Moving For Work? 2 Things You Should Ask Your Employer To Roll Into Your Relocation Package
As soon as your boss asks you to move for work, he might start mentioning other job relocation perks, such as a complimentary moving services or a home-hunting trip on the company's dime. However, while those benefits can simplify your upcoming move, they aren't the only expenses you will come across during your relocation. Here are two things you should ask your employer to roll into your relocation package and why:
1: A Monthly Stipend For Your New Cost of Living
Moving to a swanky city in a new state might sound like an exciting change of pace, but how much will that new lifestyle cost you? Because the cost of living can vary significantly from state to state, it should be carefully calculated into your relocation package.
For example, if you are moving from Twin Falls, Idaho to Portland, Oregon, your housing alone will cost about 96% more. That means that your modest $200,000 home in Idaho might cost a staggering $392,000 in Portland. If you think that housing is the only thing that might cost more, think again. Groceries cost 26% more in Portland and healthcare is 23% more expensive. That means that your monthly grocery bill will increase by almost a quarter, and your $300 per monthly health insurance premium might increase to $369.
Before you negotiate your relocation package, take the time to evaluate your new cost of living by using an online calculator. These helpful tools can help you to know what to expect, so that you can request a monthly stipend to offset your costs. For example, you might be able to request a monthly mortgage allowance to offset that new, pricey mortgage, or to help you to cover the cost of dining in your new state. If your employer offers you a higher salary to cover cost of living, take the time to do the math. Calculate an estimated monthly breakdown of your new expenses, and compare it to your new income—minus taxes and other withholdings. If your new salary won't cover the difference, request more money.
2: Loss-On-Sale Protection
If you weren't planning on moving anytime soon, you might not have given a lot of thought to your local housing market. Unfortunately, if the market in your area is experiencing slow growth, you might be looking at taking a loss on your home. Also, since corporate relocations are typically based off of your employer's timetable, you might be pressured to accept the first offer that comes your way, no matter how low it is.
Fortunately, some employers offer loss-on-sale protection, which keeps you from losing money due to the sale of your home. For example, say that you purchased your home for $250,000 ten years ago. Although you kept your house pristine and made a few upgrades, the apartment complex that went up across the street caused your house value to plummet—putting the new value at around $175,000. Instead of taking a $75,000 loss on your place, your employer might pay the difference, so that you can move without destroying your finances.
To calculate the reimbursement rate of your real estate deal, your employer may take into account the amount that you owe on the home, the current real estate market trends, and the appraisal value of your place. Your employer might even cover things like closing costs, realtor fees, and repairs—so that you can get out of that house and move on with your life. If your employer hasn't already mentioned that they are willing to provide loss-on-sale protection, take the time to talk with a real estate agent to discuss average home values in your area. If it looks like you might be underwater, discuss the situation with your employer.
By carefully evaluating your expenses and asking your employer to adjust your relocation package accordingly, you might be able to start your new life without the burden of unplanned expenses.
For more information, contact a moving company like Bekins Van Lines Inc.