Relocation Packages

[Anonymous]

So DH has been at his company for 2 years, and they have decided he should relocate. This isn't a shock - the potential to relocate after a couple of years was always part of this job. Curious what is standard for relocation packages these days. I know they will pay for us to take a couple of house-hunting trips, will provide sale and home purchase assistance, temp housing, moving costs, and some incidental expenses. It's a similar cost of living area (Boston), and we both know it well having gone to college in the area.

Any hints or tips on what we should be looking out for once we get the full details?

[Anonymous]

I am familiar with a Fortune 500 company that pays full cost of relocation for any move greater than or equal to 50 miles (door to door of your old house and new house) for its employees. My aunt, who works for said company, moved approximately 45 miles to the company headquarters when her regional office was shut down, and had to pay her own way.

[Anonymous]

Anonymous wrote:So DH has been at his company for 2 years, and they have decided he should relocate. This isn't a shock - the potential to relocate after a couple of years was always part of this job. Curious what is standard for relocation packages these days. I know they will pay for us to take a couple of house-hunting trips, will provide sale and home purchase assistance, temp housing, moving costs, and some incidental expenses. It's a similar cost of living area (Boston), and we both know it well having gone to college in the area.

Any hints or tips on what we should be looking out for once we get the full details?

relocated 3 times. This is what was included:

1) fully paid house hunting trip

2) full pack and move and unpack with tons of insurance to cover damaged goods

3) paid transport of vehicles

4) connections with real estate agents on the other side

5) 3 months of fully paid housing - usually a furnished apartment

6) on one of the relocations the company actually bought our house that we were moving from

7) points toward closing if you purchase a house. Have gotten up to 2 points. This offer usually stands for one full year after the move.

8) all closing costs taken care of for house sold and bought

9) Moving stipend usually equal to a month's salary

[Anonymous]

NP here, about to go through this too.

How does the relocation company thing work, they basically buy your house from you at agreed upon price (market price) and then they proceed to sell the house? That's what it sounds like to me but we don't have all the details yet. My concern would be do you assume any risk of paying the difference if the house won't sell for the agreed upon price and they need to drop the price?

[Anonymous]

OP here. Thanks for all of this. I hadn't understood how it worked with all the sales costs, but those should be covered if we are moving for work. I'm not trying to come out ahead, just to make sure we aren't getting screwed by all of this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So DH has been at his company for 2 years, and they have decided he should relocate. This isn't a shock - the potential to relocate after a couple of years was always part of this job. Curious what is standard for relocation packages these days. I know they will pay for us to take a couple of house-hunting trips, will provide sale and home purchase assistance, temp housing, moving costs, and some incidental expenses. It's a similar cost of living area (Boston), and we both know it well having gone to college in the area.

Any hints or tips on what we should be looking out for once we get the full details?

relocated 3 times. This is what was included:

1) fully paid house hunting trip -- we got this as well

2) full pack and move and unpack with tons of insurance to cover damaged goods -- got this

3) paid transport of vehicles- 2 vehicle transported and we traveled by air

4) connections with real estate agents on the other side - yes. They paid our agent's commission to sell

5) 3 months of fully paid housing - usually a furnished apartment -- we only got 60 days and DH moved before us so he used it, although they did pay later when we ended up paying for temporary housing in 2 locations (long story)

6) on one of the relocations the company actually bought our house that we were moving from -- ours did not do this but they do pay for a while if you end up with 2 mortgages, which we did not

7) points toward closing if you purchase a house. Have gotten up to 2 points. This offer usually stands for one full year after the move. -- ours did not offer this.

8) all closing costs taken care of for house sold and bought -- we had everything covered for the sale but had to pay owner's title for the purchase.

9) Moving stipend usually equal to a month's salary -- ours was about a half month's salary (and they take taxes out so even less)

We are in the midst of a corporate relo now. I put what we got up here for comparison. It's a large company.

[Anonymous]

Anonymous wrote:NP here, about to go through this too.

