Home Sale Programs
Altair recommends cost effective solutions that maintain or improve employee service satisfaction through implementation of a variety of best practices. Many of these practices revolve around home sale and tax assistance procedures.
- Careful evaluation of tiered relocation policies and the use of an Amended Value home sale program.
- Delaying the appraisal and purchase offer, and requiring a mandatory marketing period of 120 to 180 days. This method is used to encourage the transferee to do as much as possible to obtain an outside buyer, provides a reasonable amount of time in which to do so, and makes the guaranteed buyout available as a fall-back offer. Using a delayed appraisal in your home sale program will decrease the number of properties that are taken into inventory.
- Mandating a list price no higher than 105% of the BMA and/or appraisal (and no higher 103% of the BMA in depressed markets).
- Offering a sliding scale home sale bonus for employees receiving buyout offers to encourage a higher amended value sale rate, creating a net cost reduction for the overall program. The sliding scale could be 3% for selling the property in the first 30 days, 2% in 60 days and 1% in 90 days.
- In 2009, Altair published an updated Best Practices paper regarding the double deeding process.
Tax Gross-Up Decisions
Tax assistance, commonly referred to as tax gross-up, is a benefit determined by client policy and typically applied to all taxable income. Altair can assist you in selecting the tax methodology that makes the most sense for your employees and your company.