate employee” working
his or her way to a corner ofce. In reality, the types of companies and employees
involved in relocations cover a wide range of elds, career stages, and skill sets.
The most recent statistics from Worldwide ERC in 2016 show that employees have
an average of 14 days to accept a transfer offer and 37 days to report to a new job.
In addition, home purchase transactions by type in 2015 included 41% buyer value
option, 41% amended value, and 17% regular appraised value.
9
The 2018 Allied Van Lines Corporate Relocation Survey
10
provides some typical
characteristics of relocated employees.
About 25% of relocations involved female employees
35% of relocations involved employees with children
Age ranges at the time of transfer included
X 29% between 36-40 years of age
X 28% between 30-35 years of age
X 20% between 41-45 years of age
34% of transferees had up to one month to report to work at new location
37% of transferees had up to two weeks to accept offer
On average, half of transferees were mid-level employees and one-third
were executives
DO EMPLOYEES TURN DOWN TRANSFERS?
Do employees ever turn down relocation opportunities? The answer is yes they do
and often for housing- related reasons. During the recession years, when numerous
potential transferees had underwater home mortgages, relo refusals were more
common. It’s a dilemma real estate professionals know well. Because the transferee
can’t sell the current home and recover an adequate amount of equity, they lack
the funds to buy in the new location. Sometimes, homes in the new location may
be more expensive. Transferees consider renting a better option than buying “less
than” their current home.
Housing cost, however, isn’t the only reason for turning down a transfer. High costs
of living and family issues play a big role. A transfer may uproot children from
familiar schools or compromise care for elderly relatives. Some transferees solve this
problem by moving the entire extended family when they accept transfers. Another
major issue is employment for an accompanying spouse or partner. Relocation can
derail the career path of a spouse or partner if the new location offers few viable
9 Worldwide ERC U.S. Transfer Activity, Policy & Cost Survey, 2016
10 Allied Van Lines, 2018 corporate relocation survey, https://www.atlasvanlines.com/corporate-
relocation/survey/2018/charts/
Module 1: The Corporate Relocation Landscape
| 17
employment options. The family’s failure to adjust to a new location is another
leading cause for relocation failure. In addition to considering knowledge and skills,
assessing a transfer candidate’s suitability may involve evaluating family readiness to
make the move.
Companies frequently offer incentives to alleviate some of the reasons for
turning down transfers. These might include . . .
Extended temporary housing benets
Relocation bonuses
Cost of living adjustments
Extended duplicate housing benets
Loss on sale protection
Telecommuting option to cut commuting costs
Guaranteed employment contract
Mortgage payoff
OUTSOURCING THE MOBILITY FUNCTION
Almost all large companies that relocate employees outsource aspects of the
transfer, referred to as the mobility function. Outsourcing to a relocation company
alleviates the multitude of details the human resource department must handle
when coordinating a move. Furthermore, outsourcing the mobility function also
outsources many of the administrative costs.
The relocation company coordinates functions like packing and shipping of
household goods and cars, overseeing expense documentation and reporting,
making travel arrangements, arranging temporary housing, setting up house
hunting trips and destination familiarization tours, clearing visas and work permits
for foreign transfers, and sometimes helping an accompanying spouse nd
employment. Both the corporation and transferee benet from having a single point
of contact to coordinate and monitor the move. Remember, the transferee may only
have about a month to make the move and be ready to report for work.
Some companies direct all of the relocation business to a single relocation
company. But in large companies, different divisions may use different relocation
companies. The good news for real estate professionals is that a very large slice
of the relo pie—the home sale and purchase—is the more frequently outsourced
aspect of the relocation. The real estate transaction is even outsourced by the
relocation companies.
Corporate Relocation: The Next Move
18 |
WHO ARE THE MAJOR PLAYERS IN THIS FIELD?
AIRES
www.aires.com
BROOKFIELD GLOBAL RELOCATION SERVICES
www.BGRS.com
CARTUS
www.cartus.com
CROWN WORLD MOBILITY
www.crownworldmobility.com
GRAEBEL RELOCATION SERVICES
www.graebel.com
IMPACT GROUP
www.impactgrouphr.com
SIRVA
www.sirva.com
THE SUDDATH COS.
www.suddath.com
THEMIGROUP
www.themigroup.com
UNIGROUP
www.unigroupinc.com
WEICHERT
www.wrri.com
XONEX
www.xonex.com
THE NEW CLASS OF SELF-RELOS
So far we have focused on corporate-paid relocation of current employees and
recruits. Internet technologies have released workers from their desks and enabled
a new class of relos. Empowered by advanced telecommunications and growing
acceptance of telecommuting, professionals with highly-valued knowledge and
skills self-relocate because they can. With no ties to a desk or particular location,
they can make personal lifestyle choices about where to live. They may choose to
live where the cost of living is lower and they can afford more house, or move from
an urban area to an area with a smaller population. The Practitioner Perspective that
follows provides insight on this new kind of self-relo.
Module 1: The Corporate Relocation Landscape
| 19
PRACTIONER PERSPECTIVE: THE NEW SELF-RELO
As technology continues to improve, many companies are providing opportunities
for their employees to work from home or telecommute. This option helps the
employer by reducing the amount of ofce space they need while retaining talented
individuals who do not want to be in a traditional work environment.
If you are going to be on a computer or the telephone for most of the work day, it
often doesn’t matter where you are located. Many young professionals, as well as
experienced professionals who want to work on their own terms in a more attractive
environment, are choosing this route.
According to a 2017 Forbes magazine article, 65% of full-time employees feel a
remote work schedule will increase productivity. This number is conrmed by more
than two-thirds of managers reporting an increase in productivity from remote
employees. Removing the distractions of a traditional ofce environment and the
time spent commuting drives up productivity.
11
Looking at today’s workforce, we can nd many talented workers who continue to
make valuable contributions past traditional retirement age. With the cost of living
on the rise and life expectancy increasing, many people over age 65 are delaying
retirement, while others may choose to continue working for intellectual stimulation.
This is another source of experienced talent for employers.
These employees are less inclined to battle the weather or feel they need to spend
extensive time commuting to an ofce. For many, it means moving to their ideal
location whether that is in the mountains or a warmer climate near the water or to
be closer to family. For these reasons, they are choosing to relocate on their own,
without the nancial assistance of an employer.
In 2017 it was reported that 3.7 million employees, or almost 3% of the US
workforce, worked from home at least half of the time.
12
Considering this, it often
makes it easier for the employee to nd work elsewhere since it doesn’t require the
physical presence of a company.
All of this adds up to the evidence of more “self-relo” employees who are enriching
their personal lives while providing richer talent pools for employers.
11 Forbes, July 20, 2017, www.forbes.com:benets-of-telecommuting-for-the-future-of-work
12 Fundera, Inc. US, https://www.fundera.com/resources/working-from-home-statistics
Corporate Relocation: The Next Move
20 |
MODULE
2
Developing Your Relocation Business
| 21
IS THE RELO BUSINESS RIGHT FOR YOU?
Is relocation real estate the right choice for you personally and professionally?
Experienced relo professionals say it depends on a combination of your personality,
real estate knowledge and skills, and professional goals.
There are a few questions you should ask yourself, and your broker, to determine
the answer. Are you willing to...
Work within the company’s system and parameters?
Do the extra paperwork required by relocation companies and the
transferee’s corporation?
Work a lot of weekends and some odd hours?
Include all of the stakeholders in the communication loop?
Give up a big chunk of the commission income for the relocation
transaction as a tradeoff for spin-off referrals and transaction volume?
THE PERSONAL DIMENSION
Patience and empathy are essential for success in the relo business. If you have
experienced a relo yourself, you know how disruptive the move can be, even when
it means a promotion for the transferee. Personal relocation experience—civilian or
military—is a plus because you have rsthand experience of high-pressure house
hunting, moving, and resettling in a new, unfamiliar community with the destination
and time schedule determined by an employer.
Some experienced relo professionals say that it helps to have a “thick skin”
approach toward criticism. The relocation is a very stressful time for the transferee
and family and you may be the target of undue criticism. Or, a transferee who is
procrastinating may use the real estate agent as a scapegoat when questioned by
Corporate Relocation: The Next Move
22 |
the relocation company manager or the corporation about the slow progress of a
home sale or purchase.
Real estate professionals commonly go to extremes to help buyers and sellers
through the transaction. It’s likely that every experienced real estate agent can tell
stories about providing services well above and beyond. Willingness to go the extra
mile is especially important for transferees because they are new to the community
and may need extra hand-holding to get through the home purchase, move, and
settling process. You may nd yourself devoting a lot of extra, uncompensated time
to making sure the relocation is a success—whether it’s connecting a child with a
sports team or a piano teacher or nding care for a valued pet. You become the
community expert.
You must sustain the same high levels for service for every relo client referred to
you. The relo business operates on recommendations and if a client has a good
experience they will likely mention you when a friend, co-worker, or neighbor asks
for a recommendation. But they will also remember if the experience of working
with you was unsatisfactory. Build a reputation for reliability and service.
PROFESSIONAL ATTRIBUTES
Relocation companies usually prefer to work with experienced real estate agents—
minimum ve years—rather than someone who is just starting a real estate career.
But if you have several years of real estate experience, particularly working with
buyers, you probably have all of the core skills you need to serve this market
segment. Here are some of the ways you can adapt your core real estate skills:
WORK FAST, SMART, AND ACCURATELY
Can you handle repeated fast-track transactions? Most relocation clients have to
accomplish within 30 days what takes most home buyers several months. When
transactions happen that quickly, your work systems need to be streamlined and
produce reliable results. On the listing side, aggressive marketing to accomplish a
quick sale may add to expenses.
FOLLOW THE RELOCATION COMPANY’S SYSTEMS
You will need to learn to work with the relocation company’s systems for handling
the transaction. Every company has its own system for tracking progress of the
transfer. There are some companies that train real estate professionals – be sure to
take advantage of this opportunity.
MAINTAIN COMMUNICATIONS WITH ALL STAKEHOLDERS
Many people have a stake in making sure the relocation is successful. The
communication loop must encompass all stakeholders. Keeping the relocation
company informed must be standard procedure.
QUICK RESPONSE TIME
Respond quickly to e-mails, texts, and phone calls. Are you always available? Your
response time should be counted in minutes, not hours or days.
Module 2: Developing Your Relocation Business
| 23
MARKET KNOWLEDGE
You must demonstrate current market knowledge on property pricing, market
trends, and potential resale value. When a buyer asks about resale value, how do
you formulate an answer? Do you make a “ballpark” guess or can you provide
market data? Do you know the rental market? Can you help a transferee evaluate
renting versus buying?
SMART HOME SHOWING
Are you adept at the art of matching properties to buyers’ needs and wants? Do
you know how to sequence property showings to facilitate buyers’ decision making?
BUYERS REPRESENTATIVE
Your experience and preference should be for working with buyers. If you have
earned the Accredited Buyers Representative® designation, be sure to feature the
professional distinction in your marketing materials.
TENACITY
For many real estate professionals, developing a successful relocation business
niche starts from a very small seed—one or two referrals. Are you willing to devote
the time it will take—it could be a couple of years—to develop this business niche?
LOOK, SOUND, THINK CORPORATE
Do you present a professional image in your personal appearance, verbal
communication, and demeanor? Executives are accustomed to viewing business
presentations and proposals. Your marketing and presentation materials should
be organized, informative, and reect your professionalism. Take time to learn the
relocation terminology and use it correctly.
FLEXIBLE HOURS
Your client may be in another time zone, across the country or on the other side of
the globe. How would you react to a request for a 2:00 AM phone conference with
a client who is in Asia?
COMMUNITY EXPERT
Transferees, and the relocation company, don’t have a lot of time to learn the
neighborhoods and markets before they start shopping for homes. Often, a
transferee will have recommendations from colleagues and bosses on where they
should look for a home—which may or may not be suitable or affordable. Your
knowledge of the local market, neighborhoods, and housing options can help
transferees choose the neighborhoods and homes that t both lifestyle and budget.
TECHNOLOGY SKILLS MASTERY
You must be adept at using smart phone and Internet technologies. Can you
conduct a real-time tour of a property with a smart phone and FaceTime? Can you
create a virtual oor plan of a property?
Corporate Relocation: The Next Move
24 |
BROKERAGE SUPPORT
Does your broker welcome or rebuff relo business? There are a number of very
experienced and very professional real estate brokers and agents who avoid
relocation real estate, primarily because it usually involves giving up a large portion
of the commission income to the relocation company.
Although after-the-fact referral fees are more rare today than a decade ago, real
estate agents still sometimes get this unpleasant surprise. So, before you dive into
developing this business niche, it’s a good idea to have a conversation with your
broker. Make sure you understand your broker’s attitudes and know your ofce
policies regarding relocation real estate transactions. You want to be sure that you
have the support you need to build a relo business niche.
COMPENSATION
Relocation company referral fees are a concern for some brokers and sales agents.
The referral fees are one of the main reasons that real estate professionals turn
down relo business. There’s no denying that relocation company referral fees take a
big bite out of the commission income. But real estate professionals whose business
mix includes relo point to the advantages. For them, the fee is part of the bigger
picture and an investment in business development that real estate professionals
can choose to make or forgo.
SLICING THE COMMISSION PIE
How many slices are cut from the commission pie and what portions go to the
companies and people involved in the transaction?
Cooperating agent:
If there is a co-op agent involved in the transaction, the rst cut goes to the
agent’s broker per the terms of the listing.
Relocation management company:
This group is next in line and collects a percentage of the commission
as a referral fee. If the relocation company refers both the sell and buy
transactions within the network of approved agents, a referral fee can
be collected on both transactions. Relo companies look increasingly to
the real estate transaction as a revenue source. Consequently, referral
fee percentages have tended upward in the last few years. Corporations
want to outsource not only the management of relocations, but also the
cost; as a result fewer relocation companies are fully compensated by the
corporations that hire them.
The relocation company may credit referral fees received from the real
estate transactions, as well as from other service providers, against the
fee charged to the corporation. Major relocation companies send annual
blanket agreements to advise the real estate companies they work with of
the expected referral percentage for the year ahead. The broker or in-house
manager responsible for assigning relocation business to agents must sign
and return the agreement.
Broker:
Next, the broker retains a portion of the commission per ofce policy.
Module 2: Developing Your Relocation Business
| 25
In-house relocation division:
A number of large brokerages and franchise networks have in-house
divisions that handle relo business. The relo division may receive a at fee
or percentage per the policies of the broker or franchise network.
Real estate agent:
The remaining commission is available for the real estate agent. Based
on the broker’s ofce policy, the agent may pay the marketing and other
transaction expenses from this portion.
HOW BIG IS YOUR SLICE OF THE PIE?
The amounts and percentages represented in the pie chart are based on a home
sale price of $400,000 and a commission of $20,000. This is for illustration purposes
only and does not reect any industry standards or the policies of any corporation,
relocation company, brokerage, or agent.
FIGURE 2.1
RELO ADVANTAGES
As we’ve learned, relocation real estate involves some sacrices but there are also
offsetting advantages.
HIGH INCOME
Most transferees are nancially-capable buyers. Above-average incomes mean few
obstacles in qualifying for a mortgage.
HIGHER-PRICED HOMES
High-income transferees, particularly upper-level executives, tend to buy larger,
higher-value homes.
MOTIVATED
The pressure to nd, close on, and settle into a new home makes transferees very
motivated buyers.
Corporate Relocation: The Next Move
26 |
FAST TRANSACTION
Time pressure usually compels transferees to be decisive. Your involvement will be
intense, but most likely for a short time.
EDUCATED BUYERS
Most transferees are not rst-time buyers. They are familiar with the process of
purchasing a home and working with a real estate agent. It may be necessary
to explain some state regulations, but you probably won’t need to spend time
educating them on the purchase process.
REFERRALS FROM OTHER AGENTS
Remember there are a number of real estate professionals who don’t want to get
involved in relos. Let your peers know that you welcome relo business and referrals
of relo clients.
REFERRALS AND SPIN-OFF BUSINESS
The potential for referrals and spin-off business makes relocation real estate a much
bigger pie than just helping one transferee at a time nd and buy a home. Top-
notch service for that one transferee can be the start of a stream of referral business
that has no connection to the relocation company. Consider these scenarios:
Co-workers who want to buy or sell in the local market may ask the recent
transferee for a recommendation.
Members of an extended family—often elderly parents—who move with the
transferee may need to nd housing.
After transferees get acquainted with new locations, they may want to
change homes – upgrade, downsize, or change neighborhoods.
A transferee who opted initially to rent in the new location may decide they
are ready to buy.
When a transferee is ready to relocate, getting the listing is almost a sure
thing if you keep in touch and ask for the business.
Experienced relocation real estate professionals say that by over-focusing
on relocation company fees, you could miss out on a rich stream of referral
and spin-off business that the relocation company never touches.
DO THE HOMEWORK
How did you do the research when you were rst started out in the real estate
business? You can use the same skills— curiosity, observation, research, and
business planning—to do the homework for developing your relocation niche.
The rst step is taking a good look around your market area for major employers,
promising start- ups, and smaller companies with branches in other locations.
Module 2: Developing Your Relocation Business
| 27
INFORMATION SOURCES FOR YOUR SEARCH:
State Ofces of Economic Development:
A good place to start is with your state’s ofce of economic development. A
metropolitan area may have its own locally-focused economic development
department. These ofces are a great source of news and information on all
types of companies. Register for newsletters and press releases.
Chamber of Commerce:
Another good source of business information is your local chamber of
commerce. Check out your local chamber’s website and register to receive
newsletters and press releases.
Business Press:
In addition to the business section in your local newspapers, your regular
reading list should include major business publications like Crain’s and the
Wall Street Journal, as well as specialized trade journals for area businesses.
Trade Publications:
If you want to know what relocation managers are thinking, read what they
read. Consider Mobility magazine and Relocate Global magazine. You’ll
gain valuable insight on relo managers’ current concerns. You’ll also learn
about trends in relocation volume, services, and corporate benets. At
the ERC website you’ll also nd a library of free webinars on a variety of
relocation topics. Go to www.worldwideerc.org/ Resources/Event Materials/
Pages/learning-zone-webinars-archive.
Executive Recruiter Sites:
Our Internet Field Trip in section one took us to executive job posting
sites—a vital source of business information. These websites provide insight
on how corporations recruit executives and specialized talent and how far
aeld they are willing to look—sometimes globally—to nd the person
with the right combination of knowledge and skills. Some major executive
recruiters and job sites are:
X Korn Ferry, www.kornferry.com
X Signium, www.signium.com
X Slayton Search Partners, www.slaytonsearch.com
X Witt/Kiefer, www.wittkiefer.com
X Wyatt & Jaffe, www.wyattjaffe.com
X The Ladders, www.theladders.com
X Experteer, www.experteer.com
X Dice.com (technology and engineering)
X eFinancialCareers.com (nance, banking, insurance)
X HealthcareJobsite.com (medical, health care)
X MyVisaJobs.com (foreign workers)
Corporate Relocation: The Next Move
28 |
READ WHAT THE RELO MANAGERS READ
Mobility magazine is published monthly by Worldwide ERC ® and read by more
than 18,000 relocation professionals. It’s packed with informative articles each
month and subscribers also have access to the magazine’s archives.
Relocate Global magazine is published four times a year – March, June, September,
and November. It focuses on relocation activity for clients in the US and all over the
world.
TALK THE TALK
ACCEPTANCE PERIOD
Fixed period of time during which the offer to buy a transferee’s primary
residence is valid.
ADVANCE MARKETING
Programs designed to help a transferee sell a home.
AMENDED VALUE PROGRAM
Increase of a guaranteed offer based on a bona-de offer received during
the marketing period.
Module 2: Developing Your Relocation Business
| 29
AREA ORIENTATION
A familiarization tour of a local area conducted for potential transferees.
BUYER VALUE OPTION (BVO)
Home-sale program in which the value for the home is established by a bona-
de offer from an outside buyer, not an appraisal. The relocation company
purchases the home and sells it to the outside buyer at the offer price.
DESTINATION SERVICES
Assistance to help a transferee and family settle into a new location.
DUPLICATE HOUSING
Reimbursement of housing expense (PITI or rent) for a former home if not
sold before the transferee must report to the new location.
GROSS UP
The practice of reimbursing an employee for income tax liability on
relocation payments reported as income on a W-2.
GROUP MOVE
Relocating a corporation or division and all of the employees.
GUARANTEED BUY OUT (GBO)
If a transferee’s home does not sell within a specied time period, the
relocation company purchases it at a guaranteed offer.
HOME MARKETING ASSISTANCE
Proactive marketing services to help market a transferee’s home through a
customized marketing strategy and assistance with offer negotiations.
HOME MARKETING INCENTIVE PAYMENT
A bonus payment to encourage a transferee to aggressively market a home.
HOME MARKETING PERIOD
The minimum amount of time a transferee must attempt to sell a home
before other options – BVO, GBO – are used.
PRE-DECISION SERVICES
Detailed analysis of costs of relocating an employee, including appraised
home value and cost to market and sell it.
RELOCATION INCENTIVE BONUS:
Payment made to an employee to encourage acceptance of transfer.
TIERED PLAN
Relocation program that offers varying levels of benets for different
categories and levels of employees.
Corporate Relocation: The Next Move
30 |
INTERNET FIELD TRIP:
RESEARCHING ON THE INTERNET
Research these information sites and uncover a vast amount of information that will
help you in the relocation business.
1. Economic development departments at the state, city, and county level
2. Chamber of Commerce
3. Business and trade publications
WHAT DID YOU FIND THAT WOULD BE HELPFUL FOR DEVELOPING A
RELO BUSINESS NICHE?
WHAT OTHER HELPFUL WEBSITES DID YOU FIND?
Module 2: Developing Your Relocation Business
| 31
SELF-ASSESSMENT: IS RELOCATION REAL ESTATE THE
RIGHT CAREER CHOICE FOR YOU?
Identify how your personality and professional outlook match up with the relo
business.
ARE YOU WILLING TO...
