Home Sale Program Management
Home Sale Program Management
Relocation home sale programs can be very complex and complicated. For Clients who prefer an arms-length approach to employees’ home sale transactions, home sale program management assumes all the transaction details, coordination, compliance, tracking, and reporting functions.
Last Tax Savings Relocation Benefit – The Guaranteed Buyout Option/Amended Value (GBO/AV) and Buyer Value Option (BVO) programs are US Tax-protected home sale programs that allow a company to capture the selling expenses as a non-tax event, saving thousands in gross-up taxes. Potential tax savings for a home value of $300,000 for a GBO/AV program average $12,690; BVO program, $11,490. The true tax savings are depending upon your company’s gross-up methodology.
For homeowners, the relocation process brings about higher levels of stress due to the home selling and buying process. InterLink Consultants are expert relocation professionals who make this complex process simpler where the transferee and family feel supported by the benefits and our team. What is involved? Marketing assistance is a key component of the home sale support offered by InterLink. This provides the homeowners the much-needed guidance throughout the listing, marketing, and offer components of the home sale process. InterLink utilizes comprehensive and trusted real estate brokers in that market, comprised of best-in-class relocation-trained, seasoned agents who truly understand the unique needs of relocating employees and families as well as how to work in partnership with InterLink. A key aspect of marketing assistance is being able to refer transferees to relocation-savvy agents on both the sell and buy sides of the transition.
Value Proposition
Outsourcing home sale program management is delivering knowledgeable oversight of the entire home sale process by providing home sales that align with the timing demands of a relocation. Home sale program administration is a complex process but, with the expert support services and best in class supply chain, Interlink provides help to the transferee to move more quickly and get settled into their new location. Risk reduction assessments are a part of our DNA. Our teams identify and manage areas of risk, such as missed inspection items, home pricing, and marketing strategies. Adherence to 11 Key Elements, per the Worldwide Employee Relocation Council (WERC), ensures program compliance, inventory avoidance, and management. InterLink conducts GBO home sale programs with confidence and the know-how to get the home sold quickly.
Supply Chain
Capitalizing on our system of vetted and trusted real estate providers, we utilize relocation-trained agents and home sale partners for inspections, appraisals, title, closing, inventory, and property management. We do all the upfront due diligence to minimize risk and reduce costs by utilizing an experienced oversight and review process. These important supplier relationships are closely monitored, and survey results are a key performance metric.
Expense Management and Reporting
InterLink provides direct billing with our supply chain, which are pass-through costs to your company. This eases processing and cash flow management for your transferee and company. InterLink calculates gross-up taxes for direct reimbursement selling costs and provides each transferee with a Relocation Tax Report (year-end statement). We have the technology to keep on top of your relocation activity with a robust reporting platform.
InterLink has the relocation home sale program needed when you are looking for a solution that reduces the administrative burden while maximizing resources and efficiencies.
Direct Reimbursement
This is a straightforward home sale program as the transferee will be responsible for the marketing and sale of the home. Upon closing, the transferee is reimbursed for the real estate commission and customary non-recurring seller’s costs associated with that sale. This program allows the company to stay out of the transaction and, as such, has no risk of owning the property if a sale or closing does not occur. There is a significant tax impact with this program. Reimbursed home sale closing costs are viewed as taxable income by the IRS. As a result, there is an added tax burden that can become significant for the employee or company dependent upon if the reimbursement is tax-assisted or not.
Buyer Value Option (BVO)
This program mitigates the tax liability of the direct reimbursement program. It allows the transferee to list and market the home until an offer is received on the property. The Relocation Management Company (RMC) purchases the property from the employee based on the sales contract amount, the same terms, and conditions, and in turn, sells it to the ultimate buyer. For the BVO program to be IRS compliant, there are two separate sales that take place for the property. This removes the tax liability for the costs covered for the real estate broker’s commission and the seller’s closing costs of the property. However, if the sale falls through for any reason, there is the risk of the home being taken into inventory.
Guaranteed Buy-out (GBO) / Amended Value (AV)
With a GBO / AV program, the transferee/homeowner normally has a company policy defined timeframe in which to find a buyer for the property. Timeframes for marketing requirements can range from 60 to 120 days. If the transferee is unsuccessful in selling the home, they have the option of taking the Guaranteed Buy-out offer from the RMC. This GBO value is based on the average of two relocations appraised values.
If there is no offer and the transferee accepts the GBO offer, then the home is acquired by the RMC. This means the property is taken into inventory on behalf of the Client, and the company incurs the subsequent carrying costs and any loss or gain on the sale.
During the required marketing period, if an offer is received on the property, then the RMC will “amend” the GBO value to reflect the outside offer value with the same terms and conditions and in turn, sells it to the ultimate buyer. The Amended Value program also removes the added income tax burden. Our teams identify and manage areas of risk and conduct home sale programs with confidence and the know-how to get the home sold quickly
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TESTIMONAILS
InterLink is truly invested in our success. The outcome has been an excellent alignment between the company’s needs and those relocating. We are happy to be part of the InterLink ‘family’. More importantly, so our employee
I like everyone I work with at InterLink – personally and professionally. They are good people with good intentions who show their appreciation for our business, every week, and every day. We help each other.
My first meeting with InterLink convinced me there was something better, and we made the switch to InterLink. InterLink proactively considers our needs to provide solutions and maximize results for us, and most importantly, our employees.
Our company was faced with changing relocation vendors due to the poor customer service level. When reviewing Interlink’s proposal and touring their site, I was impressed. However, I still had concerns about their size as it relates to managing national and global projects. Erroneously, I thought a relocation company had to be a well-known, to handle national and expatriation relocations. After two years into our contract, Interlink’s performance has exceeded my expectation. • Their service is cost competitive • Their customer service levels are highly responsive • They provide recommendations and guidance based on market trends • They customized relocation plans to meet our business strategies • Most importantly, they handle the entire relocation process in a seamless fashion.
One of the best aspects about InterLink is that they accommodate our specific needs. Once they understand what’s involved, InterLink develops the best solutions for the company AND the employees, minimizing stress for everyone.
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