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Pre-Marketing Pre-Marketing Assistance ProgramsAssistance Programs

Coalition Corner:Business training tools for HR staff, real estate licensees and other service professionals in the relocation and real estate industries

© 2005, Employee Relocation Council/Worldwide ERC® Coalition

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Program Objectives

• This program supplements a monthly editorial feature in ERC’s Mobility magazine

• This segment will allow users to:

– Explore the stages of a typical pre-marketing assistance program (as used in employee relocation-related property sales)

– Identify reasons why such programs are effective tools and are widely used in corporate relocation

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Overview

• The sale of a transferring employee’s home is one of the most crucial/expensive elements of the relocation process

• Pre-marketing assistance helps reduce the number of inventoried properties for employers/relocation management companies (RMCs) and offers professional assistance/advice to employees

• Pre-marketing assistance programs can help achieve open market sales that realize maximum market value

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• Employer-generated referral, typically to two experienced, preferred brokers, either directly or through RMC

• Agents typically asked for one- or two-step appointment process, in order to:– Present professional credentials and establish rapport

with employee – Gather information necessary to complete ERC Broker’s

Market Analysis and Strategy Report (BMA), enabling a comprehensive analysis to arrive at recommended list/projected sale price

– If two-step process is required, results of BMA/formal listing presentation may be reviewed during the second visit

How the process works...

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How the process works...

• Once RMC/employer receives completed forms, transferee is guided through process and listing agent is selected

• Agent is notified and listing is taken, incorporating an “exclusion clause,” which will allow the employee to sell his/her home to employer/RMC if necessary (without incurring additional commission)

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Other Information

• Many relocation policies incorporate a variety of ways to encourage employee-generated sales, helping employee have greater involvement in process and helping keep costs down

• Examples include:– Limiting the list price to a percentage of the BMA value– Offering an employee bonus/sale incentive (1-3% on

average) to be paid upon closing– Requiring a specific marketing period– Delaying the appraisal process

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Conclusion

• Successful pre-marketing programs offer win-win for all parties involved --

– Employees feel more in control of process and more satisfied with sale price and/or bonus

– RMCs or employers are able to keep costs down, reduce risk exposure and number of homes in inventory

– Real estate professionals achieve successful sales and earn commissions

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For More Information...

• For a copy of the ERC Broker Market Analysis and Strategy Report (BMA), see the “Publications, Resources and Forms” section of ERC’s website at http://www.erc.org/PERC_USA/resource_center.shtml

• For more information on the exclusion clause, see http://www.erc.org/coalition/tax_legal/tax_home-purchase-programs-exclusion-clause.shtml