Financial Issues to Consider in Your Relocation

By
Real Estate Agent with Solutions Real Estate CalBRE License #01490977
https://activerain.com/droplet/5bQY

Financial Issues You Should Consider When Relocating

 

As you begin planning for your relocation, whether you are moving on your own or with a relocation package or company through your employer, it’s important to consider the costs associated with a big move, and to plan ahead.

 

Relocation is not for dummiesHaving experienced 4 major relocations myself, the last one from Boston to Southern California in 2005, I know a bit about what it entails, and provide a range of relocation services and resources for those moving to Carlsbad and the North San Diego County area.

 

For more information, check out my YouTube Channel playlist on relocation tips and advice, a series of 19 short videos about the things you should know when relocating.

 

While any move is going to cost, a major move, say across the country, will likely come with some expenses you aren’t thinking about or planning for, especially if you have not made a big move before.

 

This post is for those of you who are not making a move with a relocation package from your employer. We’ll talk about relocating with a corporate relocation package in another article.

 

NEW TAX LAWS FOR 2018

tax lawsFirst, the new tax laws for 2018 made a number of changes, including a change from being able to deduct moving expenses as you could in the past.

 

Here’s a quick note from H&R Block about this issue, but I advise talking with your CPA to find out the situation (I am not an accountant and can’t provide tax advice) and how the tax laws affect you.

 

That said, you certainly want to track your expenses so you know the impact on your budget, especially if you are racking up those credit cards due to your relocation and not paying attention.

 

So here are the primary areas that could impact you financially in your relocation:

 

SELLING AND BUYING?

A relocation is more complicated if you are both selling your primary home and buying another. You need to consider your financial situation early on to determine if you have to sell your home in order to buy another, or if you can manage 2 mortgages, so you can plan accordingly.

 

There are additional costs, of course, for maintaining 2 households – the loan, taxes, insurance, and utilities.

 

You should talk with a lender early on to look at your options for selling and buying, and to get pre-approved for your purchase in your new location so you know what you can afford.

 

 

HOUSE HUNTING TRIPS

Unless you decide to buy your new home sight-unseen, you will likely make at least one trip to look at homes with your Realtor, perhaps several. Consider:

 

  •         roundtrip costs of the trip, e.g., air fare OR
  •         driving expenses if you have the time to drive or distance is not great
  •         hotels and food while traveling to and from your destination
  •         food and accommodations while on your house hunting trip
  •         car rental
  •         do you need to board a pet while away or have a house sitter?

 

COST OF MOVING YOUR HOUSEHOLD GOODS

packing to moveThere’s no doubt using a moving company will cost, and in my experience they can vary quite a bit in terms of costs depending on the specific services, the insurance (check to see if your homeowner’s insurance will cover you in a move), and even what you need to move (cars, specialty items such as a boat or motorcycle, antiques, art work).

 

Another option to consider, depending on how much stuff you have, are moving companies like PODS which are a less expensive option.

 

Consider these costs:

  •         the physical move itself – may be determined by weight and distance
  •         any packing you have the movers do (unless you do it all yourself)
  •         packing supplies (check to see what they cost with the mover vs. some other supplier)
  •         unpacking by movers or others
  •         the cost of a shuttle truck (for example if you live up a long narrow or steep road a big van cannot navigate you will probably need to pay additional fees for a shuttle van like my Mom did).

 

Here are some key questions to ask your movers (when interviewing movers I strongly recommend getting at least 2 estimates).

 

TEMPORARY HOUSING

Depending on your personal situation you may need temporary housing during your relocation.

 

  •         You may need to move out of your primary home that you just sold before moving into a new property
  •         You might have a hard time finding that new home and need temporary housing until you find it

 

You should do some planning on this issue if you think it’s a possibility so you have a plan in place if needed. Temporary housing can get pretty expensive, especially if the option you elect is a hotel as opposed to an apartment or rental condo.

 

An extended stay hotel (e.g., Extended Stay America, Choice Hotels, Residence Inn) will likely be far less expensive than a regular hotel if you need accommodations for more than just a few days. You may pay extra for a pet, too

 

STORAGE

Again depending on the situation when coordinating a sale and a purchase in a new location you might need to store some or all of your household goods, either at your old location or the new one. If you use a moving company they may provide storage for a period of time so check on that, and the cost and any time limitations.

 

You may need to arrange for a storage facility so check on that before you need it. These facilities typically offer different sized storage areas and the costs of course vary. This could also include storage of a car. You’ll want to ask out about any contract, or it may be month by month, as well as any required deposit.

 

If you have any questions, please don’t hesitate to ask – I’ve done this a bunch of times myself and am happy to help you relocate here to Carlsbad or nearby. Please call me at (760) 840-1360 so we can discuss your relocation, housing needs, and timing. It’s never too early to start planning.

