Cartus Consulting guides organizations of all sizes to the best solutions in global mobility and mobile workforce development. In this, the third installment of a four-part series, Cartus Consulting Services looks at the top issues in U.S. Home Sale.
We’ve been approving loss on sale on a case-by-case basis. How do I establish a policy for loss on sale?
The impact of the downturn in the real estate market is still being felt, and many companies are looking to establish a structured loss on sale policy. Loss on sale can be calculated in various ways. Some companies are covering 100% of the loss, with a cap. Others will require some contribution from the employee, either as a percentage of the loss and/or a dollar amount. Cartus Consulting has found that the most commonly noted caps are $50,000 and $25,000, but we’ve found that companies will go above the caps for certain employees, based on job level and circumstances.
We also learned that most companies are not including capital improvements in their loss on sale calculations, recognizing that capital improvements are reflected in the overall value of the home, and to include them in a loss on sale calculation is double dipping, in a sense.
For more detailed information on establishing a loss on sale policy, read the full Cartus Consulting Services | Top Issues in U.S. Home Sale document.