While home sale inventory levels are getting a little higher, there is still an overall home shortage to meet current Buyer demand. I sometimes get calls from stressed-out agents asking, "Trend says Agreement of Sale is to be in the name of Corporate Seller, is this a bank owned home? My Buyers are nervous to make an offer!"
As long as the agent entering the information in the MLS knows exactly what they are doing the answer is NO.
There are different types of Corporate Seller properties. Generally speaking, when the home is still being occupied by the homeowner and their name is on the deed, but the agreement of sale will be in the name of a corporation, this means it is a corporate sponsored move.
The homeowner is technically a transferee whose move is being paid for by their employer. In order for the employer and the transferee to realize certain financial and tax deductible benefits, there must be two separate transactions on the sale of the transferees home.
The first transaction is between the transferee and the corporation. The second is between the corporation and the buyer. Most often the transferee is still the primary decision maker regarding price, terms and inspection negotiations, and the corporation is more of a silent partner.
Somewhere between a week to two weeks before settlement, the corporation purchases the home from the transferee and then will be the primary decision maker for the rest of the transaction. This is typically limited to handling any last minute maintenance issues and approval of the settlement statement.
It is recommended that agents listing a home with corporate transfer benefits be Relocation Certified or have the support of a full time dedication relocation department. While these sales should not be stigmatized, in the right hands, there is a process to ensure a successful sale.
Do you have more questions regarding the relocation process? Contact our Relocation Team today!
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