CRP Real Estate and Home Sale Programs

Question 1

What is a 'Buyer Value Option' (BVO) in corporate relocation?

Accepted Answer

A program where a relocation company purchases the home after the employee finds an outside buyer

Answer

Under BVO, the employee markets the home and once an outside buyer is found, the relocation company purchases it to complete the transaction, preserving tax-exclusion benefits.

Question 2

Which home sale program offers the employee a guaranteed purchase price based on an appraised value?

Accepted Answer

Guaranteed Buyout (GBO)

Answer

A Guaranteed Buyout provides the employee with a firm offer based on an independent appraisal, giving certainty even if no outside buyer is found.

Question 3

Under the 'Amended Value' home sale program, what triggers the amendment?

Accepted Answer

An outside buyer's offer that exceeds the appraised value offer

Answer

If the employee obtains an outside buyer's offer higher than the appraisal offer, the relocation company amends its offer to match, allowing the employee to benefit from the higher price.

Question 4

What is the primary tax advantage of a BVO program compared to direct reimbursement of loss-on-sale?

Accepted Answer

The transaction qualifies as an employer home purchase, avoiding taxable income on the sale

Answer

When structured correctly, the relocation company's purchase is treated as an employer acquisition, making employer-paid home sale assistance non-taxable to the employee.

Question 5

How many independent appraisals are typically required to set the buyout offer in a corporate home sale program?

Accepted Answer

Two

Answer

Most corporate programs require two independent appraisals; the offer is usually the average of the two, ensuring a fair market value estimate.

CRP - Certified Relocation Professional Practice Test

CRP - Certified Relocation Professional Practice Test

CRP Real Estate and Home Sale Programs