The real cost of relocation

So how much does it really cost to relocate? And is the cost worth the move – financially and emotionally?

Interesting figures, from Ruth Mantell’s article in today’s Wall Street Journal, have been submitted on this subject by Worldwide ERC, a relocation-services industry trade group, on the financial burden companies undertake who agree to bear the whole cost of a family’s relocation within the US:

$62,000 if you’re a homeowner

$16-18,000 if you’re renting

$10,300 for the average for shipping costs (2006 data)

But beware, even if the company agrees to give you full relocation benefits. There are many other hidden costs that you yourself will have to pay that you may not have thought of until it’s time to move.

If you’re coming from an international location, for example, you’ll probably sell all your electronic and electrical goods as they won’t work over here. You’re going to have to spend quite a bit of money when you get here on replacing the multitude of electrical gadgets that you didn’t know you had until you were forced to get rid of them! And what about all the little repairs and carpet cleaning you’re going to have to do before you put your house on the market – that’s out of your own pocket. And the yard – that really needs a quick professional touch to make the house look perfect, don’t you think?

Many people relocating opt for the “cash up front” option. Instead of the company paying all the relocation costs, the individual accepts a check from the company in anticipation of finding just as effective a way to manage his relocation needs and keeping the extra cash for out-of-pocket expenses. But take care with this that the company doesn’t have conditions on that amount – ie certain third party contractors you have to use to ship your car, your belongings, even your family – where you could have found your own suppliers to do the same job for much cheaper. It happens. Get all the finer details about your relocation package before committing, making sure you get just what you’re getting.

And understand the real financial cost of taking a position in another part of the country – or world. Make sure the move for your career is worth it. Check out the taxes, state, federal and property, the costs of your temporary housing (will the company put you up for a certain time period – is it a justifiable time for you to find a home in that market? If not, negotiate). Are you going to have to pay more or less for your home than the one you currently own/rent – check out Zillow and Craigslist to find home values in your new location. How are the schools? Are you going to put your kids through public or private education? How far will you have to commute? Gas prices are ever soaring and eat up an increasing portion of the family budget now. Is it realistic to take public transport – and how much will it cost?

And make sure you know where you’re moving to. Take the whole family on a tour of the area before you commit to the new position. Spend as much time as you think necessary, not just a day, to show them all the advantages there will be to making a new home. Find a reputable relocation services company who will be able to show you around. It’s worth it to have someone answer all your questions and give you peace of mind. Bob Portale, president and chief executive for RELO Direct, a mobility-management company agrees. He says personal issues often weigh the most heavily on a family after relocation.

You may know this is the right move for your career, but you also need to know it’s the right move for your family’s life ahead.

Thoughts, experiences? Advice? Let’s help our relocating bloggers have the most stress-free move ever!!

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