As Market Cools, Companies Look Into Home Sale Assistance Programs

As rents rise, home sales dwindle and the housing market cools, companies around the state and country are also feeling the ramifications. In what way?

Many businesses offer employee-relocation programs; they now should take steps to guard themselves from any potential negative fallout - and doing so is not as difficult as many might think, according to GMAC Global Relocation Services.

As the Florida real estate industry, for example shifts away from sellers - and toward Florida home loan buyers - companies will need to deal with the consequences of employee houses taking longer to sell. How can they help in such a situation?

“Instead of cause for pushing the panic button, we see this as an excellent opportunity for companies to carefully reexamine,” said Dawn Graffis, director of Strategic Services for GMAC Global Relocation Services.”And, if needed, fine tune their relocation home sale programs to ensure they’re benefiting and protecting employees as well as the companies themselves.”

In response to companies needed to deal with more unsold homes in their employee inventory, Graffis outlines a series of steps companies can take toward that goal, beginning with a thorough review of their program’s policies to determine if they are placing the company at risk. Companies should ask and answer a series of questions, including:

- What policy drivers do we use to limit the risk of taking homes into inventory?

- What is our philosophy regarding assisting transferring employees with home sales?
Moreover, here are several strategies for strengthening home sale programs and assuring that employees can find Florida home loans when desired:

- Marketing Assistance. Mandate a Marketing Assistance program which, among other things, provides transferring employees with access to approved Florida real estate professionals and comprehensive guidance in preparing their homes for sale.

- Broker Market Analyses. Require employees to obtain at least two broker market analyses from preferred Florida home loan brokers.

- List Price Control. Ensure that homes are priced accurately, and possibly place a cap on the listing price of homes based on the broker market analyses.

- Mandatory Marketing Period. Require a minimum marketing time of 30 days before employees may start the appraisal process; this, according to Graffis, can help companies avoid the significant costs associated with accepting homes into company inventory.

Overall, companies need to be aware of housing market conditions. If employees are searching for Florida home loans or looking to sell, they should be assisted in every conceivable way.