1. Successful Relocation Representation
Presented by
REBAC

2. Introduction
To serve a transferee, a buyer’s representative needs to know
how the relocation process works.
the types of services a transferee needs.
where and how to find transferee business.

3. Introduction Outline Introduction Module One: How Relocation Works
Module Two: Building Relocation Relationships
Module Three: Providing Superior Service
Module Four: Developing a Marketing Strategy
Exam: 25 questions, multiple choice

4. Introduction

5. Introduction

6. Introduction What is the “Relocation Business”?
The relocation business consists of providing services to meet a corporation’s objectives in transferring employees from one locality to another.
It also refers to transferees moving to a new location where unique services are needed by the relocating buyer.

7. Evolution of the Relo Business
Corps. bought transferees’ homes and oftentimes took a loss, plus the properties are on the corps. books as assets
Economic expansion – increase in corporate relocations
Homefinding services
Equity liquidation services
Third-party relo companies
corporations were stuck holding the property longer than originally anticipated
Losses are transferred to the corp. If employees bought poorly, corps were at risk if employee transferred again

8. Today’s Relo Business Established third-party relo companies
National referral networks
Relo departments in large brokerages
Brokerages competing with relo companies
Relo organizations using buyer’s representatives

9. Module One: How Relocation Works

10. Module One: How Relocation Works
Objectives
explain the relo process
identify roles and expectations
describe compensation methods

11. Relo Market Segments Third-Party Companies Buyer’s Rep Transferring
Corporations
Transferees

12. Transferee/Broker Relocations
1. Handle tasks
2. Hire listing agent
2. Hire buyer’s agent
3. Sell origination res.
3. Buy destination res.
4. Move

13. Roles: Transferee/Broker Relo
assumes all responsibility for how the move transpires
may sell by owner or hire a listing agent
may purchase alone or hire a buyer agent
Origination broker and agent
assume more responsibility, non-real estate-related tasks
Destination broker and agent

14. Corporate/Broker Relocations
1. Define Relo Package
2. Handle tasks
3. Hire listing agent
3. Hire buyer’s agent
4. Sell origination res.
4. Buy destination res.
5. Move

15. Roles: Corp/Broker Relo
All parties
share the moving tasks, with no necessary consistency from one transaction to the next.
Employer/corporation
manages some non-real estate aspects of the move.
usually refers transferee to local listing broker in the origination market.
Occasionally refers transferee to broker in the destination market.
takes full responsibility for buyout contingencies unless the brokerage network has a home equity program.

16. Roles: Corp/Broker Relo, cont.
Transferee
deals with any move-related tasks that the corporation does not take on
if no referrals, finds agents or perhaps chooses to work without representation
Origination broker and agent
usually refers transferee to a buyer rep or listing agent in the destination market
assumes some responsibility for the move
Destination broker and agent

17. Third-Party Relocations
1. Define relo Package
2. Notify relo company
3. Refer to broker/relo dept
4. Assign listing agent
4. Assign buyer’s agent
5. Sell origination res.
5. Buy destination res.
6. Move transferee

18. Roles: Third-Party Relo
Corporation
contracts the relocation company
Relocation Company
orchestrates all aspects of the move
refers transferee to listing broker (origination) and buyer representative (destination) or to brokerage with relo department
handles transferee’s equity liquidation if needed

19. Roles: Third-Party Relo, cont.
Origination Broker and Agent
sells the home at the best possible price
responds to the requirements of the relocation company
interfaces with the destination broker
Destination Broker and Agent
finds a home that meets the transferee’s needs within the time constraints
interfaces with the origination broker

20. A. The employee becomes a transferee
… and typically receives a buyout package:
relocation schedule and deadlines
allowances for travel, moving and temporary housing
buyout package
provisions for transaction costs
other contingent and out-of-pocket costs

21. Recent Trends Flat fee packages Incentivized packages
Risk-sharing packages

22. B. The relo co. initiates the move
Counseling
Start up actions
Movers, temp. housing, refer to listing and buyer brokers, appraisal, other (family needs)

23. C. Sale of residence Listing referral Determine initial representation
Buyout package
Closing and reporting

24. The Buyout Package Typical (relo company “buys” house)
relo company advances funds
corporation pays interest until sold
corporation reimburses for sales deficit
Market-driven (transferee holds house)
based on CMA or appraisal
longer marketing period
relo company pays transferee only when house is under contract

25. D. Purchase of the new home
Preparations
Prequalification, researching the neighborhood, (schools, amenities, etc.)
Home search
Closing and moving
Financial reconciliation
Financial report is sent to the corporation

26. Relo fee (net of referral)
E. Compensation
Corporation
Relo co.
Relo fee (net of referral)
Referral fee
Orig. Comm.
Dest. Comm.
Dest. Broker
Co-ops
Agents
Orig. Broker
Comm. split

27. Compensation: Relo Company
charges the corporation a fee (flat, cost-plus, or other)
referral fees are credits to the corporation against the relo company fee

28. Compensation: Brokerage Relo Dept.
Flat fee
Split of commissions on listing and/or selling

29. Compensation: Licensee
Relo company gets paid first
Agents split listing/selling commissions with broker and co-operating brokers

