Relocating with a Relocation Package
More and more companies, with the improving economy and job market, are willing to provide relocation assistance to new employees from out of the area, or employees who are moving from one location to another.
If you are buying and/or selling, it’s critical to pay attention to the details of your relocation package and understand what is and what is not included, since they are often customized by the company and for the level of job.
I specialize in relocations, inbound and outbound, and having worked with a number of relocations (including one just a couple of weeks ago), and used relocation packages a couple of times myself in a prior life, I have some suggestions on matters to think about:
UNDERSTAND WHAT YOU CAN AND CANNOT DO WITH REGARD TO USING A REAL ESTATE AGENT
With some relocation packages, which often use a Relocation Company that coordinates the move, financials, and record keeping, you may not be able to select the agent you want to either buy and/or sell, so ask up front.
It is not unusual for the relocation company to require a referral fee from the agent who helps you to either buy or sell, or possibly both, depending. While this is not really your worry, the agent you want to work with deserves to know what their financial obligation will be since it impacts their earnings, and the fee can be substantial.
Sometime you can select whoever you wish to work with, and let the relocation company know, but in some instances the relocation company has a list of agents that are acceptable to them. Find out in advance before getting into the process.
A big part of moving, of course, is packing and shipping your household goods, which may also include a car or two, motorcycle, boat, and other toys. Find out specifically what will be covered, e.g., will the company pay for movers to pack your home or not, and will they cover storage in your new location until you can move in and for how long.
You need to know what can be shipped and what cannot (e.g., hazardous goods can not go on the moving truck), and will they ship your car and other toys as part of the overall package and is this covered in the package?
It’s likely you will need to obtain 3 estimates from reputable moving companies and the relocation company will approve the vendor for the job.
Find out the moving schedule well in advance (the end of the month is the toughest) so you can plan closing and vacating your home, travel to the new location, and other matters.
Will your relocation package cover temporary living in your new location and for how long? How much will they cover and for what type of property (e.g., house, condo). Since your household goods may be in storage until you can move into a new home, how log will they provide storage? Know that in many areas finding temporary/short term furnished housing can be very expensive, much more so than your typical long-term rental. Plus the relocation company may have to arrange this on your behalf. Be sure to check on having your pets with you and plan accordingly.
HOUSE HUNTING TRIP
Will the relocation package cover at least 1 trip to the new location in advance of your move to try to find a home to purchase? How long will they allow you (plus a partner, family members, etc.) to travel and what is covered (e.g., air, hotel, food)?
FINANCIALS AND TAXES
You need to understand how your relocation will impact you financially. Will monies used for the move/temporary living/etc. be counted as income? Will the company gross up certain expenses to cover your projected taxes? What will be taxed and what will not?
While the IRS allows certain deductions for moving, you will want to understand in advance how your taxes may be impacted and plan accordingly. I recommend talking with a tax professional. You also need to understand what record keeping you must do vis-a-vis what the relocation company will do or require from you.
Planning to move to the Carlsbad area? Get started with your search for over 200 Carlsbad homes for sale using the links below. And give me a call to help you with YOUR relocation to Southern California.
If I can provide more information about Carlsbad homes and real estate for sale and surrounding areas, the housing market in general (or locally), or otherwise assist you, friends or family in a home search or sale, please contact my mobile office or text me at (760) 840-1360 or email me at JeffDowlerSolutions@gmail.com
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