Caterpillar introduced the first phase of its incentive program in early May, a few weeks after identifying Deerfield as the location for its new global headquarters.
An incentive program established to encourage the sale of homes owned by relocated Caterpillar Inc. employees will expand next week to in some instances also cover purchases of property from people moving into the new home.
Beginning Aug. 1, Caterpillar will buy the house of anyone who purchases a home worth $300,000 or more in the company's relocation program — as long as the transaction represents at least a 25 percent increase in value between the old and new properties.
“We want to further incentivize the sale of Caterpillar relocation homes,” said company spokeswoman Rachel Potts. “We hope by offering this program we take away one more deterrent from buying a new home in the community.”
Caterpillar introduced the first phase of its incentive program in early May, a few weeks after identifying Deerfield , Ill.,as the location for its new global headquarters.
Under that program, which remains in effect, anyone who purchased a house belonging to a relocated Caterpillar employee was eligible to be reimbursed up to 3 percent of the final sale price to cover specific items such as closing costs, home improvements or an interest rate buy down. The incentive is subject to lender approval, and will continue through 2018.
“We wanted to minimize the impact of our headquarters move on the Peoria area real estate market,” Potts said.
About 40 percent of homes in Caterpillar's relocation program — which includes properties of all relocated employees, not just those moving to work in the new headquarters — have sold since the incentive took effect, Potts said.
Home sales in the region overall, however, tumbled almost 10 percent in the second quarter. The number of homes sold in the three-month period that ended in June declined by 9.8 percent from the same period a year ago, according to the Peoria Area Association of Realtors.
The group has previously reported that homes listed above $300,000 have been slower to sell in the region, with greater demand in the $175,000 to $225,000 price range.
“It was determined ($300,000) was the appropriate starting point for our program,” Potts said.
Caterpillar's Deerfield office opened in early July but is not yet fully staffed. The company expects about 100 people to work there by the end of the year. Once fully operational in 2018, about 300 people will work in the new headquarters.
Source: Journal Star