There is no doubt about it. Moving is stressful. Whether you’re hung up on the current home you’re trying to sell, the one you’re trying to move into, or the temporary housing situation between the two. Add in a job change and you’re probably ready to throw up your hands!
This is why the “Relocation Package” is such a thing. Not just a thing, but a thing that is spoken about in an almost hushed tone of reverence when people talk about job changes or moving from city to city.
“What’s that? Your company offered a… (wait for it) RELOCATION PACKAGE?”
A relocation package can be a wonderful and helpful opportunity for anyone who is moving. Moving is a stressful time. If you’re moving to Los Alamos to work for LANL, you will typically find that LANL relocation has one of the most competitive packages out there. Depending upon the package, it can include closing costs, moving costs, two months of temporary housing, and sometimes it includes a reimbursement of closing costs on your previous home. Typically, you do have the responsibility of selling your previous house and depending upon your employment situation (LANL employee or contractor) these offerings can vary widely and might even include the cost of storing the bulk of your household goods while you find a new home.
No matter if you’re getting one or all of these incentives, it can amount to thousands of dollars in assistance with your move. For families coming into the Los Alamos County housing market, this can be especially helpful. Navigating the housing market here in Los Alamos can be tricky. A relocation package can help mitigate some of the financial burden while you’re doing your best to settle into temporary housing, get the kids into a new routine with schools, and maybe even search for a new home into the bargain.
When You’re Leaving Los Alamos
Whether you’re a contractor or a LANL employee going elsewhere, there is one really important thing to think about if you’re considering the perks of a relocation package. First of all, while LANL typically handles their own relocations, many companies contract those services through a third party. A Relo Company. Make sure you are fully aware of who is going to be handling your move when you negotiate your relocation package with your employer. The services can vary, but you don’t always have a choice when it comes to who is calling the shots. Sure. Packing, moving, travel, and temporary housing reimbursement are never a bad idea, but you might want to rethink that “buy out” option when you’re leaving Los Alamos. Because?
Houses in Los Alamos County are selling quickly.
Now. This is RIGHT NOW. In our current market as things stand right now, it doesn’t take a long time for a home for sale to go under contract. This means you might want to hold off on the buy out offer. There is a good chance that you will get more cash in your pocket from selling your current Los Alamos home the old fashioned way. In my more recent experience, I’ve had homes go under contract before the relo company can even get the paperwork completed. In a few cases, the relo package was changed mid stream and my clients would have had less hassle just selling their home in the traditional way and letting the company pay for the move.
The truth is that a relocation home buy out is really designed for a sluggish market and not an active one. If the market in our community changes, (as it has been known to do in the past), then the buy out might once again become a really great opportunity for those leaving the community.
Still like the idea of a buyout? There are likely a few paragraphs worth of small print you should really pay attention to before agreeing to a buy out. Make certain you fully understand what your responsibility is as far as repairs to your home prior to the buy out. Even newer homes will have a surprising number of small repairs crop up on an inspection. It’s likely that you’ll be expected to fix that list before the deal can close and you can move on. This can affect the amount of money in your pocket. Sometimes your company will offer to reimburse you for these expenses, but that can also take time. Know exactly what you’re responsible for and what perks you’ll be getting in return.
How do Realtors Feel About Relo Companies?
I love anything that helps my clients. But I will tell you that from a Realtor’s perspective, a relocation company isn’t necessarily our best friend. For one thing, they require a Realtor to pay 35%-42% of our commission to them as a fee. And that doesn’t guarantee that they hold up their end of the bargain either. In some cases, this doesn’t mean that we do less work. In many cases, it can means we do more. Beyond that, when dealing with a relocation company moving you to other areas, be aware that a relocation company will often contract with brokers or agents who aren’t necessarily familiar with an area or neighborhood where you’re looking. Sometimes they’re semi-retired or brand new and in either case it can result in a less than stellar customer service experience.
When considering a moving or relocation package as a whole, you might want to look at the projected expenses of your move and ask your company for a lump sum option. This can be a great way to come out ahead while also making sure that you choose your travel methods, your Realtor, your packing and moving company, and might even save you some cash.
At the end of the day, I want what’s best for my clients. Buying and selling a home, and then moving, is a big event! If you have any questions, please don’t hesitate to reach out and call! If you’re considering a relo package or if you’re trying to do it on your own, I’d be happy to talk resources, logistics, and of course, property!
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