Corporate relocation services often offer employees a range of assistance when it comes to relocating, including helping to sell their current residence and purchase a new home in the desired location. In some cases, companies may even provide incentives to buy a home in the new city within the year of the move. This is especially beneficial for those companies that “help with taxes” or “make employees earn gross income”, as the gross home sale is the largest gross increase in the employee relocation process. To make this process easier, relocation management companies (RMCs) maintain a network of preferred brokers and mortgage lenders who have extensive experience in helping employees move successfully. The Buyer Value Option (BVO) program is one of the world's leading relocation services for managing a BVO program.
Under this program, the employer buys the house and the relocation company becomes the main party in the sale negotiations. This means that broker commissions and closing costs are not charged to the employee. It is important for buyers to have a ready source of guarantee money that they can quickly send to the relocation company, according to Tonya Hamilton, vice president of relocation at Prudential Woodmont Realty in Brentwood, Tenn. ARC is one of many companies that offer a buyer value option program to employees who move to many of the agencies that regulate the relocation industry. Working with a moving company can be a great experience, but it is important to do your research beforehand.
Having the sale of a home as part of your company's relocation program can be a major benefit that makes the move more enjoyable for the employee, and gives the company an employee who is “on the ground and firmly planted in a new location”. While relocation sales don't necessarily translate into quick-sale prices, buyers can count on the home being priced right for their market, according to Michael Nimer, chief operating officer of OneSource Relocation, a relocation company in Marietta, Georgia. When it comes to purchasing a home through your company's relocation program, there are several steps involved. For the first few months, the house remains in the employee's name while the relocation company provides pricing and marketing advice. The RMC then buys the house on behalf of the company and sells it to the buyer.
Relocation properties also tend to be in good condition because most relocation companies recommend necessary repairs or do them themselves.