I WISH, would have to be my first response to this question. Does anyone in the Realtor community see a benefit to these dinosaur ridden companies that are looking for nothing but a handout? 37.5% as a "referral"?! You have got to be kidding me! This is truly the fleecing of America!
The first scenario goes like this: A client of mine who I had been talking to for months about listing their house, calls me last week and says that they are going to use the relocation company that their company offers. My response, was two things, first that might be good for you, because they will buy you out if you are unable to sell your property. Found out the answer to that one real quick was a big fat, "NO". The second positive to this I told her is that they could assist her in finding someone in their new city that would actually be qualified to help them find a home. Well, after two weeks of working with this person, we found out that one not to be true also.
The second scenario goes like this: A lady calls me out of the blue and tells me that she had found my services online and had been searching my website for houses. I told her that I would love to work with her and help in her transfer from Los Alamos, New Mexico to Chattanooga, Tennessee. After showing houses to her for a week, I receive a phone call from a Cartus Representative. Mr. King, we understand that you are working with Mrs. X and we won't to let you know that their will be a 37.5% referral that will need to be paid on behalf of her relocation. After a few expletives, you imagine the feeling of rape and shake down that I just felt. The next day while looking at homes, I mentioned this to my client. She was furious! She said that they had sent her to some horrible Realtor that had just started in the business and she refused to use. She had told Cartus that she would not be using their Realtor and she would be choosing a Realtor on her own. After much going back and forth with them, my client who was determined to have her way, told them that her Realtor was not paying a referral, they were not providing her with anything as far as relocation services and that they could take their referral and shove it! Needless to say, we are great friends now!
So my question to you out there is this. What do relocation companies really provide to a company? The buyers and sellers are so much more educated than they have ever been. This combined with the fact that Realtor, Mortgage Lender, Title Company information along with all the inventory of houses are accessible online now, makes me wonder. Will relocation companies go the way of the Dodo Bird? When I asked the relocation company the other day why their fee had gone from a raping 35% to 37.5%, their response was, "Our expenses have gone up, so therefore we have to pass that along to you the Realtor".
Where does it end? If you are out there and are so desperate that you need relocation company business to survive, then you need a different business model.
Realtor Ryan, Broker
Real Estate Partners