Initials Relocation Agreement Made Easy

Digi sign relocation policy

Brian's aftercare today I want to talk about relocation packages so if you're someone who would consider relocation for the right position or if you're a recruiter and you're currently working on a position that offers relocation and you haven't had much experience with relocation packages then the information I'm about to provide to you should be very very valuable so what I want to do is break this up into two separate videos the first one today is going to be more about essential relocation facts that everyone should know and consider prior to even considering a relocation package and the second videos could be much more about the actual packages themselves and what to look for how do you know you've been offered a really good package and then are there any elements of the relocation package that are negotiable okay so want to jump right in and just you know over the past five years I've probably relocated about 40 people and since August first when I started my own company I'm now in my fifth relocation so a lot of experience in this in this matter and I can tell you all of the relocation is very complicated all the packages are very different and the more information you know upfront going into it the better the better you'll be better off you'll be once the package is actually presented to you right so the relocations really offered by companies in two separate forms right so there's there's cash where you're very simple right company offers you a certain amount of cash to cover your relocation costs and then the other way is through a what I call a formalized comprehensive relocation package so these formal comprehensive relocation packages are generally managed by outside vendors there they're very thorough they involve a sell side assistance buy side assistance on housing full full moving expenses soup-to-nuts rates oh and they are all very different so want to kind of just jump in and really talk about more of the formalized relocation packages and things to look out for know going in so one of the things that's important to understand is and most people don't know this is your eligibility for the package so in order to qualify for for a formalized relocation package your new commutes of the company you're interviewing with the new company your commute to that new company must be 50 miles or more longer than your current commute right so it must be 50 miles longer than your current commute so if your current commutes 30 miles and your new company is only 70 miles away from your jury from your house well that's only a 40 mile difference in commutes and therefore you would not qualify for a formalized relocation package so in that same scenario where your current commute is 30 miles you need your new company needs to be at least 80 miles away from your from your current home in order to qualify for a formalize relocation package secondly you need to physically work full-time in your new location for 39 of weeks of the first year of employment okay so that's important to know in case you weren't planning on actually moving to the new location right away in the first year you have to be working out of that location right away okay so pretty much there's 39 weeks out of the years most of the year right another thing you have one year to exercise all of the benefits in the relocation package one year from your start date in order to exercise those benefits or you lose them so if you're going to be moving to so basically if you're going to be selling your house you need to sell that house within a year of your start date of your new company if you're going to be buying a new home and you're gonna be taking advantage of some of the buy side relocation benefits you need to that needs to get done within a year of your start date a lot of people don't don't realize that with every company if they're providing you relocation it's a lot of money they're showing out so there's going to be a payback clause if you leave right so generally I see as two years is usually that is usually what I see here so you're you know some companies you'll have to pay all of the money back if you leave within two years and some of it some companies have a tiered where after one year you all want uh-huh you if you leave within the first year you 100/100 back and if you leave between years one and two you would only owe 50% back I've also seen companies where you only have to stay a year and once the year is up you don't know any of the money back so that's also something to keep in mind as well if you're going to be selling a home and you want to take advantage of some of the sell side assistance involved in a relocation package understand going in that not all homes are eligible for real oak for relocation assistance okay so for instance coops are not eligible multi-family homes are generally not eligible vacation homes are definitely not eligible if you have a house with zoning issues or or building code violations if you have an illegal bathroom in your house or in a bathroom you put it and you didn't notify the town and it's not on this certificate of occupancy you're gonna have to that's a problem you're gonna have to deal with prior to selling your home so so understand that going in and as well as a if your home is valued at a million dollars or more there there could be a cap on on some of the assistance like the brokerage the the the brokerage fee assistance right on the sell side of your home if it's if it's over a million dollars and it's more than a sixty thousand dollar fee there may be a cap there so know that going in also for the formalized packages they're all managed by outside companies you're gonna have to go through that relocation company for almost everything so even down to picking a real estate agent so if if you have a favorite real estate agent or the person who sold you your home you want to then turn around and and and use them to sell your home well you need to make sure and go through that relocation company and make sure that that that that agent is a has been certified or verified by the company as an as someone you're able to use on the sale of your home the second you get an offer that all has to go immediately through the through the through the relocation company see most of these relocation companies a lot of them actually buy the home from you and once you have an offer they'll actually buy the home from you and then they'll sell it to the seller so you there's a lot of moving parts involved and you need to make sure that you're adhering to all the rules and regulations involved in your in the relocation package and then the last thing I want to talk about is the sale of the home the sale of your home is the absolute largest line item in terms of cost with relocation and that has to do with the broker's fee so this is could be up to six percent of this cost of your house so if you own $400,000 house you could be looking at a twenty four thousand dollar of brokerage fee so why is that important to think about going in so if you're if you're being offered a relocation package that's cash and it's not a formalized relocation package understand that if you weren't if you were not already planning on selling your house or if you don't have much equity in your home or let's say you recently bought it and let's say you bought the home two years ago and really all the payments you've been making on your mortgage there's really been more of the interest than the actual principle if you're gonna end up selling that home for this for a similar price as you bought it you're probably gonna take a loss on that because of the brokerage fee so you so understand that going in if you're if you're being offered $50,000 for relocation and cash after taxes that's gonna look more like $30,000 and if you have a $24,000 brokerage fee well you only have six thousand dollars left so if you really want to understand going into or you know a relocation process or at the very beginning understand you know is the company providing yury cash for relocation are they offering you a comprehensive to a full relocation package and you should understand that both if you're a recruiter or if you're a candidate because obviously the sell of your home is can be an in major major cost and if the bulk of the relocation money is being used for that then you're gonna have very little left over for your physical move that those the the brokerage fee on the sell of a home is generally covered but in these formal formalized relocation packages so understand that going in so those are my tips for today around relocation packages if you understand some of that stuff if you're going into an interview that is that for a job that's going to require a relocation you really want to understand you know am I being offered cash for relocation am I being offered a formalized relocation package and then all of the other things that I just discussed are things that you really want to know and keep in mind going into the process so anyway I really hope you got some value out of this look for the next video which is like I mentioned is going to cover much more about the actual packages themselves and what to look out for I hope you got some value out of this feel free to share the video feel free to leave some comments at the bottom I'd love to hear from you have a good day