Own Luxury Homes®
Your Relocation Package: What It Actually Covers
3 package types: lump sum ($5–25K taxable), managed/policy-based, full executive. Most benefits taxable post-TCJA (2017); exception: GBO/BVO home sale programs (tax protected). Tax gross-up: employer pays tax on relo benefits (executive packages; negotiate it). Not covered: loss on sale above cap, capital gains, extended temp housing, staging. Negotiate at offer acceptance before signing — leverage disappears after. Own Luxury Homes® 12-Point Agent Integrity Audit™ — independent package analysis for transferees.
Your Relocation Package: What It Actually Covers, What It Doesn’t, and What to Negotiate
Most transferees receive a relocation package and assume it covers everything. It rarely does. What it covers is defined by your employer’s relocation policy — a document that most employees never read until they are already under deadline. Understanding what your package actually includes, what it excludes, and what you can negotiate at the time of offer acceptance is the most valuable financial literacy a transferee can have.
The Three Types of Relocation Packages
Lump Sum
The employer gives you a fixed dollar amount — typically $5,000–25,000 depending on level and distance — and you manage all relocation expenses yourself. Advantage for the employee: flexibility; you keep what you don’t spend. Disadvantage: if the move costs more, it comes out of your pocket. The lump sum is almost always taxable income. Most junior and mid-level employees receive lump sum packages.
Managed / Policy-Based Package
The employer covers specific defined expenses up to defined limits: moving costs, temporary housing, house-hunting trips, cost-of-living differential. The RMC manages vendor relationships and compliance. Coverage varies significantly by policy tier. Most mid-to-senior employees receive some version of this structure.
Full Executive Package
Full coverage of: all moving costs, home sale program (GBO or BVO), destination home purchase assistance, temporary housing for 30–90+ days, cost-of-living allowance, loss-on-sale protection, tax gross-up on relocation benefits. Reserved for senior executives and critical talent transfers.
What Most Standard Packages Cover (and the Limits)
| Benefit | Typical Coverage | Common Cap or Limit | Taxable to Employee? | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Moving expenses (household goods) | Professional moving company | One move; weight limits may apply | Yes (post-TCJA) | ||||||
| House-hunting trips | 1–2 trips for employee and spouse | 3–5 days; airfare + hotel + per diem | Yes | ||||||
| Temporary housing | 30–90 days of corporate housing or hotel | Daily rate limit; may require RMC-approved provider | Yes | ||||||
| Home sale assistance (BVO/GBO) | Commission reimbursement + closing costs | Only if using RMC’s approved program | No — tax protected under BVO/GBO structure | ||||||
| Loss on sale | Some employers cover losses above a threshold | Capped; only in full executive packages; often based on appraised value | Yes | ||||||
| Duplicate housing costs | PITI on departure home during transition | Limited period (30–60 days typically) | Yes | ||||||
| Cost of living allowance (COLA) | Monthly payment for higher cost destination | Declining balance over 1–3 years; not universal | Yes | ||||||
| Destination home purchase closing costs | Some or all buyer closing costs | Cap varies; common in senior packages | Yes | ||||||
| Mortgage rate differential | Subsidy if new mortgage rate is higher | Rarely included; executive-level packages only | Yes | ||||||
| The tax column matters. Most relocation benefits became taxable to the employee under the 2017 Tax Cuts and Jobs Act. The exceptions are GBO and BVO home sale programs, which retain tax-protected status when structured correctly. Understand the tax gross-up provision in your package — some employers cover the tax on relocation benefits; others do not. | |||||||||
What Most Packages Do NOT Cover
| Uncovered Item | Who Pays | Typical Cost |
|---|---|---|
| Loss on sale above policy cap | Employee | Potentially $20,000–$100,000+ in a declining market |
| Capital gains tax on departure home sale (if exceeds $250K/$500K exclusion) | Employee | Depends on gain; coordinate with CPA |
| Cost overruns on temporary housing beyond policy limit | Employee | $2,000–6,000/month for extended stays |
| Destination home inspection costs if contract not executed | Employee | $400–$800 per inspection |
| School enrollment and childcare costs in new city | Employee | Varies significantly |
| Pet relocation and boarding | Employee | $500–3,000+ |
| Storage costs beyond policy limit | Employee | $100–$400/month |
| Home staging costs on departure home | Employee | $1,000–5,000 |
What to Negotiate at Offer Acceptance (Your Only Window)
Relocation policy is set at the corporate level. Your leverage to negotiate specifics is highest at job offer acceptance — before you sign. After you sign, you are bound by the policy tier you were offered. Items worth negotiating:
| Item to Negotiate | Why It Matters | Approach | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Package tier upgrade | Mid-level to senior package adds home sale program, COLA, and loss coverage | Make the case based on your home equity and destination housing cost | |||||||
| Loss on sale protection | If your market is declining or you’re underwater, this is critical | Request coverage cap tied to appraised value, not purchase price | |||||||
| Extended temporary housing | Tight destination inventory may require 60–90+ days | Request 90-day default with extension option | |||||||
| Tax gross-up on relocation benefits | Converts taxable relo benefits to net neutral | Standard in executive packages; worth requesting at any level | |||||||
| Lump sum top-up | Additional cash to cover gaps not in policy | Easier to grant than structural policy changes | |||||||
| The best time to negotiate is before you accept the role. A hiring manager who wants you will be more flexible on relo package terms than an HR department processing a completed hire. | |||||||||
“The relocation package mistake I see most often is the transferee who signs the offer without reading the relo policy and then discovers mid-move that their destination city costs 40% more than their departure city and there’s no COLA in their package. Or they find out the loss-on-sale protection they assumed existed is not in their tier. Read the policy before you sign. Ask HR for the complete written relocation policy document, not the summary. The summary is marketing. The policy is what you’ll be held to.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What does a corporate relocation package typically include?
Moving expenses, 1–2 house-hunting trips, 30–90 days temporary housing, and some form of home sale assistance. Executive packages also include loss-on-sale coverage, COLA, closing cost assistance, and tax gross-up. Most benefits are now taxable post-TCJA. GBO/BVO home sale programs are the exception — still tax protected when structured correctly.
Are relocation benefits taxable income?
Most are, since the 2017 Tax Cuts and Jobs Act eliminated the exclusion for employer-paid moving expenses. Exception: GBO and BVO home sale programs retain tax-protected status under specific IRS rules. Check whether your package includes a tax gross-up (employer pays the tax on relo benefits). If not, budget for the additional income tax.
When should I negotiate my relocation package?
At job offer acceptance — before you sign. This is your maximum leverage point. After signing, you are bound by your assigned policy tier. Request the complete written relocation policy (not the summary) and negotiate specifics: tier upgrade, loss coverage, extended housing, and tax gross-up.
What is loss on sale in a relocation package?
A benefit that compensates the transferee for the difference between what they paid for their departure home and what they sell it for, when they sell at a loss. Common in executive packages; rare in standard packages. Usually capped at a defined amount and calculated against either purchase price or appraised value. Critical for transferees in declining markets or who bought near peak.
Own Luxury Homes® — relocation real estate specialists who help transferees understand what their package covers before any decision is made. 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)