Give up a bigger chunk of the commission income?
Work within the relocation company’s system and parameters?
Do the extra paperwork?
Work many weekends and odd hours?
Include all of the stakeholders in the communication loop?
DO YOU...
Prefer to work with buyers?
Accept constructive feedback and forgive unwarranted criticism?
Expend extra effort to help buyers settle in a new home and community?
Deliver consistently excellent service – every time?
Have patience and empathy?
CAN YOU...
Work fast, smart, and accurately?
Be a team player and work within relocation company systems?
Learn the terminology?
Connect transferees to community resources and service providers?
Master smartphone and Internet technologies?
Present a professional image – look, sound, and act corporate?
Invest time and money in business building?
Match properties to buyers’ needs and wants?
Arrange property showings that get results?
Respond quickly to emails, texts, and phone calls?
Maintain communication with all stakeholders?
Learn the tax considerations involved in a relo?
Work with diverse clientele – culture, age, career stage, nationality?
Corporate Relocation: The Next Move
32 |
HOW DO YOU MEASURE UP AGAINST THESE
STANDARDS? IS THE RELO BUSINESS RIGHT FOR YOU?
BREAKING INTO THE BUSINESS
At rst glance, prospecting for relo business can look like a closed door. The truth
is that relocation management companies already have established relationships
with real estate rms and seldom want to hear from prospecting agents. Corporate
HR departments want to hear even less from real estate agents. Corporations
outsource their relocations business so that they don’t have to deal with the details.
By the time a large corporation announces relocation plans—whether an individual
or group move—the relocation company is already on the job. With these two
pathways obstructed, how can a real estate professional break into the business?
START LOCAL, START SMALL
Experienced real estate professionals say to start by building your network through
the buyers and sellers you come in contact with. Watch for opportunities to make a
contact with a transferee—a friend, neighbor, family member—and ask for a referral
and a recommendation to the relocation company for future business. Building
your relo business may be one client at a time. But even that one client can open
the door to a stream of business. You don’t know when the opportunity will present
itself, you have to be there and be ready.
SMALL COMPANIES AND START-UPS
Small companies and start-ups can be a more productive source of business than
large corporations. Local companies with branches, divisions, afliated businesses,
and suppliers in other locales can be a prime source of relocation business. Keep in
mind, they may be small companies now, but when they are ready to expand, they’ll
be looking for talent to help grow the corporation and looking for help in relocating
employees and new hires.
These businesses often delegate responsibility for relocating transferees to a human
resource (HR) department instead of outsourcing. If you have a contact—a friend or
neighbor—with the HR department of a small or start-up corporation, ask for help
with referrals. Prospect with HR staff of small companies through your contact. A
good way to start building a business relationship is to offer a service for current
employees; for example, you could offer to present a seminar on home buying,
home maintenance, market update, or mortgage nancing. Another way to start is
by offering to do area tours for the HR staff and new recruits in order to familiarize
them with various neighborhoods.
CLIENT’S CHOICE
A current trend with some relocation management companies is to let the
transferee choose an agent. The transferee informs the relocation company of the
choice. The relocation company, in turn, initiates contact with the agent and advises
the agent of procedures, policies, and fees. If you are working with a transferee ask
if there is a relocation company involved. Establish contact through the transferee –
then expect a call from the relo manager.
Module 2: Developing Your Relocation Business
| 33
GET THE TRAINING
Relo companies want agents who can work knowledgeably within their
management and administrative systems. They may offer training programs to bring
agents they work with up to speed on policies and procedures. If your rm already
has relocation company relationships or a relocation division, take advantage of
training opportunities.
IN-HOUSE RELO DIVISIONS
Does your rm have an in-house relocation division or participate in a network? If
the answer is yes, this division is the rst, and usually single, point of contact for
the relocation company. Major real estate companies and franchises, recognizing
the value of relocation business, have formed dedicated relo departments. These
in-house departments seek out new corporate accounts and foster existing
relationships with relocation companies. Often the relo division staff will include a
relocation manager—counselor, coordinator, advocate—who handles a myriad of
details including interfacing with the relocation company. This leaves the agent free
to focus on the real estate transaction. When the relocation company refers a client,
the relo division manager’s job is to match the client with the right agent.
Your rst step in breaking into the relo business may be researching the possibilities
within your own rm. Find out your rm’s relocation business relationships, afnity
program participation, or networks, and learn how the in-house division decides
which agents to put on the job. Participating in training sessions offered by the relo
division may be a good way to show your interest and develop valuable contacts.
At the same time, make it a point to nd out if there is a policy about soliciting
relo business if the agent is not part of the relo division. Your prospecting efforts
shouldn’t overstep your rm’s policy.
If your rm is forming a relocation division, there may be a ground-oor opportunity
to build your business niche. Start by asking the questions and nding out how to
make the right contacts.
INTERNATIONAL RELOS
When you are researching companies in your market area, don’t overlook foreign-
owned businesses. There’s a good chance that these companies periodically
relocate executives and key managers in and out of your area. Keep in mind that
not every foreign-owned corporation is a mega-corporation or conglomerate.
DISCUSSION QUESTION
ARE YOU ALREADY DOING RELOCATION BUSINESS? HOW DID YOU GET
YOUR FIRST REFERRAL?
Corporate Relocation: The Next Move
34 |
PRACTITIONER PERSPECTIVE:
DEVELOPING YOUR BUSINESS
The rst step is to consult with your Broker and determine how your company
handles relocation business. In some cases a Broker will have specic relocation
companies where they already have a business relationship in place. These
relocation compaies may require you to complete a certication course to get
referrals for business. Some Brokers and relocation companies also maintain that
a certain experience level in the real estate business is necessary. Check with your
Broker to make sure you get started correctly.
Once you have been approved to be a relocation specialist, you need to contact
various relocation companies to become a referral agent. If you are working for
a national or international brokerage you will need to register with your Broker’s
relocation department. Once registered, you are eligible for referrals from your
Broker – a great way to start.
Since most of the major corporations utilize established relocation companies,
to broaden your opportunities, you will also want to contact smaller or newer
companies to determine whether they have an established relocation department
or resource. If they don’t, you have the unique opportunity to become a resource
for them.
On the sell side, putting together an impressive listing presentation is a key element
in getting business. How will you market the home? What is the average time on
market for the seller’s area? Do you recommend “staging” the home or how can
you make it more marketable? How will you communicate with all parties in the
transaction?
Buyer packages are important. Setting up a transferee with an automated email
update on housing as it hits the market lets them know that you are watching
carefully for a t for them. It also tells them how the market is moving from a price
and time perspective.
With relocation buyers, information on the community at large and a list of
resources for checking out schools, neighborhoods, and amenities is benecial.
These should only be links for the transferee to explore to avoid any violation of fair
housing laws or steering.
Remember that networking with friends, business associates, former employers,
and neighbors will always be a key source for business referrals. Let your business
sphere know that you are a reliable and energetic relocation agent, whether that is
through broad-based mailings or personal contact.
MODULE
3
Working with Stakeholders
| 35
WHO ARE THE STAKEHOLDERS?
Within a relocation transaction, there are four main stakeholders: the employer, the
relocation company, the employee, and the employee’s family.
Relocating an employee and family is an expensive investment, so companies want
to be sure all aspects of the move are successful—for the employee and family.
Corporations know that an accompanying spouse, partner, or child who can’t adjust
to the new location will likely cause the employee to resign or seek a reversal of
the transfer. When this happens, the corporation sustains a big loss. They not only
lose a valued employee but may end up paying for another relocation to return the
family to a previous home or another location. By outsourcing the mobility function,
companies seek to manage the costs and details as well as improve the chances of
a successful relocation and, as a result, a happy employee and family.
WORKING ACROSS CULTURES
International relocations are a specialized business and require knowledge of not
only current business trends and employee packages but also appreciation of
cultural considerations. However, cultural considerations can also play a role in
domestic relos. When you’re involved in a relocation effort where culture must be
taken into account, keep the list below in mind. Your client and their company will
appreciate your efforts. To learn even more about international real estate activities,
sign up for a CIPS designation course.
Corporate Relocation: The Next Move
36 |
COMMUNICATION
Is the culture direct and explicit or indirect and implicit?
NEGOTIATIONS
Does the culture favor win-lose or win-win outcomes?
RELATIONSHIPS
Does the culture focus on building trust or go straight to the task?
SOCIALIZING
Every culture has do’s and don’ts related to etiquette rules.
PERCEPTIONS OF TIME
Does the culture view time strictly or allow for variances in schedules?
DECISIONS
Does the culture always follow set rules and norms or allow for varying
circumstances?
AUTHORITY
Does the culture base authority on age, gender, or relationship or does it
view expertise as the most important factor?
CULTURAL RESPONSIBILITY
It is your job to understand the variances in culture and positively manage
your own reaction to it.
EFFORT
The real estate agent should show genuine curiosity and interest in things
they don’t understand and be willing to act as a student in this regard.
HUMILITY
Above all, you should be humble and remember you are the guest in
another culture. Listen more than you speak.
13
13 Mobility magazine, October 2018, “Top 10 Things to be Mindful of When Working Across Cultures.”
http://mobility.worldwideerc.org/publication/?m=46257&l=1#{“issue_id”:526883,”page”:142}
Module 3: Working with Stakeholders
| 37
PRACTITIONER PERSPECTIVE WITH
MERCY STIRLING DE DUENAS
How does corporate relocation in a global setting differ than corporate
relocation in the United States?
For starters we have to do everything in two languages, and another culture! Many
of the expats arrive rst to have a “look see” to decide if even moving to another
country works for them and their families. Since we help clients from all over the
world, each culture is different and how they approach moving to Mexico. Some are
very adventurous and come from other relocation countries. Others are moving to
another country for the rst time in their life. Guadalajara is the second largest city
in the country and is known as “ Silicon Valley of Mexico.” We have about 5 million
people. So, if you are relocating from a small town in Iowa, it is going to be a huge
change for you.
What are the top three things a U.S. REALTOR® should know about the work
you do in Guadalajara?
1) That I am a member of AMPI (Asociacion Mexicana de Profesionales
Inmobiliarios) here in Guadalajara , and it is the equivalent of the NAR. My
suggestion would be only working with AMPI professionals. AMPI National and
NAR have a long-time prosperous relationship. 2) That members of AMPI are
open to referrals from the USA. 3) There are real estate licenses only in 18 states in
the country. Jalisco does not have licensing YET, but we are working very hard on
getting a real estate law. Things are very different in Mexico in real estate laws, and
you need to work with a professional.
Do you have an example of the most rewarding experience you’ve had
relocating a global client?
We had a client whose wife DID NOT want to relocate to Guadalajara from
Colorado. She had been previously shown housing (from another agent) and in NO
way could she imagine she and her kids living here. On top of it she was pregnant
and concerned about that. Her husband was distraught that she did not want to
bring the family to live here while he built the Industrial park. When her husband
heard about the Relocation Connection, he immediately contacted us to “please
please come and meet with his wife” who was going to be in town only for a short
while for the opening of his industrial park. Once she met us, and we gave her a
“look see” and showed her different neighborhoods, medical care, introduced to
other expats that lived here, she decided to make the move. Years later, she cried
when she left and thanked us profusely for keeping her family together PLUS giving
her the best experience of her life.
What are the most important things a relocation agent can do for the
global client?
The most important thing they can do is put THEMSELVES in the place of client and
imagine how daunting moving to a new country is, a new language, a new culture
and treat them like you would want to be treated. From showing the best housing, to
where Costco is located, the best schools and health care so that they have the basics
met when they arrive. Instructing them on big city living, security and where they
can meet new friends! Also, you need to remain a “life line” for them as they move
through the different stages of relocation. Honeymoon phase does not last forever!
Corporate Relocation: The Next Move
38 |
WHAT DO RELOCATION COMPANIES DO?
The relocation company is a corporation and may seem demanding with its
requests. If things go wrong with a transfer, they are the rst to get the backlash
for not successfully getting the employee moved and resettled. The employee’s
HR department or Mobility department will have a relationship with the relocation
company. Some of the titles used in relocation companies include relo coordinator,
mobility department, relo counselor, and relo consultant.
Relocation companies coordinate many aspects of the move beyond the real
estate transaction and closing, including: home-nding trips, packing and moving,
transporting cars, child care, pet sitting, managing expenses and reporting, and
coordinating the benets package. Keep in mind: the real estate agent should not
expect the relo company to divulge or discuss the transferee’s benet package.
In the past, the relo company was the single point of contact and specied who
transferees could work with. Now, in most cases, it’s more exible and as long as the
referral fee is paid, the transferee can choose any agent providing that agent agrees
to the relo company’s procedures. Relo companies do not want transferees signing
buyer’s rep agreements since they are responsible to the employer.
Relocation companies are not taking as much responsibility for the mechanics of
the move and are more interested in fostering a relationship with the transferee. A
new generation of workers has resulted in executives requesting relo companies
to adapt services and approach. They expect more family support – including for
the trailing spouse/partner who is often left at home to unpack and get everyone
settled. The agent can be a point of contact for these efforts.
Spouses and partners must also be considered. They have careers too and the
move may be disruptive for them. Companies may provide help to nd job
opportunities. Corporations realize that if the family is unhappy, the employee may
choose to leave, or at the least be less effective in the job.
When a relocation company takes a property over (buyout or BVO), the seller
can’t sign any paperwork. The relocation company closes with the new buyer. This
procedure defers tax liability for the individual and the corporation. It becomes a
write-off for the corporation as a business expense.
In addition, the seller can’t sign a listing agreement – everything is signed by the
relocation company.
Companies are continuing to tailor programs for transferees to meet the needs
of the employee and the corporation. According to the 2018 survey by Atlas Van
Lines, the use of lump sum reimbursement has become increasingly popular. This
report also notes that partial reimbursement for new hires or transferees occurs with
almost half of the rms surveyed.
Module 3: Working with Stakeholders
| 39
CORPORATE RELOCATION PROGRAM SERVICES
There are a variety of services these programs generally provide. Be sure to know
exactly what’s provided for the transferee you are working with.
DOMESTIC AND INTERNATIONAL
Program administration
Shipment of household goods
Location orientation
Home nding assistance
Home sale assistance, ranges from marketing transferee’s house to buying it
Lease cancellation services
Temporary living assistance
Lump-sum benets administration
Expense payment and administration
INTERNATIONAL
Transferee counseling
Spouse and family counseling
Letters of assignment
Cost estimates
Tax support
Visa work permits
Language training
Cultural training
Ongoing assignment administration
Repatriation management
Corporate Relocation: The Next Move
40 |
SPEND THE DAY WITH A RELOCATION COORDINATOR
The ultimate goal of a relocation coordinator is to provide a smooth adjustment
for the transferee as he or she moves from one location to the next. How does this
happen? The successful relocation coordinator combines excellent communication
skills with attention to detail to get the job done.
Relocation coordinators communicate with buyers, sellers, brokers, agents, and
corporate counselors. That’s ve different hats the coordinator wears every day. A
few of the tasks the relocation coordinator is responsible for include:
Getting to know the client and analyzing their needs
Providing the client with an overview of the market, home prices, school
choices, entertainment venues, and the community they are moving into
Acting as a go-between for the agent and the client and making sure
everyone understands the parameters of the deal
Informing the employer of transaction details and providing continual
updates on the progress of the transfer
The relocation coordinator functions as the “middleman” between the transferee
and company. He or she must satisfy the needs of all the stakeholders to be
successful.
WHERE DOES THE REAL ESTATE AGENT FIT?
Working with a relocation company means corporate accountability. It’s similar to
working with an REO management company in that they want frequent, meaningful
communication and want to be kept up to date. Don’t make them ask twice. Learn
their system and work with it, don’t try to substitute your own.
WHAT THE REAL ESTATE AGENT SHOULD DO
Get a designation
Contact smaller local companies and offer to do employee home
buying seminars
Keep in touch but be respectful of their time
Provide a market overview, sales and price trends
Be a source of information
Get on the “list” of large relo companies
Keep in tight, frequent communication with the relocation company
Keep in touch with buyers, let them know the value of their house in
the market
Module 3: Working with Stakeholders
| 41
WHAT THE REAL ESTATE AGENT SHOULD NOT DO
Don’t wait for a reminder from relocation company if something signicant
has developed
Don’t assume that what one spouse/partner says, the other will agree with
Don’t be afraid to make appropriate contact – ask for the referral
Don’t be resentful of the relocation company fees
Don’t contact large companies to nd out what their relo plans are
Don’t ask about benet package details
Real estate agents who are contacting companies to compete for their relocation
business need to get answers to some questions to come up with their strategy for
getting the business...
Main reason for relocating employees?
Where are your current transferees located?
Where are your emerging markets?
What is the cost benet of outsourcing your relocation efforts?
What is your anticipated volume of transferees both domestically and
internationally – in the next year, the next ve years?
Have you considered tiered services that offer different levels of relocation
benets based on an employee’s position with the corporation?
How do you prefer billing to be handled?
What is the vendor’s global footprint?
Are most of your transferees renters or homeowners?
What relocation services do you want the vendor to provide?
Corporate Relocation: The Next Move
42 |
PRACTITIONER PERSPECTIVE: WORKING TOGETHER
What makes a successful relationship between the relocation company and a
real estate agent?
Excellent communication skills and prompt response are critical to a good
relationship between the agent and the relocation coordinator. The real estate
agent must be a strong team player to interact effectively with the transferee and
the relocation company.
It’s important to the relocation company that the client (transferee) is happy with
their agent. This person should be knowledgeable of the area, be well versed in
the attributes of the community, and he or she should be exible in responding to
the transferee’s and the relocation company’s requests. Since time is of the essence
in a relocation, the agent will often be called upon to respond quickly and spend
evenings and weekends on the search with transferees.
Time is very important to a relocation company since they must report to the
employer on the progress of nding a new home or selling an existing one. As a
result, agents must be prepared for much more paperwork and reporting than in a
traditional sale. As the employer pressures the relocation company, the relocation
company passes on demands to the agent.
Once you have established your reputation as a a strong relocation agent who
understands the process, responds promptly to the relocation company, and
receives positive feedback from the client, you are on your way to getting more
referrals and building your relo niche.
MODULE
4
Relocation Transactions—Moving In, Moving On
| 43
POINTS OF VIEW
During the relocation process, there are three points of view you will want to
keep in mind...
1. The transaction from the buyer’s standpoint
2. The transaction from the seller’s standpoint
3. The transaction from the company’s standpoint
WORKING WITH INCOMING BUYERS
Relocation typically means a quick sale. The buyers visit for an intense tour of
properties and usually make an offer during that visit. As a real estate agent, you
need to know the market really well and understand if homes in your area spend a
short or long time on the market.
Buyers arrive with preconceived notions of where to live. They may have spoken
to friends, family members, or co-workers who suggest the “best” location for
them to buy a home. It may be difcult for them to consider other areas because
someone higher up the corporate ladder suggested a specic area and they feel it
is important to their job success to take their advice. All of this means it might take
longer to nd a property—you have to have more showings to educate the buyer
on other potential areas to live.
TECHNOLOGY’S IMPACT ON BUYERS
Individuals who are used to doing everything on the Internet may require a longer
education process when nding a home. They often don’t see the need for a real
estate agent.
Tech-savvy transferees want instant response and use online tools to gain
information but typically still want someone to talk to during the process.
Corporate Relocation: The Next Move
44 |
In this situation, texting and email are appropriate but it’s important for the buyer to
hear your voice too. Plus, it’s important for the real estate agent to hear the nuances
in a buyer’s voice when discussing the home purchase.
Social media has created a new forum for agent/buyer interaction and more
applications are being created every day. Especially in the relocation transaction,
social media can transport the buyer to their new location at the touch of a button.
There are mobile apps that let them place their furniture in a room and others that
provide a virtual tour of a neighborhood.
Some different social media methods you can use to accelerate the
transaction include...
Mobile apps
Facetime live tours
Links to local entertainment and shopping areas
Community blogs
Maps of the neighborhood with descriptions of property types, local
amenities, and price points
If you have a blog, provide buyers with a link
New technologies that benet the relocation industry are plentiful and are excellent
ways to help you gain competitive advantage. They can help you become more
efcient and perhaps even save money all while meeting the needs of your client.
Take a look at the Tech Trends on the next page and see if you can adopt any of
them for your relo business.
TECH TRENDS TO USE WHEN WORKING WITH BUYERS
14
MOBILE APPS
You can nd apps liked Moved and MoveAdvisor that book a mover, sell or donate
household goods, and arrange furniture in a room. MyRelocation developed by
Global Mobility Solutions provides resources for the relocation team and the human
resource representative, as well as an extensive knowledge base of the entire
industry.
VIRTUAL REALITY
While not an industry mainstay, it does have applications. There are 360-degree
cameras that allow buyers to view a potential home or community through a VR
headset or computer. This can be benecial for the relo buyer who is typically
working in a short turn-around time to nd a new home.
RELOCATION BLOGS
There are literally hundreds of moving blogs and websites. These can provide
information on what the industry is saying about your market, as well as, rst-person
accounts of successful and unsuccessful relocation activity.
14 Mobility magazine, October 2018, https://www.worldwideerc.org/article/plugging-into-technology-
solutions
Module 4: Relocation Transactions—Moving In, Moving On
| 45
GET TO KNOW YOUR BUYERS
During the buyer consultation, work through pre-qualication questions to
understand their price range. Ask open-ended questions about lifestyle before
focusing on the style of home. Do they prefer city, suburban, or a country setting?
Are they interested in specic types of schools?
The more questions you ask, the more you demonstrate that you want to get to
know the buyer and are not just focused on selling a house. Share with the buyer
that by getting to know them, you will be able to focus in on properties that match
their needs.
Where do they currently live?
Is the spouse working? Where is their job in relation to the transferee’s job?
Do they have children?
If they have children, do they walk to school?
Do any family members have any special needs?
Is public transportation important?
How far are they willing to commute?
How far do they want to be from restaurants and shopping?
Is lot size important?
Is the age of the home important?
