Relocating for a new career offer is an exciting venture! There is excitement surrounding starting your new job, moving into a new home and discovering what the new location has to offer.
Of course, however, there can be some anxiety surrounding the process and I’m sure you will wonder what expenses might come up during your move. Planning for these expenses should be first on your to-do list.
Here is a great guide to help you plan for all those relocating expenses so you can be prepared and enjoy your new adventure.
First Things First: What Will Your New Employer Cover?
Companies handle relocation expenses differently from one another. If you were offered money to cover your moving expenses, it is important to find out how this will be handled. Some companies will pay for your moving expenses directly. You should ask what exactly will be covered so you are prepared.
During the process, ensure you are keeping receipts and maintaining records of your expenses related to the move. Some of these expenses may not be covered by your future employer, however, some moving expenses may be able to be deducted on your tax return.
Once you know exactly what your new company will cover pertaining to your relocation costs, it is essential to find out how they will pay those expenses. Some companies will pay for and arrange your moving services directly. Other companies will expect you to pay for all expenses and then receive a reimbursement.
The last way some companies handle covering your relocation expenses is providing you with a lump sum categorized as a moving bonus. The company will assume and expect you are using this lump sum for the purposes of relocation expenses. It is important to remember, that this lump sum can be considered as income and you will need to report on your tax return.
Save Money on Commission When You Sell Your Current Home
If you currently reside in a home you own, you will need to sell. In most cases, this will need to be done swiftly so you can get to your new city and settle in before starting your new career. Hiring a qualified real estate agent specializing in home sales is an excellent idea to expedite the sale process.
Let’s face it, you will have a lot to do, including exploring your new city before you get there. Amidst packing, cleaning and possible repairs to get your home ready to sell, you will not have a lot of time left to handle the sale yourself. Do your research and don’t be afraid to negotiate terms on commission. Often Realtors will work with you if you are tight on your proceeds projection. Saving money on commission will help you net larger funds from the sale to invest in your future home.
Make a List of Your Moving Expenses
While you are working on finding a real estate agent, listing your home for sale and packing, you should be making a list of moving expenses to best prepare you for what is to come.
Here’s a great place to start with your list of moving expenses:
Sell Unwanted Goods
We have all been there before – we somehow collected a lot of items over the years and now we need to clean out. Since you are moving, this is a great time to purge and sell items you no longer use or you do not want to take with you to your new home. Why not earn some extra cash for those unwanted items?
There are numerous ways to sell your furniture, clothes and accessories these days. Online sites such as OfferUp and Craigslist enable you to upload photos, descriptions and prices of the goods you are unloading. Or, hosting a garage sale and selling to friends or family will work too.
When it comes to moving, you will surely need a moving truck. You should plan out your transportation expenses for your move. Don’t forget about transport boxes as well. Typically the cost of boxes is inexpensive. You can also ask around as many people you know or your current employer may have boxes they are planning to throw away that you can use. Be sure to have labels and markers so you can label each box according to which room they should land. For your delicate items, be sure to purchase bubble wrap and grab some moving tape as well.
Don’t forget you will need to get yourself and your family to the new location. This may involve airfare, rental cars, or other transport costs.
In some cases, timing doesn’t work out. You may end up selling your home faster than you planned or your new home will not be ready for you. So, now you need to plan for storage costs of your belongings until they can be moved into your new home. Research storage companies in your current location or new location to find the best prices and do your best to ensure you don’t get locked into a yearly contract. More than likely you will only need a holding place for a few months or less.
In addition to planning for this storage cost, be sure you consider what it will cost to transport your belongings to storage and then from storage.
When the timing does not work as planned, you may need to find accommodations while you are waiting to move into your new home. Booking your rooms in advance can really help you save on cost as well as alleviate any anxiety related to needing a place to stay. If you need to stay for an extended period of time, there are extended stay style hotels that come equipped with kitchens and living space for your comfort.
If the hotel you choose does not have a kitchen, be sure to plan for eating expenses as you will end up eating out quite a bit. Many hotels offer free breakfast which can save you a lot of money during your transition.
Found My New Home & Need to Sell Fast
In some cases, you may find your new dream home in your new city, but you aren’t getting any action on your current home. This can be extremely stressful since it adds extra costs, such as a hotel room as mentioned before.
If you need to sell your home fast so you can relocate, feel free to give us a call to find out how we might be able to help. We purchase houses in Massachusetts for cash and we can close quickly. If you’d rather not deal with listing your home for sale and move on quickly, then giving us a call may be your solution.