WHEN BUSINESSES CONSOLIDATE TODAY, EMPLOYEES ARE AT THE MERCY OF THE MARKET.
* * * * HARD CORE REAL ESTATE TALK * * * *
TRUE STORY OF A LOCAL HOME OWNER FRIEND
You don't want to relocate. You had no intention of relocating. Goodness, you just purchased your
home in September of 2005, at the peak of the market for the area. That didn't bother you because
you planned to remain in your home for the next 20 years until retirement, or longer. You have a
lovely home in a quiet residential community of average 5 acre lots. Your lot is just over 8 acres
with wonderful privacy, a manageable amount of grass to cut and a house that you love to call home.
In fact, shortly following moving in 2 years ago, you added a two level addition to your 20 years old
home thinking that it would give you more room than you'd need for overnight guests and visiting family.
You finally have your dream home and now you find that you must sell. Your employer is moving
your division to New Jersey. You have worked for 15 years to gain the management position in the
company and you would prefer to move rather than starting over with a new company. The most
difficult part of changing job location is selling the home you love and buying another one in New
Jersey.
FACT: Homes in your area have decreased in average price by about 17% over the past two years.
That's not good news because you paid top dollar to get the home you wanted.
FACT: The average time on the market has increased from an average of 45 days when you purchased
your home to an average of 159 days today. The market is very slow due to the general slowdown
of real estate in general. Not a good time to sell, you say. But, you have no choice.
FACT: When you purchased your home, the average buyer paid about 96% of the list price.
Today, the average buyer pays an average of 90% of the list price. So, you have to expect to negotiate
the price when you do get offers.
FACT: The contract with the relocation company requires that you use an agent referred by the
relocation company or you will not receive reimbursement for your real estate commission and
selling closing costs and you will not receive your relocation benefits to pay your closing costs
in New Jersey.
FACT: The relocation company has referred three "approved" agents to be interviewed. The first 
one was extremely rude and stated that you'd be lucky to get back 80% of what you paid two years ago. That may be true, but it wasn't what you wanted to hear before an agent even looked at your home. The second agent is fairly new and has little experience. He has one listing that didn't sell. The third agent states that he only lists homes to sell quickly and that he would list your home for about 76% of what you paid two years ago. None of the relocation company agents referred are encouraging, but you have no choice but to use them.
FACT: You did everything right. You made an honest fully documented loan and have a secure low
interest 30 year fixed rate mortgage. Now you have to sell and you'll be taking the same losses
that are experienced by the home buyer who speculated on buying and flipping their purchase,
buyers who obtained home loans with fraudulent loan applications and buyers who purchased homes
with loans that they knew they couldn't afford but relied on an ever appreciating market to refinance or
sell short term.
FACT: Based on a purchase price of $525,000 two years ago and a likely sale price of about $435,000 today, you will likely lose about $90,000 just on the sale of your home. If prices continue to decline, the loss could easily be well over $100,000.
THE MEDIA ARE NOT LOOKING AT THE FINANCIAL HARM TO RELOCATING HOME OWNERS.
You did everything right and yet, you're a casualty of the mortgage mess.
;)
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Oh, Lenn- I saw this ending coming. What are the relo's doing without company participation?