Caterpillar is launching a program to aid the sale of real estate in the Peoria area with the goal of minimizing the impact the global headquarters move may have on the Peoria, IL real estate market.
Effective immediately, buyers of homes being sold by any Caterpillar employee in the Peoria area who is relocating under a Caterpillar program will receive a three percent incentive as part of the company’s Peoria-Area Market Sustainability Program. The buyer incentive will also be provided for homes managed under Caterpillar’s relocation inventory.
The three percent incentive, calculated based on the net sale price of the home, can be used for a variety of benefits to the buyer including an interest rate buy-down, home repair requests and/or closing costs, subject to the lender approval.
Impacted employees were notified of the incentive program this week and Caterpillar will also be doing local media outreach this week. We have also provided a few questions and answers below to further your understanding of the incentive details.
Thank you, in advance, for your support of this program. Caterpillar’s intent is to proactively help address the health and well-being of the Peoria real estate market.
Q1: Who is eligible for the three percent incentive?
A: Any buyer of a Caterpillar relocation program home in the Peoria area is eligible.
Q2: How long will the three percent incentive last once a home goes on the market?
A: The incentive is effective immediately and we expect it to mirror the timeline of the overall headquarters transition.
Q3: Is this the first time Caterpillar has offered a home incentive program like this? If so, why?
A: Yes. Caterpillar is a major player in the Peoria-area job market, and we recognize the impact that both our long downturn and this relocation may have on the real estate market. This incentivized program is also similar to programs offered at other companies that have reestablished global headquarters. Our intention with this program is to minimize the impact to the Peoria area.
Q4: How is “the Peoria area” defined in this context?
A: The scope reflects the communities served by the Peoria Area Association of Realtors.
Q5: Does the home have to be related to the headquarters move?
A: No, any Caterpillar relocation program home in the Peoria real estate market is eligible for the incentive. This may include homes from employees relocating for other jobs within the company.
Q6: How will a buyer know which houses are being sold by Caterpillar employees?
A: The incentive will be included in the listing details of the home. Area realtors have also been provided detailed information of the program and are prepared to assist buyers.
Q7: How many Caterpillar homes do you expect to be added to the market as a result of this headquarters relocation?
A: We cannot predict how many homes will go onto the market as a result of the headquarters move. It is important to note that some relocating employees may elect not to sell their home, choose to rent out their home, or utilize opportunities that best fit any number of personal situations. Additionally, not all homes will be coming onto the market at once. The transition to the new headquarters will take place beginning later this year and continue through mid-2018.
Q8: What is the expected expense of the program to Caterpillar?
A: While this will add some cost to the overall headquarters relocation, we are not disclosing the specific cost details of the incentive program.
Q9: Is this the entirety of the program or will the program evolve over time?
A: These are the details of the program at this time. Caterpillar will stay in close touch with the local realtors and if the program evolves over time, we will share details as they are available.
Q10: What if I have more questions about the program?
A: Interested buyers are encouraged to work with their local realtor in order to take advantage of the Caterpillar incentive.
Q11: How will the incentive be processed?
A: Realtors should process the incentive at closing like other typical buyer incentives.