What is a Buyer Value Option (BVO) Home Sale Program?

by | Aug 13, 2024 | News

A BVO home sale program is a program which is designed to help relocating employees sell their homes quickly and efficiently without the company taking ownership of the property.

According to WHR’s 2024 Global Mobility Benchmark, a BVO program remains one of the most competitive relocation offerings.

  • 60% of respondents offer home sale and/or purchase benefits.
    • Of those,
      • 59% offer BVOs to new hire non-executives
      • 78% offer BVOs to new hire executives
      • 67% offer BVOs to existing employee non-executives
      • 74% offer BVOs to existing employee executives

The best way to describe a BVO is in the context of
a traditional Guaranteed Buyout (GBO) program

Under a GBO, the relocation management company (RMC) orders two home appraisals and simply averages the two to determine a guaranteed offer.
As an example:

  • Appraiser A values a relocating employee’s home at $330,000
  • Appraiser B values the same home at $335,000
  • $332,500 is considered the “GBO”

The relocating employee then takes the offer of $332,500 and moves to their new location, unencumbered by their former home. In turn, the RMC sells the property on the
open market, and the employer is charged for all of the associated real estate expenses upon the conclusion of the sale.

The employer can treat the home sale costs as “business expenses,” so none of the expenses are considered income to the employee (for federal tax purposes).
This process is validated by the IRS in Revenue Ruling (2005-74), which specifically addresses this type of home sale program.

What is a Buyer Value Option (BVO)?

Read the Buyer Value Option (BVO) Whitepaper

Essentially, BVO is very similar to a GBO, with the exception that with a BVO home sale program, no appraisals are completed. Instead, the buyout offer is based on a bona fide fair market offer received by the employee from a qualified third-party buyer. With BVO, the employee is responsible for listing their home for sale, and receives marketing assistance from the RMC.  

Once a contract is deemed valid, the RMC offers to buy the home from the employee at a price based on the outside sale price, and the employee is funded their equity based on this amount. The RMC will enter into a new listing agreement with the employee’s broker and proceed to close the transaction with the outside buyer while honoring all agreed terms and conditions. All home sale costs are treated in the same manner as with a GBO program.  

The BVO home sale program provides all the tax benefits to both the employer and employee. However, it is the responsibility of the employee to secure an outside buyer ready, willing, and able to purchase the property at a fair market value. 

Why should you offer your relocating employees a BVO?

    • Tax Savings: A properly structured BVO program that adheres to IRS requirements provides significant tax savings that benefit employees as well as employers.
    • Minimized Risk for Employees: Employees avoid the financial risk and stress of carrying two mortgages if they have to move before their home is sold.
    • Expedited Relocation: Employees can move to their new location more quickly, knowing that their home sale is being managed.
    • Cost Efficiency for Employers: Employers can manage relocation costs more effectively and help maintain employee productivity by reducing the stress and financial burden associated with home selling.

WHR Global provides the following
BVO support to help your employee
sell the home to an outside buyer:

    • Obtain two Broker Price Opinions (Broker Market Analyses)
    • Reconcile the two opinions of value
    • Suggest a listing price
    • Develop a comprehensive marketing strategy
    • Obtain pictures of the home
    • Provide tips to paint, declutter, etc.
    • Assist with Realtor selection
    • Obtain weekly feedback from Realtor
    • Assist in contract negotiation
Home for sale
Read the Buyer Value Option (BVO) Whitepaper

Be aware: From a cost standpoint, when selling a home, the following expenditures are typical in a home sale transaction. 

When selling a home, there are several expenditures in a typical home sale transaction
  • Real Estate Commissions
  • Recording Fees
  • Transfer Taxes
  • Title Expenses
  • Notary
  • Escrow Fees
  • Seller Concessions
  • Repairs
  • Inspections
  • Miscellaneous

A Buyer Value Option home sale program is a valuable tool for companies looking to support their relocating employees. By assisting with the home sale process, companies can alleviate a significant source of stress for their employees, ensuring a smoother transition and enhancing overall job satisfaction.

For the company, this can translate into higher retention rates, more successful relocations, and a stronger ability to attract top talent. 

