Tel: 888-948-CORP (2677)

Guaranteed Home Buyout Option (GBO)

Home Buyout Option (GBO)

🏠 CARS Guaranteed Home Buyout Option

CARS offers clients a significant competitive advantage through our Guaranteed Home Buyout (GBO) services—making us one of the leading relocation companies in the industry.

🤔 What Is a Home Buyout Program?

Before diving into our unique capabilities, let’s cover a few essential questions:

What is a home buyout program?

How does it work?

Why do clients offer a guaranteed buyout to relocating employees?

⏱️ The Guaranteed Buyout Program Explained in 1 Minute

🔄 How Does a Guaranteed Buyout Option Work?

The process is defined in the client’s approved corporate relocation policy. Typically:

🏡 The employee’s home is appraised by two independent third parties.

📝 A fair market value is determined.

🧾 The home undergoes inspections and due diligence.

🛒 Once approved, CARS purchases the home and holds it in inventory.

🏃‍♂️ The employee is free to relocate—without waiting for an outside buyer.

🏢 Do Relocation Companies Buy Houses?

Yes — and it’s one of the most valued services in corporate relocation programs.

Known as a guaranteed home sale or guaranteed buyout, this service allows employees to proceed with confidence, regardless of the real estate market. CARS handles the purchase, freeing the employee to focus on their new assignment.

✅ Benefits of a Guaranteed Buyout Option

Companies that offer a GBO gain three key advantages:

1. Expedited Relocation

Employees relocate without delay—no waiting for offers or escrow.

🛡️ 2. Tax Protection

Reduces or eliminates tax exposure on commissions and closing costs—for both employer and employee.

😌 3. Reduced Stress

No public listing drama. All transactions are managed privately with a professional buyer (CARS).

🌟 Why Choose CARS for Your GBO Program?

CARS brings unmatched expertise and added value:

🆓 Independence

We’re not tied to any franchise. That means we work with top local brokerages to get homes sold faster and at higher value.

📜 Legal Title & Accountability

We take ownership of the home and manage every step from acquisition to resale.

🥇 Industry Leadership

CARS is a recognized expert in relocation home sales, with proven success across industries.

📈 Proprietary Technology

Our advanced tracking system offers real-time visibility and reporting on the home sale process.

📘 IRS & ERC Compliance

We ensure all transactions align with the latest relocation sale regulations and tax guidance.
(Learn more about IRS regulations.)

U.S. GSA-Approved Vendor

Listed under GSA Schedule 653-1, CARS meets federal standards for compliance, service delivery, and technical excellence.

📄 Download an Example Guaranteed Buyout Policy

(Complete the form to work with a Certified Relocation Counselor.)

💬 FAQs: Guaranteed Buyout Programs

What Does This Mean for You?

🏛 Pre-Approved by the U.S. Government
Our processes, technology, and experience have undergone rigorous review by the General Services Administration (GSA).

📋 Trusted by Federal Agencies
We provide Guaranteed Home Buyout and Home Sale Services to many of the same agencies that regulate and enforce these standards.

🔒 Compliance, Accuracy & Oversight
ARC follows all IRS and ERC guidelines for relocation programs—ensuring tax compliance, audit-readiness, and legal reliability.

🚀 Why It Matters

Being listed on GSA Schedule 653-1 gives federal agencies and qualified organizations the confidence to partner with ARC, knowing:

Our services are vetted and verified

We meet strict performance and compliance standards

We deliver consistent, secure, and effective relocation solutions

CARS’s GSA-approved status is more than a credential—it’s a commitment to excellence. Whether you’re a private corporation or a public agency, trust CARS to meet the highest standards in relocation.

CARS Relocation Consultant with 10+ years’ experience.

🛡️ What is a Guaranteed Buyout Offer (GBO)?

A Guaranteed Buyout Offer (GBO) is a financial safety net provided by an employer to a relocating employee who is unable to sell their home within a fixed period of time.

🏠 Purpose of a GBO:
To ensure that the employee can move to their new job location on schedule, even if their home hasn't sold.

⏳ How It Works

📅 A GBO is typically accepted after the transferee has marketed their home for 60 or 90 days—depending on the employer’s relocation policy.

🎯 This mandatory marketing period exists to:

🧲 Encourage the transferee to sell the home on the open market

🔁 Allow time to attract a qualified outside buyer

🛑 Reserve the GBO as a backup option only if no buyer is found in time

The GBO ensures the relocation isn’t delayed due to a stalled home sale—helping the employee focus on their new role without the burden of unsold property. 💼🚚

🏡 What Do Relocation Companies that Buy Houses Do?

At CARS Relocation, our role goes beyond logistics—we act as trusted advisors throughout the home sale and relocation journey.

🎙️ Personalized Employee Counseling

My role as the Relocation Counselor is to:

✅ Administer the client’s relocation policy
✅ Educate the transferring employee on relocation benefits like the home sale process
✅ Serve as a resource to ensure clarity and comfort throughout the transition

🕐 Time and Attention Matter:
Once the employee has reviewed their GBO benefits, I arrange a personal phone call—often dedicating up to one full hour—to:

Answer their questions

Address their concerns

Dispel common myths about buyouts

Clarify next steps and expectations

💬 Many transferees have misconceptions about guaranteed buyouts. This conversation gives me the chance to separate fact from fiction and make the process more approachable.

