Home Purchase Programs
We help you custom design home purchase programs to fit the needs of your corporate culture and budget. These programs include buyer value options (BVOs), amended value sales, and traditional appraised value home purchases.
Your employees are always number one to us, and we know that communication is the key to a successful program.
- Consistency. Your employee and relocation manager will speak with the same person throughout the relocation process. This assures clear and quick communication with fewer questions and less confusion.
- Sensitivity to cost & corporate issues. We will find creative ways to meet your financial objectives while operating with your company’s corporate culture in mind.
- Benefits include: high-touch service for the corporation and the employee, payroll tax savings, and cost containing discounts.
Did You Know? When Reliable Relocation handles your employee moves, you save thousands in payroll taxes and get great service! If you currently reimburse your employees for home sale expenses, you are paying thousands of dollars more in payroll taxes and tax gross-ups on each move than you would if we handle your employee moves for you. Let Reliable Relocation handle your next move and your company will save thousands of dollars in taxes plus you will get professional service, great prices and professional expertise.
Types of Employer Paid Home Purchase Programs
1. Appraised value sale
The employee’s residence is appraised by two or more independent appraisers. The employee then sells the residence to the employer or a relocation management company hired by the employer at the average of the appraised values (or at some variation of this method to determine fair market value). TAX ADVANTAGES.
2. Amended value sale
The transaction is the same as the appraised value sale, except that before the employee decides whether or not to accept the offer to purchase at the appraised value, the employee may place the residence on the market to determine whether a higher price can be obtained. If a third party makes a bona fide offer to purchase the residence at a price above the appraised value, the employer or relocation company will raise its offer to equal the third party offer. This new price is called the "amended value" of the residence. The employee then sells the residence to the employer, and the employer attempts to execute a contract with the third party buyer and sell to him/her. TAX ADVANTAGES.
3. Buyer Value Option
The transaction is similar to an amended value sale, except that no guaranteed offer to purchase is made to the employee, and no appraisals are done, at least initially. Rather, the employee markets the house seeking a bona fide offer in the market place. Once such an offer is received, the employer or relocation company will make an offer to purchase the home at the "buyer value" established by the outside offer. Thereafter, the procedures are the same as the amended value sale. In some programs, if the employee does not find a buyer during the initial marketing period, the employer will have the home appraised and make a uaranteed byout offer based on the appraisals, which the employee can accept after an additional attempt to find a buyer in the marketplace. Such a procedure is better from a tax perspective. TAX ADVANTAGES.
4. Assigned sale
This transaction is the same as the amended value sale, except that when the employee places the residence up for sale and receives an offer to purchase from a third party, the employee accepts the offer, creating a contract of sale. The employee then sells the residence to the employer or relocation company, and assigns the contract of sale to the employer or relocation company, which then sells the residence to the third party.
5. Assisted sale ("Direct Reimbursement")
The employee sells the residence directly to a third-party buyer. The employer then reimburses the employee for some or all of the costs of sale.
6. Directed offer
The employer or relocation company buys the employee’s residence at a price in excess of fair market value.
For more information about the tax advantages and procedures to set up a home purchase policy for your company, call Reliable Relocation.
Employee Home Purchase Programs Slides
Relocation Appraisals vs. Mortgage Appraisals |
