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The questions most commonly asked about HomeServices Relocation’s service fees reclassification

Why is HSR offering a new pricing option?

Over the years, commissions on HHG and other services have grown in significance as basic service fees have decreased. Unfortunately, while fees are clearly stated on client invoices, commissions are often imbedded in the gross
pass-through cost for the service, resulting in a lack of visibility for the client of
the amount paid to the RMC.

Additionally, most commissionable items are also taxable. Failing to break out the commission piece needlessly increases the amount of tax assistance incurred by the employer.

HomeServices Relocationā€™s (HSR’s) new option addresses both these issues by eliminating commissions entirely and by disclosing them where it is not practical to eliminate them.

What is the advantage of the new pricing option for my company?

Visibility to all RMC compensation. Lower tax assistance costs.

Is there a disadvantage for my company if we decide to use a traditional model?

No. HSR will still reflect all commissions earned as ā€œRMC Move Management Feeā€ so that the amounts can be properly classified as a fee and not grossed-up for tax purposes.

Are there any service implications?

No. Regardless of fees or commissions, all clients enjoy top notch service and attention.

If we select the new pricing option / model and later decide that it is not for us, can we transition to the traditional model?

Yes, although a new contract would need to be executed.

Are there any tax advantages for our company if we select the new pricing option?

Yes. Commission amounts which are not visible in the traditional model will now be clearly displayed, allowing for such amounts to be classified as services fees, saving the gross-up on these amounts.

Is this available today?

Yes.

Who do I contact for more information on this program?

Gary Conerly, CRP, GMS
Director, Client Advisement
garyconerly@homeservices.com
612.252.1007