A relocation company is a specialized business that assists employees in relocating to a new area for work-related needs. These companies are typically hired by employers to help their transferred employees move. Relocation companies provide a variety of services, from coordinating moves to handling real estate transactions. When an employee is transferred, the relocation company can help them hire movers and find a rental home.
If the employee owns a home, the relo company can assist with selling the old house. This provides an opportunity for outside buyers to purchase the property that the employee has just vacated. After the employer buys the house, the relocation company becomes the main party in the sale negotiations. Relo sales are sales managed by relocation companies rather than real estate agents or individual buyers and sellers.
Corporate relocation services often help with employee relocation assistance, which can include selling the employee's current home as well as buying a new home in the new location. The relocation management company (RMC) used by the employer, such as Lexicon, then buys the house on behalf of the company and sells it to the buyer. For the first few months that the house is on the market, it usually remains in the employee's name, and the relocation company provides pricing and marketing advice. Before accepting a position that requires relocation, it is important to review the relocation agreement to see what level of service you will receive for your move.
Relocation logistics services are usually outsourced today. Before the 1970s, employee relocation was usually handled by departments within a company. The relocation company will offer advice on pricing, marketing and any other advice to sell the house quickly. While relocation sales don't necessarily translate into quick-sale prices, buyers can count on the home to be priced right for their market.