Ready to learn more about our move management services?

Contact Us

U.S. Domestic Relocation Cost Estimator

US Domestic Relocation Cost Estimator Icon
Estimate Costs!

Interactive Repayment Agreement

Interactive Repayment Agreement Icon
Create Agreement!

Domestic Relocation Policy Designer

Domestic Relocation-Policy Designer icon
Design Your Policy!

Relocation Benchmark Comparison

Relocation Benchmark Comparison icon
Benchmark Now!

RFP – Relocation Request for Proposal Generator

Relocation Request for Proposal Generator
Generate Your RFP!

Temporary Housing Pricing Benchmark – Ask an Expert!

by | Aug 8, 2024 | Press Release

Milwaukee, August 8, 2024 — WHR Global (WHR), a relocation management company and leader in the global mobility and corporate relocation industry, announced the release of its Ask an Expert! Temporary Housing Pricing Benchmark.

The report covers temporary housing prices in over 140 cities worldwide, allowing global mobility teams to benchmark costs effectively.  

WHR always strives to deliver exceptional relocation services. The “Ask an Expert” Temporary Housing Pricing Benchmark Report is a testament to this mission, providing invaluable insights into the cost of temporary housing.

Drawing on data from experts in the temporary housing industry, the report presents average prices for 1–3-bedroom housing facilities per night and month, quoted in US Dollars and effective Q2 2024. 

Download the Temporary Housing Benchmark
Ask the Expert Temporary Housing Benchmark

Why Temporary Housing? 

 Temporary housing plays a crucial role in the relocation process, offering a safe and pleasant place for workers and their families while they seek permanent housing. This stability is vital during the transition period, helping employees settle into their new environment more comfortably. 

 This option also allows employees time to explore their new city and find permanent housing that meets their needs, offering convenience and budget-friendly options.
 

 Additional Benefits of Temporary Housing: 

  • Reduced Stress: Relocation can be stressful, but temporary housing offers a familiar and comfortable place to stay, easing the transition
  • Improved Productivity: Employees who settle quickly and feel at home in their new city are more likely to be productive at work
  • Increased Morale: Employees supported by their employer during relocation are generally happier and more motivated in their work
Download the Temporary Housing Benchmark

WHR Global (WHR) is a private, client-driven global relocation management company known for its best-in-class service delivery and cutting-edge, proprietary technology. WHR has offices in the United States, Switzerland, and Singapore, boasting a 100% client retention rate over the past decade. WHR remains a trusted leader in global employee relocation, living by its vision of Advancing Lives Forward® and Making the Complex Simple. 

Contact WHR Global today for more information on global mobility and corporate relocation services or download our Global Mobility Benchmark Report.  

WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

Ready to learn more about our move management services?

Contact Us

U.S. Domestic Relocation Cost Estimator

US Domestic Relocation Cost Estimator Icon
Estimate Costs!

Interactive Repayment Agreement

Interactive Repayment Agreement Icon
Create Agreement!

Domestic Relocation Policy Designer

Domestic Relocation-Policy Designer icon
Design Your Policy!

Relocation Benchmark Comparison

Relocation Benchmark Comparison icon
Benchmark Now!

RFP – Relocation Request for Proposal Generator

Relocation Request for Proposal Generator
Generate Your RFP!

Culture and Language Training – Ask an Expert!

by | Jul 31, 2024 | News

In today’s globalized world, the importance of cultural and language training in global mobility programs cannot be overstated.

Companies like WHR Global and Global LT are leading the way by integrating these essential services into their offerings, ensuring smoother transitions and greater success for expatriates and their families. 

Table of Contents:

  • Program Statistics
  • Learner Centric Client Trends
  • Benefits of Cultural & Language Training
  • How is the Service Facilitated and Delivered
Culture and Language Training

65% of international permanent relocation programs offer cultural training and 58% offer language training.

80% of international assignment packages offer cultural training, with 74% offering language training, according to WHR’s Global Mobility Benchmark Report.

“Reported rates of population bilingualism in places such as Europe (67%), Canada (55%), India (25%), and the United States (20%) indicate that bilingualism is both common and growing,” according to a research paper published in the National Library of Medicine measuring and reporting bilingualism.

