Relocations (also commonly referred to as “relos”). What are they? How do they work? Where should you go to find out more information? We will consider these questions, and a few others, in this quick look at the intricacies of relocation services and their impact on real estate and mortgage lending.
Of the roughly 35.5 million Americans who move each year, approximately 10%, or 3.5 million, relocate for a job change, promotion or career-related reason (source: United States Census Bureau) Of these 3.5 million homebuyers moving for jobs, 25% are receiving some sort of relocation assistance from their employer (Source: https://www.allied.com/infographic/job-relocation-survey). With over 850,000 relocations being supported by an employer, the market for “relocation” is advanced and lucrative for the companies who provide outsourced relocation services for employers and their employees.
If you are relocating as a result of a job change, or even just a change in scenery, a relocation service may prove to be a valuable addition to your moving toolbox. A good relocation service should provide much more than just getting your home furnishings from point A to B. Relocation services run the gamut of providing access to reputable real estate agents, mortgage advisors, and lenders, moving and storage providers, childcare services, temporary housing, and an array of other services that can be deemed invaluable to a homebuyer uprooting and starting anew.
In their simplest form, a relocation typically involves leveraging the expertise of a local real estate agent to connect you with an agent in the market you are moving to that will assist with identifying suitable housing for you and your loved ones. In many cases, an agent may be “referred” to you by the agent in your local area as part of an agent referral network. This scenario is common and will usually bring good results, as the agents in the network are vetted through a relocation referral service that will ensure quality and results. If you happen to be selling a home in your current place of residence, an agent referral can be sometimes be accomplished “in house” with a referral to an agent in your future hometown that works for the same agency. This is more common with larger brokerages.
Similarly, a great way to ensure your borrowing interests are kept in high regard is to ask your local mortgage loan officer for a referral to a professional where you will be living. Working with a “local lender” optimizes your ability to navigate unforeseen lending hurdles that are bets handled by a loan officer who understands the local market and can partner quickly with professionals that can solve complex home buying issues such as septic and well contingencies or road maintenance agreements, to name a few.
Regardless of your reasons for moving, utilizing a relocation service that provides you access to a network of professionals who have been proven to provide the level of service you are used to from your hometown team is a practical and reassuring means for reducing the fatigue and stress that can accompany a life-changing event like relocating to a new environment. Talk to your local professionals to learn more.