Help, I’m a Renter!
In the world of relocation, renters can’t help but feel like second class citizens. In most cases, corporate relocation policies favor the home owner based on the notion that renters have lesser needs and a less complicated relocation.
With the resurgence of renters, in many cases former home owners, there is now more than ever a strong need for comprehensive policy benefits for this population. Some of these folks are “serial renters” wanting nothing to do with the burdens and responsibilities of home ownership. Others would love to own a home for the first time or once again, however, economic conditions may have forced them to choose a rental this time around.
Destination area counseling, paid area and rental property tours, along with an adequate lump sum benefit would benefit everyone in the long run. Relocation is one of the most stressful events in someone’s life; why not take some time now to review your company’s renter relocation benefits to ensure that these second class citizens receive a first class move experience? I think that in the long run you will find it is money well spent.
Posted on 09/15/2009 in Domestic Relocation | Comments (2)
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Is Chinese/Defective Drywall the Next Major Environmental Concern or an Isolated Issue?
You may have been wondering when the next environmental concern would hit already battered homeowners. Well, the wait is over.
During the time of building material shortages (from 2001-2006), some homes were built or renovated using defective drywall imported from or manufactured in China. Defective drywall reportedly emits levels of sulfur, methane and/or other volatile organic compounds that cause corrosion of air conditioner and refrigerator coils, copper tubing, electrical wiring, computer wiring and other household items as well as create noxious odors which may also pose health risks. The corrosion occurs rapidly, on the time scale of 6 months to two years. To date, the Consumer Product Safety Commission has received about 608 reports from residents in 21 States and the District of Columbia who believe their health symptoms or the corrosion of certain metal components in their homes are related to the presence of drywall produced in China. State and local authorities have also received similar reports. The majority of the reports to the CPSC have come from consumers residing in the State of Florida while others have come from consumers in Alabama, Arizona, California, Georgia, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.
Do you think this concern will become widespread throughout the U.S.? Have you had any experience with Chinese/defective drywall that you’d like to share?
Posted on 08/10/2009 in Domestic Relocation | Comments (2)
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Transferring Homeowners Faced with Unprecedented Challenges
The real estate market has significantly impacted the domestic mobility industry in the United States, creating a domino effect for transferring homeowners and their employers. Some individuals have experienced a significant loss on sale and have had to choose between accepting the financial loss and simply ‘moving on’ or keeping their origin home and finding a creative way to address the relocation challenges. Some individuals received exceptions to traditional policy in terms of dual housing or increased temporary living. Some employees were fortunate to have a guaranteed buyout offer from their employer while others had to ride the current market and remain patient while a ‘bona fide’ buyer was identified and secured. In all, most corporations have been willing to work with individuals to provide continued assistance during this unprecedented economic time.
But the challenges don’t stop there for the employee or the corporation. Selling at a loss prevents the majority of transferees from purchasing a home in their new location. Recent changes from Fannie Mae have eliminated the ability to consider spousal income for a new loan without confirmed employment at destination. The tight economic times, combined with a continually declining real estate market have forced employees to make compromises and, as such, duplicating their current lifestyle is difficult if not impossible for many transferring employees. In today’s environment, relocation becomes more than just a change in zip code; it represents a complete change in lifestyle, for both the employee and their family.
As a twenty-eight year old relocation management company, our hats go off to the mobile workforce who forge ahead and face these challenges head-on. We will continue to partner with both our clients and their employees to find new and creative solutions to meet these challenges head-on and weather these turbulent times.
Posted on 07/2/2009 in Domestic Relocation | Comments (1)
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When Will the U.S. Real Estate Market 'Turn Around'?
The real estate market is a topic turning up at dinner parties throughout the U.S. this year. Everyone loves to talk about it, from buyers to sellers, to Realtors and mortgage brokers, it impacts nearly every adult. It’s become a slight obsession in the U.S. and everyone has their own opinion. Has the market hit ‘rock bottom’? Who knows for sure?
What is the definition of a real estate ‘turn around’ and who is the expert? From a seller’s perspective, it may signify a return to double digit annual appreciation. For a buyer, it could mean easily obtainable mortgage money with little or no qualification guidelines. In a Realtor’s or mortgage broker’s mind it could mean a return to a six figure annual income and a sixty hour work week.
