Buyer Value Option BVO Relocation
Buyer Value Option (BVO) & Guaranteed Home Buyout Programs
NRI Relocation offers Buyer Value Option (BVO) relocation and Guaranteed Buyout relocation home sale programs. These flexible relocation options ensure that your talent is where they need to be when they need to be there.
Home sale is the crux of a homeowner’s relocation. The real estate aspects of relocation can make an employee and their family feel like they are straddling two lives. NRI’s decades of experience make a relocation home buyout structured and seamless.
What is a Buyer Value Option? (BVO)
The definition of a buyer value option (BVO) is a buyout program in which a relocation company purchases the home of a relocating employee, then sells the home to an independent buyer sourced by the employee’s real estate efforts.
By utilizing a BVO home sale, the employee does not need to pay real estate fees or taxes on reimbursement. The company can write off the real estate fees as a business expense.
A buyer value option relocation also allows employees to bypass many stressors of a real estate transaction.
NRI’s Relocation Home Buyout Options
Our corporate relocation company offers several options for your relocation home buyout program, including:
- Guaranteed Buyout Option (GBO)
- Amended Value Sale
- Assigned Sale
- Buyer Value Option (BVO)
What is the Buyer Value Option BVO Home Sale Process?
Here’s how a BVO relocation works:
- The relocation company provides the employee with real estate services to help them find a buyer for their home.
- The employee receives an offer from a potential buyer of their home. A BVO home sale is based on an employee-sourced independent offer.
- The relocation company makes a home sale offer to the employee based on the price of the independent buyer’s offer.
- If the employee accepts the offer, the relocation company purchases the home. Therefore, the employee does not need to pay any real estate or closing costs. This way, the employee also avoids taxes from closing cost reimbursements.
- The employee is now finished with the BVO home sale process. Now, they can move on to their destination home search with the funds from their home sale.
- Next, the relocation company sells the home to the buyer sourced by the employee.
- The relocation company pays the real estate and closing costs and then passes them to the employee’s company. These costs are written off as business expenses to minimize taxes.
Buyer Value Option Relocation vs. Guaranteed Buyout Relocation
A Guaranteed Buyout Option (GBO) is defined as a buyout program in which a relocation company purchases the home of a relocating employee based on appraisals, then markets the home to find a buyer.
The difference between a Buyer Value Option and a Guaranteed Buyout Option is in the BVO relocation, the employee who owns the home sources the buyer before selling it to the relocation provider. The relocation company then sells it to the buyer. In a GBO relocation, the employee immediately sells the home to the relocation company. The relocation service is then responsible for marketing the home, finding a buyer, and handling the sale.
NRI Relocation Founder Originated Relocation Home Buyout Programs
Work with the innovators in guaranteed buyout programs. NRI Relocation’s company founder, Ted Bell, invented the guaranteed home buyout program concept in the 1960s. Today, GBO and BVO home sales are enduring relocation services cornerstones.
Work with the company that innovates relocation home buyout programs. We will go above and beyond to create corporate relocation policies that reduce costs while increasing employee satisfaction and retention.
Why Companies Should Offer Buyer Value Option Relocation
The Buyer Value Option is the most popular home sale program. Here is why it’s a win-win for both employees and their companies:
- Less stress for employees & families: Corporate relocation programs reduce employees’ expenses and effort to relocate, increasing their willingness to transition.
- Quicker relocations: A BVO expedites the home sale process, allowing employees to relocate to their new location quickly.
- Increases productivity: This option removes many real estate tasks from employees, allowing them to remain focused on work.
- Maximizes employees’ real estate investments: BVO home sales help employees obtain a top price for their most significant financial asset: their home.
- Reduces employee expenses: The Buyer Value Option eliminates costs for the employee and the need for a real estate costs reimbursement. Those costs would otherwise be taxable and may even push the employee into a higher tax bracket.
- Reduces relocation costs for employers: Without a closing cost reimbursement, an employer does not need to “gross up” employee compensation to cover incurred taxes.
- Lessens risk to employers: With an end-buyer already lined up, the employer does not need to carry the real estate expense.
- Tax benefits for employers: The relocation company pays the closing costs and passes the expense to the employer but they can write it off as a business expense.
- Attracts & retains talent: Full-service corporate relocations add significant value to offers and remove barriers to an employee’s transition to your organization or new opportunity.
How To Set Up a Buyer Value Option or Guaranteed Home Buyout Program
Here are some resources to ensure your organization’s guaranteed buyout relocation program adheres to regulations and maximizes tax advantages:
- Worldwide ERC‘s learning resources outlined the eleven key elements to ensure a home purchase program qualifies the tax rules and benefits.
- The full IRS documentation for relocation services, including relocation home sale programs, can be found on their website.
- Work with an expert corporate relocation company to choose a guaranteed home buyout program that best fits your organization’s goals.
Need help planning a buyer value option relocation program or assistance choosing a home sale option for your employees? Let’s start the conversation.