When a company offers an employee long-term employment in a location more than 50 miles from the current work location, a company may offer a relocation package. This usually covers the employee’s reasonable moving and other work-related expenses. By offering transferees a relocation package, employers provide comprehensive financial and other types of assistance to relieve the employee and their family of the expensive burden of relocation. A well-developed relocation package not only provides peace of mind as well as incentive to accept the job offer for the transferring employee but reflects positively on the company’s reputation for attracting top talent. However before you start packing boxes, it is important to know what your employer will and will not offer in terms of relocation assistance, and how that could affect both your move and your pocketbook.
Know What Kinds of Relocation Packages are Available?
Make no assumptions. If a relocation package is not discussed with your employment offer, start the conversation. Nearly 70% of U.S. companies offer relocation incentives for employee transfers or new hires. In 2012 companies spent an average of $19, 303 to move a new hire renter and upward of $90,000 to move a current employee homeowner according to the Worldwide ERC.
Negotiating a Relocation Package
With relocation costs reaching into the tens of thousands of dollars, you’ll need to know how to negotiate to get the best deal and ensure your move is as smooth and stress-free as possible. A new graduate moving from a one-bedroom rental probably won’t have the same needs as a homeowner with two children, a boat, two vehicles, and a home to sell. Your employer won’t know or assume what services you need, so take time to assess your situation and then suggest what services you think should be covered in your relocation package. It doesn’t mean you’ll get it, but again, it never hurts to ask. You’ll also want to research how much everything should cost so you know at what dollar amount to start negotiations. As a general rule, everyone underestimates how much stuff they have, and therefore, how much it’ll cost to move it. Ask abut extras. Does you company offer Guaranteed Buy Out. With GBO, the relocation company hires two independent appraisers prior to listing your home. If you are unable to sell the property the company will buy your home for the average of the two appraisals.
Options for a Do It Yourself Move
If your company’s relocation package is of bare-bones type you may want to explore your alternatives.
- The Do It Yourself in Your Own Car Move – Of course this is the most inexpensive but it comes with risks. Few days combine excitement and stress quite like moving day, especially if you’re handling the move yourself. At first glance, DIY moving seems like a quick way to save money and hassle. But a lack of planning and proper packing techniques can defeat the purpose . Without professional packing and moving services you increase the chance of your belongings being damaged. This option can be physically and emotionally draining.
- Rent a Moving Truck – First, when determining what size moving truck you’ll need, make sure to check the company website for details on all of the different sizes they offer. Before renting the truck, you’ll need to take into account the size of your home, the number of bedrooms and how much large furniture you plan to pack into the truck. Most moving companies offer everything from smaller 10-foot trucks for studio apartments to larger 26-foot trucks capable of holding over four bedrooms worth of belongings. When choosing a moving truck, don’t underestimate just how much stuff you have. Things always end up taking up more room than expected. When reserving a moving truck, make sure it has at least 10 percent more room than you think you’ll need. Trust us – it’s better to be safe than sorry. Renting the moving truck with accomplish the task with fewer trips back and forth in the car.
- Self Service Moving – Self-moving is exactly what it sounds like: moving your household goods yourself. But it doesn’t have to mean doing all of the work. Self-moving options make long-distance moves easy and affordable. Instead of driving a rental truck and paying separately for fuel, they handle the transportation and drop off the packing boxes. You pack and load.. They deliver the trailer right to your door, and you start loading. Once the equipment is delivered, you can have up to three business days to load your belongings. When you’re finished,they will pick it up and deliver to your new location. With transit times that average just 2-5 business days. You will have 2 to 3 days to unload before they pick up the trailer at your new location.
Taxable Moving Implications
IRS standards regarding distance and time worked after the move can determine if you can claim moving cost and the expense of traveling to your new location can be deducted. Payments made directly by your employer to your moving company do not need to be reported. But if your employer gives you a lump sum payment to cover moving expenses, the lump sum is fully taxable as earnings. Be sure and hold onto all your moving receipts, interpreting these tax laws can be complicated.
You Need a Realtor Who Knows the Area You Are Moving To…
Home owners moving to a new area will really benefit from working with a real estate agent that has deep knowledge of the area to which they are moving. A good local realtor will be able to provide recommendations and compile background information on neighborhoods and homes that fit your needs and price range. Get online and let your realtor which neighborhoods you like and then compare notes. The realtor’s knowledge of the area and your research will arm you with the incite you need to figure out where you want to look first.
Ask questions, do your research, and seek out professional advice at every turn to make sure your move is a good one!
Tom has 20+ years experience in helping his clients buy and sell properties. Tom is also great resource for trusted vendors that can help assess and fix a property before buying or selling it.
About Tom Reese
Helping my clients attain their dreams has been the foundation of my success. With my strong attention to customer service, I have earned my clients continued support and referrals. Put my enthusiasm and dedication to work for you!
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