The National Association of Realtors (NAR) identify a successful market ‘turn around’ if the marketing conditions in the U.S. moves from the current buyer’s market with approximately 10+ months worth of unsold inventory to a seller’s market with less than 7 months worth of unsold inventory. And home builders have their own definition of a ‘turn around’. Single family home starts rose for the second consecutive month in April posting a 2.8% gain. At the same time, issuance of single family permits which can be an idicator of future building activiy rose 3.6%. Obviously, home builders feel that there is a reason to be optimistic.
NAR had previously estimated 2009 existing home sales to be 5.91M units which would be a sizeable increase over 2008 activity when only 4.91M units sold. The actual sales pace in 2009 has been much less than originally expected, so look for a revised estimate from NAR in the second half of 2009.
Everyone has an opinion and their own unique perspective. Whether an industry professional or an individual just trying to sell their existing home in order to relocate to their destination, the U.S. real estate market continues to be in the top of everyone’s mind. What’s your opinion?
Posted on 06/8/2009 in Domestic Relocation | Comments (6)
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Partnership: A Critical Key to Success of Any Relocation Program
After Procurement has done its job, after the contracts are negotiated and signed, policies are finalized, technology is in place, managing parties are introduced and that first relocating employee is authorized - that’s when the real work begins.
Relocation, in the best of circumstances, can be a challenge, not just for the relocating employee, but for human resources as well. A successful program is built upon a variety of partnerships - between the relocating employee and his/her relocation counselor, between the corporate program manager and their relocation company client service manager, between the relocation company and their service partners, and the list goes on.
Partnership, common goals, honesty, mutual respect – it’s amazing what’s accomplished when people and companies work together! Relocation management companies evolve to become an extension of their corporate client – for a new hire the relocation counselor is often the employees first introduction to their new employer and for an existing employee, the relocation counselor is called upon to reinforce the company’s relocation program, policy and benefits and present them in a positive way. The relocation management company’s support does not end there; the client services manager is relied upon by the program manager as a liaise and sounding board and he/she serves as a resource for them to lean on during challenging times.
Developing and continuously cultivating corporate partnerships and truly becoming an extension of the corporate client is a critical key to success for all stakeholders. It builds a strong foundation and is key to ensuring a successful and long-lasting partnership.
Posted on 05/19/2009 in Domestic Relocation | Comments (0)
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On the Go: Simple Keys to Ensuring a Successful Group Move
When many hear the term “Group Move” the immediate response is one of angst and terror, and that’s felt by both the corporate team and the relocation partner. But those involved in planning and executing a Group Move, need not despair. By taking into account a few key tactics, you can drive a successful Group Move for your organization and for your relocating employees.
The single most important factor in executing a successful Group Move is planning. Begin the process by identifying the key objectives for both your Company and your employees. Establish an internal committee of critical stakeholders comprised of representatives from human resources (HR), benefits and compensation, departmental managers, facilities and your relocation provider.
Ensure that your team takes advantage of all resources, such as local real estate professionals from the destination location (your relocation partner will coordinate) so that the planning committee is well versed on the destination location prior to any internal communication or announcement. Does the new location present a higher cost of living and if so, how will this potential objection be addressed? What is the state of the housing market in the destination location? Review the potential scenarios with your committee, work to identify the potential objections and questions and be prepared with solutions. If the new destination presents a lower cost of living, showcase the positive possibilities of a move. Again, being prepared and knowledgeable is the key for developing a meaningful, consistent group move policy and coordinating formal meetings and communication with employees will be invaluable.
Another key in the overall planning is working with your relocation partner well in advance, so that qualified professionals are prepared and ready to assist. Your relocation partner will coordinate real estate professionals at both origin and destination to assist with the disposition and purchase of real estate, which will offer a strong support line to employees’ concerns. And don’t forget about your renter population, who share similar concerns with homeowners. Engaging key brokers will open up the possibilities to the new area and what it has to offer. Also, enlist lending professionals who will work with potential transferees to assess their existing real estate situation and assist them with analyzing the potentials for home purchase at destination.
In closing, the secret to a successful group move is planning, which is demonstrated by identifying budget and overall cost projections; partnering with your relocation provider and leveraging their ancillary resources in the areas of real estate and mortgage; designing a competitive yet realistic policy, communicating and assisting employee needs; supplying pertinent information on the new area; conducting on-site meetings with all concerned for policy briefing, pre-decision, and orientation; and remembering that group moves generally expose a myriad of emotions. To be successful from both corporate and personnel perspectives, a Group Move requires a carefully orchestrated process.