30. Discussion Questions

31. Module Two: Building Relocation Relationships
Objectives
outline basic legal responsibilities
identify requirements of transferees
identify requirements of relocation companies and corporations
identify ways of developing relationships with transferees, relocation companies and corporations

32. Discussion Question

33. A. Profile of Transferee
pressure
resistance
ignorance of community
stress
family
self-involvement
ignorance of process
pre-qualified
repeated transfers

34. B. Service Philosophy

35. C. Fiduciary/Statutory Duties

36. Scenario

37. Scenario Disclose all pertinent information Advise of any risks
Allow the CLIENT to make the informed decision (who is the client, transferee or corporation?)
Verify client relationship according to your state law

38. The Corporation Wants happy transferee efficient move limited exposure
maximum sale price
marketable new property
move handled by others
relo company to work smoothly
on-schedule move
full accounting

39. Relationship Tips: the Corporation
be cost-conscious
observe relo etiquette
discover wants and needs
don’t overpromote
treat transferees right
make the corporation’s job easier
don’t waste time

40. Discussion Question

41. The Relo Company Wants smooth relo on time and on budget
full-price sale
marketable new property
experienced agents
attention to corp as well as transferee
preparation of transferee
understanding of buyout agreement
assistance in qualifying
advance info on properties

42. Relationship Tips: The Relo Company
coach transferee to “buy right”
aim to reduce the cost of the transferee’s next move
understand how the relo company gets paid
meet urgency with action
fit in to the relo company and corporate cultures

43. Review Exercise Two
List the five most important things to the following parties in a relocation transaction:
Relocation company
Employer
Transferee

44. Module Three: Providing Superior Service
Objectives
prepare to represent a transferee
identify a transferee’s relocation needs
orient a transferee to a new community
describe a method of locating a home for a transferee
assist in completing a relocation

45. Preparation Initial call Relocation packet
Establish a foundation while being cautious not to create an agency relationship
Relocation packet
Includes general information and paperwork to begin the process.
This should be sent immediately following the initial call.

46. Preparation
Prequalification checklist
Area
Property
Financial
Family

47. Qualifying Methodology
Ascertain needs over time
Be flexible
Let transferees qualify themselves

48. Preparing a Guidebook
Guidebooks are used as a reference throughout the relocation transaction.
Includes:
forms to be completed
daily schedule
list of homes to be shown
time frames

49. Finding The Right Home Show area, communities, neighborhoods
Show properties
Advise clients on how to “buy right”
1. AREA
3. NEIGHBORHOODS
2. COMMUNITIES
4. PROPERTIES

50. Counseling to “Buy Right”
at or below market
high appreciation
stable neighborhood
quick turnover
least expensive
good schools & services
low taxes & assessments
Wrong 
over market
low appreciation
declining neighborhood
one-of-a-kind
most expensive
incomplete subdivision
stigmatized

51. Negotiating for the Buyer
Strengths
pre-qualified
not contingent on sale of previous residence
Weaknesses
urgency
vulnerability

52. Servicing Tips - 1 Pay attention to the situation
Keep your eye on the transferring family
Listen and remember
Avoid self-promotion
Never make assumptions
Provide information
Be flexible

53. Servicing Tips -2 Get along with the buyers Follow the buyers’ lead
Let the transferees take responsibility
Empower the transferees
Let the transferees make the decision
Let your actions promote your value
Instill trust and a sense of security

54. Servicing Tips -3 Move at the transferee's pace
Appreciate the eagerness to get it over with.
Expect a close relationship
Avoid "Rule 20”
Help transferee buy a marketable house
Keep the buyer and yourself in the center of the transaction.

55. Module Four: Developing a Marketing Strategy
Objectives
assess relocation representation opportunities
identify ways to market relocation services
develop a personalized relocation marketing plan

56. Assess Yourself Income potential Time pressure Emotional strain
Information requirements
Learning curve
Non-financial rewards

57. Assess Your Market
Size
Volume
Competition
Ease of entry

58. Some Specialties geographical area type of employee
cultural/language background
origination market
price range
age group

59. Guidelines for positioning

60. Marketing: Third-party segment
Targets: relocation companies
Messages
specialization
process knowledge
full service
Approaches
promotions
directories
connections

61. Marketing: Corporation Segment
Targets: smaller local corporations
human resources/relocation manager
Messages: same as for relo company, plus
unique services
understanding of corporate needs
more time to spend on transferees
Approaches
promotions
calls and presentations to companies

62. Marketing: Transferee Segment
Targets: Individuals
professionals, government employees, business owners
Messages
full representation
process knowledge
all the properties
Approaches
promotions
advertising
market presence

63. A Marketing Plan Transaction/Income Goals Target Types
Marketing Messages
Marketing Budget
Marketing/Promotional Programs
Allocation of Resources
Action Schedule

64. Final Thoughts on Succeeding in Relocation Representation
Know what your market will let you do.
Know what you have to do.
Go after the right targets.
Provide superior service.
Be prepared.