Home value in excess
 

Saw SM made mention of the way home appraisal value is determined for excess bid purposes. Made it seem like there is a gotcha in there. Anyone have info?

My realtor says company purchases can be a REALLY good deal for the seller (us)

I'll bite. The relocation company (Serva) provides you a list of appoved appraisers in your area. You then choose 2 from the list. They come out and do a "relocation appraisal" which typically is less than a purchase appraisal. If the two appraisals come back within 5% of each other they then average the two and that becomes your buyout offer. You can accept or decline. If they are outside of the 5% they then bring in a third appraiser.

If you accept a buyout, Serva will then have a home inspector come to your house and do another inspection. Serva will then come back with a list of required repairs that need to be accomplished before they buy you out. In my case they also had a mold inspector (every house has mold by the way) and structural inspector come out. Serva will then make a list of required repairs. In my case it was 10 different things. Some of it was small stuff, but I had to pay for mold mitigation and they wanted me to move my electrical service. Two months and $3500 later I finished the inspection process and Serva (FedEx) took over my house. My biggest beef with the home inspection process is it's not spelled out in the contract at all. ALPA wasn't a lot of help either (this needs to be grieved). It was also hell dealing with Serva and the FedEx Relocation Department Head. They made every step painful to say it kindly.

FedEx took over my house in August and promptly dropped the price $25,000 less than what they cashed me out. As of last week it's still on the market. I figure the total cost of taking an excess and the Option 1 move will cost the company well over $100,000. That's taking into account the loss they will take when my mine finally sells, all the closing costs involved, paying the moving company to pack and unpack, 10 airline tickets, etc....

I am the poster child as to why an excess is so expensive. The crazy thing is if I get bumped out of ANC I'm going to have them move me again.

Excellent!
 

Spread the Word everyone. Make it expensive for them. And thank God for the contract!

My house will be FedEx owned given the chance. I figure I will make up the recent loss in value with all of the other stuff that is required to be paid in the relocation package.

I have heard varying stories. If I am excessed out of ANC to MEM will the company buy my house in City "Y" to move to MEM or only a home in the ANC area?

I was talking to an ANC junior captain that lived in the lower 48. When it looked like 08-03 was going to go through, he looked into and they WOULD have to buy his house, even though it was not in ANC. I think he had to move within 100 miles of Memphis, though. Disclaimer: I'm not an expert here.

Spoke with Contract Enforcement last go around. FedEx has to buy your house in city "Y", but you have to move to within 100 miles of your new domicile.

What if you had refused to fix the items? CBA doesn't you have to fix your house then they buy it? Could have reduced the price?

Thanks for the details.

Question: While it cost you $3,500 in "repair costs" before FEDEX would accept your house, how did this compare with the costs you would have incurred if you sold it yourself conventionally?

(i.e. Home repair costs demanded by Joe Avg Buyer, cost of sales agent, other seller incentives one may have to offer in today's real estate market)

Not sure on the value of your home, and thus what percentage $3,500 represents, but perhaps it was still a much better deal than selling it yourself.

Please opine.

Thanks.