JOB RELOCATION TIPS & TRICKS
Introduction
Changing work situations can be an exciting time in one's life, but it can also be stressful. Moving out of state for a job brings its own set of distinct challenges. These challenges only become amplified if you're relocating when you own a house.
To help your relocation go as smoothly as possible, we've put together a quick guide to help you stay organized through the process. Keep reading to get the inside scoop on job relocation.
A few action items:
Before moving forward in selling your house for a job relocation, be sure to take a look at these action items.
Assess your home's worth
Perhaps relocating for your new job means that you'll be moving out of your current home a bit sooner than you had initially planned. If this is the case, there's a chance that your home equity is still relatively low if you only purchased the home a few years ago.
It's a good idea to assess your home's worth to get an idea of how you'll pay your outstanding mortgage balance. Your home value should cover this outstanding balance as well as selling expenses. Selling expenses are usually between 6-10%. If your home value doesn't cover these balances, be prepared to make a payment at closing to settle this debt.
Several online value estimator tools can help you get an idea of your home's current value; however, this number should not be treated as a substitute for an actual appraisal or CMA. Get in touch with a local real estate professional to get their take on your home's value.
Relocation package
According to Move.org, a move of 100 miles or more can cost anywhere from $2,000 to $7,500 if you're paying for full service. Having an estimate of your moving expenses beforehand can be helpful in determining your home's asking price.
In addition to these costs, other expenses like packing services/supplies and moving insurance can also add up. However, an employer's relocation package can help cover some of these costs. According to a survey conducted by Allied moving company, about two-thirds of employers offer work relocation assistance. This can include helping with moving expenses, traveling to tour new homes, and temporary living arrangements.
Depending on the state you're moving to, you may be eligible to receive a financial relocation incentive. Many states have started offering these incentives in the wake of the work-from-home shift due to the pandemic.
Do I have to pay capital gains?
Homeowners can typically steer clear of paying capital gains on up to $250,000 of profit on their home sale. However, capital gains tax exemption for job relocation can only occur if specific requirements are met. Some of these requirements are:
You have owned and lived in your home for at least two years over the past five-year period.
The gain of a sale from a previous home was not excluded from this house's sale within the two years.
If for some reason you don't qualify based on these requirements, you may still be able to receive some partial exclusion of capital gains if:
Your new job's location is 50 miles or more away from your current home than from your past job's work site.
You began a new job 50 miles or more from your home and did not have a work site at your last job.
At least one of the two situations is true for your home's co-owner.
Are work-related moving expenses tax deductible?
The only time that moving expenses are tax deductible is if you are actively serving in the Armed Forces and are moving per military order.
What does the current real estate market look like?
The current health of the real estate market can play a big part in determining a timeline for when you'll be able to sell your home. Can you sell your house within a few days? Weeks? Or should you consider renting to a tenant temporarily?
According to data reported by the National Association of Realtors, in January 2022 79% of homes listed for sale were only on the market for a month or less. When the demand for homes exceeds supply, you can usually expect a relatively quick turnaround from buyers.
What happens after you sell?
When it comes to moving for job opportunities, you need to be sure to focus not only on selling your current home, but also securing a new place to live, whether to purchase or rent. Be realistic about your timeline and when you can actually move out of your home.
A sale-leaseback agreement, also known as a holdover, can be beneficial in these sorts of situations. With a holdover, you are given an allotted period of time to stay in your home after it has already been sold. This can give you some extra time to make moving arrangements.
Ways to sell your home before relocation:
There are three main options when it comes to selling for a job relocation: requesting a cash offer, selling with an agent that is well-versed in quickly selling, or renting out your home to a tenant.
Cash offers
According to a survey from Allied, 41.5% of participants reported having at most 30 days to move to their new homes before starting their new jobs. Obviously, the moving out of state timeline can be relatively fast-moving. Because of this, some people want an option that sells their home as quickly as possible.
Cash home offers are a fast, stress-free way to quickly sell your home. At Midwest Cash Offer, we buy houses in all conditions with no hassle. Start by filling out our free home estimate form or giving us a phone call to tell us a bit about your home. We'll take this information and give you a value estimate. After the initial valuation, one of our team members will come to your property to confirm our estimate. Within a few days, you can have your home sold with cash in hand.
Fast-moving real estate agent
If you want to take the more traditional route and sell through a regular listing process, be sure that you work with a real estate agent that is experienced in handling home sales within short timeframes. There are a few ways to make this process run a bit quicker, including:
Clearing out and deep cleaning your home before listing. Doing this can increase your home's monetary value by over $2,000.
Increasing your home's curb appeal. Invest in some basic yard maintenance, like weed pulling, mowing the grass, and laying mulch in flower beds.
Have your home inspected for any mechanical issues before listing.
Have a comparative market analysis conducted for your home to ensure that you are pricing your home correctly to avoid potential price drops after moving.
Rent to tenants instead of selling
If you're unsure of what the future holds as far as your long-term location, or if you're not quite ready to sell yet, renting to tenants is another viable option when relocating for a new job. Depending on where you live, rental demands may be high and could leave potential for a supplementary income.
A few more pointers
Here are a few more points to consider when moving to a new job. Making sure you have these things taken care of can take some stress off your shoulders and ensure a smooth transition.
Book a moving date and truck as soon as you can, ideally right when you go under contract.
Ask for a realistic timeline of how long it will take to move your things to your new location. According to moveBuddha, cross-country relocation can take anywhere from one to two weeks.
Be prepared with a backup plan if the moving company cancels. Consider contacting a freight company to turn to if you need a last-minute solution.
Come up with a plan for moving your vehicle, whether you will be driving it yourself or if you want to hire an auto shipping company.
Conclusion
If you follow the job relocation process outlined above, you'll have more time to focus on your new job and settling into your new environment before your first day in the office. Relocating for a job is a process that includes a number of moving parts, and it's essential to have a plan mapped out to create as smooth a move as possible.