Are they willing to do maintenance or prefer maintenance-free?
Is an energy star rating important?
Do they need a hobby area?
Do they travel extensively? Is proximity to the airport important?
Do they have pets?
Did anyone suggest areas where they should look for a home?
Have they been to the area before?
Have they visited any open houses or signed a representative agreement?
If market time is short with multiple offers and your clients like one of the rst
homes they see, you might want to encourage them to start the negotiation
process, make an offer, then continue to look at other properties. Agents need to
make sure buyers understand that an offer is a contract if accepted and there are
consequences of backing out. Typically, there is a built-in contingency release with
an inspection contingency addendum.
Corporate Relocation: The Next Move
46 |
Never ask about the details of the buyer’s relocation package or divulge anything
you learn about their benets to another transferee. You can ask about the benets
package in relation to the house and whether they are getting a buyout, BVO, or
home buying assistance package.
Some employees get a lump sum to cover all of their relocation expenses – closing
costs, temporary housing, fees, moving expenses. They may or may not have to
provide documentation to the corporation, itemize expenses, or return unused
amounts. The big buyout (BBO) appears to be on the decline and more lump sum
options are being offered. They are usually easier on the real estate agent as they
put the burden on the employee to manage expenses.
DISCUSSION QUESTIONs
ARE YOU SUCCESSFUL IN GETTING TO KNOW YOUR CLIENTS?
WHAT QUESTIONS DO YOU ASK TO IDENTIFY THEIR NEEDS?
Module 4: Relocation Transactions—Moving In, Moving On
| 47
GROUP MOVES
Entire divisions or companies relocating can mean a few people (less than 10) or
from 30-50 or more if an entire company is relocating.
Some companies start with a stealth group move involving one or two executives.
Without stating corporate intent to do a group move, it gradually occurs as more
employees relocate. If an agent can get in on a group move, planned or gradual,
it can lead to plenty of business. These gradual moves may happen without all the
fanfare of a large move but they can lead to serial referrals and foster your business.
Remember, the rst person in the group who relocates will either rave about the
real estate agent’s service or give them a bad reference. You want to be sure that
rst person gets top-notch service and demonstrate that the same service level
will be provided to everyone who follows. Transferees talk to others about their
experiences with homes they saw and agents they work with.
Entire groups may come for a weekend tour of a new company facility, house hunt
together, and then gather for dinner to compare notes. You might want to arrange
for a property tour by bus where you can point out amenities in the area and
provide other pertinent information.
TIME FRAMES
The lead time for a relocation may be a few weeks. To start, you might want to have
a buyer consultation by phone and set up MLS auto searches. Ask the buyer to
provide feedback on properties in the search and to send you a list of their favorites
so you can organize showings when they come to the area. Try to narrow down
choices to a manageable number you can show.
On average, transferees have about two weeks to accept or reject the transfer and
about a month to be on the job and ready to go. For this reason, buyers are very
motivated – they have to buy and want to buy.
There is a tremendous amount of stress on the transferee and their family during
this time. Remember, they have not only a new job, but a new home in a new
neighborhood in a new town and probably a new state. They have to re-establish
contacts with physicians, dentists, auto repair shops, schools, child care, and more.
It’s your job to educate the buyer about the local market before they arrive to
look at homes, including how quickly the local market is moving, price trends, and
available home inventory. Pull MLS statistics on the number of homes on the market
and their average time on the market.
Some transferees have moved many times and already know what they want to buy.
Others might want to wait to look at homes until they are on the job and stay in
temporary housing on their own or with their families. While transfers can happen
at any time, families with school-age children may not relocate to the new area until
spring or summer.
Typically, transferees have a one-year window to use relocation benets.
Corporate Relocation: The Next Move
48 |
MOVING FAST!
From the moment an employee accepts a transfer offer, the clock is ticking. On
average, organizations permit their employees two weeks to accept a formal
transfer offer. Once an employee accepts the transfer offer, employers are allowing
the transferee an average of four weeks to move and report to their new job.
Transferring buyers are often under additional time constraints and emotional
pressures especially if they have families to move and they are unfamiliar with
the area where they need to purchase a new home. They might need extra hand-
holding before, during, and after the transaction. They will need a list of resources
to help them nd personal services like a doctor, dentist, pediatrician, hair stylist,
veterinarian or dog walker, or daycare for children. If you help them get settled into
the community more quickly, the transferee will be able to be effective in his or her
new position without worrying about all of these details.
According to Worldwide ERC, 67 percent of single employees move for personal
career development, but their career isn’t the biggest concern when it comes to
relocation. Forty-one percent indicated they worry about making friends in the new
area.
15
Since so many important things in life are tied to strong relationships, it’s
understandable why single transferees would be concerned with establishing new
bonds.
Understanding these concerns and being able to provide assistance to help
streamline the process of moving and getting settled is a valuable offering the real
estate agent can provide.
MATCH YOUR SERVICES TO THE BUYERS’ NEEDS
A strong real estate agent will demonstrate his or her value through the services
they provide and by communicating effectively with their clients. Many of the
characteristics you already demonstrate in a typical local transaction are the same
ones you need for a relo. But, what will set you apart as an agent that a transferee
or their relocation company might want to hire?
You are technically procient in the tools agents use to scout for properties
You are a strong networker and able to mine opportunities before they hit
the market
You are present for inspections and help guide the buyer/seller
through negotiations
You never steer a client to a particular neighborhood or community
You provide clients with information on areas they are interested in
You are well versed on attributes of the community at large
You make yourself available to clients when they need you—on their timeline
You stay with buyers throughout the process and closing of the transaction
15 Mobility magazine, October 2018, https://www.worldwideerc.org/article/challenging-status-quo-
relocation-4-surprising-ndings-about-employee-relocation
Module 4: Relocation Transactions—Moving In, Moving On
| 49
RENT OR BUY
In locations like Silicon Valley, housing prices are appreciating so rapidly that
employees who transfer out may decide to keep their existing home and rent it out
because if/when they are transferred back to the area they might not be able to
afford to buy again.
In addition, the amount of equity in a home may impact the rent or buy decision.
In some cases, a transferee may decide to rent if they can’t qualify for a mortgage
(consider entry-level employees) or because there are no homes in their price range
in the area. Another reason to rent relates to insecurities about the current job or
job market.
Does your rm handle rentals? Find out if they charge back to the relocation
company for rental assistance.
FINDING THE RIGHT HOME
Most transferees are pragmatic about choosing a home. They expect their needs
and wants to be met, but aren’t necessarily looking for a dream home. They are also
very concerned with future resale value because they may get transferred within a
few years.
Value appreciation is a big concern when it comes time to move again. Most
relocation clients are fairly sure they will get transferred again, so they want to know
the back end or resale value of any home they might purchase. Be prepared with
property appreciation rates and a history of properties. While real estate agents
cannot predict rates, you can state your opinion on value appreciation.
Where is the buyer in their corporate life? If their relocation is associated with a
promotion, they may be looking for an upgraded house compared to their current
home. Is this the rst move with more to come or will the buyer stay in this location
for the long term?
REOs and short sales are usually not right for relocations. It depends on the market,
but most are too complex with too many unknowns. The buying process for this
type of sale takes longer. Does the buyer have time to wait? It might take six
months to close the deal and everything will be in the hands of the REO company
and lender.
SELLING A PROPERTY – THE LISTING SIDE
A transferee’s corporation may provide an incentive to sell in the rst 30 days.
Relo clients are pressured as sellers and as buyers. They need to balance the time
between sale and buying to free-up equity. For this reason, you can expect a short-
term listing agreement.
In some cases, the company offers an incentive – perhaps the seller gets 1% of the
sales price rebate as an incentive to sell. This incentive helps the seller price their
existing home more competitively since they know there is a cushion to work with.
Relo company inventory must also be considered. Some relo companies may
reimburse an agent to do upkeep and maintain the property while the house stands
empty. A note of caution: if they want the utilities put in the agent’s name this will
be an additional liability and expense for the agent.
Corporate Relocation: The Next Move
50 |
A relo sale isn’t a typical sale. There is substantially more paperwork. The relo
company —not the seller—signs all paperwork. You will need to work to maintain
calm by communicating with the buyer agent and the buyer. It is similar to REOs
and short sales in this regard. In some listings, you might be told not to disclose
that the seller is a relo.
HOME-SELLING ASSISTANCE PACKAGES
Some companies offer loss-on-sale assistance to their employees either through
their formal policy or on a case-by-case basis. Duplicate housing expenses may also
be provided in instances when the employee purchases a home in the new location
prior to selling their home in the old location. Most organizations impose a time
limit on the assistance.
Homes that are typically excluded have extreme marketability issues or represent a
legal liability or complication for the company. Mobile homes and co-ops are usually
excluded from home sale programs. Many employers exclude duplexes and some
exclude homes with excessive acreage.
Today, the majority of companies will accept negative equity homes into their home
sale programs either on a case-by-case basis or as part of a formal policy. Of the
respondents that do accept these homes as part of a formal policy, most require the
employee to pay-off the balance at closing with no assistance from the corporation.
In addition, many employers with either third-party or corporate-based home
sales programs assist employees with home-selling costs in instances where the
employee rejects the company/third- party home buy-out offer. These employers
report offering cash incentives to employees who nd a buyer for their home during
the self-marketing period.
THE COMPANY’S PERSPECTIVE
The relocation company and your transferee’s company, by extension, will be
satised when the employee is settled happily in their new home. Ideally, a speedy
resolution and good communication among the parties will leave everyone feeling
more satised. Keeping everyone in the loop and on track is critical to success.
Companies know that the happiness of the transferee’s family is imperative and
might affect employee performance or satisfaction with their employment. Anything
you can do to help the transferee and family settle into their new community is
benecial.
Module 4: Relocation Transactions—Moving In, Moving On
| 51
PRACTITIONER PERSPECTIVE: WORKING WITH
RELOCATING BUYERS
Working with relocation buyers can be viewed as frustrating or you can look at it as
a fun challenge. The best way to reduce frustration for both you and your transferee
is to take some time to get to know the client. It’s imporant for you to listen to their
needs, wants, and concerns. Try to understand the family dynamic and what it will
take to nd them the best possible home in your community.
Giving the transferee information in advance of a visit to review homes is vital.
Once you have a feeling for what they want, set them up on an automated email
notication system through the MLS in your area. Ask them to rate the listings
so you can narrow down the type of home that would work for them. Educate
them on the community with links to city home pages, school sites, and public
transportation.
Make the home touring process as enjoyable as possible. Typically, you will be
transporting the client during the search. Understand who will be traveling with you
during the search. Do you need to provide a car seat for a child? Is your vehicle
large enough to hold everyone who will be on the tours? Do you need to plan a
lunch stop, bring water, or provide snacks?
You might consider assembling a “community welcome package,” which includes
information on the local arts scene, medical facilties, health clubs, educational
opportunities and outdoor recreaction activities (parks, walking/running paths, dog
parks, pools, etc.) along with any unique insights you can provide. These details
help your buyer learn about the community and what it offers to them and their
family.
Be prepared to spend as much time with your transferee as he or she needs. Your
attention to detail and enthusiasm about the community as you help the buyer
become part of it will pay off.
Corporate Relocation: The Next Move
52 |
MODULE
5
Dollars and Sense
| 53
RELO PACKAGES: WHAT DO COMPANIES PAY FOR?
Relocation benet packages will vary based on a number of things including the
size of the corporation, the rank of the employee, and the area of the country or
world the relocation takes place in.
Depending on what type of relocation package is offered, some of the items that
might be found in a dened package include...
16
PACK AND/OR UNPACK SERVICES
The employee’s household goods are packed by a moving company, saving the
employee time and stress. If an unpack service is included, the moving company
personnel unpack the household goods at the new residence.
QUALITY MOVING COMPANY PERSONNEL WITH
INSURANCE COVERAGE
Not all moving companies are known for providing quality moving services. Moving
charges are typically determined based on total weight. Transferees should ensure
that insurance for damaged or lost goods is equal to the good’s value.
HOME SALE OR LEASE-BREAKING PENALTY ASSISTANCE
Home sale assistance might come in the form of company-sponsored
reimbursement or professional marketing help to accelerate the timing of sales.
Some transferees might have employers who pay contractual penalties for early
lease termination.
16 CapRelo Blog, May 30, 2018, https://info.caprelo.com/blog/topic/corporate-relocation-program
Corporate Relocation: The Next Move
54 |
HOUSE-HUNTING TRIP
Relo packages often include one or more company-paid house hunting trips of
short duration. The costs that might be covered include: transportation, lodging,
and meals. In some instances, childcare might be covered.
TEMPORARY HOUSING
Many corporate relocation packages provide a minimum of 30 days temporary
housing.
TRANSPORTATION TO FINAL DESTINATION
A typical benet package includes reimbursement for transporting the transferee
and his or her family to the new location. This might entail airfare or if the
transferee drives, mileage reimbursement. Costs of moving a transferee’s vehicle by
commercial transport would also be covered.
MISCELLANEOUS
There are a host of small costs that might be covered: driver’s license fees, pet
registration and licenses, cleaning services at the new home, utility hook-ups, etc.
Many companies will put a cap on this category.
Other popular features that might be found in a standard relocation package
include...
Short-term living expenses associated with deadlines to move
Reimbursement for storage of household goods until move into new home
Employment nding assistance for spouse/partner
Child or elder care costs
Assistance with school-related information
Loss-on sale allowance
Travel expenses for transferee to travel home for visits until family is relocated
RENT OR BUY DECISIONS
The decision to buy a home versus rent is as much a lifestyle decision as it is an
economic one. Tim Lucas, editor-in-chief of mymortgageinsider.com, notes that
most people weigh the nancial benets of owning versus renting since it is likely
the biggest nancial decision they will make. However, another key factor that
should be considered is stress. Lucas reports that a landmark stress study lists major
stress events that include switching careers as #18 and change in residence as
#32.
17
If you’re involved in a relocation, you’ve hit both these marks.
When a transferee moves to a new job in a new community, stress levels can run
high. Having to make the additional decision of choosing a permanent residence
versus temporarily renting a space only adds to that stress. This is especially true if
the transferee doesn’t know much about the area.
17 U.S. News & World Report, December 13, 2013, https://realestate.usnews.com/real/-estate/articles/
renting-vs-buying-a-home-which-is-smarter
Module 5: Dollars and Sense
| 55
Today’s renter goes beyond the typical entry-level new hire. For instance, if a
transferee has a second “vacation” home or chooses to rent their current home
rather than sell it, then a rental can be an attractive option.
The rapidly growing rental market also plays a role. Economic uncertainty has
created a surge in the demand for rentals. If a transferee is concerned about job
security or how his or her family will adapt to their new location, then renting
provides more exibility.
Finally, transferees may choose to rent for a period of time as they get to know their
new community. Gaining familiarity with the area provides a level of comfort when
it’s time to buy a new home.
TAX CONSIDERATIONS FOR THE TRANSFEREE
Tax laws are changing rapidly. A realtor should never give tax advice or legal advice
to a client but should refer them to their relocation company or their personal tax
advisor to determine actual costs that are deductible and what costs the company
will reimburse.
WHAT’S A QUALIFIED MOVE?
Moving expenses can be deducted when the transferee meets three tests:
Work-related test
X The move must be related to the start of work at a new job location
within 12 months of rst reporting to work.
Distance test
X The distance between the employee’s new principle place of work
and old residence must be at least 50 miles greater than the distance
between the old place of work and old residence, and the employee’s
commuting distance must have increased by at least 50 miles.
Time test
X In the 12-month period following the move, the employee must be a full-
time employee for at least 39 weeks in that location or meet a qualied
exception to the time.
Some companies structure their program to cover taxable moving expenses, such
as house hunting, temporary living, etc. and then reimburse the “non-taxable”
expenses. The lump-sum reimbursement would be fully taxable to the employee,
and depending on the corporate program, either the corporation or the employee
would ultimately pay the associated tax of including these in the employee’s wages.
Other companies have structured their lump-sum program to cover all relocation
expenses. If the corporation uses this method, the lump sum would be fully taxable
to the employee. The employee would want to track the non-taxable expenses, as a
claim for a moving expense deduction may be available on their US federal income
tax return. The applicable moving expense amount would then be a reduction to a
taxpayer’s adjusted gross income (AGI).
Corporate Relocation: The Next Move
56 |
If there are “taxable” moving expenses paid by the corporation, these amounts
should be reported as taxable wages in the employee’s W-2 form. Sometimes these
surprising numbers on the W-2 leave employees in shock.
18
The Tax Cuts and Jobs Act (TCJA) went into effect January 1, 2018, and suspends
the moving expense deduction/exclusion from 2018-2025. State response to this
act has varied and must be analyzed on a state-by-state basis. As of May 2018,
moving expenses remain excludable from the incomes of transferees in 15 states.
The continual changes in tax law are too numerous to count and it is important to
guide the buyer to their relocation counselor or tax advisor.
IRS PUBLICATION 521
The Internal Revenue Service produces Publication 521 that explains the deduction
of certain expenses related to moving to a new home because of a change in job
location or starting a new job.
It provides detailed information pertaining to a qualied move, explains deductible
and nondeductible moving expenses, and discusses domestic and international
relocations.
Since tax laws often change annually, it is best to refer the transferee to this
document and their personal tax advisor regarding tax inquiries.
18 The balance small business, January 2, 2019, https://www.thebalancesmb.com/employer-guide-
employee-moving-expenses-4141194
Module 5: Dollars and Sense
| 57
INTERNET FIELD TRIP: TAX REPORTING
Your relo buyer may ask you questions about reporting moving expenses, etc. on
their taxes. While you should not give tax advice, you should be aware of current
laws to provide general knowledge on the process. Go to the Internal Revenue
Service website for Publication 521 to learn more.
www.IRS.gov/Pub521
WHAT TYPE OF INFORMATION IS INCLUDED IN PUBLICATION 521?
WHAT ASPECTS OF PUBLICATION 521 CAN YOU USE WHEN WORKING
WITH RELO BUYERS?
Corporate Relocation: The Next Move
58 |
MODULE
6
Follow Up, Follow Through
| 59
HELP TRANSFEREES BECOME PART OF
THE COMMUNITY
The real estate agent’s job doesn’t stop when the nal paperwork is signed on a
new home. Helping the transferee integrate into his or her new community is an
imporant part of your job. Keep in mind that maintaining contact can lead to an
opportunity to get the listing when the employee moves on. Plus, it might result in
referral opportunities in the future.
What are some ways the real estate agent can foster this relationship?
Introduce the transferee to organizations that t their lifestyle or interests.
This might include local sports or arts camps for their children and health
clubs, cooking classes, or book discussion groups for the adults.
Share information on parks, recreation centers, walking/running paths, and
dog-friendly locations for pet owners.
Schedule a tour of the community and point out the local library, daycare
centers, parks, religious institutions, theaters, museums and other
entertainment choices, shopping centers, grocery stores, and hospitals.
Provide links to online resources that will help them connect with dentists,
orthodontists, medical practitioners, and other health-related sources.
Once a transferee and his or her family are settled in their new home, they will be
looking for ways to meet people in the community and develop new friendships.
This is your opportunity to make yourself forefront in the transferee’s mind as the
“go to” person for knowledge that will help the transferee become part of their new
community.
Corporate Relocation: The Next Move
60 |
THE SURE THING: REPEAT BUSINESS
A transferee who has a positive experience with a real estate agent will most likely
call on that agent when it comes time to move again due to a relocation or when
they want to move to another home in the same community.
The real estate agent should follow up with their client within the rst few months
of a move to determine how things are going and how well the transferee is
settling into the new community. If it is needed, the follow-up might include new
opportunities for getting to know the community and surrounding area. If merchant
incentives are available, offer these as a way to connect the transferee with the
community.
On the business side, the agent can provide a yearly CMA market update for
the neighborhood and keep the client advised as to what is happening in their
community that might affect home sales.
Ask for referrals by reminding buyers that you also list properties – they might have
friends or family members who need help selling or buying a home.
Most important, you want to make sure you are “top of mind” when your client
hears the words “real estate.” Provide your clients with a local calendar of events
via email, send out anniversary mailings, make sure they are connected with your
professional social media accounts, and deliver consistent market updates to keep
your name in front of the client.
KEEP DOING YOUR HOMEWORK
To realize continued success in the relo business requires keeping up-to-date on
business trends, tech improvements, and community developments.
Read local and national news to keep informed on corporate trends that can help
you identify how your business might be impacted by relocations. Are there any
businesses in your area that have announced corporate expansion plans? Have
you heard about national companies that are opening new ofces or building
new facilities? Keep in touch with your relocation department to learn about new
developments.
Tech trends and product development can be relocation game changers. If you hear
about a company that has developed a new product, it could be your cue that staff
expansion will follow. Acquisitions also signal employee changes. Even a corporate
downsizing can provide relocation business.
Once you have developed a positive relationship with a corporate transferee,
ask them to refer you to other employees at their company or their friends in
the community. Regular communication between the two of you might create a
resource for you to learn what options are being offered to relo employees.
You might want to join a local service group such as the Chamber of Commerce or
Rotary to learn about other businesses in the area and develop relationships with
those business leaders. Another source of information in some communities is the
city development task force – this group will give you insights on future business
opportunities that might be coming to the community. When you become involved
in the community, you will become part of a larger communication network. The
local arts or athletic groups can be excellent sources for networking.
