Survey Says Firms Lose When Selling Transferee’s Real Estate
Companies buy their transferred employees’ houses at fair market value but usually sell them at a loss, according to Runzheimer Reports on Relocation, an industry newsletter.
The average appraised value of employee houses purchased by corporations in 1987 was $116,135, an increase of 15.6% over 1986. But there was an average loss of 4.3%, or $4,993, on every house sold during 1987.
The average loss in California was about half the national average.
About 100 companies, with an average annual relocation volume of 197 employees, responded to the survey.
The newsletter noted that in strong real estate markets, employees tend to sell their own houses. Corporations are generally selling problem properties.
