Home Marketing Assistance is best described as proactive marketing assistance designed to help the employee market the primary residence by designing a customized marketing strategy and assist with offer negotiations. This assistance may be provided independently or in conjunction with the Homesale Assistance Program.
In addition, Home Marketing Period is the time during which the employee may try to sell the home in the original location. This period may run throughout the appraisal process and/or Appraised Value Offer’s Acceptance Period. Some employers require a mandatory marketing period before the employee is eligible to accept the Appraised Value Offer.
Home Marketing Assistance for many corporate relocation policies can go hand in hand with an employer’s U.S. domestic homesale program. In this aspect, as it can relate to employees being offered an appraised value offer, the goal of offering home marketing assistance is to help reduce the number of inventoried properties. Exclusive of a homesale program, home marketing assistance on its own will enable a transferring employee the opportunity to price their home competitively from the beginning and position the transferring employee to receive the best possible offer during the marketing period.
When a relocating homeowner is prepared to sell their home, the home marketing process begins with two (2) broker opinions. Typically, two (and sometimes three) relocation trained Real Estate Brokers are selected and asked to provide an assessment of the relocating homeowner’s home. Their assessment is then compiled on the Worldwide Employee Relocation Council’s (ERC’s) Broker Market Analysis document and includes:
- A detailed market analysis to help determine a competitive list price for the home
- Suggestions on preparing the home for sale
- A recommended list price and anticipated sales price
- Information on competing and recently sold properties in the area
- A potential buyer profile for the property
- Follow up support and strategy recommendations
Most companies today will require their relocating employees to list the home within a particular percentage (103 – 105%) of the Most Likely Sales Price as determined by the average of the two (2) Broker Market Analyses. In addition, a home marketing period is defined in most client policies. Most companies require a home marketing period between 60 and 180 days.
- Home marketing assistance has shown an overall upward trend throughout the years; 75% of companies with homesale assistance programs always provide a formal home marketing assistance program and 11% of employers provide a formal home marketing assistance program only to certain employees.
- 90% of companies provide assistance with purchase closing costs; 23% provide the assistance to all transferees and most limit eligibility for purchase closing costs to those who are homeowners.
Above data collected from Worldwide ERC®’s Relocation Assistance: U.S. Domestic Transferred Employees 2013 survey and a sample of companies with U.S. domestic programs and is therefore not representative of all companies relocating employees. “Industry Relocation Trends” topic information intended for high level overview. For more detailed information, please contact your Paragon representative.