Resources
| 61
WEBSITES
National Association of REALTORS® Global:
www.nar.realtor/global
Realtor.com:
www.realtor.com
Worldwide ERC:
www.worldwideerc.org
Internal Revenue Service:
www.irs.gov
Atlas Van Lines:
www.atlasvanlines.com
U.S. News:
www.usnews.com
Fidelity:
www.delity.com
Organisation for Economic Co-operation and Development—
Consumer Condence Index
www.oecd.org/unitedstates
The Ladders:
www.theladders.com
U.S. Bureau of Economic Analysis:
www.bea.gov
U.S. Census Flows Mapper:
http://owsmapper.geo.census.gov
Corporate Relocation: The Next Move
62 |
Fundera:
www.fundera.com
Forbes:
www.forbes.com
Mobility Magazine:
www.worldwideerc.org/mobility-magazine
Relocate Magazine:
www.relocatemagazine.com
UrbanBound:
www.urbanbound.com
CapRelo:
https://info.caprelo.com
The Balance Small Business:
www.thebalancesmb.com
Allied Van Lines:
www.allied.com
Witt/Kieffer:
www.wittkieffer.com
Corporate Relocation: The Next Move
Course Description and Outline
V 1.0 1 of 3
Course Description
Corporation Relocation: The Next Move provides students with knowledge of the corporate relocation landscape
that can be applied to help them recognize and take advantage of business opportunities, as well as, create
methods for developing a relocation real estate niche, deliver positive results for all transaction stakeholders, and
gain valuable referrals.
Learning Objectives
MODULE 1:
1. Use data from statistical resources and business cycle indicators to anticipate inbound and outbound
relocation activity – for companies and transferees – in your market area.
2. Identify companies that transfer employees as well as attract job seekers to your market area.
MODULE 2:
1. Determine if relocation is a good business development choice for you as a real estate professional.
2. Adapt your core real estate skills to serve company relocation clients and customers.
3. Apply methods for seeking out relo business development opportunities in your market area.
MODULE 3:
1. Identify the stakeholders involved in a relocation and work to build and maintain a successful working
relationship with all stakeholders.
2. Respond to the concerns and priorities of corporate relo stakeholders.
MODULE 4:
1. Provide customer and client services to help transferees, working within the parameters of their
relocation benefit packages.
2. Guide a transferee through the transaction process of buying, renting, and selling a home.
MODULE 5:
1. Compare types of relo benefits packages and incentives with transferee’s motivations, choices,
priorities, and time frames.
2. Help transferees evaluate the pros and cons of renting or buying a home.
3. Help transferees comply with the policies and procedures of their relocation benefit packages and
advise them to consult with their tax specialist for IRS tax reporting.
4. Keep up-to-date on how IRS regulations impact relocations for companies and employees including
self-relos.
MODULE 6:
1. Use client follow-up and information sharing to help transferees settle into a new home and new
community and enhance your value proposition.
2. Build repeat business and referrals by applying methods to follow up with past clients.
3. Apply research methods to continue seeking out relocation business opportunities in the market area.
Corporate Relocation: The Next Move
Course Description and Outline
V 1.0 2 of 3
Topic Outline
INTRODUCTION............................................................................................................................................
COURSE GOAL
LEARNING OBJECTIVES
COURSE STRUCTURE
PRE-QUIZ: TRUE OR FALSE
MODULE 1: THE CORPORATE RELOCATION LANDSCAPE....................................................................
WHY DO COMPANIES RELOCATE EMPLOYEES?
WHAT TYPES OF COMPANIES RELOCATE EMPLOYEES?
INTERNET FIELD TRIP: EXECUTIVE JOB POSTING SITES
CORPORATE RELOCATION TRENDS
RELOCATION FOLLOWS THE BUSINESS CYCLE
CONSUMER CONFIDENCE – A LEADING INDICATOR
WHERE DO JOB SEEKERS WANT TO GO?
INTERNET FIELD TRIP: US CENSUS FLOW MAPPER
THE TYPICAL TRANSFEREE
DO EMPLOYEES TURN DOWN TRANSFERS?
OUTSOURCING THE MOBILITY FUNCTION
THE NEW CLASS OF SELF-RELOS
PRACTIONER PERSPECTIVE: THE NEW SELF-RELO
MODULE 2: DEVELOPING YOUR RELOCATION BUSINESS…………………………………………………
IS THE RELO BUSINESS RIGHT FOR YOU?
THE PERSONAL DIMENSION
PROFESSIONAL ATTRIBUTES
BROKERAGE SUPPORT
COMPENSATION
RELO ADVANTAGES
REFERRALS AND SPIN-OFF BUSINESS
DO THE HOMEWORK
INTERNET FIELD TRIP: RESEARCHING ON THE INTERNET
SELF-ASSESSMENT: IS RELOCATION REAL ESTATE THE RIGHT CAREER CHOICE FOR YOU?
HOW DO YOU MEASURE UP AGAINST THESE STANDARDS? IS THE RELO BUSINESS RIGHT FOR
YOU?
PRACTITIONER PERSPECTIVE: DEVELOPING YOUR BUSINESS
MODULE 3: WORKING WITH STAKEHOLDERS..........................................................................................
WHO ARE THE STAKEHOLDERS
Corporate Relocation: The Next Move
Course Description and Outline
V 1.0 3 of 3
WORKING ACROSS CULTURES
PRACTITIONER PERSPECTIVE WITH MERCY STIRLING DE DUENAS
WHAT DO RELOCATION COMPANIES DO?
CORPORATE RELOCATION PROGRAM SERVICES
SPEND THE DAY WITH A RELOCATION COORDINATOR
WHERE DOES THE REAL ESTATE AGENT FIT?
MODULE 4: RELOCATION TRANSACTIONS—MOVING IN, MOVING ON....................................................
POINTS OF VIEW
WORKING WITH INCOMING BUYERS
TECHNOLOGY’S IMPACT ON BUYERS
GET TO KNOW YOUR BUYERS
GROUP MOVES
TIME FRAMES
MOVING FAST!
MATCH YOUR SERVICES TO THE BUYERS’ NEEDS
RENT OR BUY
FINDING THE RIGHT HOME
SELLING A PROPERTY – THE LISTING SIDE
HOME-SELLING ASSISTANCE PACKAGES
THE COMPANY’S PERSPECTIVE
PRACTITIONER PERSPECTIVE: WORKING WITH RELOCATING BUYERS
MODULE 5: DOLLARS AND SENSE............................................................................................................
RELO PACKAGES: WHAT DO COMPANIES PAY FOR?
RENT OR BUY DECISIONS
TAX CONSIDERATIONS FOR THE TRANSFEREE
INTERNET FIELD TRIP: TAX REPORTING
MODULE 6: FOLLOW UP, FOLLOW THROUGH.........................................................................................
HELP TRANSFEREES BECOME PART OF THE COMMUNITY
THE SURE THING: REPEAT BUSINESS
KEEP DOING YOUR HOMEWORK
CORPORATE RELOCATION
The Next Move
STUDENT AND INSTRUCTOR MANUAL
ii |
Copyright © 2019
NATIONAL ASSOCIATION OF REALTORS
®
IMPORTANT NOTE: The National Association of REALTORS®, its faculty, agents,
and employees are not engaged in rendering legal, accounting, nancial, tax, or
other professional services through these course materials.
If legal advice or other expert assistance is required, the student should seek
competent professional advice.
NATIONAL ASSOCIATION OF REALTORS
®
Member Development
430 North Michigan Avenue
Chicago, Illinois 60611 USA
Telephone: 312-329-8376
Toll-free: 800-874-6500 (U.S.)
| iii
TABLE OF CONTENTS
INTRODUCTION ..........................................................................................1
COURSE GOAL .............................................................................................. 1
LEARNING OBJECTIVES................................................................................ 1
COURSE STRUCTURE .................................................................................... 2
PRE-QUIZ: TRUE OR FALSE ........................................................................... 3
MODULE 1: THE CORPORATE RELOCATION LANDSCAPE ........................... 5
WHY DO COMPANIES RELOCATE EMPLOYEES? .......................................... 5
WHAT TYPES OF COMPANIES RELOCATE EMPLOYEES? ............................. 6
INTERNET FIELD TRIP: EXECUTIVE JOB POSTING SITES ............................. 8
CORPORATE RELOCATION TRENDS ............................................................ 9
RELOCATION FOLLOWS THE BUSINESS CYCLE ......................................... 10
CONSUMER CONFIDENCE – A LEADING INDICATOR ............................... 11
WHERE DO JOB SEEKERS WANT TO GO? ................................................ 12
INTERNET FIELD TRIP: US CENSUS FLOW MAPPER ................................... 15
THE TYPICAL TRANSFEREE ........................................................................ 16
DO EMPLOYEES TURN DOWN TRANSFERS? ............................................. 16
OUTSOURCING THE MOBILITY FUNCTION ............................................... 17
THE NEW CLASS OF SELF-RELOS .............................................................. 18
PRACTIONER PERSPECTIVE: THE NEW SELF-RELO .................................... 19
MODULE 2: DEVELOPING YOUR RELOCATION BUSINESS ......................... 21
IS THE RELO BUSINESS RIGHT FOR YOU? ................................................. 21
THE PERSONAL DIMENSION ...................................................................... 21
PROFESSIONAL ATTRIBUTES ...................................................................... 22
BROKERAGE SUPPORT ............................................................................... 24
COMPENSATION ....................................................................................... 24
RELO ADVANTAGES .................................................................................... 25
REFERRALS AND SPIN-OFF BUSINESS ........................................................ 26
DO THE HOMEWORK ................................................................................ 26
INTERNET FIELD TRIP: RESEARCHING ON THE INTERNET ........................ 30
SELF-ASSESSMENT: IS RELOCATION REAL ESTATE THE RIGHT CAREER
CHOICE FOR YOU? ..................................................................................... 31
HOW DO YOU MEASURE UP AGAINST THESE STANDARDS? IS THE RELO
BUSINESS RIGHT FOR YOU? ....................................................................... 32
PRACTITIONER PERSPECTIVE: DEVELOPING YOUR BUSINESS .................. 34
iv |
MODULE 3: WORKING WITH STAKEHOLDERS........................................... 35
WHO ARE THE STAKEHOLDERS? ................................................................ 35
WORKING ACROSS CULTURES ................................................................... 35
PRACTITIONER PERSPECTIVE WITH MERCY STIRLING DE DUENAS .......... 37
WHAT DO RELOCATION COMPANIES DO? ................................................ 38
CORPORATE RELOCATION PROGRAM SERVICES ...................................... 39
SPEND THE DAY WITH A RELOCATION COORDINATOR ........................... 40
WHERE DOES THE REAL ESTATE AGENT FIT? ............................................ 40
MODULE 4: RELOCATION TRANSACTIONS—MOVING IN, MOVING ON ... 43
POINTS OF VIEW ........................................................................................ 43
WORKING WITH INCOMING BUYERS ........................................................ 43
TECHNOLOGY’S IMPACT ON BUYERS ........................................................ 43
GET TO KNOW YOUR BUYERS .................................................................... 45
GROUP MOVES ........................................................................................... 47
TIME FRAMES .............................................................................................. 47
MOVING FAST! ........................................................................................... 48
MATCH YOUR SERVICES TO THE BUYERS’ NEEDS .................................... 48
RENT OR BUY .............................................................................................. 49
FINDING THE RIGHT HOME ....................................................................... 49
SELLING A PROPERTY – THE LISTING SIDE ................................................ 49
HOME-SELLING ASSISTANCE PACKAGES .................................................. 50
THE COMPANY’S PERSPECTIVE .................................................................. 50
PRACTITIONER PERSPECTIVE: WORKING WITH RELOCATING BUYERS .... 51
MODULE 5: DOLLARS AND SENSE ............................................................ 53
RELO PACKAGES: WHAT DO COMPANIES PAY FOR? ................................. 53
RENT OR BUY DECISIONS .......................................................................... 54
TAX CONSIDERATIONS FOR THE TRANSFEREE ......................................... 55
INTERNET FIELD TRIP: TAX REPORTING ..................................................... 57
MODULE 6: FOLLOW UP, FOLLOW THROUGH ........................................... 59
HELP TRANSFEREES BECOME PART OF THE COMMUNITY ....................... 59
THE SURE THING: REPEAT BUSINESS ......................................................... 60
KEEP DOING YOUR HOMEWORK ............................................................... 60
RESOURCES .............................................................................................. 61
WEBSITES .................................................................................................... 61
| v
ACKNOWLEDGMENTS
The Center for Specialized REALTOR Education would like to express appreciation to
the following for their participation and contributions to the course revision process:
Mercy Stirling de Dueñas
CIPS, ABR, TRC, CNE
Guadalajara, Jalisco, Mexico
Dawn Lavka
Austin, TX
Nancy Shear
CRP, CRB, GRI, SRS, ABR
Oviedo, FL
Pat Strong,
ABR,ABRM.CRB,E-PRO,GRI,RENE,SRS,SRES, AHWD,CNHS,RFS,SFR,TAHS,ECO
BROKER,CREI
Tarpley, TX
vi |
MODULE
1
The Corporate Relocation LandscapeIntroduction
| 1
COURSE GOAL
Corporation Relocation: The Next Move provides students with knowledge of the
corporate relocation landscape that can be applied to help them recognize and
take advantage of business opportunities, as well as, create methods for developing
a relocation real estate niche, deliver positive results for all transaction stakeholders,
and gain valuable referrals.
LEARNING OBJECTIVES
MODULE 1:
1. Use data from statistical resources and business cycle indicators to
anticipate inbound and outbound relocation activity – for companies and
transferees – in your market area.
2. Identify companies that transfer employees as well as attract job seekers to
your market area.
MODULE 2:
1. Determine if relocation is a good business development choice for you as a
real estate professional.
2. Adapt your core real estate skills to serve company relocation clients and
customers.
3. Apply methods for seeking out relo business development opportunities in
your market area.
Slide 1:
Opener Title Slide
Slide 2:
Welcome
Slides 3 and 4:
Learning Objectives
Corporate Relocation: The Next Move
2 |
MODULE 3:
1. Identify the stakeholders involved in a relocation and work to build and
maintain a successful working relationship with all stakeholders.
2. Respond to the concerns and priorities of corporate relo stakeholders.
MODULE 4:
1. Provide customer and client services to help transferees, working within the
parameters of their relocation benet packages.
2. Guide a transferee through the transaction process of buying, renting, and
selling a home.
MODULE 5:
1. Compare types of relo benets packages and incentives with transferee’s
motivations, choices, priorities, and time frames.
2. Help transferees evaluate the pros and cons of renting or buying a home.
3. Help transferees comply with the policies and procedures of their relocation
benet packages and advise them to consult with their tax specialist for IRS
tax reporting.
4. Keep up-to-date on how IRS regulations impact relocations for companies
and employees including self-relos.
MODULE 6:
1. Use client follow-up and information sharing to help transferees settle into a
new home and new community and enhance your value proposition.
2. Build repeat business and referrals by applying methods to follow up with
past clients.
3. Apply research methods to continue seeking out relocation business
opportunities in the market area.
COURSE STRUCTURE
A. Introduction
1. The Corporate Relocation Landscape
2. Developing Your Relocation Business
3. Working with Stakeholders
4. Relocation Transactions – Moving In, Moving On
5. Dollars and Sense
6. Follow Up, Follow Through
Slide 5:
Course Structure
Introduction
| 3
EXAM
At the end of the course, students will take a 30-question multiple-choice exam
to document achievement of course learning objectives. The exam is open-
book, unless closed-book is required for continuing education credit. Successful
completion is 80 percent or better, a total of 24 or more correct answers.
PRE-QUIZ: TRUE OR FALSE
Test your knowledge of the Relocation market by writing T or F next to each
statement.
1.
Nearly all relocations are to hire or retain talented individuals.
(True)
2.
Usually relocation companies buy the employee’s current home to
make the move easier. (False)
3.
Some relocation offers include help nding the trailing spouse a
professional position in the new community. (True)
4.
Realigning or restructuring of organizations may also be a factor in
relocation of personnel. (True)
5.
Employees never change their minds about relocating once they
have been offered the option. (False)
6. Most relocation candidates are senior executives. (False)
7.
Relocation is primarily used by only Fortune 500 companies.
(False)
8.
Domestic competition is one of the factors considered for
relocating key employees. (True)
9. The state of the economy has a big impact on relocation. (True)
10.
The usual timeframe for a transfer to be in place at their new
location is 120 days. (False)
I-Notes:
CHALLENGE students to
answer the pre-quiz questions
on the next page. ALLOW a
few minutes for students to
mark their answers. REVIEW the
questions and PROVIDE correct
answers. RECOGNIZE students
who answer the most questions
correctly.
ADVISE students not to turn the
page until instructed. ANSWER
SOURCES are found on the next
page for discussion purposes.
Corporate Relocation: The Next Move
4 |
PRE-QUIZ: ANSWER SOURCES
1. The primary reason for relocating employees is to hire or retain talent.
https://www.atlasvanlines.com/corporate-relocation/survey/2017/factors-
impacting-relocation.
2. In some cases, a corporation will “buy” the transferee’s home but these
offers are increasingly scarce. https://www.zillow.com/sellers-guide/how-to-
sell-your-house-for-job-relocation/.
3. When a spouse or partner must sacrice their job for the benet of the
transfer, the relocation company may offer assistance in helping them get
connected with potential employers. www.urbanbound.com/relocation-
statistics-to-know.
4. Another major reason for relocation is when an organization realigns its
structure such as in a down-sizing or acquisition. The Allied relocation
survey estimates that at least 20% of the survey respondents moved for
these reasons. www.allied.com/infographic/job-relocation-survey
5. It’s not uncommon for employees to change their minds about relocation
after visiting the new location if they feel the cost of living is too high or
it will be too much of a hardship on their family. www.fastcompany.com.
https://www.atlasvanlines.com/corporate-relocation/survey/2017/factors-
impacting-relocation.
6. While it used to be more common that executives were the primary
recipients of relocation services, now any employee who is deemed vital to
the organization can be offered these services.
7. Companies of all sizes in all industries utilize relocation to recruit and
maintain talent. www.allied.com/infographic/job-relocation-survey.
8. Domestic competition is one of the reasons that companies are compelled
to recruit talent and transfer talented employees to bolster their presence.
https://www.atlasvanlines.com/corporate-relocation/survey/2017/factors-
impacting-relocation.
9. Yes, the state of the economy plays a role in relocation. https://www.
atlasvanlines.com/corporate-relocation/survey/2017/factors-impacting-
relocation.
10. The usual timeframe for a transferee to settle into their new position is 30
days. www.urbanbound.com/relocation-statistics-to-know.
I-Note:
BRIEFLY REVIEW quiz answers
and ADVISE students that these
topics will be covered in more
depth during the course.
MODULE
1
The Corporate Relocation Landscape
| 5
WHY DO COMPANIES RELOCATE EMPLOYEES?
Why do companies go to the time, trouble, and expense to relocate employees?
The simplest answer can be found in the competition among businesses to hire,
develop, and retain talent. Companies may act assertively when they want to hire or
retain employees with particular knowledge and skills. Relocations are an important
component in achieving business goals and are driven by both internal and external
factors. What do companies achieve by relocating employees either individually, as
a group, or perhaps even entire companies?
EXPANSION AND GROWTH
Acquiring new talent or promoting from within
Applying workforce strength to grow a location
Starting up a corporation
Establishing new divisions and branches of existing companies
Establishing foreign subsidiaries
COMPETITIVE EDGE
Increasing competitive capacity to gain domestic or international
market share
Locating closer to suppliers or customers
STRENGTHENED CAPACITY
Facilitating business travel
Transferring knowledge and skills, gaining new ideas, fostering innovation
Slide 6:
Section 1 Opener
Slide 7:
Why do Companies Relocate
Employees?
I-Note:
APPLY Learning Objective 1-2
Slide 8:
Achieving Goals
Corporate Relocation: The Next Move
6 |
Deploying or integrating technologies
Replacing workers who retire or leave
As economic conditions and corporate plans evolve, various internal and external
factors impact decisions on employee relocations. Take a look at the following list to
see what factors are affecting decisions today.
TOP FACTORS IMPACTING EMPLOYEE RELOCATIONS IN 2017
1
INTERNAL FACTORS
Changes in corporate structure
Expansion efforts
Company growth
EXTERNAL FACTORS
Lack of local talent
Economic conditions
Domestic and international competition
WHAT TYPES OF COMPANIES RELOCATE EMPLOYEES?
Relocations are in the news when a major corporation announces its’ intent to move
to a new facility or open a new plant in another city. When cities compete to be the
winning location for that move, it is also big news. Even technology start-ups get
plenty of media attention. But, the majority of corporate locations never receive
media attention because they involve individuals – current employees, new hires, or
small groups.
Over the past few years, Aetna, General Electric, and McDonald’s all relocated their
ofces from the suburbs into the city to make themselves more appealing to younger
workers who prefer an urban setting.
According to U.S. News & World Report, 22% of people relocated for work based on
a promotion while 51% of transferees moved for “personal career development.”
2
The next page lists some of the largest US employers in various categories. Do
these companies have locations in your market area? Have they announced they
are expanding operations or building a new facility? Have they developed a new
technology? All of these signal the potential for relocation activity.
The Internet Field Trip that follows this list allows you to explore job posting sites
for executive positions. This also provides a wealth of information for potential`
relocation activity.
1 Annual survey of Corporate Relocations Policies, Atlas Van Lines, 2017, www.atlasvanlines.com/
corporate-relocation/survey/2017/factors-impacting-relocation
2 U.S. News & World Report, June 12, 2018, https://money.usnews.com/careers/company-culture/
articles/2018-06-12/should-i-relocate-for-my-job
Slide 9:
Internal and External Factors
I-Note:
LINK the internal and external
factors to the preceding
bullet points to show current
corporate relocation priorities.
Slide 10:
What types of companies
relocate employees?
I-Note:
COMMENT that a wide
variety of types of companies
relocate employees. NOTE
the categories and list of top
US employers. HIGHLIGHT
any companies that have local
market presence.
