Certified Relocation Professional (CRP) Practice Exam

What is a primary reason for providing a Home Marketing Assistance Program in the homesale plan?

1. Shorten the time period for employees to accept the home purchase offer

2. Ensure tax compliance with IRS revenue tax ruling

3. Minimize the transferee's involvement in the sale

4. Reduce the corporation's relocation costs

The correct answer is: Reduce the corporation's relocation costs

Providing a Home Marketing Assistance Program serves to reduce the corporation's relocation costs effectively. This program typically helps in facilitating quicker home sales for employees who are relocating, which can minimize housing-related expenses for the company. By implementing strategies that assist with marketing the home, the program can lead to faster transactions and potentially less financial burden associated with carrying a property longer than necessary. In the context of corporate relocation, overall expenses can balloon if an employee's home takes an extended time to sell. These costs can include ongoing mortgage payments, property taxes, maintenance, and other associated carrying costs. Therefore, by assisting employees in selling their properties more efficiently, the corporation can mitigate these expenses and improve its overall relocation management process. In contrast, the other options discuss aspects that may be beneficial but are not the primary reason for instituting such a program. Shortening the acceptance period or ensuring tax compliance can be secondary benefits but do not directly tie into the overarching aim of cost minimization for the corporation regarding employee relocations. While minimizing the transferee's involvement in the sale might enhance employee experience, it also does not address the primary objective of reducing costs directly.