By John Reeves, CRP, Director of Client Development

Recently my colleague Chris Finckel blogged about a challenging decision many transferees face today.  The title of his blog referenced a song by The Clash-Should I Stay or Should I Go?  I loved this Chris! One of my favorite Rolling Stones songs was playing recently -You Can’t Always Get What You Want.  “…You can’t always get what you want, but if you try sometimes you just might find, you get what you need…” 

This concept might be the new reality for many real estate sellers as they navigate through volatile economic waters.  The ability to adjust to economic currents and refocusing their objective of setting the right marketing strategy to sell should become the realistic expectation.  The root meaning of “real” as defined by Merriam-Webster – \ˈrē(ə)l\ Function: adjective “Not artificial, fraudulent, or illusory”. 

Many sellers base their worth or want because of what they paid, instead of adjusting to the realities of the market.  Sellers often make the fatal mistake of setting the initial listing price unrealistically high so that by the time they reduce the price, it is too late. Capital Relocation Services supports corporations using The Low-Stress Relocation Process™ to assist relocating employees by developing marketing strategies and pricing recommendations to maximize the effectiveness of selling their home.  

I know this will be painful and difficult for some sellers because they know what they want.  However, by keeping a realistic mind set you just might find, you get what you need.

By:  Robert Penaloza, Vice President, Business Development

In the beginning of any prospective new business relationship, the importance of asking the customer the “right”, and often times, “tough” questions, is crucial. Listening to the answers to those questions takes experience, skill and the ability to really “listen”.

Improving listening skills is beneficial to everyone, not just those involved in new business development activities.  In the sales arena, good listeners will be seen as a collaborative partner in the discovery process, and the speaker is more apt to listen to your spoken word.

There are hundreds of books and classes on the ‘art of listening’.  Don’t have the time to read a book or take a class?  Here are some quick tried and true reminders:

• Give the speaker your undivided attention
• Recognize what is not said
• Demonstrate your attention to the speaker using the right body language
• Provide feedback by asking & clarifying questions
• Don’t interrupt the speaker. Listening is not a race.  Interrupting frustrates the speaker and can limit the listeners full understanding
• Silence is golden.  Give the speaker time to tell you everything they have to say. 

If you need someone to help solve a mobility challenge within your organization, Capital Relocation Services creates unique and valuable relocation solutions using our proprietary Low Stress Relocation Process ™.   Yes, we will ask you some tough questions that you may not know the answers to, but don’t worry, our experienced and skilled staff know exactly what to listen for.

by: Melissa Gabriel, Closing/Reconciliation Specialist

Every Capital Relocation team member provides crucial support to our clients and their relocating employees.  Capital’s financial services area operates as the “critical care unit of the company”.

As Capital’s Closer/Reconciliation Specialist, I manage the financial parts of each transaction from acquisition of the property through closing. This includes:

• Ordering of property insurance
• Acquisition billing
• Mortgage set-up/payoff
• Prompt payment of funds to our transferee
• Reviewing and approving all closing documents and cancellation of property insurance, among others

It is critical that we prepare and manage our responsibilities to insure equities and mortgage payments are processed in a timely manner. Capital’s clients and their relocating employees rightly expect accuracy and efficiency which Capital delivers.  To meet these demands:

• Capital’s finance team performs regular quality control reviews as a key function in ensuring that all transactions are satisfactorily completed and reconciled.
• Capital’s finance team examines the system data base (CAPITAL VIEWS™) for data integrity which ensures accurate reporting, reconciling and closing of the file.

These are just a few of the fundamental functions of Capital’s Finance Group. All of which are very vital in our daily operation. The goal of this department is to sustain life – and we are the ultimate life support system.

Learn more about Capital Relocation Services by visiting us at www.caprelo.com and get details of their Low-Stress Relocation Process™ .

By: Chris Finckel, Director of Business Development, CRP

Famous lyric’s from an 80’s song AND a tune on the minds of people considering relocating.

Employees considering relocating must ultimately decide—- should I go?

Before coming to a conclusion, the following questions must be answered carefully:

• What is my current financial status?  Can I afford to move?
•  Can I sell my home AND deal with the financial impact of that sale?
• What is in the foreseeable future of employment and the economy at my current and new locations?

The effects of the housing market and economy have corporations struggling with relocation budgets. According to the 2008 Worldwide Employee Relocation Counsel Transfer Volume and Cost Survey®, 70 percent of organizations report having at least some minor problems with employees reluctant to relocate. The top three reasons for reluctance to relocate cited by organizations are financial in nature. Similar to last year, the top reason is the direct result of the weak housing market.