Module 1: The Corporate Relocation Landscape
| 7
FIGURE 1.1 TOP US EMPLOYERS BY CATEGORY
3
RETAILERS
Walmart, Amazon, Target, Kroger, Home
Depot, Walgreens, Albertsons, Lowe’s, TJX
TECHNOLOGY
IBM, Cognizant Technology Solutions,
United Technologies, Dell Technologies,
Oracle, Apple
RESTAURANTS/FOOD SERVICE
Yum China Holdings, Starbucks, McDonald’s,
Aramark, Darden Restaurants
SHIPPING FedEx, UPS
AEROSPACE Boeing, Lockheed Martin
FINANCE
Wells Fargo, JP Morgan Chase, Bank of
America, Citigroup
AUTO MANUFACTURING Ford Motor, General Motors, Lear
HOSPITALITY/ENTERTAINMENT
Walt Disney, Marriott International, Hilton
Worldwide
TELECOMMUNICATIONS AT&T, Verizon
FOOD PROCESSING PepsiCo, Tyson Foods
HEALTH CARE MANAGEMENT/
BIOTECH/ PHARMACEUTICALS
United Health Group, HCA Healthcare,
Johnson & Johnson, Tenet Healthcare,
Abbott Laboratories
ENERGY Exxon Mobile, Chevron
TRANSPORTATION American Airlines, Delta Airlines
CONGLOMERATES
Berkshire Hathaway, General Electric,
Comcast, Honeywell International
This is only a partial listing of employers. Check the most current Fortune 500 report
for a complete list.
3 Fortune 500, 64th edition, http://fortune.com/fortune500/list/ltered?sortBy=employees&rst500
I-Note:
APPLY Learning Objective 1-2
Corporate Relocation: The Next Move
8 |
INTERNET FIELD TRIP: EXECUTIVE JOB POSTING SITES
Job postings for executive positions point to possible relocation activity. An
Internet search quickly reveals executive recruiting rms in your market area. Forbes
magazine produces a “best of” list for executive recruiting rms. Here are a few
sites to get you started:
www.heidrick.com
www.lucasgroup.com
www.roberthalf.com
WHAT EXECUTIVE RECRUITING FIRMS ARE IN YOUR AREA?
WHAT TYPES OF COMPANIES ARE RECRUITING EXECUTIVES?
WHAT POSITIONS ARE THE COMPANIES RECRUITING?
I-Note:
DIVIDE the class into small
groups.
MAKE sure each group has
Internet access.
INSTRUCT students to follow
the instructions to access the
various sites and view the data.
LEAD a discussion of how this
information can be used for
business planning.
Module 1: The Corporate Relocation Landscape
| 9
CORPORATE RELOCATION TRENDS – LOOKING TO
THE FUTURE, WITH AN EYE TO THE PAST
Business leaders experience up and down cycles of condence in the economy
which in turn affects their businesses. What lessons can be learned from the
economic downturn of 2008-2009 which deated business optimism and
consequently the volume of relocations? While it’s in the past, this time period is
important. When surveyed during “good times” in 2006, corporate CFOs cited
cost of labor as a top concern; two years later during the downturn, top personnel
concerns shifted to maintaining morale and productivity.
As the economy recovered, corporate plans for growth expansion and hiring all
went on the upswing too. As a result, personnel concerns shifted away from worker
morale and productivity to nding ways to attract and retain qualied employees.
The relocation volume ticked upward as companies competed for talent and
relocated current employees to grow business and remain competitive.
How is business condence affecting relos today? Take a look at the two graphs on
the next page. You can see the variations in relocations that took place for small,
medium, and large employers in 2017 and consider projections for 2018. How can
you take advantage of these projections in your market area?
FIGURE 1.2 ACTUAL RELOCATIONS 2017 (AS COMPARED TO 2016)
FIGURE 1.3 PROJECTED RELOCATIONS 2018 (AS COMPARED TO 2017)
4
4 2018 Corporate Relocation Survey, Atlas World Group,
https://www.atlasvanlines.com/corporate-
relocation /survey
Slide 11:
Corporate Relocation Trends –
past and present
I-Note:
ASK how many students were
in business in 2008. ASK how
condent they felt about their
business prospects then. ASK
if they are more condent
now. COMMENT that business
leaders feel the same ups and
downs in condence. Relate
the charts on the next page to
relocation volume.
APPLY Learning Objective 1-1
I-Note:
COMPARE the statistics from
the two charts. IDENTIFY trends
in relocations. ASK what factors
affect this activity.
Slide 12:
Projected Relocations 2018
Corporate Relocation: The Next Move
10 |
RELOCATION FOLLOWS THE BUSINESS CYCLE
Relocation activity tends to follow the business cycle. Predictable indicators that
point toward improving business optimism imply a willingness to invest in relocation
activities. The classic business cycle moves through four phases.
CONTRACTION
The economy begins to slow down. Businesses lay off workers, postpone
investment in growth and hold on to cash. Consumers lose jobs and spend only on
the necessities. This indicates impending recession.
TROUGH
This phase indicates the economy is at its lowest point and has reached a recession.
RECOVERY
The economy begins to grow. The employment picture brightens as companies
sense an uptick in business and begin hiring more employees. Consumer
condence rises and there is increased spending beyond just the necessities. This
indicates expansion.
PEAK
The economy hits the maximum point and a time of “irrational exuberance” may
lead to asset bubbles like an overheated stock market or housing market. Investors
search for opportunities which oods markets and causes asset prices to climb to
unsustainable levels.
FIGURE 1.4 RELOCATION BUSINESS CYCLE
According to Fidelity Investments, as of January 2019, further maturing in the US
and global business cycles is likely to heighten uncertainty. In addition, while global
growth continues to expand, the outlook has deteriorated and activity levels have
likely passed their peak. Fidelity predicts that elevated volatility is likely, which leads
investors to diversify their portfolios.
Slide 13:
Relocations follow the business
cycle
I-Note:
DISCUSS the correlations
between the business cycle
and relocation activity.
RECOMMEND that students
follow business cycle
progression by checking
the Consumer Condence
Index. SUGGEST students try
comparing this index with the
REALTORS® Condence Index.
I-Note:
EXAMINE the Consumer
Condence Index indicators
and Investor Mentality graph
on the next pages. EXPLAIN
the correlations between these
business indicators and relo
activity.
Module 1: The Corporate Relocation Landscape
| 11
The US consumer is viewed as strong with low unemployment, accelerating wage
growth, and manageable nancial obligations. Historic trends show that consumer
and business spending grow late in the cycle and fall after the onset of recession –
with housing construction tending to decline ahead of recession.
5
Are the homes in your market area following these trends? How do these trends
affect the relocation industry?
Explore the various diagrams on the following pages showing consumer condence
levels and investor mentality indicators. The correlations between these business
indicators and relocation activity are clear.
CONSUMER CONFIDENCE – A LEADING INDICATOR
Want to track the business cycle? The Consumer Condence Index, released
monthly by the Conference Board, is a reliable leading edge indicator of the
business cycle.
Where is the US economy in the business cycle? As of December 2018, the
Consumer Condence Survey showed a decrease following a moderate decline
in November. While expectations for job prospects and business conditions
weakened, it was still suggested that the economy will continue expanding at a
solid pace in the short-term.
FIGURE 1.5 CONSUMER CONFIDENCE INDEX
6
(AMPLITUDE ADJUSTED, LONG-TERM AVERAGE = 100 JAN 2014-DEC 2018)
5 Fidelity Investments, January 16, 2019, Viewpoints, https://www.delity.com/viewpoints/market-and-
economic-insights/quarterly-market-update
6 OECD (2019) Consumer condence index (CCI), https://data.oecd.org/leadind/consumer-condence-
index-cci.htm
Slide 14:
Consumer condence
Corporate Relocation: The Next Move
12 |
INVESTOR MENTALITY
Economic activity is reected in the mentality of investors. In turn, the various levels
of investor mentality affect relocation activity.
FIGURE 1.6 INVESTOR MENTALITY CYCLE
WHY SHOULD YOU FOLLOW THE BUSINESS CYCLE?
Not every area of the country is in the same place in the business cycle at the same
time. Consider the difference between rural Kentucky and the city of Los Angeles
in terms of local economy. The phase of the market cycle in your area (trough,
recovery, peak, or contraction) impacts business decisions which includes new hires
and current employee transfers.
The obvious times companies are more likely to launch expansion plans and recruit
new hires is during the recovery and peak phases of the business cycle. Yet, even
down times can produce relocation business opportunities as companies restructure
and reposition their human resource assets.
Ironically, in times of a down business cycle, it may be the perfect opportunity to lay
the groundwork for developing this business niche. When the business cycle starts
going up, you will be well positioned to grow as relocation transactions increase.
WHERE DO JOB SEEKERS WANT TO GO?
Understanding the ow of relocations into and out of your market area gives you
a valuable data tool for business planning. Is your market area near one of the top
metro areas that attract job seekers? Remember, the list of top metro areas doesn’t
include every area that might be attractive to employees. Consider that there
are major employers located far away from large population centers – Walmart is
headquartered in Bentonville, Arkansas, with a population of about 50,000.
There is a rich stream of data available to you for free and it’s compiled by the US
Census Bureau. The Flow Mapper provides county-level data on numbers moving
in and out, salary ranges, and occupations. You can highlight your county and then
look at other counties around the country for a snapshot of relocation activity. The
Internet Field Trip in this section provides an opportunity to test drive this powerful
data tool.
Slide 15:
Investor Mentality
Slide 16:
Why should you follow the
business cycle?
Slide 17:
Where do job seekers want to
go?
Module 1: The Corporate Relocation Landscape
| 13
TOP CITIES FOR JOB SEEKERS
The Top 15 cities are also identied on the next page and are indicated with an
orange circle on the map. These cities include:
7
1. Pittsburgh, PA
2. St. Louis, MO
3. Indianapolis, IN
4. Cincinnati, OH
5. Hartford, CT
6. Boston, MA
7. Memphis, TN
8. Raleigh, NC
9. Cleveland, OH
10. Detroit, MI
11. Kansas City, MO
12. Washington, DC
13. Birmingham, AL
14. Chicago, IL
15. Columbus, OH
7 The Ladders, October 17, 2018, “These Are the 25 Best Cities If You Are Looking for a Job.” Ladders/
Business News & Career Advice, 17 Oct. 2018, www.theladders.com/career-advice/these-are-the-25-
best-cities-if-you-are-looking-for-a-job
I-Note:
CALL attention to the list of
top 15 cities for job seekers.
ACKNOWLEDGE that the
list does not include every
vibrant metro area. INFORM
students that the US Census
Flow Mapper provides valuable
relocation data they can use
in planning. NOTE that the
Internet Field Trip will focus on
activity in and out of the local
market area.
Corporate Relocation: The Next Move
14 |
MAP OF THE TOP CITIES
This most recent listing of the top cities indicates that the majority of popular cities
are in midwest and northeastern states.
8
FIGURE 1.7 PERCENTAGE CHANGE IS REAL GDP BY STATE, 2018
8 Map: U.S. Bureau of Economic Analysis, “Gross Domestic Product by State, 2nd quarter 2018,” news
release (November 14, 2018), https://www.bea.gov/news/2018/gross-domestic-product-state-2nd-
quarter-2018
Module 1: The Corporate Relocation Landscape
| 15
INTERNET FIELD TRIP: US CENSUS FLOW MAPPER
Map the ow of people moving into and out of your market area.
1. Go to http://owsmapper.geo.census.gov
2. Fill in your county
3. Select a data set, for example, choose 2008-12 for occupation
4. Scroll over other counties, particularly those around the top cities for job
seekers to see the number of movers from or to other counties.
WHAT ARE THE RELOCATION TRENDS IN AND OUT OF YOUR
MARKET AREA?
WHAT ARE THE TRENDS IN THE TOP CITIES FOR JOB SEEKERS?
HOW CAN YOU USE THIS INFORMATION IN BUSINESS PLANNING?
I-Note:
DIVIDE the class into small
groups.
MAKE sure each group has
Internet access.
INSTRUCT students to follow
the instructions to access the
site and view the data.
LEAD a discussion of relocation
trends in the local area and
how the data can be used in
business development planning.
Corporate Relocation: The Next Move
16 |
THE TYPICAL TRANSFEREE
What are the characteristics of a typical transferee? Historically, the popular image
of a corporate relocation was a young, ambitious “corporate employee” working
his or her way to a corner ofce. In reality, the types of companies and employees
involved in relocations cover a wide range of elds, career stages, and skill sets.
The most recent statistics from Worldwide ERC in 2016 show that employees have
an average of 14 days to accept a transfer offer and 37 days to report to a new job.
In addition, home purchase transactions by type in 2015 included 41% buyer value
option, 41% amended value, and 17% regular appraised value.
9
The 2018 Allied Van Lines Corporate Relocation Survey
10
provides some typical
characteristics of relocated employees.
About 25% of relocations involved female employees
35% of relocations involved employees with children
Age ranges at the time of transfer included
X 29% between 36-40 years of age
X 28% between 30-35 years of age
X 20% between 41-45 years of age
34% of transferees had up to one month to report to work at new location
37% of transferees had up to two weeks to accept offer
On average, half of transferees were mid-level employees and one-third
were executives
DO EMPLOYEES TURN DOWN TRANSFERS?
Do employees ever turn down relocation opportunities? The answer is yes they do
and often for housing- related reasons. During the recession years, when numerous
potential transferees had underwater home mortgages, relo refusals were more
common. It’s a dilemma real estate professionals know well. Because the transferee
can’t sell the current home and recover an adequate amount of equity, they lack
the funds to buy in the new location. Sometimes, homes in the new location may
be more expensive. Transferees consider renting a better option than buying “less
than” their current home.
Housing cost, however, isn’t the only reason for turning down a transfer. High costs
of living and family issues play a big role. A transfer may uproot children from
familiar schools or compromise care for elderly relatives. Some transferees solve this
problem by moving the entire extended family when they accept transfers. Another
major issue is employment for an accompanying spouse or partner. Relocation can
derail the career path of a spouse or partner if the new location offers few viable
9 Worldwide ERC U.S. Transfer Activity, Policy & Cost Survey, 2016
10 Allied Van Lines, 2018 corporate relocation survey, https://www.atlasvanlines.com/corporate-
relocation/survey/2018/charts/
Slide 18:
The typical transferee
I-Note:
REVIEW characteristics of a
typical transferee.
Slide 19:
Do employees turn down
transfers?
I-Note:
DISCUSS factors that cause
transferees to turn down
relocation offers. NOTE that
housing is the number one
reason, followed by family
issues, and spouse/partner
employment. DESCRIBE
common incentives. ASK
students if they think turning
down a transfer impacts a
career.
Module 1: The Corporate Relocation Landscape
| 17
employment options. The family’s failure to adjust to a new location is another
leading cause for relocation failure. In addition to considering knowledge and skills,
assessing a transfer candidate’s suitability may involve evaluating family readiness to
make the move.
Companies frequently offer incentives to alleviate some of the reasons for
turning down transfers. These might include . . .
Extended temporary housing benets
Relocation bonuses
Cost of living adjustments
Extended duplicate housing benets
Loss on sale protection
Telecommuting option to cut commuting costs
Guaranteed employment contract
Mortgage payoff
OUTSOURCING THE MOBILITY FUNCTION
Almost all large companies that relocate employees outsource aspects of the
transfer, referred to as the mobility function. Outsourcing to a relocation company
alleviates the multitude of details the human resource department must handle
when coordinating a move. Furthermore, outsourcing the mobility function also
outsources many of the administrative costs.
The relocation company coordinates functions like packing and shipping of
household goods and cars, overseeing expense documentation and reporting,
making travel arrangements, arranging temporary housing, setting up house
hunting trips and destination familiarization tours, clearing visas and work permits
for foreign transfers, and sometimes helping an accompanying spouse nd
employment. Both the corporation and transferee benet from having a single point
of contact to coordinate and monitor the move. Remember, the transferee may only
have about a month to make the move and be ready to report for work.
Some companies direct all of the relocation business to a single relocation
company. But in large companies, different divisions may use different relocation
companies. The good news for real estate professionals is that a very large slice
of the relo pie—the home sale and purchase—is the more frequently outsourced
aspect of the relocation. The real estate transaction is even outsourced by the
relocation companies.
Slide 20:
Company incentives
Slide 21:
Outsourcing the mobility
function
I-Note:
EXPLAIN why companies
outsource the mobility function.
COMMENT on the benets for
the corporation, employee and
real estate professional. NOTE
the list of major relocation
companies. IF time permits,
CONDUCT an Internet Field
Trip to relocation company sites.
INFORM students that working
with relocation companies is
covered later in the course.
Corporate Relocation: The Next Move
18 |
WHO ARE THE MAJOR PLAYERS IN THIS FIELD?
AIRES
www.aires.com
BROOKFIELD GLOBAL RELOCATION SERVICES
www.BGRS.com
CARTUS
www.cartus.com
CROWN WORLD MOBILITY
www.crownworldmobility.com
GRAEBEL RELOCATION SERVICES
www.graebel.com
IMPACT GROUP
www.impactgrouphr.com
SIRVA
www.sirva.com
THE SUDDATH COS.
www.suddath.com
THEMIGROUP
www.themigroup.com
UNIGROUP
www.unigroupinc.com
WEICHERT
www.wrri.com
XONEX
www.xonex.com
THE NEW CLASS OF SELF-RELOS
So far we have focused on corporate-paid relocation of current employees and
recruits. Internet technologies have released workers from their desks and enabled
a new class of relos. Empowered by advanced telecommunications and growing
acceptance of telecommuting, professionals with highly-valued knowledge and
skills self-relocate because they can. With no ties to a desk or particular location,
they can make personal lifestyle choices about where to live. They may choose to
live where the cost of living is lower and they can afford more house, or move from
an urban area to an area with a smaller population. The Practitioner Perspective that
follows provides insight on this new kind of self-relo.
Slide 22:
The new class of self-relos
I-Note:
DESCRIBE the new type
of remote-work self-relo.
PROVIDE or ASK students
for an example. ALLOW 2-3
minutes for students to read the
Practitioner Perspective. LEAD
the discussion.
Module 1: The Corporate Relocation Landscape
| 19
PRACTIONER PERSPECTIVE: THE NEW SELF-RELO
As technology continues to improve, many companies are providing opportunities
for their employees to work from home or telecommute. This option helps the
employer by reducing the amount of ofce space they need while retaining talented
individuals who do not want to be in a traditional work environment.
If you are going to be on a computer or the telephone for most of the work day, it
often doesn’t matter where you are located. Many young professionals, as well as
experienced professionals who want to work on their own terms in a more attractive
environment, are choosing this route.
According to a 2017 Forbes magazine article, 65% of full-time employees feel a
remote work schedule will increase productivity. This number is conrmed by more
than two-thirds of managers reporting an increase in productivity from remote
employees. Removing the distractions of a traditional ofce environment and the
time spent commuting drives up productivity.
11
Looking at today’s workforce, we can nd many talented workers who continue to
make valuable contributions past traditional retirement age. With the cost of living
on the rise and life expectancy increasing, many people over age 65 are delaying
retirement, while others may choose to continue working for intellectual stimulation.
This is another source of experienced talent for employers.
These employees are less inclined to battle the weather or feel they need to spend
extensive time commuting to an ofce. For many, it means moving to their ideal
location whether that is in the mountains or a warmer climate near the water or to
be closer to family. For these reasons, they are choosing to relocate on their own,
without the nancial assistance of an employer.
In 2017 it was reported that 3.7 million employees, or almost 3% of the US
workforce, worked from home at least half of the time.
12
Considering this, it often
makes it easier for the employee to nd work elsewhere since it doesn’t require the
physical presence of a company.
All of this adds up to the evidence of more “self-relo” employees who are enriching
their personal lives while providing richer talent pools for employers.
11 Forbes, July 20, 2017, www.forbes.com:benets-of-telecommuting-for-the-future-of-work
12 Fundera, Inc. US, https://www.fundera.com/resources/working-from-home-statistics
Corporate Relocation: The Next Move
20 |
MODULE
2
Developing Your Relocation Business
| 21
IS THE RELO BUSINESS RIGHT FOR YOU?
Is relocation real estate the right choice for you personally and professionally?
Experienced relo professionals say it depends on a combination of your personality,
real estate knowledge and skills, and professional goals.
There are a few questions you should ask yourself, and your broker, to determine
the answer. Are you willing to...
Work within the company’s system and parameters?
Do the extra paperwork required by relocation companies and the
transferee’s corporation?
Work a lot of weekends and some odd hours?
Include all of the stakeholders in the communication loop?
Give up a big chunk of the commission income for the relocation
transaction as a tradeoff for spin-off referrals and transaction volume?
THE PERSONAL DIMENSION
Patience and empathy are essential for success in the relo business. If you have
experienced a relo yourself, you know how disruptive the move can be, even when
it means a promotion for the transferee. Personal relocation experience—civilian or
military—is a plus because you have rsthand experience of high-pressure house
hunting, moving, and resettling in a new, unfamiliar community with the destination
and time schedule determined by an employer.
Some experienced relo professionals say that it helps to have a “thick skin”
approach toward criticism. The relocation is a very stressful time for the transferee
and family and you may be the target of undue criticism. Or, a transferee who is
procrastinating may use the real estate agent as a scapegoat when questioned by
Slide 23:
Section 2 Opener
Slide 24:
Is the relo business right for
you?
I-Note:
HIGHLIGHT the conditions
that make developing a relo
business the right choice.
I-Note:
APPLY Learning Objective 2-1
Slide 25:
The Personal Dimension
I-Note:
DISCUSS personality traits that
help a real estate professional
work with transferees and relo
management companies.
Corporate Relocation: The Next Move
22 |
the relocation company manager or the corporation about the slow progress of a
home sale or purchase.
Real estate professionals commonly go to extremes to help buyers and sellers
through the transaction. It’s likely that every experienced real estate agent can tell
stories about providing services well above and beyond. Willingness to go the extra
mile is especially important for transferees because they are new to the community
and may need extra hand-holding to get through the home purchase, move, and
settling process. You may nd yourself devoting a lot of extra, uncompensated time
to making sure the relocation is a success—whether it’s connecting a child with a
sports team or a piano teacher or nding care for a valued pet. You become the
community expert.
You must sustain the same high levels for service for every relo client referred to
you. The relo business operates on recommendations and if a client has a good
experience they will likely mention you when a friend, co-worker, or neighbor asks
for a recommendation. But they will also remember if the experience of working
with you was unsatisfactory. Build a reputation for reliability and service.
