3 Types of Relocation Home Sales

🏠 3 Types of Relocation Home Sales

Understand your options. Empower your relocation strategy.

Relocation sales are often misunderstood, and we're here to clarify the process. Whether you're managing a corporate transfer or supporting a relocating employee, it's essential to understand how these sales work and the pros and cons of each.

💼 What Is a Relocation Sale?

A relocation sale refers to the sale of an employee’s home that is facilitated by a relocation management company (RMC) due to a job-related move. Typically, the employer engages the RMC to handle the sale of the employee’s existing property.

Some companies, like CARS, even offer tailored assistance to military families, pairing them with a military relocation specialist to streamline both the move and home sale—similar to programs like the USAA Movers Advantage.

🔁 Types of Relocation Sales

There are three primary types of relocation home sales that organizations use to support employees during a job transfer:

1️⃣ Direct Reimbursement

Under this method, the employee sells their home ([sell-your-house-fast-relocation]) and submits eligible closing costs to their employer for reimbursement.

⚠️ Important:
While straightforward, this method is taxable. The reimbursement ([relocation-bonus-vs-relocation-reimbursement]) becomes part of the employee’s taxable income, subject to payroll withholdings and [relocation-tax] obligations.

💸 Bottom Line:
What appears simple can quickly become costly for both employee and employer, making it a less favorable option.

2️⃣ Buyer Value Option (BVO)

The Buyer Value Option (BVO) is a more cost-efficient and tax-advantaged approach.

How It Works:

The employee lists and markets their home.

Once a buyer is found, the relocation company purchases the home from the employee on behalf of the employer.

The RMC then sells it directly to the buyer.

✅ Why It’s Better:
The employee avoids paying closing costs and real estate commissions, which would otherwise be taxable if reimbursed. These become operating costs for the employer instead.

⚖️ Make sure your legal team reviews all BVO arrangements for compliance.

3️⃣ Guaranteed Buyout (GBO)

In a Guaranteed Buyout (GBO), the relocation company conducts two independent appraisals to determine a fair sale price based on:

Comparable local home sales

Market conditions over 120 days

Neighborhood stability

Unlike standard appraisals, a relocation appraisal estimates what a buyer would pay within a short timeline (usually 120 days).

If the employee accepts the buyout, they can relocate without further delay. The RMC may also cover maintenance and carrying costs until the property is sold.

📈 Benefit:
Peace of mind and elimination of the burden of an unsold home.

❓ Are Relocation Homes Cheaper?

Not necessarily. These homes are typically listed at fair market value and are often well-maintained, as relocation companies usually handle necessary repairs before listing.

🎯 The goal is a quick, clean sale—not a discount deal.

🏘️ Do Relocation Companies Own the Homes?

Sometimes. The home may remain in the employee’s name during the listing period, or transfer to the RMC when an offer is accepted.

Regardless of ownership, the relocation company handles:

Hiring movers

Coordinating with [top-10-van-lines]

Finding a new home for the employee

They oversee the entire home sale and transition process.

🏡 Buying a Home from a Relocation Company

Buying a home through an RMC is similar to traditional real estate—but with key differences:

✔️ Advantages:

Homes are often move-in ready

Sales are business-focused, not emotional

Buyers may find value opportunities

⚠️ Disadvantages:

More paperwork

Faster-moving deals

Often sold "as-is"

Fewer contingencies and no warranties

📌 Final Thoughts

Relocation sales don’t have to be complicated. Whether you're a HR leader, a relocating employee, or a real estate partner, understanding these three home sale methods—Direct Reimbursement, BVO, and GBO—can help streamline transitions and control costs.

📅 Schedule a consultation with CARS Relocation to discuss how we can help manage your relocation sales strategy from start to finish.