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Expand Your Horizons: Challenges and Impacts of Homeowner to Renter Transition

This article explores the challenges and impacts faced by homeowners transitioning to renters, including loss of equity, extended selling time, credit issues, and uncertainty. It also discusses the effects on corporations, transferees, and service providers, and provides potential policy solutions and future impacts.

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Expand Your Horizons: Challenges and Impacts of Homeowner to Renter Transition

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  1. EXPAND YOUR HORIZONS Make the Right Connections Homeowner to Renter Challenges

  2. Homeowner to Renter Defined Transferee Choice: Loss of equity Insufficient equity Home not selling Extended selling time Uncertainty Credit issues Corporation supporting destination rental: Moving to High Cost Area Anticipated additional move w/in 2 years Employee moving from depressed market Critical talent

  3. ERC Survey Results – Reluctance to Relocate Source - ERC 2010 Transfer Volume & Cost Survey and ERC 2011 Transfer Volume & Cost Survey

  4. Assignments 2007-2011 Source – Wm French Buyers Real Estate Services, Inc.

  5. 2007-2011 Buyer Assignments Who Rented Source – Wm French Buyers Real Estate Services, Inc.

  6. Homeowners Choosing Not to Purchase at Destination Source - Altair Client Data

  7. ERC Survey Results

  8. Buyer to Renter Ratio Source – Wm French Buyers Real Estate Services, Inc.

  9. ERC Results – Homeowners vs. Renters

  10. Homeowner to Renter Impacts • Corporate • Transferee • Service Provider

  11. Declined offers for relocation Increased recruiting efforts Increased costs Loss on sale Property Management Dual Housing Decreased costs No Home Saleneeded Increased exceptions requests Storage Multiple moves Temp Housing Distracted employees Alternative policy type needed Potential management fee impacts Corporate Impacts

  12. Transferee & Family Impacts • Refusal to move or move uncertainty • Extended family separation • Difficult decision process • Not selling departure home, dual housing • Need more benefit $$$ • Lower Rental Supply (single family homes)

  13. Change in move type Potential pricing changes Change in counseling process Reduced RMC revenue Supplier fees impacts Higher level rental assistance need Lease negotiation Destination services Fee increases Reduced broker/agent revenue Service Provider Impacts

  14. Rental Market Challenges • Foreclosure Impact • Decreased Rental Inventory (single family homes) • Non professional homeowner landlord challenges • Increased emotional connection • Landlord driven market • Increased pricing • Decreased negotiation • Increased rental requests • Property search issues (MLS, Craig’s List) • I

  15. Loss on sale Short Sale counseling Dual housing Extended home purchase Extended storage Property Management Rental Subsidy Increased destination/rental assistance Incent to rent Policy Solutions Today

  16. Future Impacts • Real estate impacts • Future solutions • Alternative move types • “Now am I a renter or homeowner?”

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