Can't Sell Your Home To Relocate For A New Job?

Corporate Housing Will Rent Your House

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June 3^rd, 2011

 

Although some homeowners may have found a new desirable job located in another city or state, relocation seems impossible as many homeowners who are ‘underwater’ with negative equity, experience tough challenges in selling their homes. Currently, more than 25% of U.S. homeowners are categorized ‘underwater’ or owe more than their homes are worth. Selling their homes at today’s prices will force them to take a huge loss.

 

Diane Olick, a CNBC real estate reporter recently discovered an interesting opportunity and solution for underwater homeowners eager to relocate elsewhere for a new job but unable to do so as they are trapped with the immobile dilemma. For example, a homeowner located in Los Angeles finds it difficult to relocate for a great paying job in New York as he or she is unwilling to sell their home at a loss of $250,000. As a result, the homeowner has to let go of the job opportunity.

 

Alternative Way Out Without Losing

 

There seems to be an increasing demand for temporary corporate housing and not just limiting to large apartments. Homeowners are renting out their homes to corporate housing so they can easily relocate and not sell their homes at a loss. This strategy provides homeowners with peace of mind when moving across the country to earn income provided for, by a new employer.

 

According to Kimberly Smith, founder of CorporateHousingByOwner.com, a portal that fills in the need for homeowners in search of corporate renters, receives numerous calls by the hour from homeowners enquiring about renting their homes. Ms Smith who is also president of Corporate Housing Providers Association (CHPA) says that the opportunity to find a corporate renter willing to rent your fully furnished home is proving to be a hot emerging real estate trend. 60% of the homes listed on their website were rented as a result of homeowners’ relocation needs. Demand is increasing as corporate apartment rentals prices rose due to increasingly strong demand.

 

The current U.S. housing market is at a limbo with millions of struggling homeowners subdued by the high unemployment rate and unable to pay their mortgages. Some have found help through affordable government programs while many were rejected as they did not meet the requirements. Housing analysts are now delaying the bottom in home prices and calling a possible bottom to be reached by next year or 2012. As some homeowners are lucky to have found jobs elsewhere, they are unwilling to sell their homes at a loss in order to relocate.  

 

Kimberly Smith discovered troubling news while having lunch with an executive headhunter. He revealed that corporations were broadening their search for job applicants as they did not want to end up with an employee who is experiencing trouble with their ‘underwater’ home. Corporations may discriminate against job applicants based on the status of their financial struggles.

 

For many homeowners who are job seekers, this is disturbing news. As gloomy it may seem, corporate housing rentals maybe one of the few alternatives for ‘underwater’ homeowners seeking a way out to relocate for a new job.

 

 

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