ARC Relocation Guaranteed Home Buyout Option
ARC offers our clients competitive advantages over other relocation management companies when providing Guaranteed Home Buyout services.
However, let’s first answer the questions: “what is a home buyout program”, “how does it work” and “why do clients offer a guaranteed home buyout to their relocating employees?”
Do relocation companies buy houses?
Yes. That is one of the most utilized/needed services for some employees to relocate in a timely fashion.
Commonly known in the relocation industry as a "guaranteed home sale" or a "guaranteed home buyout" the relocation company purchases the home directly from the relocating employee to allow the employee to continue the relocation proceeds without having to wait for an offer on the open market from an outside buyer.
How does a Guaranteed Buyout Option work?
The process is approved by the client company in the company relocation policy. Most commonly the relocation company purchases the home directly from the employee at "fair market value." Fair market value is normally determined by outside appraisals. Last the home is generally inspected for defects.
Once due diligence has been completed the relocation company purchases the home from the employee.
The relocation company holds the home in "inventory" until the home sells to an outside buyer, allowing the employee to relocate to the new location without having to wait for an outside offer on the open market.
What are the advantage of using a Guaranteed Buyout Option?
There are three main advantages that company recorgnize when providing a Guaranteed Buyout Offer to employees that are relocating:
- The Guaranteed Offer expedites the process and allows the employee to relocate to their new destination without having to wait to procure an offer from the open market.
- A Gauranteed Buyout provides tax protection for both the employee and employer in regard to the realtor commissions and selling / closing costs.
- It reduces stress by streaming the “escrow process” by dealing with a “professional buyer” vs the a buyer and agent from the general public.
The Advantages of Using ARC Relocation for a Guaranteed Buyout Program
- ARC’s independence and lack of franchise affiliations allow ARC to list homes with the best real estate brokerages to sell more quickly and for top dollar.
- We take the title to the home and truly become the owner.
- ARC is considered an industry leader for guaranteed home buyouts (based on certifications and experience)
- We offer clients the best in software and technology to track the process.
ARC uses its expertise to advise clients on best practices while following all of the IRS and ERC guidelines for relocation home sale programs. Click here to learn more about IRS regulations. Also, we are a guaranteed home buyout vendor for the United States Government under GSA schedule 653-1. Being on schedule 653-1 means our process, technical capabilities and experience have all been screened and approved by the GSA. ARC provides guaranteed home buyout and home sale services for many of the agencies who regulate these services. In turn, our experience, technology and clientele, place us at the forefront of the industry.
For more information about GBO or any other of our services, please contact us.
Example Guaranteed Buyout Policy