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So your company is sending you to Bolivia, Timbuktu or maybe Calgary. You have to sell your home and the relocation company contacts you to arrange some of the “stuff.”

They are going to forward you some names of a few REALTORS to contact regarding the sale of your home.  This selection of REALTORS is based not entirely, on competency but mostly on the fact that they’ll pay the relocation company a referral fee of 30–45% of their gross commission. In addition, the agent may have to agree to some unusual reporting and marketing procedures and any other terms the relocation company might require.

So look at it this way: the relocation counselor calls the office and secures a REALTOR who will pay the referral fee, then gives you their name and contact information. In many but not all cases, the client who is moving has the ability to pick their own agent as long as they will agree to the terms of the relocation company.

Almost everything you receive from the relocation company and REALTOR is dependent on the plan your company has with the relocation company.  Some common things relocation companies may pay for are:

• REALTOR Fess
• Legal fees
• Movers
• House hunting trips
• Miscellaneous costs (Surveys ect)

Some companies may prefer to provide their employees a lump sum of money and let them negotiate and pay the costs that they feel will be most beneficial, as opposed to repaying them to the client after the fact.

In rare cases if you are moving to a market that is more expensive than the one you are moving from your company may offer you some type of “cost differential.” For example, lets say the house you have in Edmonton is worth $330,000 and the same or a very similar house in Calgary is $400,000.  They may offer you some incentives to take the transfer and some options to ease the pain of the cost differential.  It could be an interest free loan, maybe a one time moving bonus and so on. In some cases they offer you nothing, and tell you that your job is there and you have to be there by such and such a date or you no longer have a job.

So back to the referral fee. If the relocation company takes 30-40% of the commission off the top, you have to ask yourself is your Realtor going to advertise like they normally would and market the property as aggressively as they would if they didn’t have to pay the relocation company?

Many agents who do relocation work are simply awesome, some real estate companies however tend to dole out this business to people who really see it as a nuisance or entitlement.

Here are a few tip$ to get the most out of your relocation experience:

1. Get a copy of your relocation program.  Spend some time understanding this policy.
2. it is extremely important.  If you’re in the Military or RCMP you may be more familiar with your IRP (internal relocation policy) then most people are.
3. Make sure you understand the terms that the REALTOR who is going to represent you has to agree to and how that may affect you. There are some very good REALTOR’s who may not take on your home depending on the relocation company’s policy.

In many cases the relocation company is only under contract to the employer requesting the transfer and some things may have to be negotiated individually with your Human resources coordinator. If you are dealing with a REALTOR who has done relocation work they should be able to assisst you in these areas. 

Relocating your family can be stressful.  Working with the right REALTOR who has the knowledge of what you are dealing with and the relocation policies and how they might affect you will lower your stress.  In the end this can make your relocation a success instead of a stressfilled nightmare.