The relocating homeowner is concerned that they will not be able to sell their current property, or, if it does sell, there won’t be any equity to purchase a new home.

These economic factors have created an atmosphere of uncertainty for corporations and relocating employees alike. To help reduce the fear of relocating, corporations should consult a relocation company to help meet their strategic objectives with their recruiting and retention challenges. 

It is everyone’s hope that our economy stabilizes, and consumer confidence returns. Until then, Capital Relocation Services can help map a cost effective approach to relocation through our The Low-Stress Relocation Process™.

Peter F. Hiro, Vice President of Business Development, CRP

We’ve experienced financial and emotional issues in dealing with the economy over the past couple of years. Positive thoughts in the early 2000’s of ever increasing net worth in savings accounts and housing made it easy to forget that “what goes up also does, indeed go down”.  Companies are relocating more employees facing loss on sale (LOS’s) and negative equities.

When considering a loss on sale policy, companies should consider: 

• Sharing the loss with the employee vs. absorbing the entire amount
• Capping the dollar amount of the loss
• Including only the purchase price VS the purchase price plus improvements
• Removing the tax gross up on loss reimbursed
• Drawing a distinct line between loss on sale and negative equity

Let’s look at how employees and employers should act:

Employees have learned that they are responsible for their actions. Companies are less likely to “fix” a buying mistake an employee makes. Transferees should “buy smart”. How?   By:

• Spending the time necessary to know the market they are moving to
• Use experienced relocation Realtors®
• Proving it’s a “good buy”- have the Realtor® complete a broker’s market analysis on the property being considered
• Purchasing a property with features that appeal to the mass market for easier resale

Employers want transferees to “buy right”.  How?  By:

• Giving the employee the time and tools to buy smart (area tours, temporary housing, and home finding trips)
• Requiring the use of professional relocation Realtors® 
• Requiring the employee know their equity position on their current property before purchasing a new one

To summarize, the employer and employee may minimize LOS’s and negative equity by taking the necessary steps to “buy right” up front.

Capital Relocation Services helps our clients develop policy that supports their strategic intent using our Low Stress Relocation Process™.

By: George H. Herriage, SCRP, GMS, Vice President – Client Development

Washington, D.C. is on vacation in August.  Traffic is a breeze, unless you are headed to the beach. I find it amazing and liberating to arrive at work with a lower level of stress.  We are winding down another successful summer, my 9th with Capital.   As laid back as August can be, September will rush in with its own urgent demands.  Work demands like budgets, strategic planning, finishing the year out strong, and personal demands like back to school, college, football and …traffic.  So, what are you doing to enjoy this final calm before the chaos returns?   If you are out there, pop me an email at george.herriage@caprelo.com to let me know you are with me – while you have time.

By: Kim Traylor, CRP, GMS, Senior Relocation Counselor

From Capital Relocation Services support center located on-site at Wal-Mart’s home office in Bentonville, AR, I have the privilege of being the first to introduce the Wal-Mart candidate to the area.

I explain to an anxious candidate what a beautiful part of the country Northwest Arkansas really is. I coordinate area tours with experienced, local real estate agents that include visits to parks, school and college campuses, Wal-Mart & Sam’s Club stores, neighborhoods, shopping centers, restaurants, golf courses, churches, housing and much more. The candidate experiences the culture and taste of the local flavor of the area.

Area tours, held privately or in a group, answer many pressing questions top of mind to a candidate. For example:

“Can I afford to relocate?”

“What type of housing is available?”

“Can my family make a smooth transition?”

“Will the schools provide my children with a quality education?”

“What are the extracurricular activities available?”

Capital offers area tours, pre-hire counseling, relocation packets, and more to clients and their transferees through our website at www.LiveBetterInNWA.com and www.livebetteranywhere.com. These sites provide excellent reference materials and serve as ongoing resources to the candidate before and after their move.

In today’s market, considerations around relocation are more complex than ever. Is moving a worthwhile investment for the employee and the employer? Not sure if your relocation provider is on track to meet recruiting and hiring objectives for the remainder of 2009 and 2010? Capital can “connect the dots” in making the “right” investment for your industry and employee using our proprietary Low Stress Relocation Process™.

While enjoying my traditional Saturday morning latte and muffin, I found myself allotting 2+ hours of my day to grocery shopping, which in the past, took an hour.  After some thought, I concluded that I am scrutinizing prices of every item, looking for sales, and agonizing whether my household really “needs” that extra can of soup, all in an effort to save a few bucks.  

