Have you recently been offered a relocation package? Ever wonder what you can do to prepare for the “big move”? Remember, these folks hiring you, want YOU! Do your due diligence and negotiate you’re package to the fullest. Below are some common (and not-so-common) things to consider when negotiating your relocation package:
This is definitely a usual feature. Most relocation packages will include some sort of moving expenses. It might be that they cover all your expenses, some of your expenses, or give you a set amount. This all depends on the company that you are going to be working for and the position you are moving into. Obviously executives are expecting some amazing packages!
This is a great option if you don’t know the area you’re moving to. Have your new company cover the bill to see if you like it or not. This is also a great time to get to know your new agent, as they will probably be the one giving you the tour. You can tour cities and towns, neighborhoods, schools, places of worship, and local attractions. Whatever it is you feel is important to your everyday lifestyle.
Choosing an agent or REALTOR is always up to you. This is your home purchase and should be a comfortable one for you. Don’t let your third-partyrelocation counselor tell you who to use for an agent. Do your homework and pick the agent that best suits you. Many times the third-party companies have preferred brokers to work with and give you the option to choose agents from them. These brokerages are preferred because they want the business and because they do good business. If they didn’t do well with their relocation clients, they wouldn’t be preferred. Now, if they tell you to use a specific agent, this can mean that that agent has some sort of set up with that relocation company. I would stray away from this situation. Again, this is your purchase and you should use an agent that is going to work hard for you and that you mesh well with.
This is typical of a relocation package, but make sure you’re getting your money’s worth. Make sure they cover all expenses and not just some; this is that fine print you tend not to read in your contract. Most typically they won’t pay something for the broker you’re working with or the people on the other side of the transaction.
Guaranteed Buy-Out (GBO)
This is a great feature when you’re selling your home to move to a new city for your employer. A GBO takes a lot of the risk out of selling your home and makes for a quick move. For a GBO your home will be appraised (make sure several price opinions are done and by qualified appraisers/Realtors) and guarantee you this amount for your house up front. They (3rd party companies) then buy the home from you and sell it while you move to your new city. A GBO helps you purchase quicker and settle into your new life with ease.
Loss on Sale
This feature is very important due to the real estate market we are in right now, but not as common as it should be. Because the home prices have fallen and you may be “underwater” on your mortgage, Loss on Sale basically covers the gap between what the current market value is on your home and what you actually owe on your home. Remember, this is a good time to get those closing expenses covered; they may cover your mortgage loss on sale, but not your closing expenses.