C O A L I T I O N Corner Pre-Marketing Assistance 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

C O A L I T I O N Corner 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

C O A L I T I O N Corner 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

C O A L I T I O N Corner 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...

C O A L I T I O N Corner 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)

C O A L I T I O N Corner 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

C O A L I T I O N Corner 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

C O A L I T I O N Corner 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 For more information on the exclusion clause, see exclusion-clause.shtml