By focusing on education and empathy, CARS ensures each employee is fully supported and informed—making their relocation smoother, less stressful, and more successful. ✨📦

📊 How is the Guaranteed Buyout Offer Price Calculated?

In the relocation industry, the Guaranteed Buyout Offer (GBO) is designed to reflect the home’s fair market value—providing a financial safety net for the relocating employee. Here’s how it’s typically calculated:

🏠 Step-by-Step Breakdown:

Two Relocation Appraisals Are Ordered
📋 These are professional evaluations conducted by certified appraisers, per the company’s relocation policy.

Standard 5% Spread Rule Applies
✅ If the two appraisals are within 5% of each other, the average of those values becomes the GBO price.
🔄 Some clients permit a wider spread—7% or 10%—but 5% is the industry standard.

What If the Appraisals Are Too Far Apart?
❗ If the first two appraisals exceed the allowable spread:

A third appraisal is ordered (as per ERC guidelines).

The two closest of the three are averaged to determine the final GBO.

🏷️ What This Means

This approach ensures that the offer reflects true market conditions and maintains fairness for both the employer and the employee. It eliminates guesswork and sets a clear, unbiased framework for establishing home value.

This method is widely known in the industry as determining “fair market value.”

🧾 How are the Appraisers Selected?

When determining the Guaranteed Buyout Offer (GBO), selecting the right appraisers is a crucial step.

At CARS Relocation, we prioritize transparency and flexibility in the appraisal process. 🏡

🔍 Transferee-Provided Appraisers

Transferees may submit names of appraisers they would like considered for their relocation appraisal.
🔧 If those appraisers meet the necessary qualifications to complete a relocation appraisal, we’re happy to suggest they be used.

📉 When the Transferee's Appraiser is Lower

While it's uncommon for transferees to provide appraisers, in cases where they do, we’ve occasionally seen their appraiser's bid come in lower than those from our recommended list.

💡 This often results in a smoother process when delivering the GBO—helping align expectations and ease potential concerns.

Our goal is to maintain fairness and accuracy while giving transferees an opportunity to participate in the process. 🤝

🏷️ What is The Importance of the List Price?

Providing an employee with their Guaranteed Buyout Offer (GBO) should always be handled with care by the relocation counselor — especially if the transferee’s home is listed significantly above the GBO. 💬

In real estate, “over listing” is one of the most common and costly mistakes. 📉
⏳ It often leads to extended days on market, followed by lower eventual sale prices.

💡 The Counselor’s Role

A relocation counselor should be proactive and informed.
They should:

🔍 Ask about the mortgage balance during the initial call

📄 Or review the balance noted on the title report

Why?
Because if the GBO is lower than the mortgage, the transferee may face a deficit, requiring them to send funds to the relocation company prior to the acquisition of the home.

👉 This situation can make or break a phone call, so how the GBO is presented is absolutely critical to success.

📝 Setting the Right Expectations

Before delivering the GBO, I always reiterate the purpose of a relocation appraisal:

📆 Appraisers typically determine a listing price designed to sell the home within a 120-day marketing period.

✨ Ideally, the transferee sells their home on the open market to a buyer for a price higher than their GBO.

🔁 However, if the home doesn’t sell within 60 or 90 days (depending on the client’s policy), the GBO becomes their fallback.

🗣️ I also make sure to explain what happens if an offer arrives that’s greater than the GBO (This ensures that the transferee is aware of all options to attract the highest offer on their home.)

🎯 What Is the Goal of the Guaranteed Buyout Program?

🎯 The Objective of the Guaranteed Buyout Program

The ultimate purpose of the Guaranteed Buyout Offer (GBO) program is simple but critical:

👉 To ensure the transferee can relocateregardless of whether an outside offer from the open market is received.

💵 A Fair and Strategic Offer

The GBO price should be fair, accurately reflecting what the relocation company anticipates reselling the home for after it has been carried in their inventory 🏡📦.

This approach:

Ensures financial prudence for the company

Supports transferees in meeting relocation timelines

Helps manage expectations for all stakeholders

📉 Reducing Inventory Risk with GBO Requirements

The program works best when the client has established GBO requirements in advance ✅.

For example:

When two Broker Market Analyses (BMA) are completed, many clients require that the list price not exceed 105% of the average value.

These guidelines help ensure the home is priced competitively in the market 🏷️

By enforcing such policies, companies can significantly reduce the need to take homes into inventory, improving:

💰 Cost efficiency

⏱️ Program timelines

🧘 Employee peace of mind

✨ Ready to Build a Better Home Sale Program?

Contact CARS to implement a seamless, IRS-compliant Guaranteed Buyout Option that gives your employees the confidence to move forward—fast.

📞 Let’s talk strategy.
📧 Contact us today.

* Indicates required fields
Thank you! We will get back to you as soon as possible.

Contact us

Telephone: +1 888-948-CORP (2667)

E-mail: cars@corporateamerica.us

Address: 118 Vintage Park Blvd Houston, TX 77070

We need your consent to load the translations

We use a third-party service to translate the website content that may collect data about your activity. Please review the details in the privacy policy and accept the service to view the translations.