Many Companies relocating new hires and employees, use the services of relocation companies who bundle all of the services required to relocate their employee.
While this concept works great for some of the services required i.e. Moving Companies, Temporary Housing etc. , using these companies for purchasing real estate has serious shortcomings.
When your employee moves into their new city, many times the relocation company hands them over to a real estate agent who cannot look out for the employees best interest.
Keep in mind, the employee is moving into a strange city. They probably do not know the local marketplace. They need Full and Exclusive Representation without any Conflict of Interest.
Here is a critical point to remember . . . . If a real estate company takes listings, which is the case with 99% of the real estate companies out there, they represent Sellers. How can any agent in that real estate company represent buyers exclusively ? The answer is . . . They Cannot. They are in a Conflict Of Interest. Your employee could be led down the wrong path, and not receive a "Lowest Price Negotiation Strategy."
These real estate companies who make up the 99% have come up with cleaver ways to "spin" the conflict of interest issue. One of the most creative is the "Mary Doe TEAM of AGENTS ! "
They Advertise, "We have a Buyer Specialist, or Relocation Director, ready to take your employee out to see homes"
It sounds great ! After all, the Relocation Director "Just works with buyers". They may even have a special "Buyer Designation". But remember . . . If a real estate company takes listings, they represent sellers. ALL agents, in this company, regardless of their title cannot offer the Buyer Full and Exclusive Representation on all listed properties.
There Is A Solution . . .
On the other hand if the employee uses a real estate company who only represents buyers, there is NO seller Conflict Of Interest. Which means the Buyer/ Employee has an Advocate regardless of which home they choose. The Buyer's Advocate is Such a Company.
We are the 1% . . . who has taken Buyer Brokerage to the Highest Level . . . . FULL & EXCLUSIVE on all available homes, not just some.
We advise any company that is involved in Relocating employees "Break Out" the home purchase from the relocation company's bundle of services and lead your employee to a "Pro-Buyer" negotiation, using a Full & Exclusive Buyer Broker company.
One last thought . . . I have worked with buyers relocating into my market, where their employer required the employee to work with an agent referred by the relocation company, in order to receive the relocation package benefits offered by their employer.
An employer allowing a relocation company to control which agent the employee must use, may have liabilities.
Consider this . . . What if the relocation company hands the employee over to an agent who ends up not representing the employee fully? And because of this, what if the buyer pays too much because they received reduced representation, but felt compelled to use the agent because of the conditions of the relocation package ?
This is the reason we strongly advise that the employer break out the real estate purchase from the relocation package and give the employee complete freedom to choose their agent without penalty.
If You Are Selling, Then Buying In A New City
Many Listing Agents try to refer you to an agent in the city you are moving to. The reason they do this is because they receive a fee for referring you to this agent. While there is nothing wrong with the listing agent receiving a fee, you need to make sure they are referring you to an "Exclusive Buyer Broker". Not just an agent that works for the same franchise they work for.
Many Exclusive Buyer Brokers, including The Buyer's Advocate, offers discounts to Clients relocating from other cities.
Eric Kruse, Full / Exclusive Buyer Broker
The Buyer's Advocate Realtors, Huntsville AL. 256-990-1323