Certified Relocation Professional (CRP) Practice Exam

What is true about an amended value option in a homesale assistance program?

1. It uses broker price opinions for determining buyout offers

2. It shares the same tax consequences as assigned sales

3. It requires amending an employee's purchase price to match an outside buyer

4. It guarantees the home will be sold directly to a buyer located by the transferee

The correct answer is: It requires amending an employee's purchase price to match an outside buyer

The amended value option in a homesale assistance program involves adjusting the purchase price of the home to reflect the price that an outside buyer is willing to pay, rather than the original agreed purchase price. This ensures that the employee receives a buyout based on a more current and accurate assessment of the home’s value in relation to the market. By amending the purchase price to meet the price of an outside buyer, the program aims to more accurately align the buyout with the value that a real buyer would pay, thus facilitating a smoother transition for the transferring employee. When considering the other options, it becomes clear why this one stands out. Utilizing broker price opinions is a different approach altogether and does not specifically address the concept of amending the employee's purchase price. Tax consequences associated with assigned sales can vary and might not relate directly to the specifics of the amended value option. Additionally, guaranteeing a sale directly to an external buyer contradicts the essence of amending values, which focuses more on adjusting prices rather than ensuring direct sales relationships. Thus, the statement regarding the requirement for adjusting the employee's purchase price accurately describes a fundamental aspect of the amended value option.