PROFESSIONAL ATTRIBUTES
Relocation companies usually prefer to work with experienced real estate agents—
minimum ve years—rather than someone who is just starting a real estate career.
But if you have several years of real estate experience, particularly working with
buyers, you probably have all of the core skills you need to serve this market
segment. Here are some of the ways you can adapt your core real estate skills:
WORK FAST, SMART, AND ACCURATELY
Can you handle repeated fast-track transactions? Most relocation clients have to
accomplish within 30 days what takes most home buyers several months. When
transactions happen that quickly, your work systems need to be streamlined and
produce reliable results. On the listing side, aggressive marketing to accomplish a
quick sale may add to expenses.
FOLLOW THE RELOCATION COMPANY’S SYSTEMS
You will need to learn to work with the relocation company’s systems for handling
the transaction. Every company has its own system for tracking progress of the
transfer. There are some companies that train real estate professionals – be sure to
take advantage of this opportunity.
MAINTAIN COMMUNICATIONS WITH ALL STAKEHOLDERS
Many people have a stake in making sure the relocation is successful. The
communication loop must encompass all stakeholders. Keeping the relocation
company informed must be standard procedure.
QUICK RESPONSE TIME
Respond quickly to e-mails, texts, and phone calls. Are you always available? Your
response time should be counted in minutes, not hours or days.
Slide 26:
Professional attributes 1
I-Note:
HIGHLIGHT professional
attributes for success in
relocation real estate.
APPLY Learning Objective 2-1
and 2-2
Module 2: Developing Your Relocation Business
| 23
MARKET KNOWLEDGE
You must demonstrate current market knowledge on property pricing, market
trends, and potential resale value. When a buyer asks about resale value, how do
you formulate an answer? Do you make a “ballpark” guess or can you provide
market data? Do you know the rental market? Can you help a transferee evaluate
renting versus buying?
SMART HOME SHOWING
Are you adept at the art of matching properties to buyers’ needs and wants? Do
you know how to sequence property showings to facilitate buyers’ decision making?
BUYERS REPRESENTATIVE
Your experience and preference should be for working with buyers. If you have
earned the Accredited Buyers Representative® designation, be sure to feature the
professional distinction in your marketing materials.
TENACITY
For many real estate professionals, developing a successful relocation business
niche starts from a very small seed—one or two referrals. Are you willing to devote
the time it will take—it could be a couple of years—to develop this business niche?
LOOK, SOUND, THINK CORPORATE
Do you present a professional image in your personal appearance, verbal
communication, and demeanor? Executives are accustomed to viewing business
presentations and proposals. Your marketing and presentation materials should
be organized, informative, and reect your professionalism. Take time to learn the
relocation terminology and use it correctly.
FLEXIBLE HOURS
Your client may be in another time zone, across the country or on the other side of
the globe. How would you react to a request for a 2:00 AM phone conference with
a client who is in Asia?
COMMUNITY EXPERT
Transferees, and the relocation company, don’t have a lot of time to learn the
neighborhoods and markets before they start shopping for homes. Often, a
transferee will have recommendations from colleagues and bosses on where they
should look for a home—which may or may not be suitable or affordable. Your
knowledge of the local market, neighborhoods, and housing options can help
transferees choose the neighborhoods and homes that t both lifestyle and budget.
TECHNOLOGY SKILLS MASTERY
You must be adept at using smart phone and Internet technologies. Can you
conduct a real-time tour of a property with a smart phone and FaceTime? Can you
create a virtual oor plan of a property?
Slide 27:
Professional attributes 2
Corporate Relocation: The Next Move
24 |
BROKERAGE SUPPORT
Does your broker welcome or rebuff relo business? There are a number of very
experienced and very professional real estate brokers and agents who avoid
relocation real estate, primarily because it usually involves giving up a large portion
of the commission income to the relocation company.
Although after-the-fact referral fees are more rare today than a decade ago, real
estate agents still sometimes get this unpleasant surprise. So, before you dive into
developing this business niche, it’s a good idea to have a conversation with your
broker. Make sure you understand your broker’s attitudes and know your ofce
policies regarding relocation real estate transactions. You want to be sure that you
have the support you need to build a relo business niche.
COMPENSATION
Relocation company referral fees are a concern for some brokers and sales agents.
The referral fees are one of the main reasons that real estate professionals turn
down relo business. There’s no denying that relocation company referral fees take a
big bite out of the commission income. But real estate professionals whose business
mix includes relo point to the advantages. For them, the fee is part of the bigger
picture and an investment in business development that real estate professionals
can choose to make or forgo.
SLICING THE COMMISSION PIE
How many slices are cut from the commission pie and what portions go to the
companies and people involved in the transaction?
Cooperating agent:
If there is a co-op agent involved in the transaction, the rst cut goes to the
agent’s broker per the terms of the listing.
Relocation management company:
This group is next in line and collects a percentage of the commission
as a referral fee. If the relocation company refers both the sell and buy
transactions within the network of approved agents, a referral fee can
be collected on both transactions. Relo companies look increasingly to
the real estate transaction as a revenue source. Consequently, referral
fee percentages have tended upward in the last few years. Corporations
want to outsource not only the management of relocations, but also the
cost; as a result fewer relocation companies are fully compensated by the
corporations that hire them.
The relocation company may credit referral fees received from the real
estate transactions, as well as from other service providers, against the
fee charged to the corporation. Major relocation companies send annual
blanket agreements to advise the real estate companies they work with of
the expected referral percentage for the year ahead. The broker or in-house
manager responsible for assigning relocation business to agents must sign
and return the agreement.
Broker:
Next, the broker retains a portion of the commission per ofce policy.
Slide 28:
Brokerage Support
I-Note:
ADVISE students to be sure
they are in sync with their
broker’s business policies.
I-Note:
APPLY Learning Objective 2-1
I-Note:
ACKNOWLEDGE the sensitivity
of the compensation issue.
STATE that relo real estate
professionals view it as a
business investment.
APPLY Learning Objective 2-1
Slide 29:
Slicing the commission pie
I-Note:
DISCUSS division of the real
estate commission. CAUTION
that numbers and percentages
discussed are only for
illustration purposes.
Module 2: Developing Your Relocation Business
| 25
In-house relocation division:
A number of large brokerages and franchise networks have in-house
divisions that handle relo business. The relo division may receive a at fee
or percentage per the policies of the broker or franchise network.
Real estate agent:
The remaining commission is available for the real estate agent. Based
on the broker’s ofce policy, the agent may pay the marketing and other
transaction expenses from this portion.
HOW BIG IS YOUR SLICE OF THE PIE?
The amounts and percentages represented in the pie chart are based on a home
sale price of $400,000 and a commission of $20,000. This is for illustration purposes
only and does not reect any industry standards or the policies of any corporation,
relocation company, brokerage, or agent.
FIGURE 2.1
RELO ADVANTAGES
As we’ve learned, relocation real estate involves some sacrices but there are also
offsetting advantages.
HIGH INCOME
Most transferees are nancially-capable buyers. Above-average incomes mean few
obstacles in qualifying for a mortgage.
HIGHER-PRICED HOMES
High-income transferees, particularly upper-level executives, tend to buy larger,
higher-value homes.
MOTIVATED
The pressure to nd, close on, and settle into a new home makes transferees very
motivated buyers.
Slide 30:
Relo advantages
I-Note:
DISCUSS advantages of relo
business.
APPLY Learning Objective 2-1
Corporate Relocation: The Next Move
26 |
FAST TRANSACTION
Time pressure usually compels transferees to be decisive. Your involvement will be
intense, but most likely for a short time.
EDUCATED BUYERS
Most transferees are not rst-time buyers. They are familiar with the process of
purchasing a home and working with a real estate agent. It may be necessary
to explain some state regulations, but you probably won’t need to spend time
educating them on the purchase process.
REFERRALS FROM OTHER AGENTS
Remember there are a number of real estate professionals who don’t want to get
involved in relos. Let your peers know that you welcome relo business and referrals
of relo clients.
REFERRALS AND SPIN-OFF BUSINESS
The potential for referrals and spin-off business makes relocation real estate a much
bigger pie than just helping one transferee at a time nd and buy a home. Top-
notch service for that one transferee can be the start of a stream of referral business
that has no connection to the relocation company. Consider these scenarios:
Co-workers who want to buy or sell in the local market may ask the recent
transferee for a recommendation.
Members of an extended family—often elderly parents—who move with the
transferee may need to nd housing.
After transferees get acquainted with new locations, they may want to
change homes – upgrade, downsize, or change neighborhoods.
A transferee who opted initially to rent in the new location may decide they
are ready to buy.
When a transferee is ready to relocate, getting the listing is almost a sure
thing if you keep in touch and ask for the business.
Experienced relocation real estate professionals say that by over-focusing
on relocation company fees, you could miss out on a rich stream of referral
and spin-off business that the relocation company never touches.
DO THE HOMEWORK
How did you do the research when you were rst started out in the real estate
business? You can use the same skills— curiosity, observation, research, and
business planning—to do the homework for developing your relocation niche.
The rst step is taking a good look around your market area for major employers,
promising start- ups, and smaller companies with branches in other locations.
Slide 31:
Referrals and spin-off business
I-Note:
APPLY Learning Objective 2-3
STATE that additional
referrals and spinoffs are a big
advantage because these are
business opportunities that the
relocation company doesn’t
touch.
Slide 32:
Do the homework
I-Note:
DESCRIBE the various resources
to consider when searching for
relo information. ASK students
for any other examples they
have used.
Module 2: Developing Your Relocation Business
| 27
INFORMATION SOURCES FOR YOUR SEARCH:
State Ofces of Economic Development:
A good place to start is with your state’s ofce of economic development. A
metropolitan area may have its own locally-focused economic development
department. These ofces are a great source of news and information on all
types of companies. Register for newsletters and press releases.
Chamber of Commerce:
Another good source of business information is your local chamber of
commerce. Check out your local chamber’s website and register to receive
newsletters and press releases.
Business Press:
In addition to the business section in your local newspapers, your regular
reading list should include major business publications like Crain’s and the
Wall Street Journal, as well as specialized trade journals for area businesses.
Trade Publications:
If you want to know what relocation managers are thinking, read what they
read. Consider Mobility magazine and Relocate Global magazine. You’ll
gain valuable insight on relo managers’ current concerns. You’ll also learn
about trends in relocation volume, services, and corporate benets. At
the ERC website you’ll also nd a library of free webinars on a variety of
relocation topics. Go to www.worldwideerc.org/ Resources/Event Materials/
Pages/learning-zone-webinars-archive.
Executive Recruiter Sites:
Our Internet Field Trip in section one took us to executive job posting
sites—a vital source of business information. These websites provide insight
on how corporations recruit executives and specialized talent and how far
aeld they are willing to look—sometimes globally—to nd the person
with the right combination of knowledge and skills. Some major executive
recruiters and job sites are:
X Korn Ferry, www.kornferry.com
X Signium, www.signium.com
X Slayton Search Partners, www.slaytonsearch.com
X Witt/Kiefer, www.wittkiefer.com
X Wyatt & Jaffe, www.wyattjaffe.com
X The Ladders, www.theladders.com
X Experteer, www.experteer.com
X Dice.com (technology and engineering)
X eFinancialCareers.com (nance, banking, insurance)
X HealthcareJobsite.com (medical, health care)
X MyVisaJobs.com (foreign workers)
Corporate Relocation: The Next Move
28 |
READ WHAT THE RELO MANAGERS READ
Mobility magazine is published monthly by Worldwide ERC ® and read by more
than 18,000 relocation professionals. It’s packed with informative articles each
month and subscribers also have access to the magazine’s archives.
Relocate Global magazine is published four times a year – March, June, September,
and November. It focuses on relocation activity for clients in the US and all over the
world.
TALK THE TALK
ACCEPTANCE PERIOD
Fixed period of time during which the offer to buy a transferee’s primary
residence is valid.
ADVANCE MARKETING
Programs designed to help a transferee sell a home.
AMENDED VALUE PROGRAM
Increase of a guaranteed offer based on a bona-de offer received during
the marketing period.
Slide 33:
Read What the Relo Managers
Read
I-Note:
VIEW the online versions of
these publications.
Slides 34 & 35:
Talk the Talk
I-Note:
NOTE that learning the
terminology of the relo business
is important.
Module 2: Developing Your Relocation Business
| 29
AREA ORIENTATION
A familiarization tour of a local area conducted for potential transferees.
BUYER VALUE OPTION (BVO)
Home-sale program in which the value for the home is established by a bona-
de offer from an outside buyer, not an appraisal. The relocation company
purchases the home and sells it to the outside buyer at the offer price.
DESTINATION SERVICES
Assistance to help a transferee and family settle into a new location.
DUPLICATE HOUSING
Reimbursement of housing expense (PITI or rent) for a former home if not
sold before the transferee must report to the new location.
GROSS UP
The practice of reimbursing an employee for income tax liability on
relocation payments reported as income on a W-2.
GROUP MOVE
Relocating a corporation or division and all of the employees.
GUARANTEED BUY OUT (GBO)
If a transferee’s home does not sell within a specied time period, the
relocation company purchases it at a guaranteed offer.
HOME MARKETING ASSISTANCE
Proactive marketing services to help market a transferee’s home through a
customized marketing strategy and assistance with offer negotiations.
HOME MARKETING INCENTIVE PAYMENT
A bonus payment to encourage a transferee to aggressively market a home.
HOME MARKETING PERIOD
The minimum amount of time a transferee must attempt to sell a home
before other options – BVO, GBO – are used.
PRE-DECISION SERVICES
Detailed analysis of costs of relocating an employee, including appraised
home value and cost to market and sell it.
RELOCATION INCENTIVE BONUS:
Payment made to an employee to encourage acceptance of transfer.
TIERED PLAN
Relocation program that offers varying levels of benets for different
categories and levels of employees.
Corporate Relocation: The Next Move
30 |
INTERNET FIELD TRIP:
RESEARCHING ON THE INTERNET
Research these information sites and uncover a vast amount of information that will
help you in the relocation business.
1. Economic development departments at the state, city, and county level
2. Chamber of Commerce
3. Business and trade publications
WHAT DID YOU FIND THAT WOULD BE HELPFUL FOR DEVELOPING A
RELO BUSINESS NICHE?
WHAT OTHER HELPFUL WEBSITES DID YOU FIND?
I-Note:
DIVIDE the class into small
groups.
ASSIGN each group one of
the research categories listed
above.
INSTRUCT the groups to
research the suggested
websites.
ALLOW a few minutes for
the groups to complete the
assignment.
ASK each group to report its
ndings of the assigned or
other websites.
LEAD a discussion on
information sources.
ASK students what sources they
use.
Module 2: Developing Your Relocation Business
| 31
SELF-ASSESSMENT: IS RELOCATION REAL ESTATE THE
RIGHT CAREER CHOICE FOR YOU?
Identify how your personality and professional outlook match up with the relo
business.
ARE YOU WILLING TO...
Give up a bigger chunk of the commission income?
Work within the relocation company’s system and parameters?
Do the extra paperwork?
Work many weekends and odd hours?
Include all of the stakeholders in the communication loop?
DO YOU...
Prefer to work with buyers?
Accept constructive feedback and forgive unwarranted criticism?
Expend extra effort to help buyers settle in a new home and community?
Deliver consistently excellent service – every time?
Have patience and empathy?
CAN YOU...
Work fast, smart, and accurately?
Be a team player and work within relocation company systems?
Learn the terminology?
Connect transferees to community resources and service providers?
Master smartphone and Internet technologies?
Present a professional image – look, sound, and act corporate?
Invest time and money in business building?
Match properties to buyers’ needs and wants?
Arrange property showings that get results?
Respond quickly to emails, texts, and phone calls?
Maintain communication with all stakeholders?
Learn the tax considerations involved in a relo?
Work with diverse clientele – culture, age, career stage, nationality?
I-Note:
REVIEW the questions to ask
when assessing if relo business
is the right choice.
Corporate Relocation: The Next Move
32 |
HOW DO YOU MEASURE UP AGAINST THESE
STANDARDS? IS THE RELO BUSINESS RIGHT FOR YOU?
BREAKING INTO THE BUSINESS
At rst glance, prospecting for relo business can look like a closed door. The truth
is that relocation management companies already have established relationships
with real estate rms and seldom want to hear from prospecting agents. Corporate
HR departments want to hear even less from real estate agents. Corporations
outsource their relocations business so that they don’t have to deal with the details.
By the time a large corporation announces relocation plans—whether an individual
or group move—the relocation company is already on the job. With these two
pathways obstructed, how can a real estate professional break into the business?
START LOCAL, START SMALL
Experienced real estate professionals say to start by building your network through
the buyers and sellers you come in contact with. Watch for opportunities to make a
contact with a transferee—a friend, neighbor, family member—and ask for a referral
and a recommendation to the relocation company for future business. Building
your relo business may be one client at a time. But even that one client can open
the door to a stream of business. You don’t know when the opportunity will present
itself, you have to be there and be ready.
SMALL COMPANIES AND START-UPS
Small companies and start-ups can be a more productive source of business than
large corporations. Local companies with branches, divisions, afliated businesses,
and suppliers in other locales can be a prime source of relocation business. Keep in
mind, they may be small companies now, but when they are ready to expand, they’ll
be looking for talent to help grow the corporation and looking for help in relocating
employees and new hires.
These businesses often delegate responsibility for relocating transferees to a human
resource (HR) department instead of outsourcing. If you have a contact—a friend or
neighbor—with the HR department of a small or start-up corporation, ask for help
with referrals. Prospect with HR staff of small companies through your contact. A
good way to start building a business relationship is to offer a service for current
employees; for example, you could offer to present a seminar on home buying,
home maintenance, market update, or mortgage nancing. Another way to start is
by offering to do area tours for the HR staff and new recruits in order to familiarize
them with various neighborhoods.
CLIENT’S CHOICE
A current trend with some relocation management companies is to let the
transferee choose an agent. The transferee informs the relocation company of the
choice. The relocation company, in turn, initiates contact with the agent and advises
the agent of procedures, policies, and fees. If you are working with a transferee ask
if there is a relocation company involved. Establish contact through the transferee –
then expect a call from the relo manager.
Slide 36:
Breaking into the business
I-Note:
DESCRIBE methods for making
contacts and breaking into
the referral business. REMIND
students to avoid cold calling
relocation companies and large
corporations.
Module 2: Developing Your Relocation Business
| 33
GET THE TRAINING
Relo companies want agents who can work knowledgeably within their
management and administrative systems. They may offer training programs to bring
agents they work with up to speed on policies and procedures. If your rm already
has relocation company relationships or a relocation division, take advantage of
training opportunities.
IN-HOUSE RELO DIVISIONS
Does your rm have an in-house relocation division or participate in a network? If
the answer is yes, this division is the rst, and usually single, point of contact for
the relocation company. Major real estate companies and franchises, recognizing
the value of relocation business, have formed dedicated relo departments. These
in-house departments seek out new corporate accounts and foster existing
relationships with relocation companies. Often the relo division staff will include a
relocation manager—counselor, coordinator, advocate—who handles a myriad of
details including interfacing with the relocation company. This leaves the agent free
to focus on the real estate transaction. When the relocation company refers a client,
the relo division manager’s job is to match the client with the right agent.
Your rst step in breaking into the relo business may be researching the possibilities
within your own rm. Find out your rm’s relocation business relationships, afnity
program participation, or networks, and learn how the in-house division decides
which agents to put on the job. Participating in training sessions offered by the relo
division may be a good way to show your interest and develop valuable contacts.
At the same time, make it a point to nd out if there is a policy about soliciting
relo business if the agent is not part of the relo division. Your prospecting efforts
shouldn’t overstep your rm’s policy.
If your rm is forming a relocation division, there may be a ground-oor opportunity
to build your business niche. Start by asking the questions and nding out how to
make the right contacts.
INTERNATIONAL RELOS
When you are researching companies in your market area, don’t overlook foreign-
owned businesses. There’s a good chance that these companies periodically
relocate executives and key managers in and out of your area. Keep in mind that
not every foreign-owned corporation is a mega-corporation or conglomerate.
DISCUSSION QUESTION
ARE YOU ALREADY DOING RELOCATION BUSINESS? HOW DID YOU GET
YOUR FIRST REFERRAL?
I-Note:
INFORM students that cultural
aspects of international
relocations will be covered later
in the course.
ASK students who already have
some relocation experience to
describe how they obtained
their rst referrals. PROVIDE
examples from your own
experience.
Corporate Relocation: The Next Move
34 |
PRACTITIONER PERSPECTIVE:
DEVELOPING YOUR BUSINESS
The rst step is to consult with your Broker and determine how your company
handles relocation business. In some cases a Broker will have specic relocation
companies where they already have a business relationship in place. These
relocation compaies may require you to complete a certication course to get
referrals for business. Some Brokers and relocation companies also maintain that
a certain experience level in the real estate business is necessary. Check with your
Broker to make sure you get started correctly.
Once you have been approved to be a relocation specialist, you need to contact
various relocation companies to become a referral agent. If you are working for
a national or international brokerage you will need to register with your Broker’s
relocation department. Once registered, you are eligible for referrals from your
Broker – a great way to start.
Since most of the major corporations utilize established relocation companies,
to broaden your opportunities, you will also want to contact smaller or newer
companies to determine whether they have an established relocation department
or resource. If they don’t, you have the unique opportunity to become a resource
for them.
On the sell side, putting together an impressive listing presentation is a key element
in getting business. How will you market the home? What is the average time on
market for the seller’s area? Do you recommend “staging” the home or how can
you make it more marketable? How will you communicate with all parties in the
transaction?
Buyer packages are important. Setting up a transferee with an automated email
update on housing as it hits the market lets them know that you are watching
carefully for a t for them. It also tells them how the market is moving from a price
and time perspective.
With relocation buyers, information on the community at large and a list of
resources for checking out schools, neighborhoods, and amenities is benecial.
These should only be links for the transferee to explore to avoid any violation of fair
housing laws or steering.
