Reader Question: Monty, I am a CEO contemplating an offer for a change of venue and job.
More than ever, the relocation package quality can make or break a deal. Is there a checklist, or something that could help me quantify what a white glove relocation package would entail and cost?
For example, packing and moving HHG, auto relocation, real estate taxes, closing costs, buying down mortgage, temporary living, house hunting trips, tax implications (gross up) and loss on sale protection are what I recall from my last relocation.
Any document or checklist you could send me would be immensely appreciated (average cost ranges would be particularly informative). I have searched the internet and found nothing until I ran across this site. Ultimately, I want to have an accurate assessment to negotiate the best possible deal. Thanks. Bill M.
Monty’s Answer: Hello Bill, you asked an insightful question. Your comment about the negotiation makes it apparent you have experience here. I am happy to help.
Here, is the information you are seeking. To have all categories in one place I have included your initial list for reference.
Packing and moving HHG, auto relocation, real estate fees, closing costs, buying down mortgage, temporary living, house hunting trips, tax implications (gross up), loss on sale protection are the items you recalled and they all remain important issues to discuss in the relocation package.
I have included a number of points that you did not mention and links to supporting validation. Taking the time to review these links may provide more information that will assist you in your negotiation. I have also included some additional comments where I suspect they add additional value:
1. Replacement value insurance on the items moved as HHGs.
2. Spousal assistance.
3. Cost of living adjustment – origination location versus the destination location. Check out these sample web sites below to get a sense if you have an issue.
4. Duplicate housing – costs include mortgage principal, interest, homeowner association dues and monthly insurance costs if there are timing issues.
5. Relocation expenses may have other tax implications, depending on laws governing their treatment at your state of origin and /or destination.
6. Consult your accountant for information on the tax implications of their relocation expense reimbursements.
To get the information directly from the IRS see the two links below:
7. In your closing costs reference, define both purchase side and selling side. Ask for complete reimbursement of both sides. Not just closing costs and real estate fees.
I have also attached links below that may trigger thoughts on other negotiation points in your situation. The ERC PDF file specifically deals with cost per move numbers.
- Corporate Relocation Survey 2012 – Atlas Van Lines
- Employee Relocation Council (ERC) – Relocation Data
Finally, as an aside, here are two additional thoughts about relocation:
Ask me about questions regarding the additional information or if something new comes up along the way. Thanks for checking with me, Bill. I wish you good luck on your negotiation.