Slide 1 Relocation Fundamentals for the new Frontier Presented by: Anne Marie Lee, CRP – SIRVA Relocation Wayne Cozzolino, CRP – Weichert Relocation Resources Inc. Marj Ford, CRP – Edina Realty Relocation Moderated by: Faye Bosak – General Mills

Slide 2 A Team of Players  The Corporate Transferee  College graduates, New hires, Current Employees  Gender, age, family status, etc.  The Corporation  Motivations for transferring employees  Key talent in remote locations  Consolidation/growth  Employee sought new location  Succession planning

Slide 3 A Team of Players, cont’d  Third Party Relocation Companies  Outsourced relocation administration  The birth of relocation companies  Rev. Rul  Real Estate Brokers  Relocation Department  Relocation departments as a resource center  Agent education  Agent selection  Resource “library”  Broker networks

Slide 4 A Team of Players, Cont’d  House Hold Goods providers  Coordinates estimates, claims process, etc.  Counsels transferee on move process and expectations  Coordinates logistics of the move with agent, driver and dispatcher  Temporary Housing providers  Assists transferee with demographics  Arranges direct bill so the transferee is not out of pocket  Other providers  Rental assistance  Spouse/partner career counseling

Slide 5 Types of Administration  In-House Administration  Not prevalent in the industry  HR Manager/Travel Dept.  Third Party Relocation Companies  Experts in relocation  Assist with development of policy, benchmarking, etc.  Administration of policy on company’s behalf  Coordination of all vendors  “One Stop Shop”  Relocation Counselors

Slide 6 Relocation Administration, cont’d  HROs  Streamline HR functions  Allows corporations to focus on core business

Slide 7 Relationships & Referral Fees  Corporation and Third Party relationships  Market services to companies with national/international presence  Service contracts & pricing  Third Party Company and Broker relationships  Preferred networks  Relocation Department structure

Slide 8 Relocation Benefits  The Relocation Policy  What is it? Why does it exist?  Many varieties  Cost containment  Common components  House hunting, sale/purchase of real estate, final move, household goods, temp housing, etc.  Roles/responsibilities of parties involved  Repayment agreements  Taxability and Gross-Up  Compliance  Methodology

Slide 9 Home Sale Programs  IRS Rev. Rul  The birth of home sale programs and third party relocation companies  Based on RISK and OBLIGATION  Amended Value Option (AVO)  Process  Pre-Established marketing time  Establishing value/Guaranteed Purchase Offer  Inventory  Relocation department involvement  Benefits and challenges

Slide 10 Home Sale Programs, Cont’d  Buyer Value Option (BVO)  Process  Indefinite marketing time  Risk  Benefits and challenges  Deed Transfer  Single vs. Double Deed  IRS Rev. Rul

Slide 11 Conclusion Questions & Answers