Relocating for work can be a stressful experience, especially when it comes to selling your home. Fortunately, many employers and relocation companies offer a guaranteed home sale program, also known as a relocation buyout. This type of program allows employees to move quickly and without the worry of having to wait for an open market offer from a buyer. In this article, we'll explain how relocation buyouts work and the benefits they offer to employees.
We'll also discuss the different types of relocation packages available and how to make sure you get the best deal when relocating for work.A relocation buyout, also known as a guaranteed home sale or guaranteed home purchase, is when a relocation company buys the home directly from the relocating employee. This allows the employee to continue their income from the relocation without having to wait for an open market offer from an external buyer. It also guarantees them a selling price based on professional evaluations.The relocation company then sells the house to a new buyer. To determine the selling price, two independent property appraisals are ordered by the Relocation Management Company (RMC).
The appraisal is based on several factors, including the health of the local market, recent sales of homes in the same area, and what the typical buyer would pay for that particular home within the next 120 days.Not all relocation packages pose the same risk to the employee. Some companies offer a call option right from the start, while others contain an expiration clause that provides a purchase option after a predetermined period of time. It's important to understand your exact relocation package before accepting the position so you know how long your stipend will last and have an honest assessment of your home's value and how long it will take to sell in your market.Having the sale of a home as part of your company's relocation program can be a major benefit that makes the move more enjoyable for the employee and gives them peace of mind that they won't have to wait for an open market offer from a buyer. The relocation company or employer will buy the house on behalf of the company and then sell it to a new buyer.Relocation mortgage (relo) is another type of mortgage that aims to offer employees financial ease when they move to a new place due to a change in employment.
This type of mortgage covers all costs associated with relocating, including moving expenses, packing materials, and temporary housing.Finally, some companies offer a guaranteed purchase option after the move. This means that if your house isn't sold after a predetermined period, it will be purchased by the relocation company or employer at a price based on multiple appraisals.Overall, relocation buyouts are an excellent way for employees to move quickly and without worry. They provide financial security and peace of mind that their home will be sold quickly and at a fair price. If you're considering relocating for work, make sure you understand all aspects of your relocation package so you can get the best deal possible.