Posted on 04/8/2009 in Domestic Relocation | Comments (0)
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Relocation Counselors: Keys to Success
After sales and implementation teams introduce a new client, after all the pieces to “go live” are put into play, after all the reports are built and technology shared, the real work begins—partnering with the relocating employee.
Relocation Counselors hold a key role in the success of any relocation. They strive to build strong, trusting relationships with the employees they are assisting. Often the anxiety level of the transferee or their spouse/partner is high – they are relocating to a completely new location. If this is their first transfer, they have an endless amount of questions and concerns. Think of the many hats a Relocation Counselor wears; subject matter expert for a myriad of relocation benefits; confidant to the employee and typically the spouse/partner as well; educator; and problem solver to name just a few. And from that stress, oftentimes comes behaviors that otherwise would never surface, and a seasoned, professional Relocation Counselor understands the source of that stress.
Speak with any Relocation Counselor and they will tell you the most satisfying part of their job is helping a transferee navigate through one of life’s most stressful life events, relocation. In the end, they understand, they know that they are helping people just like themselves through a major life change, and they ultimately made that transition easier….that’s a successful partnership for relocation. The Relocation Counselors are the backbone to customer service…they are our best asset and they serve as a key team player in any relocation company’s success.
Posted on 03/13/2009 in Domestic Relocation | Comments (2)
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One Size Doesn’t Fit All…Moving
New hires, single renters, entry level employees, lump sum benefit recipients…this group has varying needs and, in some cases, requires a different level of service for their household goods transportation. Traditional van line services work for most relocating employees, but there are individuals who don’t need or require the full service of the van line and today’s market provides a myriad of reliable options for this group!
Transportation alternatives such as a self-haul, ABF UPack, and ReloCube/POD provide you with solutions to meet this groups’ specific needs. Each provides specialized services designed specifically for smaller shipments, and could provide a significant cost savings. And, you do not lose the ability to customize according to the specific employee needs. You can tailor the programs based on each individual’s needs and they all offer their own distinct flexibility around shipment times, storage, packing services/materials, and insurance.
While the vast majority of employees require traditional full service household goods transportation, we have had a very positive experience with these alternative methods offering the service as part of our overall
Relocation Management program. All of these alternatives have a proven track record and with guidance from the Relocation Counselor, a transferring employee can find just the right fit for getting their belongings to their new location.
Posted on 02/5/2009 in Domestic Relocation | Comments (0)
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Auctions Can Move Difficult Relocation Inventory
If you are looking for a new way to move corporate owned inventory, why
not give the auction process a try? It is a great tool for difficult
inventory or really any property where the client is looking to quickly
establish a sale. During the auction process, you are appealing to a
broad range of potential buyers and bringing them all together on one
day to essentially “bid” on the home. The high bidder establishes the
market value for the home. This is the quickest way to determine what a
property is really worth in the current market. Auctions are no longer
just generating “firesale” prices, but rather quickly bringing together
the largest group of potential purchases who collectively decide the
fair market value as of that day.
Auctions in today’s marketplace can bring out dozens of buyers all
looking for a bargain. Once the competitive bidding process starts,
emotions kick in and often someone will pay more than they had
anticipated once the threat of someone else buying “their” house
becomes a reality. We have held many successful auctions this year and
for the right corporate seller it is a great way to move inventory. It
is always subject to the corporate client’s confirmation, so if the
high bidder is not at an acceptable price, the offer can be countered
or simply turned down. The only out of pocket expense is the
advertising costs, which generally runs a couple of thousand dollars
depending on the cost of the media in a particular area. Otherwise, the
typical and customary real estate commission would be charged only at
the close of escrow and many auctioneers will allow broker
participation at the sale.
Best of all, you can ask the auctioneer to only entertain offers that
are free of all contingencies, so you won’t have to worry about
mortgage financing, bank appraisals, home inspections etc. Of course,
we recommend disclosing any and all inspections, repair estimates,
seller’s disclosures etc. at the auction prior to bidding so that
everyone knows what they are buying.
Posted on 12/18/2008 in Domestic Relocation | Comments (0)
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