Cultural and Language Training Client and Industry Trends

Understanding and respecting cultural differences empowers professionals and their families to live, work, and communicate successfully worldwide.​ Speaking the native language is a critical component to fostering better interactions and collaboration. While these two services were often treated as separate components of a learning program, we are seeing industry trends integrating both Culture and Language training into one service.

  • Learner-Centric Ecosystem Combining Culture and Language Training:  
    •  Cost Savings: Integrating these services can lead to significant savings 
    •  Synergy: Culture and language training complement each other  
  • Sustainability: Sustainable practices in training programs 
  • Family-Centered Services: Catering to the entire family, including spouses, partners, and children
  • Flexible Training Options: Individual or group training, accommodating up to 10 individuals. 
  • Customized Learning Plans:  Personalized experiences for effective integration, confidence, and belonging such as:
    • Community etiquette (dining experiences such as tipping, ordering, and eating etiquette or grocery shopping)
    • Business etiquette (in-office)
    • Educational assimilation through play for children

“When working with clients to benchmark their language and cultural training benefits, I can’t help but draw from my own experiences. As a UK-US dual citizen who has worked in Japan, Belgium, Spain, Mauritania, Ghana, Greece, and now Switzerland, linguistic and cultural impacts are inescapable. Without understanding the nuanced business etiquette in Japan, an expat in Tokyo may unintentionally disrespect their superior before they even work on a new project. Depending on the location in Switzerland, your employee (and their spouse) may be expected to know German, French, or Italian to maintain their immigration permit. Companies like WHR Global and Global LT are pivotal in providing these essential services, ensuring that professionals and their families are well-prepared to navigate their new environments successfully.”

Jennifer Elsby, GMS®, MIM+
Client Services Manager EMEA at WHR Global

Language and Culture Training focused on Human Relationships

Human interaction fosters meaningful connections and provides significant benefits to individuals undergoing relocation. Global LT trainers craft personalized experiences aimed at delivering in-depth coaching sessions, whether conducted in person or virtually. These sessions are designed to offer tailored guidance, unwavering support, and motivational insights to both employees and organizations alike.

  • Employees and Professionals:
    • Global Workforce: Effective communication and strong relationships with diverse colleagues, clients, and partners.
    • Expatriates and their families: Understanding local culture, norms, and business practices for smoother transitions. Families feel more connected and have a sense of belonging in their new country.
  • Organizations:
    • Increased employee retention rates, higher employee involvement and engagement.
    • Higher reported satisfaction in company culture and benefits.
    • Multinational Corporations: Navigating complex international markets and fostering cohesive corporate cultures.
    • Small and Medium Enterprises: Engaging with global partners and clients, ensuring smoother collaborations. 

Benefits of Cultural and Language Training

Cross-cultural training is crucial for fostering understanding and collaboration and provides practical tools and insights that can be applied immediately, yielding several benefits:

  • Enhanced Communication Skills: Overcoming language barriers and developing non-verbal communication skills for effective interaction.
  • Improved Conflict Resolution: Better handling of disputes by understanding cultural differences in conflict resolution styles.
  • Increased Cultural Awareness: Insights into cultural norms, values, and etiquette, reducing misunderstandings and fostering respect.
  • Boosted Productivity and Efficiency: Culturally competent employees can navigate nuances and avoid miscommunications, leading to efficiency.
  • Enhanced Global Mobility: Opens up more opportunities for international assignments and career advancement.
  • Stronger Customer Relationships: Tailoring products, services, and marketing strategies to diverse cultural preferences, increasing customer loyalty and revenue.
  • Fostering Innovation: Diverse teams bring different perspectives and ideas, driving creativity and innovation.
WHR Global and Global LT Cultural and Language Training Process

“You may know the language, but if you don’t understand the culture, you won’t communicate successfully.  Likewise, if you know the culture but don’t speak the language, communication will still fail. We ensure successful assignments, so learners thrive and communicate successfully no matter the country, culture, or language.”

