Archive for the 'Moving' Category

Negotiating Your Relocation Package- Buy Side

Last week I wrote about various benefits you may get in a corporate relocation package when you need to sell a house. Today we’ll cover benefits you may receive if you’re buying a home in your new location.

In all cases, you’ll work with a real estate agent to find your new home. If you know of a specific agent that you’d like to work with, tell your relocation company that agent’s name and their brokerage firm and that you want to work with them specifically. Otherwise you will be assigned to whatever agent is next on the relocation call list at whatever brokerage firm is next on the list.

Your new employer may provide a lump sum amount to cover your (and your family members) airfare to the new location, lodging during your visit, rental car and gas costs, and meal costs. Or they may have you submit an expense report with receipts for your trip costs, which will be reimbursed after your visit.

Once you’ve found a home, closing costs may be covered. This benefit may include all or some of the following; mortgage application fee, appraisal fee, home inspection fee, closing attorney fee, first year of homeowner’s insurance, tax escrows, and adjustments for water, oil, and condo fees (if applicable). These benefits may be good up to 18 months after you move. So if you do decide to rent for the first year in your new location, you typically have another 6 months or so to find a house and close so that you can still take advantage of your closing benefits.

The mortgage application fee, appraisal fee, and home inspection fee are typically provided only on the first home you find. If for some reason the transaction does not go through (most commonly related to an unsatisfactory home inspection or appraisal issue), you are usually expected to pick up these fees for the next house you decide to purchase.

Coverage of your moving expenses for one move may be provided. The relocation company will give you information on the moving company that will be responsible for moving your belongings. Typically, if you decide to rent for the first year and then buy at a later time period, you’ll be responsible for your moving costs when you actually buy because the relocation company will have moved your belongings to your rental.

If you are unable to find the right home immediately, your new employer may provide a temporary housing allowance for a furnished rental. This benefit comes in two forms. Potentially you’d be given a lump sum amount in which you’d choose the hotel where you stay. Or you’d be provided accommodations for a specified number of days at a certain location selected by the relocation company. Three popular temporary housing locations that relocation companies use in the Hartford area are Hartford 21 and 55 on the Park in Downtown Hartford , and the Homewood Suites in Farmington near the UConn Health Center. This benefit is simply to give you more time to find a home to purchase.

Remember, each of these options may or may not be offered to you by your new employer. Your relocation package is something that you may be able to negotiate. If you find there is a benefit that you’d like that isn’t being offered, ask for it. If you don’t ask, you may be leaving money on the table.

Staying Put

I make my living by helping people move. But at times, I have to advise them that it may make more sense to just stay put.

Here’s a recent example…

A few weeks ago, I met a nice, older couple at an open house. They have been thinking about moving from their house to a condo. Right now they have one floor living, a garage, and central air. They have around 1,100 square feet and would want a condo around the same square footage. Finally, they have no mortgage on their home, so their only recurring monthly housing expenses are their taxes, insurance, and utilities.

I suggested that I could help them understand what their house is worth so they could make sure they were looking in the right price range for condos. They thought that sounded like a good idea and invited me to their home.

I toured their house, went home and did a market analysis, and came up with a potential selling range. I also created a Net Sheet to help them understand what they would take away from a sale. The Net Sheet takes the projected selling price and subtracts out the estimated commission, state and town conveyance taxes, attorney fees, and other miscellaneous expenses.

Based on their need for single floor living, a garage, and the towns they were considering, there were about 10 condo options available. When we took into account the condo fees at the complexes, taxes, insurance, and utilities they would pay, it turned out to be cheaper to stay in their current home.

Luckily they currently live in a ranch, so they don’t need to deal with stairs, and that made my recommendation to stay where they are much easier. They also have adult children in the area that can help them out with plowing and mowing, when needed.

While I do enjoy helping people sell their homes, sometimes it’s in a person’s best interest to just stay where they are. If you’re thinking about moving to reduce expenses, it’s important to understand your current monthly housing budget.

When looking at condos, don’t forget to take into account the monthly Homeowners Association fees and what they include. They may make it more attractive to just stay in your house.

Relocating to Connecticut and Buying a Car

I’ve run into this more than once with relocating clients, so I think it needs to be addressed…

If you’re thinking about moving to Connecticut and buying a car in the state at the same time, make sure you have a legal Connecticut address first.

Often people coordinate their move and car purchase. However, if you don’t have a legal CT address, you won’t be able to register the new car here, so you won’t be able to drive it off the lot. A copy of a lease or bill with your name and address should be good enough for the dealership to work with the Department of Motor Vehicles on the registration.

Just don’t be caught in a bind thinking you can purchase your car and then drive around looking for an apartment or house. Unfortunately you’ll have to rent a car, find your place, and then you can buy and register your car. Happy relocating!

Movin' to the City

 

The ‘burbs have attracted entire generations of Americans looking for their own little piece of paradise.  A small plot of land where they can plant a garden or put up a swing set.  Play fetch in the yard with the dog or catch with the children.  A nice little neighborhood and good clean fresh air.

They were willing to travel a little further to their jobs, in many cases suffering through brutal traffic.  And they were willing to pay a little more in taxes since the suburban communities tended to have fewer businesses on the tax roles.

Although the tradeoffs are manageable in an economic environment where energy is cheap, the recent spike in gas prices has made the traditional American car culture much more expensive to maintain.  We’re seeing folks struggling to make ends meet throughout the country.  Since the general perception is that energy prices will remain high for the foreseeable future, folks are beginning to rethink their budgets.

Early in the week I saw my first article suggesting a major, but logical, way to handle higher gas prices – move.  Move closer to your job.  Move closer to the town center where you do your regular shopping.  Move closer to your family and friends that you visit regularly.

I’d been waiting to see this article in the mainstream press.  It makes sense.  In many cases it’s easier than keeping the house but finding an acceptable job closer to home.  And it’s sufficiently dramatic to make for a good story.  It was bound to show up at some point.

However, I was surprised to see two more variations on the same theme show up shortly after.  First we have this piece forecasting the death of the suburbs. And then there was this one focusing on the increasing attractiveness of living along public transportation lines.

In the Hartford area we have some public transportation.  We have some of our big employers co-located downtown.  And we have some urban housing.  But we are not New York.  My guess is that rather than focusing on true city living, folks will gravitate to the inner neighborhoods and towns to minimize drive time rather than get rid of their cars all together.

But if folks start moving closer to the city, what’s going to happen to the more distant communities? Who will live there and what will become of all the strip malls? Will they become the new ghost towns?

 

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