CARS Realtor Rebate vs. Berkshire Hathaway PenFed Program

3 Types of Relocation Home Sales 🏠

Relocation sales are often misunderstood. We’re here to change that.

When employees move for work, the sale of their home becomes a key concern. That’s where Corporate America Relocation Services (CARS) steps in—offering structured programs that benefit both the employee and the employer.

What is a Relocation Sale?

A relocation sale is when a home is sold with the assistance of a relocation management company (RMC) due to a job-related move. Employers typically partner with companies like CARS to streamline the employee’s home sale.

CARS can connect military and civilian employees with military relocation specialists, similar to the USAA Movers Advantage Program, to ensure smooth transitions and cost savings.

Types of Relocation Sales

There are three primary types of relocation sales used to assist transferring employees:

1) Direct Reimbursement

The most basic type of relocation sale.

The employee sells their home independently.

After closing, they submit receipts for reimbursement.

The reimbursed amount is considered taxable income, either to the employee or the company.

⚠️ Downside: This can create unexpected tax burdens and complications.

2) Buyer Value Option (BVO)

A tax-efficient alternative to direct reimbursement.

The employee lists and markets the home until a buyer is found.

Once an offer is accepted, the RMC (e.g., CARS) purchases the home and then resells it to the buyer.

Benefits:
✅ Closing costs and commissions are paid by the employer, not the employee.
✅ These are treated as operating expenses, avoiding additional taxable income for the employee.
✅ Less risk of delays or complications.

⚖️ Always check with your legal department before implementing or altering BVO policies.

3) Guaranteed Buyout (GBO)

The most structured and secure method of relocation sales.

Two independent relocation appraisals are ordered.

The RMC offers to purchase the home based on the average of both appraisals.

The employee may be required to market the home for 30–120 days before the buyout offer is finalized.

Key Features:
🏘️ Removes emotional stress from the sale process
🛠️ The RMC covers maintenance, upkeep, and carrying costs until resale
📦 Allows the employee to relocate quickly with fewer concerns

Are Relocation Homes Cheaper?

Not always, but relocation homes are generally priced to sell quickly and are well-maintained. RMCs like CARS often make necessary repairs before listing.

Do Relocation Companies Actually Own the Homes?

Sometimes.

In BVO and GBO transactions, the RMC may temporarily hold ownership or simply facilitate the sale on behalf of the employer.

The home may stay in the employee’s name for a period until the sale process is completed.

Buying a House from a Relocation Company 🏡

Buying from a relocation company is similar to a standard purchase, but there are some unique elements:

✅ Advantages:

Opportunity for below-market pricing

Transaction is less emotional

Properties are often move-in ready

❌ Disadvantages:

More paperwork

Occasional delays from corporate approval processes

Typically fewer contingencies

Homes sold as-is, with no warranties

💬 Final Thoughts 

Relocation home sales don’t have to be confusing. With the right partner like CARS, the process can be seamless, tax-efficient, and fast.

If your company is managing employee relocations and needs expert guidance, schedule a consultation with CARS to learn how to optimize your relocation home sale process.

Resource Links:

CARS Military Relocation Support
https://www.corporateamerica.us/military-relocation/

USAA Movers Advantage Program
https://www.usaa.com/inet/wc/real_estate_moversadvantage_main

Buyer Value Option (BVO) Explanation
https://www.corporateamerica.us/buyer-value-option-bvo/

Relocation Appraisals vs. Bank Appraisals
https://www.corporateamerica.us/relocation-appraisal-vs-bank-appraisal/

Schedule a Consultation with CARS
https://www.corporateamerica.us/contact-us/