Certified Relocation Professional (CRP) Practice Exam

How is the amount of homesale bonuses typically determined by companies?

1. A sliding scale based on appraised value

2. Percentage of the employee's equity

3. Percentage of the home's sale price

4. A flat dollar amount

The correct answer is: Percentage of the home's sale price

The determination of homesale bonuses by companies often involves using a percentage of the home's sale price. This approach is typically preferred because it directly correlates the bonus to the actual transaction amount, reflecting the market conditions and the final sale price the home achieves. By linking the bonus to the sale price, companies can ensure that the amount awarded is relevant and fair according to the prevailing market, thereby encouraging employees to maximize their home's value. Options that involve a sliding scale based on appraised value, a percentage of the employee's equity, or a flat dollar amount can be less flexible. For example, relying solely on appraised value may not accurately reflect the current market dynamics or the final selling conditions. Similarly, a flat dollar amount does not consider individual circumstances or fluctuating market conditions. Thus, using a percentage of the home's sale price allows the bonus structure to be both relevant and motivating for the employee involved in the relocation process.