How does the relocation company thing work, they basically buy your house from you at agreed upon price (market price) and then they proceed to sell the house? That's what it sounds like to me but we don't have all the details yet. My concern would be do you assume any risk of paying the difference if the house won't sell for the agreed upon price and they need to drop the price?

This is the PP who was relocated 3 times.

We almost got screwed by this. When DH's company promoted him - thus forcing a move to corporate HQ - they offered to buy our house. This was in 2008 when the economy was in the toilet and our house was valued at $200K less than we had paid for it only 2 years before then. (this was in another state).

The appraisal was done by 2 different appraisers that the relocation company chose, they would not let us choose the appraisers.

Anyhow, the relocation company reassured us that the house would appraise and for us not to worry and to move forward with our move....which we did. When we arrived in DC we found out about the $200K slash was real and that we were going to lose all that money. I lost it because that was essentially our downpayment that we had worked very hard to earn. If we had to come up with that difference at the closing table it would have been disastrous.

DH called HR and his boss at his company and told them "...we did not ask to be relocated, it was a requirement for the job. and that if they didn't come up with the difference that they could relocate us back to our old house in our old state because no way were we going to get screwed by this....". Long story short. They paid that $200K difference but DH had to sign a 2 year agreement that he would not leave the company until his contract was up.

[Anonymous]

At least some companies are still paying good re-lo, There are a number that will tell an employee that his/her job at the present location is going away and they can offer a new job at x location, but if the employee wants it he/she has to move themselves.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So DH has been at his company for 2 years, and they have decided he should relocate. This isn't a shock - the potential to relocate after a couple of years was always part of this job. Curious what is standard for relocation packages these days. I know they will pay for us to take a couple of house-hunting trips, will provide sale and home purchase assistance, temp housing, moving costs, and some incidental expenses. It's a similar cost of living area (Boston), and we both know it well having gone to college in the area.

Any hints or tips on what we should be looking out for once we get the full details?

relocated 3 times. This is what was included:

1) fully paid house hunting trip -- we got this as well

2) full pack and move and unpack with tons of insurance to cover damaged goods -- got this

3) paid transport of vehicles- 2 vehicle transported and we traveled by air

4) connections with real estate agents on the other side - yes. They paid our agent's commission to sell

5) 3 months of fully paid housing - usually a furnished apartment -- we only got 60 days and DH moved before us so he used it, although they did pay later when we ended up paying for temporary housing in 2 locations (long story)

6) on one of the relocations the company actually bought our house that we were moving from -- ours did not do this but they do pay for a while if you end up with 2 mortgages, which we did not

7) points toward closing if you purchase a house. Have gotten up to 2 points. This offer usually stands for one full year after the move. -- ours did not offer this.

8) all closing costs taken care of for house sold and bought -- we had everything covered for the sale but had to pay owner's title for the purchase.

9) Moving stipend usually equal to a month's salary -- ours was about a half month's salary (and they take taxes out so even less)

We are in the midst of a corporate relo now. I put what we got up here for comparison. It's a large company.

I got very similar benefits as a fed.

[Anonymous]

Anonymous wrote:At least some companies are still paying good re-lo, There are a number that will tell an employee that his/her job at the present location is going away and they can offer a new job at x location, but if the employee wants it he/she has to move themselves.

+1

[Anonymous]

Don't forget that all the monies paid are going to show up as salary or bonus and if it is not part of the deal. You will take the tax hit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So DH has been at his company for 2 years, and they have decided he should relocate. This isn't a shock - the potential to relocate after a couple of years was always part of this job. Curious what is standard for relocation packages these days. I know they will pay for us to take a couple of house-hunting trips, will provide sale and home purchase assistance, temp housing, moving costs, and some incidental expenses. It's a similar cost of living area (Boston), and we both know it well having gone to college in the area.

