Negotiating the Relocation
Relocation packages vary immensely from one company to the next. A smaller company may only cover your moving company fee, while a national corporation may cover everything from the move to agreeing to buy your house if it does not sell. Here are some of the basic elements of a relocation package to consider before negotiations begin:
House Hunting - Most employers will pay for one or two visits to the new area for you and your family. The purpose of these visits is to familiarize yourself with the area, visit the local schools, and hunt for a new home or apartment. The company may pay for airfare, hotel, and meals during your visit.
Moving Company - At the very least, you should expect the company to pay for the cost of physically moving your household items and vehicles to the new area. This could be simply paying the trucking service fee, or it could include packing and unpacking your items as well as cleaning services or an allowance for buying new appliances that have to be left behind in order to sell your current home.
Temporary Housing - Most companies will pay for an extended stay hotel or short term rental while you close on a home or find a suitable apartment complex for your family.
Selling Your Home - You do not want to be left with two mortgages, and larger companies will often offer assistance to help you avoid this situation. Many employer will cover mortgage payments on your old home for a predetermined period of time to help you afford the move. Very large corporations may offer a seller guarantee, which means that if the house does not sell within a specified period of time, the corporation will buy the house. Likewise, if the house sells for less than its value, the corporation may offer to pay the difference so you do not have an outstanding amount on your mortgage after the sale.
Buying a New Home - While very few companies will actually purchase a home for your family, many will assist you in purchasing a new home by providing down payment assistance, offering you a loan from the company with little or no interest, or buying down the interest rate on your new mortgage.
Photo Credit: sxc.hu/298459