 

NEXT STEPS TO TAKE:

Carlsbad home searchYou can start your search for a new home in the Carlsbad area by clicking on the photo to the right. Or give me a call and I can create a custom home search list for you!

 

If you need help selling your home in your current location I can assist you in finding the right Realtor in your local market, given my vast professional network of great agents around the country.

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Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I have a client coming on Friday who plans to have houses 1, 2 and 3 she would be happy with before she leaves on Monday.  She wants to make the most of the expense of the trip to view property from another state.  Cost of relocation...  especially from another state is often something people totally overlook.

Apr 18, 2018 12:53 PM #21
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Richie Alan Naggar  - it certainly makes sense to do so.

Joan Cox - It's amazing how much those expenses can add up if you are not paying attention, in addition to the costs associated with buying and selling a house.

Jeff

Apr 18, 2018 12:56 PM #22
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Thank you MaryKay Shumway  Given your beautiful area I am not surprised.

Jeff

Apr 18, 2018 12:57 PM #23
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Jeff Dowler, CRS
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The Southern California Relocation Dude - Carlsbad

Good luck Tammy Lankford,  Sounds like someone has a good plan, and a great Realtor to help execute it. We made 3 househunting trips to CA before we bought.

Jeff

Apr 18, 2018 12:58 PM #24
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

All often people get blinders on regarding a move and new home purchase, Jeff Dowler, CRS ... they neglect to consider the whole picture and all the details involved.  Your post addresses and tackles that issue perfectly.  No excuses any more!

Gene

Apr 18, 2018 01:52 PM #25
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Jeff Dowler, CRS
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The Southern California Relocation Dude - Carlsbad

Thanks for the kind words Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi  There are a lot of expenses in a home purchase, and evem more when moving a distance...some anticipated, some not.

Jeff

Apr 18, 2018 02:16 PM #26
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Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

You really put a lot of detail into this to help those considering relocation. I am sure there are factors that they may not have considered.

Apr 18, 2018 03:11 PM #27
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Jeff- you did an excellent job!  I've had about 4 major moves myself and there are expenses that many may not be aware of. 

Apr 18, 2018 06:01 PM #28
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Debbie Reynolds
Platinum Properties - Clarksville, TN
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Relocation is an important segment of the market and to do it well, you have to be patient and understand the needs of the parties. Great post, Jeff.

Apr 18, 2018 08:12 PM #29
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Jane Peters  In my experience some relocating buyers and sellers do not consider all the potential costs, as well as all the details of what they need to accomplish.

Jeff

Apr 18, 2018 08:47 PM #30
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Kathy Streib 

Thanks! You no doubt know and understand what it can be like to make a major move, and all the things to think about plus the costs.

Jeff

Apr 18, 2018 08:48 PM #31
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Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Jeff,

Good things to consider & organize. It would make the move a lot easier to work these things out ahead of time.

Apr 18, 2018 08:49 PM #32
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Jeff Dowler, CRS
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Debbie Reynolds

That is all so true. Any move can be a challenge but moving a long distance can get pretty complicated, and expensive.

Jeff

Apr 18, 2018 08:49 PM #33
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Dörte Engel 

You are so right. It does take planning, even more so when it is happening quickly.

Jeff

 

Apr 18, 2018 08:50 PM #34
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John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Great information for those who are relocating.

People often miss the details. Using a Relocation Specialist like Jeff Dowler, CRS would be a smart move.

Apr 19, 2018 03:53 AM #35
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Terry McCarley
REMAX Realty Team - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Great post packed with excellent information for those relocating.  Lots of people relocate here to SW Florida and I have had some decide to sell just about everything before moving here depending on the distance and cost of moving furniture across the country.

Apr 19, 2018 04:22 AM #36
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Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Jeff, this is such an informative post and one that anyone who is relocating would benefit from reading. There are so many details that can be overlooked, especially when it comes to an out of state or cross-country move. Congratulations on your feature!

Apr 19, 2018 04:38 AM #37
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Thanks for the kind words John Wiley  There ARE a lot of things to consider - I have a 5-page checklist I share with my clients.

Jeff

Apr 19, 2018 10:12 AM #38
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Terry McCarley 

I think that makes sense for some people given the costs of shipping all your stuff. And if you are downsizing it makes even more sense. Getting rid of all your household goods is not always easy, however, although an estate sale can work.

Jeff

Apr 19, 2018 10:14 AM #39
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Thanks for the compliment Amanda S. Davidson  It can be a real struggle if you don't plan in advance.

Jeff

Apr 19, 2018 10:15 AM #40
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