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Pfizer's Relocation Package

I was called for an interview on Friday by the Ann Arbor News. They were doing a article on Pfizer's relocation package out of Ann Arbor. I was happy to talk to the editor doing the story and my thoughts were it's a good thing I did as she really did not understand the "lose on sale" clause attached to the package. Basically, Pfizer has agreed to pay their employees the loss difference in what they paid for their home and what they can get for their home in today's market up to one hundred thousand dollars.

It is really not that difficult of a concept to understand, many corporations do offer this to highly sought after employees.The package Pfizer is offering is to reimburse the employee up to 100K, if they aren't able to sell their home for what they paid. My thought is it will only effect those homeowners who bought since the market turned down.

Since I have been working with two Pfizer families, I was aware of the situation. One of them will probably lose on the home they purchased 2 years ago and will be able to take advantage of this offer. One will not lose because they have been in their home for 9 years. They will not make as much as they would have had we not had to down-turn in the Ann Arbor Market but still clearly a profit.

In the course of the interview, it was necessary to explain this to her, as she was not clear on how it worked.

Here is how the explaination came out:

Re/Max Platinum broker Missy Caulk said it's important for Pfizer workers to carefully read and understand their relocation offers. She said it's likely the only people who will need to take advantage of Pfizer's compensation if a home sells below its value are those people "who bought in the past few years and can't get what they paid for it.''

Not exactly what I said and sorta insulting to the highly skilled, smart Pfizer people, don't you think ? Maybe I'm being over sensative but you always feel bad when your misquoted.

For those interested you can read the entire article here.

Posted by Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate on 02/26/2007 06:06 AM

Comments (16)

ann arbor, market conditions, washtenaw county, pfizer

Originally posted at: Ann Arbor Undressed : Pfizer's Relocation Package

16 Comments on Pfizer's Relocation Package

FEB

2007

Before you let any media type interview you it is best to find out their, attitude, opinions, reason for the article/interview, and the nature of the final product. It is too easy for these people to take what we say and twist it around to fit some ulterior motive. Plus most of them are not very bright or don't care too much about accuracy.

This looks like you were lucky and came out looking pretty good.

Missy

I have worked with many highly skilled people in the past who were great at their jobs, but had no clue when it came to matters regarding real estate.

I think it would be a good idea to make sure even the "highly skilled" clients do understand the program.

Terry Lynch

FEB

2007

Thanks Terry and Greg for your kind comments.

I am very leery of speaking with the press. Some of the errors I see are to due to lazy jounalism, but more often, it is the part of a sentence taken out of context that makes for a juicy soundbite. They create friction between entities that was not there. Their industry, like so many others, has taken a huge hit because of the growth of the internet. Is this how they think they will stay relevent?

I am familiar with a local reporter that often asks questions using loaded words. I state emphatically to him that those were not my words. I am extremely cautious about what words I do use. The by product is that they do not often run my quotes. Oh well.

But was the post about poor newspaper reporting, or the Pfizer packages? I am troubled by the packages, not so much for the Pfizer employees, but for the next door neighbor that has no parachute.

FEB

2007

Hi Sandy, thanks for the post. Actually the initial intent she said was the " Is the Pfizer Relocation good and it will it hurt home values in Ann Arbor ?" I'm sure you read the article and I'm not convinced it was answered. I believe in this case, it was a lazy reportor or someone who didn't understand " lose on sale" as she had no clue on what it meant.

Missy,

Upon reading the article I realized the your comments had been taken out of context, or at least not fully as you had intended. I assume that those invested in the article will understand that and those with only a passing interest will glance and move right on.

Just as important, in my opinion, is the point that Sandi makes about this Pfizer package actually hurting the neighbors as the comps are adjusted again--more than the REO market is doing now. This "safety net" for Pfizer's recent home buyers will only negatively affect the market.

MAR

2007

I agree because our inventory is HIGH now. However, Toyota, Hundai and Google are moving people into our area. Also the listings from Pfizer will NOT all happen at once, but trickle in for a couple of years. Hopefully we will be able to absorb alot of it. If rates stay low, more homebuyers will be able to enjoy the market.

Thanks Chris for stopping by.

I couldn't agree more with your comments. It is unfortunate that we have two things against us:

1. The media which is looking for a story and space to fill

2. Our proximity to Detroit so we "hear" much more of the stories on home losses which are really unique to the City, not even the majority of Wayne County.

