In Pursuit of Profession: So you need to relocate…
Congratulations! Your new job is everything you’ve ever wanted. More money! A more flexible schedule! And you’ll be moving! Wait…what? Moving?!
It happens all the time. You get hired on at a company and, after a few years, you get a promotion only to find out that you’ll need to uproot your family across the country to a city you may have never even visited before. According to the relocation company UrbanBound, of companies with 5,000 or more employees, 41 percent relocated over 400 employees in 2014. When a company relocates an employee, they typically provide some type of financial assistance, which can include reimbursing moving costs, paying for rental housing for an initial period of time, covering any losses you take on selling your old house, and even paying to help your spouse find a job in your new city. UrbanBound also states that $25 billion is spent annually on corporate relocation in the U.S. alone. But beyond the costs associated with relocation, there’s a myriad of other concerns when it comes to finding your new home in your new community. Where are the best schools for my kids? Where are the safest neighborhoods? What about my commute? In what type of housing will my family and I feel most comfortable living in a new city? To help us navigate the relocation issue, I talked to Jennifer Luu, a Realtor with Sophie Tel Diaz Real Estate, a D/FW-based award-winning brokerage that not only has experience in both the local and international markets but is also designated as a Relocation Specialist.
First things first
Before asking any questions about who can best help you with your relocation, the best first step is to determine how much house you can afford in your new market. “How much buyers can spend on housing is based on current lending regulations. Thirty percent is a general rule of thumb for housing, but since there are so many variables it is difficult to pin this down,” said Luu. “We recommend our clients work with a lender before we start viewing homes. This way, they know exactly what they qualify for and in what price range they are most comfortable purchasing. Relocation clients often only have a few days to find their home once they come to town and it is imperative we have just the right neighborhoods/homes lined up to view.”
Speaking of costs, while companies help out with moving costs and may help you get settled, financially speaking, there are other things to consider beyond just how much house you can afford. “Clients may not anticipate differences in the cost of living, property taxes (which differ from state to state), homeowners insurance, etc. Our recommendation to the buyer is to be prepared for the future, maintain a decent savings and not find themselves in a bad situation,” said Luu.
Finding the right agent
Since, in a relocation situation, you’ll be flying a bit blind, you’ll need to depend on a realtor to help you find the best housing situation for you and your family. Combine this huge task with the notion that you may only have a weekend or two in which to travel to your new city to find your new house and you can practically feel the tension coursing through your body. That’s why Luu recommends asking a few questions to potential realtors before enlisting their help. “How long have they been a real estate agent? And how long have they been working in that particular market? In addition, make sure the agent is asking thorough questions as well so they have a good understanding of the buyer's needs,” Luu said. One thing that may help getting the right Realtor is that some companies require their employees to use agents who are relocation certified. “They like the additional knowledge and experience required with those certifications,” said Luu. “There is additional documentation needed for relos, especially on the listing side.”
“I will go to Texas!”
Davy Crockett famously declared when he ran for a Congressional seat from Tennessee in 1835 that if he lost, the people in his district, “may go to hell and I will go to Texas!” While the millions who have come to live in Texas didn’t do so by losing a congressional race, they have come because of a combination of benefits that come with living in the Lone Star State. In terms of relocation, Texas, and especially the D/FW Metroplex, is one of the hottest markets in the nation. “We are one of the top markets for relocation because of our continued economic growth, absence of state income tax, international airport, great school systems and reasonable housing prices. The Dallas/Fort Worth area has a lot of activities, events and organizations to get involved in, which helps relocation clients meet new families and feel at home. Lastly, we are experiencing a very strong market and interest rates are still low, which makes it a great time to buy,” said Luu.
If you’re relocating to this area, you may also be wondering about whether it makes sense to rent or buy. Luu said that while it does take some time to recoup closing costs after a home purchase, that, because D/FW is one of the top markets in the US for relocation and we are still seeing an increase in home prices, buyers should feel comfortable with a shorter than normal sell cycle, which can influence the ‘rent versus buy’ decision. “We have a lot of clients who choose to rent for six months to one year before buying, which can make a buyer feel more confident about their decision once they purchase,” said Luu. “However, a skilled real estate agent who frequently works with relocation clients will be able to provide a potential buyer all the information they need to make a well informed decision.”
This story was originally published January 9, 2016 at 6:00 PM with the headline "In Pursuit of Profession: So you need to relocate…."