Remember that networking with friends, business associates, former employers,
and neighbors will always be a key source for business referrals. Let your business
sphere know that you are a reliable and energetic relocation agent, whether that is
through broad-based mailings or personal contact.
MODULE
3
Working with Stakeholders
| 35
WHO ARE THE STAKEHOLDERS?
Within a relocation transaction, there are four main stakeholders: the employer, the
relocation company, the employee, and the employee’s family.
Relocating an employee and family is an expensive investment, so companies want
to be sure all aspects of the move are successful—for the employee and family.
Corporations know that an accompanying spouse, partner, or child who can’t adjust
to the new location will likely cause the employee to resign or seek a reversal of
the transfer. When this happens, the corporation sustains a big loss. They not only
lose a valued employee but may end up paying for another relocation to return the
family to a previous home or another location. By outsourcing the mobility function,
companies seek to manage the costs and details as well as improve the chances of
a successful relocation and, as a result, a happy employee and family.
WORKING ACROSS CULTURES
International relocations are a specialized business and require knowledge of not
only current business trends and employee packages but also appreciation of
cultural considerations. However, cultural considerations can also play a role in
domestic relos. When you’re involved in a relocation effort where culture must be
taken into account, keep the list below in mind. Your client and their company will
appreciate your efforts. To learn even more about international real estate activities,
sign up for a CIPS designation course.
Slide 37:
Section 3 Opener
Slide 38:
Who are the stakeholders?
I-Note:
APPLY Learning Objective 3-1
DESCRIBE the various
stakeholders. REMIND students
of cultural considerations when
working with a relocation client.
Corporate Relocation: The Next Move
36 |
COMMUNICATION
Is the culture direct and explicit or indirect and implicit?
NEGOTIATIONS
Does the culture favor win-lose or win-win outcomes?
RELATIONSHIPS
Does the culture focus on building trust or go straight to the task?
SOCIALIZING
Every culture has do’s and don’ts related to etiquette rules.
PERCEPTIONS OF TIME
Does the culture view time strictly or allow for variances in schedules?
DECISIONS
Does the culture always follow set rules and norms or allow for varying
circumstances?
AUTHORITY
Does the culture base authority on age, gender, or relationship or does it
view expertise as the most important factor?
CULTURAL RESPONSIBILITY
It is your job to understand the variances in culture and positively manage
your own reaction to it.
EFFORT
The real estate agent should show genuine curiosity and interest in things
they don’t understand and be willing to act as a student in this regard.
HUMILITY
Above all, you should be humble and remember you are the guest in
another culture. Listen more than you speak.
13
13 Mobility magazine, October 2018, “Top 10 Things to be Mindful of When Working Across Cultures.”
http://mobility.worldwideerc.org/publication/?m=46257&l=1#{“issue_id”:526883,”page”:142}
I-Note:
APPLY Learning Objective 3-1
Module 3: Working with Stakeholders
| 37
PRACTITIONER PERSPECTIVE WITH
MERCY STIRLING DE DUENAS
How does corporate relocation in a global setting differ than corporate
relocation in the United States?
For starters we have to do everything in two languages, and another culture! Many
of the expats arrive rst to have a “look see” to decide if even moving to another
country works for them and their families. Since we help clients from all over the
world, each culture is different and how they approach moving to Mexico. Some are
very adventurous and come from other relocation countries. Others are moving to
another country for the rst time in their life. Guadalajara is the second largest city
in the country and is known as “ Silicon Valley of Mexico.” We have about 5 million
people. So, if you are relocating from a small town in Iowa, it is going to be a huge
change for you.
What are the top three things a U.S. REALTOR® should know about the work
you do in Guadalajara?
1) That I am a member of AMPI (Asociacion Mexicana de Profesionales
Inmobiliarios) here in Guadalajara , and it is the equivalent of the NAR. My
suggestion would be only working with AMPI professionals. AMPI National and
NAR have a long-time prosperous relationship. 2) That members of AMPI are
open to referrals from the USA. 3) There are real estate licenses only in 18 states in
the country. Jalisco does not have licensing YET, but we are working very hard on
getting a real estate law. Things are very different in Mexico in real estate laws, and
you need to work with a professional.
Do you have an example of the most rewarding experience you’ve had
relocating a global client?
We had a client whose wife DID NOT want to relocate to Guadalajara from
Colorado. She had been previously shown housing (from another agent) and in NO
way could she imagine she and her kids living here. On top of it she was pregnant
and concerned about that. Her husband was distraught that she did not want to
bring the family to live here while he built the Industrial park. When her husband
heard about the Relocation Connection, he immediately contacted us to “please
please come and meet with his wife” who was going to be in town only for a short
while for the opening of his industrial park. Once she met us, and we gave her a
“look see” and showed her different neighborhoods, medical care, introduced to
other expats that lived here, she decided to make the move. Years later, she cried
when she left and thanked us profusely for keeping her family together PLUS giving
her the best experience of her life.
What are the most important things a relocation agent can do for the
global client?
The most important thing they can do is put THEMSELVES in the place of client and
imagine how daunting moving to a new country is, a new language, a new culture
and treat them like you would want to be treated. From showing the best housing, to
where Costco is located, the best schools and health care so that they have the basics
met when they arrive. Instructing them on big city living, security and where they
can meet new friends! Also, you need to remain a “life line” for them as they move
through the different stages of relocation. Honeymoon phase does not last forever!
Corporate Relocation: The Next Move
38 |
WHAT DO RELOCATION COMPANIES DO?
The relocation company is a corporation and may seem demanding with its
requests. If things go wrong with a transfer, they are the rst to get the backlash
for not successfully getting the employee moved and resettled. The employee’s
HR department or Mobility department will have a relationship with the relocation
company. Some of the titles used in relocation companies include relo coordinator,
mobility department, relo counselor, and relo consultant.
Relocation companies coordinate many aspects of the move beyond the real
estate transaction and closing, including: home-nding trips, packing and moving,
transporting cars, child care, pet sitting, managing expenses and reporting, and
coordinating the benets package. Keep in mind: the real estate agent should not
expect the relo company to divulge or discuss the transferee’s benet package.
In the past, the relo company was the single point of contact and specied who
transferees could work with. Now, in most cases, it’s more exible and as long as the
referral fee is paid, the transferee can choose any agent providing that agent agrees
to the relo company’s procedures. Relo companies do not want transferees signing
buyer’s rep agreements since they are responsible to the employer.
Relocation companies are not taking as much responsibility for the mechanics of
the move and are more interested in fostering a relationship with the transferee. A
new generation of workers has resulted in executives requesting relo companies
to adapt services and approach. They expect more family support – including for
the trailing spouse/partner who is often left at home to unpack and get everyone
settled. The agent can be a point of contact for these efforts.
Spouses and partners must also be considered. They have careers too and the
move may be disruptive for them. Companies may provide help to nd job
opportunities. Corporations realize that if the family is unhappy, the employee may
choose to leave, or at the least be less effective in the job.
When a relocation company takes a property over (buyout or BVO), the seller
can’t sign any paperwork. The relocation company closes with the new buyer. This
procedure defers tax liability for the individual and the corporation. It becomes a
write-off for the corporation as a business expense.
In addition, the seller can’t sign a listing agreement – everything is signed by the
relocation company.
Companies are continuing to tailor programs for transferees to meet the needs
of the employee and the corporation. According to the 2018 survey by Atlas Van
Lines, the use of lump sum reimbursement has become increasingly popular. This
report also notes that partial reimbursement for new hires or transferees occurs with
almost half of the rms surveyed.
Slide 40:
What do relocation companies
do?
I-Note:
IDENTIFY duties of the
relocation company. INFORM
students of the titles used for
relo coordinators. REMIND
students that spouses
and families must also be
considered.
Module 3: Working with Stakeholders
| 39
CORPORATE RELOCATION PROGRAM SERVICES
There are a variety of services these programs generally provide. Be sure to know
exactly what’s provided for the transferee you are working with.
DOMESTIC AND INTERNATIONAL
Program administration
Shipment of household goods
Location orientation
Home nding assistance
Home sale assistance, ranges from marketing transferee’s house to buying it
Lease cancellation services
Temporary living assistance
Lump-sum benets administration
Expense payment and administration
INTERNATIONAL
Transferee counseling
Spouse and family counseling
Letters of assignment
Cost estimates
Tax support
Visa work permits
Language training
Cultural training
Ongoing assignment administration
Repatriation management
Slide 41:
Corporate relocation program
services
I-Note:
DESCRIBE the various corporate
relocation program services.
INFORM students that available
services vary among companies
and transactions.
Slide 42:
Corporate relocation program
services -- international
I-Note:
IDENTIFY the various corporate
relocation program services
that are specic to international
relocations.
Corporate Relocation: The Next Move
40 |
SPEND THE DAY WITH A RELOCATION COORDINATOR
The ultimate goal of a relocation coordinator is to provide a smooth adjustment
for the transferee as he or she moves from one location to the next. How does this
happen? The successful relocation coordinator combines excellent communication
skills with attention to detail to get the job done.
Relocation coordinators communicate with buyers, sellers, brokers, agents, and
corporate counselors. That’s ve different hats the coordinator wears every day. A
few of the tasks the relocation coordinator is responsible for include:
Getting to know the client and analyzing their needs
Providing the client with an overview of the market, home prices, school
choices, entertainment venues, and the community they are moving into
Acting as a go-between for the agent and the client and making sure
everyone understands the parameters of the deal
Informing the employer of transaction details and providing continual
updates on the progress of the transfer
The relocation coordinator functions as the “middleman” between the transferee
and company. He or she must satisfy the needs of all the stakeholders to be
successful.
WHERE DOES THE REAL ESTATE AGENT FIT?
Working with a relocation company means corporate accountability. It’s similar to
working with an REO management company in that they want frequent, meaningful
communication and want to be kept up to date. Don’t make them ask twice. Learn
their system and work with it, don’t try to substitute your own.
WHAT THE REAL ESTATE AGENT SHOULD DO
Get a designation
Contact smaller local companies and offer to do employee home
buying seminars
Keep in touch but be respectful of their time
Provide a market overview, sales and price trends
Be a source of information
Get on the “list” of large relo companies
Keep in tight, frequent communication with the relocation company
Keep in touch with buyers, let them know the value of their house in
the market
Slide 43:
Corporate relocation program
services -- international
I-Note:
APPLY Learning Objective 3-1
DESCRIBE a typical day for
a relocation coordinator.
COMPARE these activities with
those in a typical real estate
transaction.
Slide 44:
Where does the real estate
agent t?
I-Note:
ASK students who have worked
with a relo company to share
what they know about what the
real estate agent should and
should not do.
APPLY Learning Objective 3-2
Module 3: Working with Stakeholders
| 41
WHAT THE REAL ESTATE AGENT SHOULD NOT DO
Don’t wait for a reminder from relocation company if something signicant
has developed
Don’t assume that what one spouse/partner says, the other will agree with
Don’t be afraid to make appropriate contact – ask for the referral
Don’t be resentful of the relocation company fees
Don’t contact large companies to nd out what their relo plans are
Don’t ask about benet package details
Real estate agents who are contacting companies to compete for their relocation
business need to get answers to some questions to come up with their strategy for
getting the business...
Main reason for relocating employees?
Where are your current transferees located?
Where are your emerging markets?
What is the cost benet of outsourcing your relocation efforts?
What is your anticipated volume of transferees both domestically and
internationally – in the next year, the next ve years?
Have you considered tiered services that offer different levels of relocation
benets based on an employee’s position with the corporation?
How do you prefer billing to be handled?
What is the vendor’s global footprint?
Are most of your transferees renters or homeowners?
What relocation services do you want the vendor to provide?
I-Note:
DISCUSS questions students
should ask when contacting
companies about their relo
business.
Corporate Relocation: The Next Move
42 |
PRACTITIONER PERSPECTIVE: WORKING TOGETHER
What makes a successful relationship between the relocation company and a
real estate agent?
Excellent communication skills and prompt response are critical to a good
relationship between the agent and the relocation coordinator. The real estate
agent must be a strong team player to interact effectively with the transferee and
the relocation company.
It’s important to the relocation company that the client (transferee) is happy with
their agent. This person should be knowledgeable of the area, be well versed in
the attributes of the community, and he or she should be exible in responding to
the transferee’s and the relocation company’s requests. Since time is of the essence
in a relocation, the agent will often be called upon to respond quickly and spend
evenings and weekends on the search with transferees.
Time is very important to a relocation company since they must report to the
employer on the progress of nding a new home or selling an existing one. As a
result, agents must be prepared for much more paperwork and reporting than in a
traditional sale. As the employer pressures the relocation company, the relocation
company passes on demands to the agent.
Once you have established your reputation as a a strong relocation agent who
understands the process, responds promptly to the relocation company, and
receives positive feedback from the client, you are on your way to getting more
referrals and building your relo niche.
MODULE
4
Relocation Transactions—Moving In, Moving On
| 43
POINTS OF VIEW
During the relocation process, there are three points of view you will want to
keep in mind...
1. The transaction from the buyer’s standpoint
2. The transaction from the seller’s standpoint
3. The transaction from the company’s standpoint
WORKING WITH INCOMING BUYERS
Relocation typically means a quick sale. The buyers visit for an intense tour of
properties and usually make an offer during that visit. As a real estate agent, you
need to know the market really well and understand if homes in your area spend a
short or long time on the market.
Buyers arrive with preconceived notions of where to live. They may have spoken
to friends, family members, or co-workers who suggest the “best” location for
them to buy a home. It may be difcult for them to consider other areas because
someone higher up the corporate ladder suggested a specic area and they feel it
is important to their job success to take their advice. All of this means it might take
longer to nd a property—you have to have more showings to educate the buyer
on other potential areas to live.
TECHNOLOGY’S IMPACT ON BUYERS
Individuals who are used to doing everything on the Internet may require a longer
education process when nding a home. They often don’t see the need for a real
estate agent.
Tech-savvy transferees want instant response and use online tools to gain
information but typically still want someone to talk to during the process.
Slide 45:
Section 4 Opener
Slide 46:
Points of View
I-Note:
CALL attention to the three
points of view in the relo
transaction
Slide 47:
Working with Incoming Buyers
Slide 48:
Technology’s impact on buyers
Corporate Relocation: The Next Move
44 |
In this situation, texting and email are appropriate but it’s important for the buyer to
hear your voice too. Plus, it’s important for the real estate agent to hear the nuances
in a buyer’s voice when discussing the home purchase.
Social media has created a new forum for agent/buyer interaction and more
applications are being created every day. Especially in the relocation transaction,
social media can transport the buyer to their new location at the touch of a button.
There are mobile apps that let them place their furniture in a room and others that
provide a virtual tour of a neighborhood.
Some different social media methods you can use to accelerate the
transaction include...
Mobile apps
Facetime live tours
Links to local entertainment and shopping areas
Community blogs
Maps of the neighborhood with descriptions of property types, local
amenities, and price points
If you have a blog, provide buyers with a link
New technologies that benet the relocation industry are plentiful and are excellent
ways to help you gain competitive advantage. They can help you become more
efcient and perhaps even save money all while meeting the needs of your client.
Take a look at the Tech Trends on the next page and see if you can adopt any of
them for your relo business.
TECH TRENDS TO USE WHEN WORKING WITH BUYERS
14
MOBILE APPS
You can nd apps liked Moved and MoveAdvisor that book a mover, sell or donate
household goods, and arrange furniture in a room. MyRelocation developed by
Global Mobility Solutions provides resources for the relocation team and the human
resource representative, as well as an extensive knowledge base of the entire
industry.
VIRTUAL REALITY
While not an industry mainstay, it does have applications. There are 360-degree
cameras that allow buyers to view a potential home or community through a VR
headset or computer. This can be benecial for the relo buyer who is typically
working in a short turn-around time to nd a new home.
RELOCATION BLOGS
There are literally hundreds of moving blogs and websites. These can provide
information on what the industry is saying about your market, as well as, rst-person
accounts of successful and unsuccessful relocation activity.
14 Mobility magazine, October 2018, https://www.worldwideerc.org/article/plugging-into-technology-
solutions
I-Note:
DISCUSS the various forms
of social media that can
be used by the real estate
agent. ACKNOWLEDGE that
social media is not always an
appropriate medium. ASK
students to provide examples of
social media they have used.
I-Note:
APPLY Learning Objective 4-1
Slide 49:
Tech Trends
Module 4: Relocation Transactions—Moving In, Moving On
| 45
GET TO KNOW YOUR BUYERS
During the buyer consultation, work through pre-qualication questions to
understand their price range. Ask open-ended questions about lifestyle before
focusing on the style of home. Do they prefer city, suburban, or a country setting?
Are they interested in specic types of schools?
The more questions you ask, the more you demonstrate that you want to get to
know the buyer and are not just focused on selling a house. Share with the buyer
that by getting to know them, you will be able to focus in on properties that match
their needs.
Where do they currently live?
Is the spouse working? Where is their job in relation to the transferee’s job?
Do they have children?
If they have children, do they walk to school?
Do any family members have any special needs?
Is public transportation important?
How far are they willing to commute?
How far do they want to be from restaurants and shopping?
Is lot size important?
Is the age of the home important?
Are they willing to do maintenance or prefer maintenance-free?
Is an energy star rating important?
Do they need a hobby area?
Do they travel extensively? Is proximity to the airport important?
Do they have pets?
Did anyone suggest areas where they should look for a home?
Have they been to the area before?
Have they visited any open houses or signed a representative agreement?
If market time is short with multiple offers and your clients like one of the rst
homes they see, you might want to encourage them to start the negotiation
process, make an offer, then continue to look at other properties. Agents need to
make sure buyers understand that an offer is a contract if accepted and there are
consequences of backing out. Typically, there is a built-in contingency release with
an inspection contingency addendum.
Slide 50:
Get to Know Your Buyers
I-Note:
COMMENT that buyer
consultations are important.
HIGHLIGHT some key questions
the real estate agent should ask
APPLY Learning Objective 4-1.
I-Note:
STATE that relocation packages
are private and the details of
such should not be requested
unless they relate to the home
buying process.
Corporate Relocation: The Next Move
46 |
Never ask about the details of the buyer’s relocation package or divulge anything
you learn about their benets to another transferee. You can ask about the benets
package in relation to the house and whether they are getting a buyout, BVO, or
home buying assistance package.
Some employees get a lump sum to cover all of their relocation expenses – closing
costs, temporary housing, fees, moving expenses. They may or may not have to
provide documentation to the corporation, itemize expenses, or return unused
amounts. The big buyout (BBO) appears to be on the decline and more lump sum
options are being offered. They are usually easier on the real estate agent as they
put the burden on the employee to manage expenses.
DISCUSSION QUESTIONs
ARE YOU SUCCESSFUL IN GETTING TO KNOW YOUR CLIENTS?
WHAT QUESTIONS DO YOU ASK TO IDENTIFY THEIR NEEDS?
I-Note:
ASK students to describe how
they learn more about their
clients. PROVIDE examples from
your own experience.
Module 4: Relocation Transactions—Moving In, Moving On
| 47
GROUP MOVES
Entire divisions or companies relocating can mean a few people (less than 10) or
from 30-50 or more if an entire company is relocating.
Some companies start with a stealth group move involving one or two executives.
Without stating corporate intent to do a group move, it gradually occurs as more
employees relocate. If an agent can get in on a group move, planned or gradual,
it can lead to plenty of business. These gradual moves may happen without all the
fanfare of a large move but they can lead to serial referrals and foster your business.
Remember, the rst person in the group who relocates will either rave about the
real estate agent’s service or give them a bad reference. You want to be sure that
rst person gets top-notch service and demonstrate that the same service level
will be provided to everyone who follows. Transferees talk to others about their
experiences with homes they saw and agents they work with.
Entire groups may come for a weekend tour of a new company facility, house hunt
together, and then gather for dinner to compare notes. You might want to arrange
for a property tour by bus where you can point out amenities in the area and
provide other pertinent information.
TIME FRAMES
The lead time for a relocation may be a few weeks. To start, you might want to have
a buyer consultation by phone and set up MLS auto searches. Ask the buyer to
provide feedback on properties in the search and to send you a list of their favorites
so you can organize showings when they come to the area. Try to narrow down
choices to a manageable number you can show.
On average, transferees have about two weeks to accept or reject the transfer and
about a month to be on the job and ready to go. For this reason, buyers are very
motivated – they have to buy and want to buy.
There is a tremendous amount of stress on the transferee and their family during
this time. Remember, they have not only a new job, but a new home in a new
neighborhood in a new town and probably a new state. They have to re-establish
contacts with physicians, dentists, auto repair shops, schools, child care, and more.
It’s your job to educate the buyer about the local market before they arrive to
look at homes, including how quickly the local market is moving, price trends, and
available home inventory. Pull MLS statistics on the number of homes on the market
and their average time on the market.
Some transferees have moved many times and already know what they want to buy.
Others might want to wait to look at homes until they are on the job and stay in
temporary housing on their own or with their families. While transfers can happen
at any time, families with school-age children may not relocate to the new area until
spring or summer.
Typically, transferees have a one-year window to use relocation benets.
Slide 51:
Group Moves
I-Note:
IDENTIFY the difference
between individual relos and
group moves. NOTE that group
moves imply large amounts of
business.
APPLY Learning Objective 4-1
Slide 52:
Time Frames
I-Note:
DISCUSS the difference in lead
time for a relo. IDENTIFY the
things transferees must consider
that go along with the move.
STATE what the real estate
agent can do to assist the
transferee.
APPLY Learning Objective 4-1
Corporate Relocation: The Next Move
48 |
MOVING FAST!
From the moment an employee accepts a transfer offer, the clock is ticking. On
average, organizations permit their employees two weeks to accept a formal
transfer offer. Once an employee accepts the transfer offer, employers are allowing
the transferee an average of four weeks to move and report to their new job.