Any hints or tips on what we should be looking out for once we get the full details?

relocated 3 times. This is what was included:

1) fully paid house hunting trip -- we got this as well

2) full pack and move and unpack with tons of insurance to cover damaged goods -- got this

3) paid transport of vehicles- 2 vehicle transported and we traveled by air

4) connections with real estate agents on the other side - yes. They paid our agent's commission to sell

5) 3 months of fully paid housing - usually a furnished apartment -- we only got 60 days and DH moved before us so he used it, although they did pay later when we ended up paying for temporary housing in 2 locations (long story)

6) on one of the relocations the company actually bought our house that we were moving from -- ours did not do this but they do pay for a while if you end up with 2 mortgages, which we did not

7) points toward closing if you purchase a house. Have gotten up to 2 points. This offer usually stands for one full year after the move. -- ours did not offer this.

8) all closing costs taken care of for house sold and bought -- we had everything covered for the sale but had to pay owner's title for the purchase.

9) Moving stipend usually equal to a month's salary -- ours was about a half month's salary (and they take taxes out so even less)

We are in the midst of a corporate relo now. I put what we got up here for comparison. It's a large company.

I got very similar benefits as a fed.

I didn't know feds could get relocation packages. Are you GS 15 or SES?

[Anonymous]

Anonymous wrote:Don't forget that all the monies paid are going to show up as salary or bonus and if it is not part of the deal. You will take the tax hit.

OP here - dh company says they will gross up any taxable benefit. We got some further details...they won't pay for a loss on sale but since we bought our current home in 2002 it shouldn't be an issue. All sales and buy-in closing costs, up to 2 points on a new loan, and all move costs. And one month base salary for incidentals. Seems like a great package.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So DH has been at his company for 2 years, and they have decided he should relocate. This isn't a shock - the potential to relocate after a couple of years was always part of this job. Curious what is standard for relocation packages these days. I know they will pay for us to take a couple of house-hunting trips, will provide sale and home purchase assistance, temp housing, moving costs, and some incidental expenses. It's a similar cost of living area (Boston), and we both know it well having gone to college in the area.

Any hints or tips on what we should be looking out for once we get the full details?

relocated 3 times. This is what was included:

1) fully paid house hunting trip -- we got this as well

2) full pack and move and unpack with tons of insurance to cover damaged goods -- got this

3) paid transport of vehicles- 2 vehicle transported and we traveled by air

4) connections with real estate agents on the other side - yes. They paid our agent's commission to sell

5) 3 months of fully paid housing - usually a furnished apartment -- we only got 60 days and DH moved before us so he used it, although they did pay later when we ended up paying for temporary housing in 2 locations (long story)

6) on one of the relocations the company actually bought our house that we were moving from -- ours did not do this but they do pay for a while if you end up with 2 mortgages, which we did not

7) points toward closing if you purchase a house. Have gotten up to 2 points. This offer usually stands for one full year after the move. -- ours did not offer this.

8) all closing costs taken care of for house sold and bought -- we had everything covered for the sale but had to pay owner's title for the purchase.

9) Moving stipend usually equal to a month's salary -- ours was about a half month's salary (and they take taxes out so even less)

We are in the midst of a corporate relo now. I put what we got up here for comparison. It's a large company.

I got very similar benefits as a fed.

I didn't know feds could get relocation packages. Are you GS 15 or SES?

I'm a 14 now, but I got it as a 12. I couldn't believe it myself when I saw the package I was getting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't forget that all the monies paid are going to show up as salary or bonus and if it is not part of the deal. You will take the tax hit.

OP here - dh company says they will gross up any taxable benefit. We got some further details...they won't pay for a loss on sale but since we bought our current home in 2002 it shouldn't be an issue. All sales and buy-in closing costs, up to 2 points on a new loan, and all move costs. And one month base salary for incidentals. Seems like a great package.

Pay attention to the gross up details. I didn't and it cost me a bit. For instance, not all of the relo benefit is taxable - but some is. Find out what parts are and minimize those (ie temp housing is). In our case they got us a 3 br for $6,000 a month when all I needed was a 2bd. I didn't complain cause whatever sure go ahead, but in retrospect a 2nd would have been smarter for everyone involved.

Also gross up was only on my marginal tax basis based on my salary - not on the margin based on both incomes. That matters if your spouse makes $. Relo firm also messed up the true up - you have to do it more than once (the math anyway) because the very act of truing you up creates it's own tax obligation - so they need to account for that until they find the asymptote.