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Selling Your Home on Corporate Relocation: GBO vs BVO

The GBO is a floor, not a ceiling. It eliminates the risk of not selling. It does not prevent you from selling for more if the market supports it.

How the GBO Appraisal Process Works

The GBO appraisal process follows the Employee Relocation Council (ERC) guidelines: (1) Two independent relocation appraisals: the relo company orders two appraisals from certified relocation appraisers. Relocation appraisals differ from standard appraisals — they are more conservative and focus on “forecasted selling price” rather than “current market value.” (2) The 5% spread rule: if the two appraisals are within 5% of each other, their average is the GBO offer price. If outside 5%, a third appraisal is ordered. The two closest values determine the offer. (3) The marketing period: the employee is typically required to market the home independently for 30–120 days (varies by company policy) before the GBO becomes available. (4) Important: relocation appraisals tend conservative: because they are “forecasted selling price” rather than “current market value,” relocation appraisals may come in 3–8% below what a well-priced open market listing would achieve. In a strong market, the difference is real money.

When to Take the GBO and When to Test the Market

The GBO decision framework: Take the GBO if: (1) the market is slow (days on market > 45, price reductions common); (2) the start date creates genuine financial pressure (cannot carry two mortgages); (3) the property has deferred maintenance that would invite post-inspection credit demands; (4) the relo appraisals came in at or above what you believe the market will deliver. Test the market first if: (1) the market is strong (days on market < 30, multiple offers common); (2) you have flexibility on the start date or temporary housing covers the transition; (3) the GBO offer is below comparable sales in your neighborhood; (4) your home has significant upgrades that the appraisal methodology undervalues. The BVO structure: under Buyer Value Option, you list the home and find a buyer. The relo company then makes an offer based on the buyer’s agreed price. This passes the commission and closing costs to the employer while allowing you to capture open market pricing. Most company policies that include BVO also cover real estate commissions — a significant benefit worth several thousand dollars.

How Home Sale Assistance Affects the New Purchase

The home sale program structure has direct implications for the new purchase timeline: (1) GBO with certain close: when the GBO is accepted, the company sets a closing date. The employee knows the net proceeds and the close date. The new purchase can be timed to align with these proceeds. No financing contingency on the new purchase is possible because the proceeds are guaranteed from the GBO closing. (2) BVO or open market with uncertainty: if the employee is marketing independently, the closing date and net proceeds are uncertain. This uncertainty may require the new purchase to have a home sale contingency — which weakens the offer in competitive markets. Or bridge financing — which costs 8–10% interest-only for the bridge period. (3) The clean transaction advantage: the relo buyer who has accepted a GBO and knows the close date can make a non-contingent offer on the new property with known proceeds. This is one of the GBO’s most valuable but least-discussed benefits. Contingency guide.

Commission Coverage on the Relo Home Sale

One of the relo program’s most tangible financial benefits for the home seller: (1) Under GBO: when the company purchases the home, they pay the real estate commissions on the resale. The employee’s net proceeds are not reduced by commission. (2) Under BVO: the company typically covers the real estate commissions on the sale to the independent buyer. This is a significant benefit — at 5–6% commission on a $600K home, that’s $30,000–$36,000 the employer pays and the employee retains. (3) Independent sale (no BVO): if the employee sells independently outside the relo program, commissions come from the sale proceeds. The benefit of keeping the home in the relo program (GBO or BVO) includes the commission coverage. (4) Closing cost coverage: most programs also cover the employee’s closing costs on the prior home sale. Confirm exactly what is covered before electing to sell independently.

Corporate Relocation Guides: Relo Package — Search Timeline — Luxury Buying — Mortgage Qualification — Selling Your Home — Temp Housing — Agent Selection — Florida Markets

Frequently Asked Questions

Should I take the GBO or sell my home on the open market when relocating?

Test the market first during the required marketing period. If offers come in at or above the GBO price: take the open market sale. If the market is slow and no strong offers emerge: accept the GBO. The GBO is a floor, not a ceiling.

Do relocation appraisals come in lower than market value?

Often yes. Relocation appraisals use 'forecasted selling price' methodology, which tends conservative vs current market value. In strong markets, open market pricing may exceed the GBO by 5-15%.

Does the company cover real estate commissions when I sell my home for relocation?

Under GBO: yes, company pays commissions on the resale. Under BVO: company typically covers commissions on the sale to the independent buyer. This is a significant benefit worth $20,000-$40,000 on a typical home sale.

How does accepting the GBO help me make a non-contingent offer on the new property?

The GBO provides a guaranteed close date and known net proceeds. The buyer can make a non-contingent offer on the new property without a home sale contingency. Non-contingent offers are stronger in competitive markets and eliminate the need for bridge financing.