Amended Value Option
When selling a home, there are many variables. ARC service to our clients and and transferees is to mitigate how these variables will affect the home sale process. In the likely event, an outside offer is brought to the table, ARC will follow the Amended Value (AV) program to close the sale by adhering to the eleven key elements. ARC handles the administration of the closing process, allowing the employee to focus on new job responsibilities, resulting in increased productivity. ARC’s program streamlines the home selling process, reduces internal administration, and addresses employee questions on the home-sale process!
What is an Amended Sale?
An amended value option home sale (AVO) is utilized when an outside buyer offers the transferring employee, a higher price than listed and agreed upon by the Relocation company. Our sole intent is help the employee sell their home for the highest price as quickly as possible. Therefore if a transferring employee has a Guaranteed Buy Out (GBO) benefit in their relocation package, ARC will honor the GBO commitment and match the offer from the outside buyer. We promise to buy the home off of the transferee at the new price. We then take the home into our inventory and immediately sell it to the outside buyer. Not only does this process take the work load off of the transferee, but it also saves them a lot of money. Click here to learn more about our tax expertise, and other AVO related services!
How Does it Work?
In order to list and then sell a home, the value of a home must be established. Following the initiation phone call, a certified ARC Relocation Counselor will provide the employee with a list of all certified ERC appraisers in their area following the initiation phone call. The employee may also suggest appraisers that we will qualify and inform the employee on the results of our qualification process. The appraisal, inspection, and title search processes will be completed within thirty (30) calendar days of listing. Upon the receipt of the employee’s appraiser selection(s) and within one (1) workday, two (2) independent market value appraisals will be ordered. If it becomes necessary to order the third appraisal, we will order from the next available appraiser on the employee’s ranked list.
After the home listed and appraised, the transferees personal ARC Relocation Counselor continues to implement an aggressive market strategy. ARC Relocation Counselors will provide an amended sale process overview to employee and real estate agent at the initial listing review and reminds the agent of the listing requirements throughout the process including emphasizing the fact that the offer cannot be signed by the employee. At ARC we realize that many real estate transactions can take place outside business hours. As such ARC Relocation Counselors are accessible 24/7. Every Counselor at ARC is provided a smartphone so that our clients, employees and real estate agents can contact the assigned ARC Counselor nights and weekends.
An amended value option can only be utilized if a “bona fide” offer from an outside buyer is presented. A “bona fide” offer is one that is offered in good faith and:
- It is not contingent upon the sale of the buyer’s property
- Does not contain any unusual or unreasonable terms
- It is not subject to interim or special financing terms
- The net value of the outside offer is equal to or higher than the appraised value, considering the incentive payment and deduction of JTR non-reimbursable items. Lower offers may be considered and approved in consultation with the COR.
- The buyer is pre-qualified and can show evidence of proof of funds for the down payment
- Earnest money deposit is sufficient for the area and property value
- The offered amount is consistent with the appraisals, and BMA’s findings
- The employee did not sign the agreement, as instructed throughout the marketing assistance process
We want to take this opportunity to remind you that when clients and transferees enroll in ARC’s home sale/home purchase program, our sole objective is to provide best sale/purchase value as quickly as possible. You’re going to be starting a wonderful new life in your new destination and we pledge to make that transition seamless.