When your company needs to transfer an employee, it's in your business's best interest to make certain that the transfer goes as smoothly as possible. After all, your employee will be most valuable in their new position and location if they aren't still dealing with the hassle of moving when they begin work. That's one of the reasons why it's important to work with an experienced relocation management company. However, selling your employee's home can remain a troublesome task, especially if the housing market in your area is not good. Take a look at some things your company can do to help support an employee through the home sales process so that they can focus on using their talents to work for your company in their new location.
Recommend the Right Realtors
If your company frequently transfers employees, chances are good that you've had the chance to interact with a number of different local real estate agents, and you've been able to gauge which ones are most effective.
Maintain a list of effective realtors in the areas where your employees tend to live, so that you can recommend them to your transferring employees when necessary. You may even want to consider offering incentives for your employees to use the services of a particular realtor.
You can do the same thing when it comes to home staging services. Home staging can speed the sale of a home, so provide your employees with reimbursement for home staging services and a referral to effective home staging service providers.
Provide Reimbursement or Assistance With Closing Costs
Helping with the closing costs can help give your employee an incentive to sell quickly. You can provide direct reimbursement of the closing costs to your employee after the sale -- this is one of the simplest ways to provide assistance. However, it may not be the best method, as your employee will be taxed on the reimbursement funds.
Another option is the buyer value option, in which the employee sells the home to the relocation management company on your company's behalf, then sells it to the final buyer. Using this strategy, the employee avoids closing costs entirely. Your company will pay those costs, as well as the realtor commission. However, you'll be able to count those expenses as operating costs, which is favorable for your company at tax time.
Loss on Sale Assistance
Another issue that may arise is the need for your employee to take a loss on the sale of their home in order to conclude the sale quickly. As you can imagine, few employees are eager to take a loss on the sale of their home.
To encourage a faster sale, the company may choose to include loss on sale assistance in the relocation budget. This is money that you set aside to reimburse the employee for some or all of the difference between the home's value and the sale price. You can reimburse the whole amount, split the difference with the employee, or set a cap and reimburse only up to that amount. Either way, loss on sale assistance can be a valuable part of a relocation package.
By ensuring that your employees can sell their homes more easily and quickly, you can relieve some of the pressure that arises from one of the most stressful parts of the relocation process. For more corporate relocation tips, follow us on Twitter.