Employee Home Sales and Relocation Reimbursement | KinetixRelo
Employee Home Sale Support
There can be significant stress caused throughout the process of employee home sales and employee lease termination. By outsourcing management of these processes businesses can take away the stress by bringing and support, making sure that the processes are brought to their proper conclusion. In addition, with options that allow for potential tax neutral treatment and program savings like Guaranteed Buyout Offer (GBO) and Buyer Value Option (BVO) programs, you can avoid the excessive tax exposure that may be present with tax-assisted direct reimbursement programs.
Your Kinetix Home Sale Counselor averages over 15 years of experience in administering BVO and GBO home sale programs. From selecting the best agent and developing a comprehensive marketing plan, through maximizing showings, managing title search and paperwork, and closing and equity processes, our counselors have the experience to bring comfort and confidence to the process.
Whether your relocation program provides support through an employee home sale allowance or direct reimbursement to cover home sale expenses, or provides a full Appraised Value Offer and pre-closing equity advance, we’ve got it covered. And when you move on to the employee home purchase process, we have support services and relocation-savvy home mortgage lenders ready to assist.
Employee Housing Lease and Lease Terminations
Domestic U.S. and Global Relocation programs can create a lot of activity and a host of variables in the management of employee housing leases and Employee Lease Terminations. Managing employee housing may vary from location to location, and include everything from extended hotel stays to purpose-built secure employee compounds. In most instances, managing the employee lease process takes a trained eye for proper lease review, negotiation of terms, ongoing employee lease management, and even lease termination, closeout/walk-through, and return of deposits.
Kinetix counselors and our on-the ground resources cover any location you might go to, whether it’s across the street or on the other side of the globe. We stay in-the-know and connected to changes in rules, regulations, and markets for temporary short and long-term housing, and make sure you have the resources to get the lease process right, every time.
Kinetix is a Global Leader in Relocation Services
Tax Neutral Treatment – Guaranteed Buyout Offer Relo vs. Buyer Value Option Relo
At times, market conditions may create challenges for employees selling their homes as part of a relocation program, justifying the offering of a relocation home sale/home buyout package. The appraised value guaranteed buyout option gives you the power to move people to the destination when the company needs to, giving the employee and family equity when they need it to purchase a home and get settled in the new location.
In certain declining markets in the past, programs incorporated loss on sale assistance and the payment of mortgage interest rate differentials to further assist by reducing the financial impact of the home sale process. With most markets active, and interest rates at historical lows, the best tax neutral programs for your mobility dollar are still Guaranteed Buyout (GBO) and Buyer Value Option (BVO) home sale programs.
In the GBO program, an appraised value offer is presented to the employee after a specific marketing period, allowing the employees to choose to take the offer or continue to market on their own. In a BVO program, the employee is responsible for marketing the home (normally through a preferred relocation-savvy agent or broker) until they receive a bona-fide offer. At that point, Kinetix steps in and brings the home to close. Many BVO programs also offer a “sunset clause” allowing for a buyout should an extended marketing period not result in an outside offer.
Direct Reimbursement for Employee Home Sales
Kinetix can facilitate direct reimbursement for employee home sales in any location. Whether tax assisted (grossed up) or paid net of taxes, Kinetix will collect appropriate backup and closing documents, audit for appropriate required information, calculate commission costs, seller’s closing costs, and taxes and pay the appropriate amount per company relocation and tax policy.
Kinetix helps to keep you compliant for all of your employee home sales and relocation assignments
Relocation Buyout Appraisals
Kinetix can administer any Relocation Home Sale policy that incorporates a Guaranteed Buyout Program. Using ERC (Worldwide Employee Relocation Council) appraisal guidelines, our home sale specialists complete the relocation buyout appraisal process through an expert appraiser network that adheres to program specifics as outlined in the ERC Relocation Appraisal Guide. In conjunction with appraisals, Kinetix can manage any required inspections including, but not limited to, general home inspections, pest inspections, well and septic inspections, synthetic stucco, asbestos, and other hazardous material inspections, and Radon inspections and make suggestions for remediation where appropriate.
Transferee Leases and Assignee Leases
When managing global mobility programs, transferee leases require special attention, especially when you’re operating in diverse global locations. Negotiating assignee leases, employee lease termination, and the steps needed for effective employee lease closeout require expert attention to make sure that additional costs are avoided and deposits are returned within a reasonable time frame.
Planning starts with a thorough employee lease inspection at the beginning of employee tenancy/occupation. Making sure an inventory is completed, photos are taken, and repairs and concerns are addressed are key steps to a simple employee lease closeout upon vacating the property at the end of the assignment.
Navigating the apartment/property transferee leasing process in a foreign country can be a significant challenge. Kinetix can help. We have on-the-ground resources globally to walk you through finding a home, negotiating per local custom, and finalizing your lease. Assignee leases can obligate you in ways you need to understand, and we can make sure you are educated every step of the way.
Employee Lease Termination
From simple U.S. employee lease termination and lease closeout process and deposit recovery, to the more complex foreign early lease terminations, inventories, and closeout, Kinetix has experience in it all. We have local resources in every location to ensure that your transferee lease termination process is handled in a stress-free and compliant manner.
At times, employees may be called back prematurely due to specific business needs. To lessen the impact of an early lease termination abroad, Kinetix manages the process through our global resources, ensuring compliance and an easy transition, and making sure that all local requirements are met. It helps your employee to move out, and you to move on to the next key talent move.
For end of lease apartment inspections, our local agents assist in photos and documentation, finding local repair resources where necessary, and making sure everything that needs to be provided for deposit return is taken care of. Once all information has been submitted to the property landlord, we work directly with them to ensure appropriate return of deposit.
Employee home sales and lease terminations can be the source of significant stress on employees going on assignment. Kinetix Relo can help eliminate this stress by providing:
● Selecting the best agent
● Developing a comprehensive marketing plan
● Guaranteed Buyout vs. Buyer Value Option evaluation
● Direct Reimbursement
● Title Search
● The Closing Process