.png)
Real estate market conditions can influence employee decisions to accept move offers, especially if selling a home now could mean taking a financial loss. Employees who purchased between 2020 and 2023 may hesitate to relocate if current market values are below their original purchase price.
As companies refine their relocation policies for 2025 and beyond, the question of whether to reinstate the Loss-on-Sale benefit is resurfacing. What should you consider?
What to Expect in 2025
During the housing market crash of 2008-2009, nearly 75 percent of companies offered a Loss-on-Sale benefit. Many employees were forced to sell their homes for less than they initially paid. Since the Great Recession, market prices have risen dramatically and companies have found their Loss-on-Sale benefit to be a straightforward area to cut from their relocation programs.
Today, the U.S. housing market is seeing a variety of trends in home values.
Home prices have hit record highs overall, but declines have been observed in select metro areas where buyers are getting more leverage today.
A recent report by Redfin found five of the six metropolitan areas where home prices fell the fastest in February 2025 were in Florida and Texas — two red-hot states just a few years ago. These included Austin, San Antonio, and Houston (Texas), along with Tampa and Jacksonville (Florida).
“Austin, Denver, Phoenix, and Nashville were the darling markets of 2021 and 2022 and places where prices went wild,” Realtor.com senior economist Joel Berner said. “Now, with more homes on the market, prices are returning to where they belong.” Florida markets such as Miami, Tampa, and Orlando have also seen prices drop as home inventories return to pre-pandemic norms, Berner added.2
This suggests that some homeowners with relocation offers who bought when prices were skyrocketing from 2020 to 2023 may now be faced with selling at a loss. This could increase the need for the expectation of corporate loss-on-sale support from candidates and employees being asked to relocate, especially as recent data from government-sponsored mortgage backer Fannie Mae showed citizens are growing increasingly worried about their personal financial situations.3
Key Factors to Consider
A Loss-on-Sale benefit, which reimburses all or a specified portion of the difference between an employee’s purchase price and selling price, could help mitigate relocation offer concerns. Key factors to consider include:
- Retention vs. Costs – Some employers don’t feel they should be on the hook for an employee’s personal financial decision made years before, even if it does lead to stalled mobility initiatives and potential talent retention challenges.
- Market-Specific Risk – While national home prices are expected to rise, some metro areas could see slower growth or stagnation, putting certain employees at a higher risk of selling at a loss.
- Competitive Benchmarking – While many companies reduced or eliminated the Loss-on-Sale benefit after the housing market recovered from the 2008 financial crisis, as fewer employees faced financial losses from selling their homes, reinstating this benefit now could enhance the attractiveness of relocation programs—especially with affordability at historic lows.
- Flexible Approach – If a company did not want to add the Loss-on-Sale benefit to the policy right away, the benefit could be addressed via an amendment “on standby” for one-off, high-need situations. This can be a great option for companies that are uncomfortable committing to a widespread policy change.
In NEI’s most recent U.S. Domestic All Benefits Survey, of the companies surveyed who offered Loss-on-Sale:
- Loss-on-Sale calculation also ran the gamut across companies surveyed:
- 54% reimburse 100% of loss
- 29% reimburse 99.99-to-75%
- 10% reimburse 74.99-to-50%
- 4% reimburse 49.99-to-25%
- 8% reimburse 24.99-to-1% - 100% cap the benefit from $25,000 to $50,000 depending on employee level
- 88% exclude capital improvements in the loss calculation
- 78% tax assist/gross-up the reimbursement
Using A Data-Driven Approach
While the U.S. housing market is not in free fall, persistent affordability challenges and elevated mortgage rates could create financial hurdles for relocating employees.
If your company relies on frequent relocations, reintroducing or adjusting the Loss-on-Sale benefit may provide a competitive advantage, ensuring smoother talent transitions and a more appealing relocation package.
A data-driven approach, considering regional price trends and employee demographics, will be crucial in determining the right strategy.
Ready for Loss-on-Sale Review?
Would you like help structuring a policy review or cost analysis for adding Loss-on-Sale to your policy? NEI would be pleased to answer questions or discuss this topic – or others – in greater detail at your convenience.
