Are you considering selling your house to a relocation company? If you are offered a new job in a different city, state, or country, you may face a big decision: What should you do with your current home? For many employees, especially those working with a corporate relocation program, one option is to sell their house to a relocation company.
We’ll explain how selling a house through a relocation company works, how it benefits employers and employees, and the key pros and cons you should consider before choosing this route. We’ll also explain the differences between relocation package home buyout options like the Buyer Value Option (BVO) and Guaranteed Buyout (GBO) so you and your employer can decide what’s best for your situation.
How Selling Houses to Relocation Companies Benefits Employers
Relocation packages reduce the stress and logistical burdens of moving for work. Relocation real estate services also benefit employers, particularly when they include a relocation package home buyout. Here’s how:
- Streamlines the reimbursement process for real estate and closing costs.
- Simplifies taxation for both the employer and the employee.
- Allows employers to deduct real estate expenses as business costs.
Employers can manage selling employees’ homes more efficiently by partnering with relocation companies.
Types of Relocation Package Home Buyouts
There’s more than one way to sell your home through a relocation company. Most commonly, employers offer one of the following:
Home Buyer Value Option
With a Buyer Value Option, the employee lists their home on the market. Once an independent buyer makes an acceptable offer, the relocation company purchases the home from the employee for the same price and then finalizes the sale with the outside buyer. This keeps the tax and expense management seamless, provides the employer a write-off opportunity, and offers a fair market valuation for the employee.
Home Guaranteed Buyout
A Guaranteed Buyout offers more speed and certainty. The relocation company arranges for a home appraisal, then offers to buy the home directly from the employee at that appraised value, regardless of whether they have identified a buyer. Selling the home to a relocation company provides the employee with a guaranteed sale and the flexibility to relocate immediately.
How Does Selling a House to a Relocation Company Work?
If your relocation package includes home sale assistance, selling your house to a relocation company is straightforward. Each step minimizes disruption for the relocating employee while allowing the employer to handle a streamlined transaction cost-efficiently.
1
The Relocation Company Orders Home Appraisals
The process begins with the relocation company ordering two or more independent home appraisals. These appraisals help determine the fair market value of your property based on comparable home sales, location, condition, and other key factors.
2
Relocation Company Presents an Offer on Home
Once the appraiser provides a value—or once a qualified buyer makes an offer in the case of a BVO—the relocation company presents a formal offer to purchase your home. The offer outlines the sale price and key terms of the transaction.
3
The Transferee Sells the Home to the Relocation Company
If you accept the offer, the next step is selling your home directly to the relocation company. You’ll sign the necessary documents, transfer the title, and receive the sale proceeds.
Selling the house to a relocation company allows the transferee to move forward without delay, freeing you from the responsibility of selling a house for job relocation while you’re beginning a new opportunity in a different location.
4
Resale of the Home Through A Relocation Real Estate Agent
Now that they own the home, the next step is the relocation company the selling house. When relocation companies are selling homes, they typically work with a relocation real estate agent who is experienced in listing and selling homes in cooperation with a relocation package home buyout.
How Does a Relocation Company Sell Your House via Buyer Value Option?
Under a Buyer Value Option, the relocation company only begins the process of buying and selling the home after finding a buyer. The buyer value options ensures a market-driven price and preserves the tax-favored structure of the relocation benefit.
After the offer is accepted, the employee transfers the home to the relocation company. The relocation company then sells the house to the buyer. The employee is paid quickly, without waiting for final closing logistics.
Should You Sell Your House to a Relocation Company?
Let’s weigh the advantages and disadvantages of selling your house to a relocation company.
Advantages of Selling a House to a Relocation Company
Sell Your House Fast During a Relocation
If your new job requires a quick move, selling your house to a relocation company can eliminate the time and uncertainty of listing your home on the open market. Even if a home sells quickly, it usually takes a month or longer to close, depending on inspections and contingencies. The average time to sell a house in the U.S. is 55-70 days, but the timeframe can be much longer in slower markets. A relocation buyout provides fast access to funds for employees to secure a home in their new location without delay or financial strain.
A Buyout Guarantees the Home Sale
With a guaranteed buyout option, an employer can assure employees that their home will be sold regardless of market conditions. Selling a house to a relocation company removes the stress of wondering how long the home will sit on the market and find a qualified buyer.
Employees Save the Effort of Selling Their Home
The traditional home selling process involves cleaning, staging, showings, negotiations, and paperwork. Home sales require a lot of effort, of which can be overwhelming during a job transition. Selling your house to a relocation company allows you to bypass that process and focus on starting your new role.
Advantage in Slow Real Estate Markets
A relocation package home buyout can be a major advantage in markets where homes take longer to sell or if a property has unique features that narrow the buyer pool. The relocation company selling the house lets employers move forward without waiting for the perfect buyer to come along.
Employer Relocation Package Benefits
Many employers include valuable benefits in relocation home buyout packages, such as covering real estate agent commissions and closing costs. These savings can add up quickly and make a relocation company selling your home even more financially appealing.
Disadvantages of Selling Your House to a Relocation Company
Home Sale Price Offer From the Relocation Company
In a guaranteed buyout, selling houses to relocation companies is based on appraised value, not competitive bidding. In a strong market, the employee risks receiving less than what they may have earned by listing and selling their home on the open market.
Limited Real Estate Negotiation Opportunities
Unlike a traditional sale where buyers might compete or counteroffer, selling to a relocation company means accepting a single, fixed offer. Therefore, a relocation home buyout package can limit the ability to negotiate a better price or more favorable terms.
Tax Implications of a Relocation Home Sale
Selling a house to a relocation company can have tax consequences, particularly if the buyout price is lower than the market value or if a new home isn’t purchased right away. It may affect the calculation of capital gains and the qualified exclusion amount. Review your tax situation while deciding whether to sell a house to a relocation company.
Offer Home Buyout in Relocation Packages
Selling your home to a relocation company can be a wise choice if you’re relocating for a new job and need to move quickly, especially if your employer offers full-service relocation support. A relocation home buyout package provides simplicity, speed, and financial predictability.
Before deciding, weigh personal priorities: speed vs. potential profit, convenience vs. control. Your relocation provider or relocation real estate agent can answer questions and walk you through options for your specific relocation scenario.