Heather Jamison, CRP®, GMS®
Vice President of Customer Success at Global LT

Conclusion

Cultural and language training is not just an add-on; it is a fundamental component of successful global mobility programs.

By partnering with experts like WHR Global and Global LT, companies can ensure their employees are well-equipped to thrive in diverse environments, ultimately leading to greater personal and professional success. 

Learn More about our Employee Relocation Services

View Page

Webinar | Navigating France Relocation Trends

by | Jun 27, 2024 | News, Webinar

Insights & Impacts on Global Mobility during the Paris Olympics

Tuesday, June 25, 2024 at 9 am central time.

Watch and listen as our panel of subject-matter experts provide essential information to navigate the French market and ensure a successful relocation or assignment.

Key Topics:

  • French Rental Market
  • Social Security Registration
  • 2024 Paris Olympics & Paralympics
Global Mobility and the Paris Olympics
Watch the Full Webinar
Navigating French Relocation Trends Webinar features panelists from WHR Global and Home Conseil

 

Webinar Speakers

Moderator: Sean Thrun,
Strategic Initiatives Manager, WHR Global

Panelist: Jenny Elsby,
International Client Services Manager, WHR Global

Panelist: Jérémy Berthoux,
President, Home Conseil Relocation

Moderator: Brian Fournier,
Vice President/General Manager, Expat Relocation Services

“Like I mentioned, we do expect the Olympics and Paralympics to have a significant impact on the industry and mobility programs, particularly if you have a lot of commuters who are on assignment or business travelers who regularly, you know, take the train drive, fly into Paris.

A few interesting things.

  • Paris last held the Olympics 100 years ago in 1924, so obviously a lot has changed since then. I think it’s worth saying though, that even though this will be the biggest ever event organized in France, France did have the most international visitors in 2023.
  • They had 100 million people visit the country.
  • And Paris itself was the fifth most visited city in 2023.

So, no stranger to crowds, but when we do say this is the biggest ever event organized in France, it really puts into perspective the magnitude that we’re talking because the country is used to 100 million visitors per year.”

Sean Thrun

Strategic Initiatives Manager, WHR Global

Watch the Full Webinar

“This is such an exceptional event that you cannot necessarily look at temp housing extension and say that this is purely due to personal choices.

The budgets are so skewed because of the market, you have to look at things with a slightly different eye.

Use our advice, really your assignees are probably doing the best they can with the support of the partners you have, but the market is very, very challenging.

Brian touched a little bit on this and moving services.  There are going to be certain periods where your assignee will not be able to get their shipments delivered to their houses if they are living in central Paris. This is also going to be applicable for rental furniture.  Fortunately, there is not going to be this workaround, people are going to potentially need temporary housing outside of the site.

There are increased travel prices and delays.  Heavy traffic and limited car access near event sites.

I have an assignee in Paris who was telling me that she applied 3 weeks ago for her QR code to be able to go from her home to the office and she hasn’t gotten it yet!  We are hoping she’s going to get it.  But just as an example, she said to me “quite honestly, she can already see now that this is going to be quite a challenging summer.”

I think a lot of people who are residents will potentially be going away for their July holiday as opposed to their normal August holiday this year.  I know that Jeremy knows that very well with the August vacations.

There is also a lot of information out there, not only support from myself and the team here but there is also a lot of governmental information which we are going to share with you in a minute”

Jenny Elsby

International Client Services Manager, WHR Global

Watch the Full Webinar

“The potential rental price decrease drop we might see is after the Olympics.  As Jenny alluded to, there is a big, big influx of properties put on the temporary housing market, rather than the normal housing market.

We are beginning to seeing landlords coming back down because they cannot really get the rate they wanted or get these properties filled for the duration of the Olympics.  So we see, a few properties come back into the “normal market.”

And I am “looking ahead into my crystal ball” because there is no indication on that, but that is how I sense the market is from the end of the Olympics and the Paralympics, between say August 15 and September 15, because the Paralympics will draw less people, we will probably see a big influx of properties on the normal market all at once.

With as Jenny alluded to, the full-blown holiday period enforced in August in France, there will be less demand for it.  So we might see a reversal, an imbalance of the market between supply and demand all at once.