Please contact your NEI Client Relations Manager or NEI Client Development contact at 800.533.7353 or www.neirelo.com at any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
1. https://www.newsweek.com/home-prices-falling-fastest-texas-florida-areas-2045726
Real estate market conditions can influence employee decisions to accept move offers, especially if selling a home now could mean taking a financial loss. Employees who purchased between 2020 and 2023 may hesitate to relocate if current market values are below their original purchase price.
As companies refine their relocation policies for 2025 and beyond, the question of whether to reinstate the Loss-on-Sale benefit is resurfacing. What should you consider?
What to Expect in 2025
During the housing market crash of 2008-2009, nearly 75 percent of companies offered a Loss-on-Sale benefit. Many employees were forced to sell their homes for less than they initially paid. Since the Great Recession, market prices have risen dramatically and companies have found their Loss-on-Sale benefit to be a straightforward area to cut from their relocation programs.
Today, the U.S. housing market is seeing a variety of trends in home values.
Home prices have hit record highs overall, but declines have been observed in select metro areas where buyers are getting more leverage today.
A recent report by Redfin found five of the six metropolitan areas where home prices fell the fastest in February 2025 were in Florida and Texas — two red-hot states just a few years ago. These included Austin, San Antonio, and Houston (Texas), along with Tampa and Jacksonville (Florida).
“Austin, Denver, Phoenix, and Nashville were the darling markets of 2021 and 2022 and places where prices went wild,” Realtor.com senior economist Joel Berner said. “Now, with more homes on the market, prices are returning to where they belong.” Florida markets such as Miami, Tampa, and Orlando have also seen prices drop as home inventories return to pre-pandemic norms, Berner added.2
This suggests that some homeowners with relocation offers who bought when prices were skyrocketing from 2020 to 2023 may now be faced with selling at a loss. This could increase the need for the expectation of corporate loss-on-sale support from candidates and employees being asked to relocate, especially as recent data from government-sponsored mortgage backer Fannie Mae showed citizens are growing increasingly worried about their personal financial situations.3
Key Factors to Consider
A Loss-on-Sale benefit, which reimburses all or a specified portion of the difference between an employee’s purchase price and selling price, could help mitigate relocation offer concerns. Key factors to consider include:
- Retention vs. Costs – Some employers don’t feel they should be on the hook for an employee’s personal financial decision made years before, even if it does lead to stalled mobility initiatives and potential talent retention challenges.
- Market-Specific Risk – While national home prices are expected to rise, some metro areas could see slower growth or stagnation, putting certain employees at a higher risk of selling at a loss.
- Competitive Benchmarking – While many companies reduced or eliminated the Loss-on-Sale benefit after the housing market recovered from the 2008 financial crisis, as fewer employees faced financial losses from selling their homes, reinstating this benefit now could enhance the attractiveness of relocation programs—especially with affordability at historic lows.
- Flexible Approach – If a company did not want to add the Loss-on-Sale benefit to the policy right away, the benefit could be addressed via an amendment “on standby” for one-off, high-need situations. This can be a great option for companies that are uncomfortable committing to a widespread policy change.
In NEI’s most recent U.S. Domestic All Benefits Survey, of the companies surveyed who offered Loss-on-Sale:
- Loss-on-Sale calculation also ran the gamut across companies surveyed:
- 54% reimburse 100% of loss
- 29% reimburse 99.99-to-75%
- 10% reimburse 74.99-to-50%
- 4% reimburse 49.99-to-25%
- 8% reimburse 24.99-to-1% - 100% cap the benefit from $25,000 to $50,000 depending on employee level
- 88% exclude capital improvements in the loss calculation
- 78% tax assist/gross-up the reimbursement
Using A Data-Driven Approach
While the U.S. housing market is not in free fall, persistent affordability challenges and elevated mortgage rates could create financial hurdles for relocating employees.
If your company relies on frequent relocations, reintroducing or adjusting the Loss-on-Sale benefit may provide a competitive advantage, ensuring smoother talent transitions and a more appealing relocation package.
A data-driven approach, considering regional price trends and employee demographics, will be crucial in determining the right strategy.
Ready for Loss-on-Sale Review?
Would you like help structuring a policy review or cost analysis for adding Loss-on-Sale to your policy? NEI would be pleased to answer questions or discuss this topic – or others – in greater detail at your convenience.
Please contact your NEI Client Relations Manager or NEI Client Development contact at 800.533.7353 or www.neirelo.com at any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
1. https://www.newsweek.com/home-prices-falling-fastest-texas-florida-areas-2045726
