A Guide to Your Job-Related Move

Currently, the corporate climate is such that between mergers, acquisitions, and buy-outs, many employees find themselves being asked to relocate. In fact, 40% of moves performed each year are job-related. If you find yourself in the position of being asked to relocate for your job, it is important that you are proactive in negotiating the terms of your relocation package up front. The optimal time to discuss moving expenses is before accepting a new job. Addressing relocation details ahead of time helps you to avoid any surprises when it comes time to move.

Companies typically handle direct moving expenses in one of three ways. Some companies give their employees a lump-sum payment to cover all move-related expenses (the moving company, hotels, meals, and mileage.) Other companies opt to pay for all move related expenses up to a certain amount, based on the receipts you submit upon the completion of your move. Finally, some companies have a moving services provider who is responsible for coordinating all moves within the company and covering the related expenses. 

Typically, bigger companies provide a more standardized relocation package than smaller companies.  No matter what the size of the company though, the following expenses are typically covered in a corporate relocation:

-Temporary lodging costs. Try to negotiate these terms so that they are as flexible as possible. Because it is often difficult to determine how long it will take to find and move into a new home, it is always a good idea to negotiate an option where temporary living arrangements for 30, 60, or 90 days is possible if needed.

-Travel costs. If you end up having to move prior to your family, due to school or other reasons, find out if costs for commuting between your new and old home are covered.

-Looking for a home. Almost half of all companies cover at least one house-hunting trip to the new location. Check and see if this also covers expenses for your spouse to accompany you on the trip. 

-Packing and moving costs. Many companies team with moving companies that specialize in corporate relocation (such as Sorensen Mayflower!) During negotiations, make sure that you are clear on what all is covered. Most companies cover the cost of hiring a moving company and all packing and transportation fees. 

Contingent upon your new position and the size of the company for which you will be working, there are also other moving related perks that you might want to consider asking about. These include:   

-Help selling your current home.  Some companies will take on the monthly payments, taxes, and insurance of your current home while it is on the market and until it is sold. They may also offer you a price guarantee on your home, which means that if you sell your house yourself, the company will pay the difference between the net selling price and a price on which you agree. Other companies may offer you an alternative price guarantee. This means that if you cannot sell your home within a certain amount of time, the company will buy it at a price that you agree upon. Many companies will also offer to pay commission fees and other costs related to the sale of your home.

-Paid time off for house hunting.

-Shipment of your vehicle. 

-Closing costs.  Some companies will pay the closing costs on your new home, or will buy a percentage point off your interest rate. 

-One-time payment for move-related incidentals. This might include fees for installing appliances, setting up utilities, registering your vehicle, and having your home cleaned.

-Job placement for a spouse. About 50% or companies will offer to help the spouse of the employee find a new job, usually through a referral to a recruiter or a job placement agency.

After discussing all of these options with your employer and agreeing on a relocation package, it is always a good idea to get it in writing. This way, all parties have clear expectations of what will take place during the process of the relocation.

 

Moving Tips for Newlyweds!

Happy Valentines Day! In honor of this day, we thought it would be appropriate to give some moving tips to the lovebirds out there that are getting ready to tie the knot. Marriage brings more than just two people together- it is also a union of all of their belongings into one home, which can be an overwhelming process. Both getting married and moving are stressful life events (in a good way!) If they occur at the same time, which is often the case, the stress can double. Planning ahead, proper packing, and organization can ease the stress of the moving process so that couples can enjoy the honeymoon a little bit longer. Here are some tips on how to ensure that wedded bliss continues throughout your move:

1.      Don’t procrastinate: Although it is tempting to focus all of your energy on the wedding and honeymoon, don’t forget to focus some of your attention on your upcoming move. Start planning and getting ready at least six weeks in advance of you move. Waiting to the last minute to prepare for your move will dramatically increase the stress on everyone.

2.      Take inventory of your belongings: Before your move, take inventory of all of your belongings and have your spouse do the same. Each person should then make a list of the items that they want to keep. Compare lists so that you can see where items overlap. You can save a good amount of time and money by getting rid of any duplicate items before you start packing.

3.      Visualize your new home. Compare the amount of space in your new home with that of your current home. Try to visualize where you’ll place your furniture and other items to determine which items you should bring with you, and which items you should sell, give away, or store.

4.      Take an emotional break if needed. Parting with certain belongings can be difficult, especially during the emotional time of preparing for marriage. If needed, give yourself a one week break before going through your items again with a more critical eye. Once you get accustomed to the idea of parting with certain things, it may be easier to make a final decision.

5.      Get some help! Consider hiring a professional mover (preferably Sorensen Mayflower!) to help you with your move. We will come to your home, walk you through the moving process, and give you a price estimate up front. Then, allow us to carefully pack and move all of your belongings (including wedding gifts such as china and crystal!) Hiring a professional mover takes much of the stress of moving away and enables you to focus your attention on your relationship.

Happy Valentines Day from Sorensen Mayflower. We hope that your day is filled with lots of love!

 

 

Ten Steps to Buying a Home

Are you moving and looking to purchase a new home? Navigating the housing market can be difficult. Here are some steps that you can take to make the search for a new home at a reasonable price a little easier.

1.      Review your credit report. It is important to check your credit report for errors before jumping into the housing search. Consumers are allowed one free report per year at www.annualcreditreport.com. Because it can sometimes take a while to clear up errors on your credit report, it’s a good idea to look at your credit history several months in advance of beginning your housing search.  

 

2.      Get approved for a mortgage. Try to get offers from several mortgage lenders before choosing one. This way, you can see what your price range will be before starting your search, and won’t waste time and energy looking at homes that you can’t afford.  

3.      Hire a realtor. Realtors have inside connections in the local market, and often know of homes that are available that might not be listed publicly. Additionally, a realtor knows the tricks to brokering a deal, which can save homebuyers lots of money and aggravation.

4.      Decide where you want to live and examine your choices. Search the internet for homes that catch your interest. Avoid listings that don’t provide a picture, as this usually indicates that the property is not visually appealing.  

5.      Compare prices. Compare the prices of the homes that you are looking at with others that are similar and have sold in the last 60 days. This way, you can make sure that the property that you are looking at is listed at a fair price.

6.      Perform an inspection. This is an important step in ensuring that the home that you are looking at is safe and does not need any renovations. If you are making an offer, it is a good idea to make it contingent on an acceptable home inspection. If the inspection uncovers areas that need improvements in the home, this can be used as a leverage by the buyer at closing time. 

7.      Talk about closing costs ahead of time. By law, prospective homebuyers are permitted to see the closing costs, which typically average from 1.5 to 4 percent of the purchase price. Ask to do so ahead of time so that you have the chance to dispute costs that seem unfair or inappropriate. 

8.      Make an offer. Consult your realtor before making an offer. Try to be as flexible as possible with the sellers. Homebuyers who are agreeable and willing to make minor concessions are more attractive to sellers.  

9.      Decide on a down payment. Most experts recommend making a down payment of about 20% of the total cost of the home. Not only does this provide you with immediate equity, but it also gives you a lower interest rate on your mortgage. Finally, it makes you appear to be a serious, qualified buyer, which is important if you are competing with other buyers for the property. 

10.  Claim tax benefits. There are several closing costs that are tax deductible. For example, the pro-rated interest from the time you close on the home until the end of the first month and any mortgage points that are paid can be deducted from your taxes.  Talk to the person who helps you prepare your taxes to find out more about tax deductible closing costs.

We wish you luck with your quest to find a new home. We hope that you will use Sorensen Mayflower when it comes time for you to move into it!