This won’t be the first time in my career that I see that.  That could lead to a lowering of the prices in the rental market and the budget for assignees coming into France and Paris, around September 1.  This is the potential silver lining.”

Jérémy Berthoux

President, Home Conseil Relocation

Watch the Full Webinar

“So, Paris has been segregated into three zones as it relates to the Olympics.

If you see in the gray area, those are the event sites on the map. And the Blue line surrounding the Gray area is called the Silt Zone, and that is the domestic security and counterterrorism zone. There’ll be no traffic allowed in and around that zone, the Red Zone.

Now the government is advising that in the Red Zone it will allow access to cycles, pedestrians, vehicles that have a pass from the Paris police. The current advice we’re receiving is that movers can apply for a permit for only essential moves.

Now, we have not been given any direction on what constitutes an essential move and the feedback that I am receiving from our moving partners in and around Paris is expected the red zone to be completely restricted to moving.

It’s going to be extremely difficult to verify that you have an essential move and, in all likelihood, it’s going to be virtually impossible to for any movement within the Red Zone.

Now Blue Zone is technically available for removal services. The movers must register in advance to get QR code, and as Jenny had alluded to earlier, getting the QR code could be a little bit of a challenge, but without the QR code, the movers would not be allowed to enter that zone.

I think we need to keep in mind and setting expectations that the situation there is fluid, and we don’t know how smoothly or not the whole situation that’s going to run.

As it relates to the potential for moving services, certainly if there’s any security concerns or issues that arise, the government can shut down all the zones completely to any kind of commercial traffic.

That said, I think the best course of action as it relates to moving household goods into or out of any of those zones, the best course of action is probably to try and schedule that outside of the time frame of the levels.”

Brian Fournier

Vice President - General Manager, Expat Relocation Solutions

Watch the Full Webinar

Complete the Form Below to Watch the Full Webinar

 

Contact Us About Your Global Mobility Needs!

Contact Us

WHR Global, a Client-Driven Global Mobility Management Company, Celebrates 30 Years Relocating Employees Across the World

by | Jun 11, 2024 | Press Release

WHR Global celebrates 30-years as a leader in the global mobility and corporate relocation industry
Download Global Mobility Benchmark Report
Read our Commitment to Sustainability

MILWAUKEE, June 11, 2024 /PRNewswire/ — WHR Global (WHR), a relocation management company and leader in the global mobility and corporate relocation industry, announced the company’s 30-year anniversary.

WHR was founded in 1994 by Roger Thrun on a simple promise: to provide relocation services with an unmatched level of quality. To this day, this simple promise is commemorated with a framed 30-year-old note card on his desk which includes his 5 core values and business philosophy: empathy, trustworthy, proactive, hardworking, and results-driven.

Today, WHR Global has expanded its expertise and business philosophy globally with offices in Switzerland and Singapore. WHR’s 30-year record of success includes serving Fortune 500 global organizations and U.S. government agencies, with each client ranging from dozens to thousands of relocations and assignments per year.

WHR’s goal for the next 30 years includes a commitment to preserving a sustainable future for generations to come. The goal is to operate and relocate employees in a socially responsible manner while being cognizant of our own environmental impact and partnering with sustainable companies who are united in this belief.

“Thank you to our clients, employees, partners, and those we have helped relocate in the 30 years,” states Founder and CEO Roger Thrun.

“Our greatest success is people.”

Roger Thrun

Founder and CEO, WHR Global

About WHR Global

WHR Global (WHR) is a private, client-driven global relocation management company distinguished by its best-in-class service delivery and cutting-edge, proprietary technology. WHR has offices in the United States, Switzerland, and Singapore. With its 100% client retention rate for the past decade, WHR continues to position itself as the trusted leader in global employee relocation. We partner with human resources, travel divisions, and global mobility departments at a wide variety of organizations from Fortune 500 corporations to the U.S. government.

WHR lives by its vision and passion for Advancing Lives Forward® and Making the Complex Simple.

Contact WHR Global today for more information on global mobility and corporate relocation services or follow WHR on LinkedIn.

View WHR’s free resources for global mobility professionals in the Relocation Toolbox.

WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service