What are the BVO Program Benefits?
Many companies understand they can save money with the GMS Buyer Value Option (BVO) program. However, they are not sure of the other BVO program benefits. There are several benefits for clients beyond saving money. Reviewing the process will highlight several BVO program benefits for clients.
BVO Program Benefits #1: Cost Savings to the Client
A form of tax assistance known as tax gross-up helps offset the tax impact felt by transferees who receive reimbursements. This gross-up expense can add substantial costs, especially if a home sale generates reimbursement requests.
The GMS Buyer Value Option program avoids the costly process of “grossing up” dollars used to pay for the commissions and closing costs on the sale of a transferee’s home.
BVO Program Benefits #2: Risk Reductions for the Client
The home sale process carries some inherent risks. Importantly, the Internal Revenue Service requires putting the client at risk of owning the home in order to receive the tax benefit. If the home buyer does not proceed through to the closing and purchase the home, the client will be financially responsible until a new buyer is found.
Generally, the industry average of properties falling through during the sale process is up to 1.5%. However, GMS’ average over the past three years is less than 0.5%. As a result, clients that utilize the GMS Buyer Value Option program avoid risks of properties falling through prior to closing.
BVO Program Benefits #3: Time Savings for the Transferee
Transferees who participate in the GMS Buyer Value Option program are freed from the responsibility to attend the closing for their home sale. Transferees gain the freedom to focus on their new location and job responsibilities from the moment they leave their home.
Acclimating to a new location can take as long as three months to one year. Not having to arrange a home sale or return for a closing lets transferees and their families settle in to life at their new location and gives them peace of mind. Time savings are valuable BVO program benefits that help the transferee and their family members. Clients also benefit, as the transferee can give full attention to their new position.
What Should Companies With a Home Sale Program Do?
Companies that currently reimburse employees for the commission and closing costs on their home sale should look into the GMS Buyer Value Option program. Home sale expenses are the only remaining tax-protected relocation benefit when a company utilizes the GMS Buyer Value Option program. Companies can save the tax gross up on the reimbursement, and gain additional BVO program benefits including:
- No need for the employee to be at the closing of their home sale
- No return trips necessary to attend the closing if your employee is already at the new destination
- The employee can more quickly adapt to their new role and become an effective member of the team
GMS’ team of corporate relocation experts has helped thousands of our clients develop their home sale and Buyer Value Option program. Our team can help your company understand how to gain access to all of the BVO program benefits.
GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.
Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.
Contact our experts online to learn more about the BVO program benefits, or give us a call at 800.617.1904 or 480.922.0700 today.