We do have high inventory, but I can see in the last few weeks buyers starting to come off of the fence and pick up some "lower priced" and REO properties. With mortgage rates still fairly steady we have others that are waiting longer to see when the "bottom" is and purchase at that time. But, you are correct, it will take several years for the effect of Pfizer to occur and Toyota, Hundai, Google, Bozal Int'l, and others will be filling the ranks with new employees which will help.

I'll add 2 more "unfortunates" to Christopher's list:

3. The salaries of those Pfizer Pfolks moving out average $185,000 year, while the Google workers will average $40,000.

4. Pfizer had 2100 employees, but easily another 2000 sub-contractors working at the Ann Arbor plant.

True Sandy and Jennifer keeps saying we have google. I think they have 40 employees now !!

MAR

2007

Hello Missy, The offer is very generous to the Pfizer people and tough on the neighbors! Helps buyers that bought Ann Arbor homes in the last couple of years and hurts those that built equity the old fashion way. Also, I have not heard much about the Ann Arbor contract workers. Are they getting any package? I heard one thousand workers, then I heard two thousand. The big players are protected but the little guys are going to get hit hard.

Ann Arbor Real estate values have already taken a hit, so it will be interesting to see how much of the bad news has already been discounted and what is yet to come. I wish I would have bought the stock market after semtember 2001.

And lets not forget, Ann Arbor is still a great place to live and raise a family! If fact it is now a little more a town than a city. Some people are going to like that after the dust settles.

I thought your quote looked OK, it made sense to me.

MAR

2007

Missy, at least they spelled your name right! Honestly, the quote seems just fine. Don't take it too personally.

I agree with Andy, what about the people who are losing out on their hard earned equity because of this mass exodus? Doesn't seem fair.

MAR

2007

About 500 Pfizer families are arriving here in Groton, Connecticut. It appears most of them are going to be taking advantage of Pfizers buyout plan. Pfizer is working with 2 major franchises here only so no opportunity for state to state referral fees. After all the referral fees off the top (about 40%) and then the company split.......I can't imagine many of the best agents are going to be willing to work for what is left. But that is another story.

Yes so far there is about 500, I have 4 lisitngs waiting to come on the market from Pfizer employees who are waiting for the written offer to come in. Actually I have been contacted by a RE/MAX agent in Conn to send her referrals on top of the relocation fee. I heard it was 35%. Many of the employees are not coming too tied into the community. I don't think it will be as bas as the media says...........but who knows they will be leaving through 2008 and then we will see. I enjoyed you at the RE/MAX Convention.

Thanks Missy. I enjoyed the convention and the panel! It is never as bad as the media says.

Many of the Pfizer people are registering on my IDX but when we follow up, they are tied in to specific agents.

FEB

Pfizer, Inc. Stockholder Proposal Edward Rudy and Edith Rudy, 21205 Yacht Club Drive, Aventura, FL 33180, who are the holders of 7,000 shares of Pfizer, Inc., common stock advise the corporation that they intend to present the following proposal at the Annual Meeting of Stockholders: "RESOLVED: That the stockholders of Pfizer, Inc,. assembled in annual meeting and by proxy, hereby request that the Board of Directors take the steps necessary to provide for an immediate reduction in stipends, fees, salaries, stock options, and/or other remuneration being paid to members of the Board of Directors, including Pfizer officers and executives who also serve as directors, to the exact percentage reduction which has been approved by the Board of Directors for dividends payable to the shareholders of the corporation and, furthermore, said reduction shall not be restored or payments to all Pfizer directors increased except in the exact same percentages as are approved for future increases in shareholder common stock dividends." The following statement is submitted by Edward and Edith Rudy in support of the proposal: SUPPORTING STATEMENT Shareholders who are the owners of Pfizer, Inc., have been informed that they will be subjected to A dividend reduction of 50% by the Chairman of the Board, Jeffrey Kinder, and we believe that, if this drastic and unprecedented step is necessary, the Board of Directors should fully participate with the non-director shareholder owners in the trauma of this decision. It will require a 100% increase in the drastically reduced new dividend rate for restoration to its former level. We believe that the Board of Directors may look with favor upon restoring the dividend rate because, with the approval of this resolution, the directors will benefit equally with the shareholder owners. If you agree, please mark your ballot in favor of this resolution; otherwise it is automatically cast in opposition to this shareholder proposal, unless you have indicated that you wish to abstain from voting on this proposal."

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