Introduction
Relocations often mean more challenging jobs, bigger paychecks, and fresh starts in new locations.It's exciting to make new friends and start a new life.
However, there are many things to watch for when relocating that can cost you significantly.Problems selling the old home or buying the new one top the list. Dealing with movers, adjustment difficulties, and unforeseen expenses can also diminish the joy, and increase the financial burden of relocation.
Here, we provide tips on the most common mistakes that cause increased expenses to those relocating. We at Abana would like to do all we can to ease the transition and advise you on these costly mistakes to help make your relocation as smooth and enjoyable as possible.
Departure-Side
Benefits Packages
On the departure side, failing to negotiate a complete relocation package can cost you. Fully understanding your company's policies up-front can help you avoid simple, but costly mistakes.
Start by studying your company's relocation plicy. Learn what benefits you're entitled to and use them if you can. Find out about others not specifically mentioned. Keep an eye for the following:
- Job search assistance for your spouse.Home searching assistance for you and your family
- Buyout options if your home doesn't sell in a reasonable timeframe
- A bonus if you do sell your home yourself
- Assistance with selling expenses
- Financial support options for moving expenses including vehicle and large item transportation
- Reimbursement policies for a self-move
- Buying cost support for things such as closing costs, mortgage fees, points, etc…
- Gross-Up payments on reimbursements to cover tax liabilities or assigned sale through a third party to avoid tax consequences
Cost-of-Living
Get a cost-of-living comparison before taking the new salary. A bigger paycheck doesn't help you if the cost-of-living differential is greater than your raise. Your company may raise your salary if you can demonstrate that your basic cost-of-living expenses will increase by a larger percentage.They may perhaps fund other options to make up this difference such as mortgage buy-downs or down-payment assistance to lower your home payments.Your goal is to at least come out neutral if not ahead in the transition.
Involve the Family
Understand that it's not just the employee that is moving, but their entire family. Everyone will have their own reaction to moving, leaving the old home, making new friends, leaving old ones, etc…Relocating is stressful for you and your family, so address issues openly.Failure to be proactive in this can cause the need for counseling and can sometimes lead to divorce.
Get Your Selling Price Right
As you will see in our selling-tips literature, setting your home price is critical to selling it quickly. Set it too low, and you obviously lose money.Set it too high, and the home will languish on the market.This can be fatal to a successful relocation.Your main goal is to sell your home as quickly as possible in this sort of situation, hopefully without under-pricing it.This is where your Abana Relocation Specialist can help you. Your Abana agent will perform a Comparative Market Analysis to help you set your price to the optimum point to sell quickly without selling too low.
Careful Transportation of Property
First, Minimize your transportation expenses if you are not reimbursed for them buy packing most of your items yourself. This also helps protect fragile and expensive items from damage.Second, understand the movers policy, and your contract, with regards to recovery of damage to your property should it be damaged, lost, or stolen during the move.Third,transport highly personal and expensive items such as jewelry and family heirlooms personally.
Destination-Side
Obtain a loan pre-approval.
Be sure you have the best rate negotiated and as many of the loan hurdles resolved as possible before the move.Once you arrive at your new location, you are not in your best position to deal with issues then. Take care of what you can before the move.
Further, you can negotiate from a stronger position should you have your loan pre-approved before home-shopping. A ready buyer can negotiate concessions more readily than one who has yet to obtain their loan.You will be more likely to negotiate a better price and better terms on your loan.Further, protect your pre-approval status by avoiding major new purchases, acquisition of new credit, or worst of all, missing a payment on a credit item.
Learn the Culture
Learn the Culture of your new real estate market. Weather our area is your starting point, or your destination, Abana can help you tremendously here.You should know if homes sell for their asking price or substantially below.This will help you avoid over-paying for your new home, and avoid difficulty in selling it for an acceptable price later if you need to. Learn about the costs of purchasing, including local taxes. Investigate zoning, architectural, and usage restrictions.Your Abana Relocation Specialist can help you with all of these.
The "Exit Strategy"
Always, when buying a home, keep resale in mind.This is especially true with relocation.Many people who relocate will relocate again. Avoid homes that may not re-sell well. Again, your Abana Relocation Specialist can help.
Get a pre-purchase appraisal and a home inspection to help you avoid buying a home with problems you can't readily see, but may hurt you in a re-sale.Also, if you over-pay on the move-in, then you may have a lose in the eventyou move-out because you couldn't sell your home for what you paid for it.
Also keep in mind that if you buy significantly more home than you currently have due to reduced living costs in the new location, you may have transition difficulties if you move to another high-cost location.
You New Life
You are moving more than yourself; you are moving your family. If your spouse is leaving a job, and needs another, start on that process before you even move.Inquire with your company about a spouse employment assistance program.
Plan ahead to start fitting in at your new location. Learn about the places of worship, sports teams, local doctors, etc.Start living your new life, and start working on it before you move.
Relocation Specialist
The most significant move you can make to save yourself money in this transition is to engage the services of an Abana Relocation Specialist.You specialist can help you watch out for financial and personal interests associated with your relocation.Our Relocation Specialists are trained to work with transferees, understand your pressures and stresses, and help you navigate these complicated roads. |