Transferring buyers are often under additional time constraints and emotional
pressures especially if they have families to move and they are unfamiliar with
the area where they need to purchase a new home. They might need extra hand-
holding before, during, and after the transaction. They will need a list of resources
to help them nd personal services like a doctor, dentist, pediatrician, hair stylist,
veterinarian or dog walker, or daycare for children. If you help them get settled into
the community more quickly, the transferee will be able to be effective in his or her
new position without worrying about all of these details.
According to Worldwide ERC, 67 percent of single employees move for personal
career development, but their career isn’t the biggest concern when it comes to
relocation. Forty-one percent indicated they worry about making friends in the new
area.
15
Since so many important things in life are tied to strong relationships, it’s
understandable why single transferees would be concerned with establishing new
bonds.
Understanding these concerns and being able to provide assistance to help
streamline the process of moving and getting settled is a valuable offering the real
estate agent can provide.
MATCH YOUR SERVICES TO THE BUYERS’ NEEDS
A strong real estate agent will demonstrate his or her value through the services
they provide and by communicating effectively with their clients. Many of the
characteristics you already demonstrate in a typical local transaction are the same
ones you need for a relo. But, what will set you apart as an agent that a transferee
or their relocation company might want to hire?
You are technically procient in the tools agents use to scout for properties
You are a strong networker and able to mine opportunities before they hit
the market
You are present for inspections and help guide the buyer/seller
through negotiations
You never steer a client to a particular neighborhood or community
You provide clients with information on areas they are interested in
You are well versed on attributes of the community at large
You make yourself available to clients when they need you—on their timeline
You stay with buyers throughout the process and closing of the transaction
15 Mobility magazine, October 2018, https://www.worldwideerc.org/article/challenging-status-quo-
relocation-4-surprising-ndings-about-employee-relocation
Slide 53:
Moving Fast
I-Note:
IDENTIFY the resources
transferees need to locate
when moving. ASK students to
describe ways to obtain and
provide this information.
APPLY Learning Objective 4-1
Slide 54:
Match Your Services to the
Buyer’s Needs
I-Note:
DISCUSS the value proposition
for transferees. DESCRIBE
services the real estate agent
can provide to meet the relo
buyer’s needs.
Module 4: Relocation Transactions—Moving In, Moving On
| 49
RENT OR BUY
In locations like Silicon Valley, housing prices are appreciating so rapidly that
employees who transfer out may decide to keep their existing home and rent it out
because if/when they are transferred back to the area they might not be able to
afford to buy again.
In addition, the amount of equity in a home may impact the rent or buy decision.
In some cases, a transferee may decide to rent if they can’t qualify for a mortgage
(consider entry-level employees) or because there are no homes in their price range
in the area. Another reason to rent relates to insecurities about the current job or
job market.
Does your rm handle rentals? Find out if they charge back to the relocation
company for rental assistance.
FINDING THE RIGHT HOME
Most transferees are pragmatic about choosing a home. They expect their needs
and wants to be met, but aren’t necessarily looking for a dream home. They are also
very concerned with future resale value because they may get transferred within a
few years.
Value appreciation is a big concern when it comes time to move again. Most
relocation clients are fairly sure they will get transferred again, so they want to know
the back end or resale value of any home they might purchase. Be prepared with
property appreciation rates and a history of properties. While real estate agents
cannot predict rates, you can state your opinion on value appreciation.
Where is the buyer in their corporate life? If their relocation is associated with a
promotion, they may be looking for an upgraded house compared to their current
home. Is this the rst move with more to come or will the buyer stay in this location
for the long term?
REOs and short sales are usually not right for relocations. It depends on the market,
but most are too complex with too many unknowns. The buying process for this
type of sale takes longer. Does the buyer have time to wait? It might take six
months to close the deal and everything will be in the hands of the REO company
and lender.
SELLING A PROPERTY – THE LISTING SIDE
A transferee’s corporation may provide an incentive to sell in the rst 30 days.
Relo clients are pressured as sellers and as buyers. They need to balance the time
between sale and buying to free-up equity. For this reason, you can expect a short-
term listing agreement.
In some cases, the company offers an incentive – perhaps the seller gets 1% of the
sales price rebate as an incentive to sell. This incentive helps the seller price their
existing home more competitively since they know there is a cushion to work with.
Relo company inventory must also be considered. Some relo companies may
reimburse an agent to do upkeep and maintain the property while the house stands
empty. A note of caution: if they want the utilities put in the agent’s name this will
be an additional liability and expense for the agent.
Slide 55
Rent or Buy
I-Note:
STATE the various reasons
transferees would prefer to
rent. ASK students if their rm
handles rentals.
Slide 56:
Finding the Right Home
I-Note:
APPLY Learning Objective 4-2
DISCUSS the transferee’s focus
on value appreciation.
Slide 57:
The Listing Side
I-Note:
HIGHLIGHT the possible
company incentives for selling
a property. DISCUSS the
additional paperwork involved
in a relo sale.
Corporate Relocation: The Next Move
50 |
A relo sale isn’t a typical sale. There is substantially more paperwork. The relo
company —not the seller—signs all paperwork. You will need to work to maintain
calm by communicating with the buyer agent and the buyer. It is similar to REOs
and short sales in this regard. In some listings, you might be told not to disclose
that the seller is a relo.
HOME-SELLING ASSISTANCE PACKAGES
Some companies offer loss-on-sale assistance to their employees either through
their formal policy or on a case-by-case basis. Duplicate housing expenses may also
be provided in instances when the employee purchases a home in the new location
prior to selling their home in the old location. Most organizations impose a time
limit on the assistance.
Homes that are typically excluded have extreme marketability issues or represent a
legal liability or complication for the company. Mobile homes and co-ops are usually
excluded from home sale programs. Many employers exclude duplexes and some
exclude homes with excessive acreage.
Today, the majority of companies will accept negative equity homes into their home
sale programs either on a case-by-case basis or as part of a formal policy. Of the
respondents that do accept these homes as part of a formal policy, most require the
employee to pay-off the balance at closing with no assistance from the corporation.
In addition, many employers with either third-party or corporate-based home
sales programs assist employees with home-selling costs in instances where the
employee rejects the company/third- party home buy-out offer. These employers
report offering cash incentives to employees who nd a buyer for their home during
the self-marketing period.
THE COMPANY’S PERSPECTIVE
The relocation company and your transferee’s company, by extension, will be
satised when the employee is settled happily in their new home. Ideally, a speedy
resolution and good communication among the parties will leave everyone feeling
more satised. Keeping everyone in the loop and on track is critical to success.
Companies know that the happiness of the transferee’s family is imperative and
might affect employee performance or satisfaction with their employment. Anything
you can do to help the transferee and family settle into their new community is
benecial.
Slide 58:
Home-Selling Assistance
Packages
I-Note:
DISCUSS items that might not
be included in the assistance
package.
APPLY Learning Objective 4-2
Slide 59:
The Company’s Perspective
I-Note:
RELATE the company
perspective to the real estate
agent’s actions.
Module 4: Relocation Transactions—Moving In, Moving On
| 51
PRACTITIONER PERSPECTIVE: WORKING WITH
RELOCATING BUYERS
Working with relocation buyers can be viewed as frustrating or you can look at it as
a fun challenge. The best way to reduce frustration for both you and your transferee
is to take some time to get to know the client. It’s imporant for you to listen to their
needs, wants, and concerns. Try to understand the family dynamic and what it will
take to nd them the best possible home in your community.
Giving the transferee information in advance of a visit to review homes is vital.
Once you have a feeling for what they want, set them up on an automated email
notication system through the MLS in your area. Ask them to rate the listings
so you can narrow down the type of home that would work for them. Educate
them on the community with links to city home pages, school sites, and public
transportation.
Make the home touring process as enjoyable as possible. Typically, you will be
transporting the client during the search. Understand who will be traveling with you
during the search. Do you need to provide a car seat for a child? Is your vehicle
large enough to hold everyone who will be on the tours? Do you need to plan a
lunch stop, bring water, or provide snacks?
You might consider assembling a “community welcome package,” which includes
information on the local arts scene, medical facilties, health clubs, educational
opportunities and outdoor recreaction activities (parks, walking/running paths, dog
parks, pools, etc.) along with any unique insights you can provide. These details
help your buyer learn about the community and what it offers to them and their
family.
Be prepared to spend as much time with your transferee as he or she needs. Your
attention to detail and enthusiasm about the community as you help the buyer
become part of it will pay off.
Corporate Relocation: The Next Move
52 |
MODULE
5
Dollars and Sense
| 53
RELO PACKAGES: WHAT DO COMPANIES PAY FOR?
Relocation benet packages will vary based on a number of things including the
size of the corporation, the rank of the employee, and the area of the country or
world the relocation takes place in.
Depending on what type of relocation package is offered, some of the items that
might be found in a dened package include...
16
PACK AND/OR UNPACK SERVICES
The employee’s household goods are packed by a moving company, saving the
employee time and stress. If an unpack service is included, the moving company
personnel unpack the household goods at the new residence.
QUALITY MOVING COMPANY PERSONNEL WITH
INSURANCE COVERAGE
Not all moving companies are known for providing quality moving services. Moving
charges are typically determined based on total weight. Transferees should ensure
that insurance for damaged or lost goods is equal to the good’s value.
HOME SALE OR LEASE-BREAKING PENALTY ASSISTANCE
Home sale assistance might come in the form of company-sponsored
reimbursement or professional marketing help to accelerate the timing of sales.
Some transferees might have employers who pay contractual penalties for early
lease termination.
16 CapRelo Blog, May 30, 2018, https://info.caprelo.com/blog/topic/corporate-relocation-program
Slide 60:
Section 5 Opener
Slide 61:
Relo Packages – what do
companies pay for?
I-Note:
APPLY Learning Objective 5-1
DISCUSS the various items
that might be in a relocation
package. NOTE that packages
vary and should be individually
evaluated. HIGHLIGHT how this
can affect the buyer.
Corporate Relocation: The Next Move
54 |
HOUSE-HUNTING TRIP
Relo packages often include one or more company-paid house hunting trips of
short duration. The costs that might be covered include: transportation, lodging,
and meals. In some instances, childcare might be covered.
TEMPORARY HOUSING
Many corporate relocation packages provide a minimum of 30 days temporary
housing.
TRANSPORTATION TO FINAL DESTINATION
A typical benet package includes reimbursement for transporting the transferee
and his or her family to the new location. This might entail airfare or if the
transferee drives, mileage reimbursement. Costs of moving a transferee’s vehicle by
commercial transport would also be covered.
MISCELLANEOUS
There are a host of small costs that might be covered: driver’s license fees, pet
registration and licenses, cleaning services at the new home, utility hook-ups, etc.
Many companies will put a cap on this category.
Other popular features that might be found in a standard relocation package
include...
Short-term living expenses associated with deadlines to move
Reimbursement for storage of household goods until move into new home
Employment nding assistance for spouse/partner
Child or elder care costs
Assistance with school-related information
Loss-on sale allowance
Travel expenses for transferee to travel home for visits until family is relocated
RENT OR BUY DECISIONS
The decision to buy a home versus rent is as much a lifestyle decision as it is an
economic one. Tim Lucas, editor-in-chief of mymortgageinsider.com, notes that
most people weigh the nancial benets of owning versus renting since it is likely
the biggest nancial decision they will make. However, another key factor that
should be considered is stress. Lucas reports that a landmark stress study lists major
stress events that include switching careers as #18 and change in residence as
#32.
17
If you’re involved in a relocation, you’ve hit both these marks.
When a transferee moves to a new job in a new community, stress levels can run
high. Having to make the additional decision of choosing a permanent residence
versus temporarily renting a space only adds to that stress. This is especially true if
the transferee doesn’t know much about the area.
17 U.S. News & World Report, December 13, 2013, https://realestate.usnews.com/real/-estate/articles/
renting-vs-buying-a-home-which-is-smarter
I-Note:
DISCUSS additional expenses
that might be covered.
Slide 62:
Other expenses that might be
included in the relo package
Slide 63:
Rent or Buy decisions
I-Note:
APPLY Learning Objective 5-2
DISCUSS the correlations
between lifestyle and rent or
buy decisions. IDENTIFY how
economic uncertainty plays
a role in this decision. ASK
students if they have seen a
trend in rent versus buy in their
relo business.
Module 5: Dollars and Sense
| 55
Today’s renter goes beyond the typical entry-level new hire. For instance, if a
transferee has a second “vacation” home or chooses to rent their current home
rather than sell it, then a rental can be an attractive option.
The rapidly growing rental market also plays a role. Economic uncertainty has
created a surge in the demand for rentals. If a transferee is concerned about job
security or how his or her family will adapt to their new location, then renting
provides more exibility.
Finally, transferees may choose to rent for a period of time as they get to know their
new community. Gaining familiarity with the area provides a level of comfort when
it’s time to buy a new home.
TAX CONSIDERATIONS FOR THE TRANSFEREE
Tax laws are changing rapidly. A realtor should never give tax advice or legal advice
to a client but should refer them to their relocation company or their personal tax
advisor to determine actual costs that are deductible and what costs the company
will reimburse.
WHAT’S A QUALIFIED MOVE?
Moving expenses can be deducted when the transferee meets three tests:
Work-related test
X The move must be related to the start of work at a new job location
within 12 months of rst reporting to work.
Distance test
X The distance between the employee’s new principle place of work
and old residence must be at least 50 miles greater than the distance
between the old place of work and old residence, and the employee’s
commuting distance must have increased by at least 50 miles.
Time test
X In the 12-month period following the move, the employee must be a full-
time employee for at least 39 weeks in that location or meet a qualied
exception to the time.
Some companies structure their program to cover taxable moving expenses, such
as house hunting, temporary living, etc. and then reimburse the “non-taxable”
expenses. The lump-sum reimbursement would be fully taxable to the employee,
and depending on the corporate program, either the corporation or the employee
would ultimately pay the associated tax of including these in the employee’s wages.
Other companies have structured their lump-sum program to cover all relocation
expenses. If the corporation uses this method, the lump sum would be fully taxable
to the employee. The employee would want to track the non-taxable expenses, as a
claim for a moving expense deduction may be available on their US federal income
tax return. The applicable moving expense amount would then be a reduction to a
taxpayer’s adjusted gross income (AGI).
Slide 64:
Tax considerations for the
transferee
I-Note:
APPLY Learning Objective 5-3
STATE that agents should refer
clients to their tax advisor
or relo company for tax
considerations. STRESS that an
agent should not provide tax
advice.
Slide 65:
What’s a qualied move?
I-Note:
DEFINE a qualied move.
EXPLAIN how this denition is
used in the relo transaction.
Corporate Relocation: The Next Move
56 |
If there are “taxable” moving expenses paid by the corporation, these amounts
should be reported as taxable wages in the employee’s W-2 form. Sometimes these
surprising numbers on the W-2 leave employees in shock.
18
The Tax Cuts and Jobs Act (TCJA) went into effect January 1, 2018, and suspends
the moving expense deduction/exclusion from 2018-2025. State response to this
act has varied and must be analyzed on a state-by-state basis. As of May 2018,
moving expenses remain excludable from the incomes of transferees in 15 states.
The continual changes in tax law are too numerous to count and it is important to
guide the buyer to their relocation counselor or tax advisor.
IRS PUBLICATION 521
The Internal Revenue Service produces Publication 521 that explains the deduction
of certain expenses related to moving to a new home because of a change in job
location or starting a new job.
It provides detailed information pertaining to a qualied move, explains deductible
and nondeductible moving expenses, and discusses domestic and international
relocations.
Since tax laws often change annually, it is best to refer the transferee to this
document and their personal tax advisor regarding tax inquiries.
18 The balance small business, January 2, 2019, https://www.thebalancesmb.com/employer-guide-
employee-moving-expenses-4141194
Slide 66:
The Tax Cuts and Jobs Act
I-Note:
REMIND students that federal
tax laws change. Briey
DISCUSS the Tax Cubs and
Jobs Act.
Slide 67:
IRS Publication 521
I-Note:
APPLY Learning Objective 5-4
Module 5: Dollars and Sense
| 57
INTERNET FIELD TRIP: TAX REPORTING
Your relo buyer may ask you questions about reporting moving expenses, etc. on
their taxes. While you should not give tax advice, you should be aware of current
laws to provide general knowledge on the process. Go to the Internal Revenue
Service website for Publication 521 to learn more.
www.IRS.gov/Pub521
WHAT TYPE OF INFORMATION IS INCLUDED IN PUBLICATION 521?
WHAT ASPECTS OF PUBLICATION 521 CAN YOU USE WHEN WORKING
WITH RELO BUYERS?
I-Note:
DIVIDE the class into small
groups.
MAKE sure each group has
Internet access.
INSTRUCT students to follow
the instructions to access the
site and view the publication.
LEAD a discussion of
information included in the
publication and how it can be
used when working with clients.
APPLY Learning Objective 5-3
Corporate Relocation: The Next Move
58 |
MODULE
6
Follow Up, Follow Through
| 59
HELP TRANSFEREES BECOME PART OF
THE COMMUNITY
The real estate agent’s job doesn’t stop when the nal paperwork is signed on a
new home. Helping the transferee integrate into his or her new community is an
imporant part of your job. Keep in mind that maintaining contact can lead to an
opportunity to get the listing when the employee moves on. Plus, it might result in
referral opportunities in the future.
What are some ways the real estate agent can foster this relationship?
Introduce the transferee to organizations that t their lifestyle or interests.
This might include local sports or arts camps for their children and health
clubs, cooking classes, or book discussion groups for the adults.
Share information on parks, recreation centers, walking/running paths, and
dog-friendly locations for pet owners.
Schedule a tour of the community and point out the local library, daycare
centers, parks, religious institutions, theaters, museums and other
entertainment choices, shopping centers, grocery stores, and hospitals.
Provide links to online resources that will help them connect with dentists,
orthodontists, medical practitioners, and other health-related sources.
Once a transferee and his or her family are settled in their new home, they will be
looking for ways to meet people in the community and develop new friendships.
This is your opportunity to make yourself forefront in the transferee’s mind as the
“go to” person for knowledge that will help the transferee become part of their new
community.
Slide 68:
Section 6 Opener
Slide 69:
Help transferees become part of
the community
I-Note:
APPLY Learning Objective 6-1
COMMENT on the various ways
to help transferees identify
with their new community.
ASK students to discuss other
methods they have used.
Corporate Relocation: The Next Move
60 |
THE SURE THING: REPEAT BUSINESS
A transferee who has a positive experience with a real estate agent will most likely
call on that agent when it comes time to move again due to a relocation or when
they want to move to another home in the same community.
The real estate agent should follow up with their client within the rst few months
of a move to determine how things are going and how well the transferee is
settling into the new community. If it is needed, the follow-up might include new
opportunities for getting to know the community and surrounding area. If merchant
incentives are available, offer these as a way to connect the transferee with the
community.
On the business side, the agent can provide a yearly CMA market update for
the neighborhood and keep the client advised as to what is happening in their
community that might affect home sales.
Ask for referrals by reminding buyers that you also list properties – they might have
friends or family members who need help selling or buying a home.
Most important, you want to make sure you are “top of mind” when your client
hears the words “real estate.” Provide your clients with a local calendar of events
via email, send out anniversary mailings, make sure they are connected with your
professional social media accounts, and deliver consistent market updates to keep
your name in front of the client.
KEEP DOING YOUR HOMEWORK
To realize continued success in the relo business requires keeping up-to-date on
business trends, tech improvements, and community developments.
Read local and national news to keep informed on corporate trends that can help
you identify how your business might be impacted by relocations. Are there any
businesses in your area that have announced corporate expansion plans? Have
you heard about national companies that are opening new ofces or building
new facilities? Keep in touch with your relocation department to learn about new
developments.
Tech trends and product development can be relocation game changers. If you hear
about a company that has developed a new product, it could be your cue that staff
expansion will follow. Acquisitions also signal employee changes. Even a corporate
downsizing can provide relocation business.
Once you have developed a positive relationship with a corporate transferee,
ask them to refer you to other employees at their company or their friends in
the community. Regular communication between the two of you might create a
resource for you to learn what options are being offered to relo employees.
You might want to join a local service group such as the Chamber of Commerce or
Rotary to learn about other businesses in the area and develop relationships with
those business leaders. Another source of information in some communities is the
city development task force – this group will give you insights on future business
opportunities that might be coming to the community. When you become involved
in the community, you will become part of a larger communication network. The
local arts or athletic groups can be excellent sources for networking.
Slide 70:
The Sure Thing – Repeat
Business
I-Note:
APPLY Learning Objective 6-2
RECOMMEND that students
follow-up with clients. IDENTIFY
why this is an important step.
SUGGEST they ask for referrals.
Slide 71:
Keep Doing Your Homework
I-Note:
APPLY Learning Objective 6-3
COMMENT that keeping
up-do-date is necessary to
succeed. RECOMMEND that
students stay informed on
corporate trends including tech
advancements and product
development. SUGGEST
students foster relationships
with current transferee clients
to gain referrals. HIGHLIGHT
other resources: Chamber of
Commerce, Rotary, arts and
athletic groups.
Resources
| 61
WEBSITES
National Association of REALTORS® Global:
www.nar.realtor/global
Realtor.com:
www.realtor.com
Worldwide ERC:
www.worldwideerc.org
Internal Revenue Service:
www.irs.gov
Atlas Van Lines:
www.atlasvanlines.com
U.S. News:
www.usnews.com
Fidelity:
www.delity.com
Organisation for Economic Co-operation and Development—
Consumer Condence Index
www.oecd.org/unitedstates
The Ladders:
www.theladders.com
U.S. Bureau of Economic Analysis:
www.bea.gov
U.S. Census Flows Mapper:
http://owsmapper.geo.census.gov
Corporate Relocation: The Next Move
62 |
Fundera:
www.fundera.com
Forbes:
www.forbes.com
Mobility Magazine:
www.worldwideerc.org/mobility-magazine
Relocate Magazine:
www.relocatemagazine.com
UrbanBound:
www.urbanbound.com
CapRelo:
https://info.caprelo.com
The Balance Small Business:
www.thebalancesmb.com
Allied Van Lines:
www.allied.com
Witt/Kieffer:
www.wittkieffer.com
