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BVO Explained: The Double-Close and Tax Advantage
BVO: you find buyer → RMC buys from you (Close 1) → RMC sells to buyer (Close 2). Tax advantage: employer pays RMC as business expense; not taxable income to transferee. vs direct reimbursement: $30K selling costs taxable at 37% = $11K+ in avoidable tax. BVO > GBO in active markets (market price vs appraised value). GBO is the safety net when BVO fails to produce a buyer. Own Luxury Homes® 12-Point Agent Integrity Audit™ — BVO-aligned pricing from day one.
Buyer Value Option (BVO) Explained: The Double-Close, the Tax Advantage, and What It Means for You
The Buyer Value Option is the most commonly used relocation home sale program because it achieves the best outcome for both the employer and the transferee in most cases: the transferee sells at market price to a real buyer they sourced, the selling expenses are paid by the employer in a tax-advantaged structure, and the RMC’s role is primarily administrative rather than as a principal buyer. Understanding the mechanics — particularly the double-close structure and why it exists — helps transferees navigate it confidently.
How the BVO Works: Step by Step
| Stage | What Happens | Who Does What | |||||||
|---|---|---|---|---|---|---|---|---|---|
| List on the open market | Transferee lists with an agent (relo-approved or independent); markets normally | Transferee + agent | |||||||
| Buyer is identified | A buyer submits an offer the transferee would accept | Buyer + buyer’s agent + transferee | |||||||
| RMC buys from transferee (Close 1) | The RMC purchases the home from the transferee at the buyer’s offer price. Transferee receives proceeds. Transferee is done. | RMC closes with transferee | |||||||
| RMC sells to the buyer (Close 2) | The RMC immediately resells the home to the buyer at the same price. RMC handles all closing mechanics with the buyer. | RMC closes with buyer | |||||||
| Employer pays RMC costs | Employer reimburses the RMC for all selling expenses (commissions, closing costs) as a business expense | Employer + RMC | |||||||
| The double-close exists for tax purposes. When the employer pays selling costs directly as a reimbursement to the transferee, those reimbursements are taxable income to the transferee. When the employer pays through the RMC (which briefly takes title), the selling costs are deductible as business expenses and are not taxable income to the transferee. The BVO structure is IRS-recognized and has been used for decades. | |||||||||
The Tax Advantage of BVO vs Direct Reimbursement
| Structure | How Selling Costs Are Paid | Tax to Transferee | Net Difference on $500K Sale | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Direct reimbursement | Employer reimburses transferee for commissions and closing costs | Taxable income on $30,000–35,000 of costs | At 37% rate: ~$11,000–13,000 in additional tax | ||||||
| BVO | RMC takes title; employer pays RMC as business expense; transferee receives full proceeds | No taxable income on selling costs | $11,000–13,000 in tax savings vs direct reimbursement | ||||||
| This tax difference is the primary reason BVO is preferred over direct reimbursement. On a $500,000 departure home with 6% in selling costs ($30,000), the BVO structure can save the transferee $11,000+ in income tax. | |||||||||
BVO vs GBO: Which Is Better for the Transferee?
| Factor | BVO | GBO | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Who finds the buyer | You (the transferee) | The RMC (after you fail to sell in the marketing period) | |||||||
| Sale price | Market price from real buyer you sourced | Amended value (average of 2 appraisals); may be below market | |||||||
| Timeline certainty | Depends on finding a buyer in time | Guaranteed — RMC buys if you can’t sell | |||||||
| Tax treatment | Same — both are tax protected | Same — both are tax protected | |||||||
| Best for | Sellers in active markets who can find a buyer quickly | Sellers in slow markets or who need certainty above all | |||||||
| In a healthy market, BVO produces better proceeds than GBO because it captures market price rather than an appraised value. The GBO is the safety net when BVO doesn't produce a buyer within the marketing period. | |||||||||
Can You Use Your Own Agent in a BVO?
This depends on your employer’s policy. Many policies require using an RMC-approved agent — one who has signed an agreement with the RMC and will pay the 35–40% referral fee. Some policies allow you to use any licensed agent while still accessing the BVO structure. Know your policy before selecting an agent. Using an independent agent outside the RMC’s network may cost you access to the BVO structure and the associated tax benefit.
The BVO Buyer’s Perspective: What Changes for Them
Buyers purchasing a BVO property often don’t realize they are buying from an RMC — until they see the seller named as a corporate entity on the title. Key differences for buyers:
| Factor | BVO Buyer Impact |
|---|---|
| Seller is a corporation (RMC) | Normal negotiation dynamics still apply; the RMC wants to sell quickly |
| As-is sale (common) | RMC rarely makes repairs; inspections allowed; credit negotiation possible |
| Additional RMC addenda | Similar to REO addenda; limited seller representations; read carefully |
| Quick closing preferred | RMC has inventory carrying costs; a quick, clean offer is favored |
“The BVO works best when the transferee lists the home correctly from day one. I’ve seen transferees waste the marketing period by overpricing, hoping for a miracle offer that never comes, and then accepting the GBO amended value at month two at a price below what they could have gotten with correct initial pricing. Price at market on day one. Find the buyer. Use the BVO structure. That sequence produces the best outcome for most transferees.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What is a Buyer Value Option (BVO)?
A corporate relocation home sale structure where: the transferee finds a buyer; the RMC briefly takes title from the transferee; the RMC then sells to the buyer. The double-close structure makes the selling costs tax-advantaged — paid by the employer as a business expense, not taxable income to the transferee.
Why does the RMC take title in a BVO?
For tax efficiency. When the employer pays selling costs directly as a reimbursement, those are taxable income to the transferee. When the RMC briefly takes title and the employer pays the RMC as a business expense, the selling costs are not taxable to the transferee. On a $500K home with $30K in selling costs, this saves ~$11K in tax at a 37% rate.
Is BVO better than GBO?
In active markets: yes, usually. BVO captures market price from a real buyer; GBO captures the appraised amended value, which may be 5–15% below market. In slow markets: GBO provides certainty when BVO fails to produce a buyer. BVO is preferred when the market can deliver a buyer within the marketing period.
Can I use my own real estate agent in a BVO?
Depends on your employer’s relocation policy. Many require an RMC-approved agent (who pays the RMC a 35–40% referral fee). Some allow any licensed agent while still accessing the BVO structure. Know your policy before selecting an agent. Using an outside agent may cost you the BVO tax advantage.
Own Luxury Homes® — relocation real estate specialists who understand the BVO structure and help transferees price correctly from day one. 12-Point Agent Integrity Audit™. Talk to a relocation real estate specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)