The negative press about the economic environment means many companies are scrutinizing spending and challenging everyone with finding ways to cut cost. Unfortunately, this pressure is compelling companies to make hasty decisions about relocation benefits that are seemingly expendable, like cutting or reducing the tax gross up benefit.

The elimination of critical benefits like gross-ups from a relocation program will have a negative impact on recruiting, retention and the transferring employee. 

There are ways to reduce gross up expenditures.  Begin with an expert review of your relocation program and exceptions and determine which benefits can be modified.

For example:

• Eliminate direct reimbursement of home sale costs and employ the use of a home purchase program 
• Consider  mandatory home sale marketing periods, offering buyer concessions or providing some loss protection. This may encourage the employee to accept an outside offer sooner.   

These benefits are at cost but it may be less than extending the pricey taxable (grossed up) benefits:

• temporary lodging
• return trips to visit family
• duplicate housing assistance 

Remember!  The sooner the old home sells, the sooner the employee and family will settle in their new environment, allowing the employee to focus on their new job.

Thinking about eliminating that extra can of soup from your relocation program to save a few dollars?  Contact Capital Relocation Services first.  Let us review and transform your relocation program.

Are you ready for the next big change in our industry?  Do you ponder what these changes may be and when they may occur?  So do I!  I am certain  that our industry has adjusted to address the current trials in today’s business climate.  My experience also tells me we will cycle back to some of the challenges we dealt with in the past and will be dealing with tomorrow. 

The questions are:

First:  What are you doing to prepare for the next evolution in our business cycle?  Change will likely be gradual rather than rapid like we saw over the past 18 months.  At Capital, we are aggressively managing all elements of our business to reflect today’s business environment being mindful of talent retention.  Capital continues to work with our clients to effectively manage the current environment while preparing rapid responses to guide them to maintain high level of employment centric programs during ameliorating real estate markets.  Anticipating change with an agile response system is a cornerstone to the success we are experiencing now and will have downstream.  Finding the right practice for each client’s business objectives and culture is our focus.

Second: What are you doing to learn from today’s business climate as you did from the past? Becoming a learning organization is pivotal towards building the right company culture to thrive during any business change.  We strongly believe that chronicling stories throughout theses changes are instrumental methods in imprinting the proper DNA into our own culture.  Build and document accounts of what you have done personally and professionally to navigate through today’s turbulent water.  Convey those stories to your team.  Most importantly – continue to tell the stories as time and personnel change.  They will become an important response mechanism when the next bubble bursts.  Leave your organization a legacy and tools to face whatever tomorrow brings.

George H. Herriage, SCRP, GMS

Vice President – Client Development

Capital Relocation Services

703.260.3052

gherriage@caprelo.com

www.caprelo.com

A few weeks ago, a “For Sale” posted in front of a house at the entrance to our cul-de-sac. On top of the sign was a statement, COMING SOON! While not considered a momentous occasion in today’s environment, our cluster of twelve homes has had only one home for sale in the fourteen years of the development’s existence.  Sadly, we were losing a long term friend and neighbor. We were also going to become part of today’s statistics. No longer could we insulate ourselves from “the down market”. Gone would be the days of estimating the value at the height of the market, hoping it would hold up, Our neighborhood would soon be faced with having a true comparable sale (hopefully) to lend credibility to the value of the remaining homes. 

As a true, nosy, neighbor, I immediately went to the real estate company’s website, then to Realtor.com, and then to Trulia.com, in my quest to find the dreaded, low list price. To my chagrin, COMING SOON! Really means “we know the price, but we’re not going to tell you”. I could call the listing agent, but then would be required to register my name. Horrors! They would have my name and number from caller ID. Instead, I waited, diligently checking (twice) daily. My search had become an obsession.

It’s been three weeks, and the COMING SOON! Rider glares at me each morning when I leave for work and welcomes me back when I return in the evening. A trick of the trade in real estate is to keep the listing ‘in house’ as long as possible so that the listing company can earn both sides of the transaction. While morally suspect, it is also in violation of many Multiple Listing Service (MLS) requirements.

Could this listing company be purposely delaying the release of the listing, thus sparing me bad news? Is the house built over a nuclear dump site and the EPA is deciding the best course of action to take? Are the sellers reconsidering the decision to move?  Is there confusion over how much to list the property for? 

So, what is the “right practice”? Is this home listed or not? Could someone please tell me the definition of SOON?

Rick Bruce CRP, GMS

Director, Client Development