Relocating, whether for personal reasons or work-related, can be both exciting and stressful. One of the major factors contributing to this stress is managing the sale of your home. Here’s where the concept of a “relocation home sale” comes into play.
What is a Relocation Sale?
A relocation sale is a specific type of property transaction that occurs when an individual or a family needs to move due to job transfer or other reasons. These sales are typically managed by relocation companies who partner with employers to facilitate the process. The primary goal of these companies is to ensure a smooth, efficient, and hassle-free transition for the employee and their family.
The Three Main Types of Relocation Sales
There are three main types of relocation sales that you should be familiar with if you’re considering this option. Understanding these can help you make an informed decision and navigate the process with ease.
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Direct Reimbursement
In this arrangement, the employer reimburses the employee for costs incurred during the sale of their home. This could include real estate agent fees, closing costs, and other related expenses. It’s a straightforward approach that provides financial relief to the employee during the moving process.
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Buyer Value Option (BVO)
The second type involves a third-party relocation company. The employee sells their home to the house movers in Auckland, who then sell it on the open market. This type of sale can be beneficial as it often results in a quicker sale, reduces the risk of carrying two mortgages, and minimizes the stress associated with selling a home.
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Guaranteed Buy Out (GBO)
In this scenario, the relocation company orders appraisals of the property and provides a buyout offer to the employee. This offer is typically based on the average of the appraised values. The advantage here is that it provides certainty for the employee, ensuring they have the funds from their home sale available for their relocation.
Navigating the Process
It’s essential to understand the details of each program, including any potential tax implications. Relocation sales differ from traditional home sales in several ways. For instance, relocation companies typically prefer a clean sale with no contingencies. This means that they want to sell the house “as is,” without any conditions that could delay the sale.
Conclusion
Understanding the types of relocation sales can help you navigate the process more confidently and successfully. Whether you opt for direct reimbursement, BVO, or GBO, each relocation home sale has its advantages designed to ease the transition during this significant life change.