Firms that primarily utilize an appraised value program (AVO)  are inundated with upset and even angry employees complaining about the “low” appraised values. On top of that, CFO’s of the same companies are finding it harder to approve massive loss on sale amounts on inventory homes. Is a switch to a Buyer Value Option (BVO) program the right move at this time?

Concurrently, firms that rely on the tried and true BVO program have transferees tied up in the marketing of homes for extended periods of time as they search for that ever elusive market value that meets his or her needs. Will shifting to an AVO program, giving the employee a guaranteed out, be the panacea that each party is searching for?

The answer to both questions is a resounding NO. Hopefully, when policy makers chose their home sale program, they took careful consideration of the fairness of the benefit and how it fits into their corporate culture and overall strategic objectives. Most have done thorough benchmark studies to remain competitive in their respective industries. A knee jerk reaction during times of uncertainty in the market will not result in happier employees, cost efficiencies, or differentiate you in the marketplace. Stick with what works for and fits into your company’s plans for the long term.

In the meantime, look to “tweak” your policy without changing the intent. Investigate more loss on sale programs or offer mortgage subsidy programs to enhance buying power in the new location. Grant exceptions for temporary housing and household goods storage as marketing times increase. Offer buyer or broker incentives, even in BVO programs, to set the properties apart form the competition and move them quickly.

Keep the main facets of your policy intact while offering minor adjustments for the marketplace fluctuations. We know the real estate market will eventually turn upward again and your current policy will be right where it needs to be without changing a thing.

The market is more complex that it’s ever been – on both the real estate side and the talent side.  However, don’t overreact – don’t even “react”.  Complexity brings with it great opportunity to transform your challenges into long-term, sustainable advantages.  That’s what we do every day at Capital.  If you’d like to get some ideas to navigate these challenges – just send me an email, I’d be glad to help.