Category: Domestic Relocation Challenges

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Changes in Rules for Home Tax Deductions

A yellow note pad rests on top of a 1040 tax form with a reminder of the new tax laws implemented for 2018.

Homeowners in the United States should be aware of changes to home tax deductions. These changes are important to understand for when they prepare their 2018 tax returns during the 2019 tax preparation season. They stem from the federal Tax Cuts and Jobs Act of 2017. Changes to home tax deductions were implemented to reduce the ability of homeowners to deduct interest on Home Equity Lines of Credit (HELOC) Loans. When HELOC loans are not used for home purchases, building, or substantial improvements, the interest on these loans will no longer be deductible. There are also dollar limits on the total qualified residential loan balances allowable for deductions, an increase in the standard deduction, and a $10,000 limit on the federal deduction of state and local taxes.

What is Home Equity?

Home Equity is the portion of a home that the owner actually “owns” either through paying down their mortgage or growth in the property value of the home. Homeowners who build equity in their home can help increase their net worth. As a result, home equity may offer homeowners a useful source of funds to borrow from in times of need, such as during a home renovation.

Internal Revenue Service (IRS) Issues Clarification for HELOC Loans

The IRS issued a clarification on February 21 of this year in response to several questions from taxpayers and tax professions. IR-2018-32: Interest on Home Equity Loans Often Still Deductible under New Law describes several examples to demonstrate the effects of the new rule. Important points of clarification include the following:

  • Interest on a home equity loan used to build an addition to an existing home is typically deductible
  • Interest on a home equity loan used to pay personal living expenses, such as credit card debts, is not deductible
  • The loan must be secured by the taxpayer’s main home or second home (known as a qualified residence)
  • The loan must not exceed the cost of the home and meet other requirements

Additionally, the new tax reform law imposes lower dollar limits on mortgages in order to qualify for the home mortgage interest deduction. The IRS notes that starting in 2018:

  • Taxpayers may deduct interest on $750,000 of qualified residence loans, down from the previous $1 million limit
  • There is a limit of $375,000 for a married taxpayer who files a separate return. This is down from the previous $500,000 limit
  • The new limits apply to the combined amount of all loans used to buy, build, or substantially improve the taxpayer’s main home and second home

Itemizations Must Exceed New Standard Deduction

To itemize for 2018 taxes, taxpayers must understand the impact of the new standard deduction. The tax reform law states that total home tax deductions must exceed the new standard deduction. The new standard deduction amounts are:

  • $12,000 for singles
  • $18,000 for heads of household
  • $24,000 for married couples who file jointly
  • $1,600 additional deduction for singles 65 and older
  • $2,600 additional deduction for married couples both 65 and older

Limit on State and Local Tax Deductions

The tax reform law places a limit on the federal deduction of state and local taxes to only $10.000. Homeowners in areas of the United States which experience high taxes include those in the Northeast and the West Coast. As a result, these homeowners may experience an increase in their tax liability.

What Should Homeowners Do?

Homeowners planning to file for home tax deductions on their 2018 tax returns should be aware of the changes to allowable deductions on their HELOC loans. They should also be aware of the new lower dollar limits on qualifying mortgages imposed by the tax reform law. Homeowners should be aware of the requirement that deductions must exceed the new standard deduction if they plan to itemize. Homeowners in states with high taxes should be aware of the new $10,000 limit on federal deduction of state and local taxes. In all cases, homeowners should consult a qualified tax professional for guidance on this issue.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand the importance of obtaining professional guidance when it comes to changing tax regulations. We can help your company understand how to communicate the potential impact of these changes to your new hires and transferees. This will ensure they have relevant information as it applies to their relocations.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is not a tax advisor and is only disseminating public information.  You should always consult your own tax professional prior to making any decisions.

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Understanding Why Traditional and Self-Service Relocation Program Models Stay Relevant in Healthcare

There are various relocation program models that companies can use to provide transferees and their families a range of benefits to ensure a successful relocation. Global Mobility Solutions’ Medical Industry Benchmarking Report shows that among healthcare companies:

  • 86% offer a traditional program
  • 14% offer a lump sum/managed cap (self-service) program
  • 22% offer both types of programs

A best practice consideration is to adopt a combination of traditional and managed cap programming models. Reviewing the basic features and benefits of traditional and self-service relocation program models can help companies understand which programming model is the right choice for their unique requirements.

What is a Traditional Relocation Model?

A traditional relocation program generally provides for ongoing employee support services, supplier management, candidate selection, relocation benefits, and expense management. Corporate relocation programs frequently vary by company due to size, need, or destination. The overall process of employee relocation is usually divided into one of four service brackets including:

A robust pre-decision process is one of the most important things that contribute to high satisfaction rates among relocating employees. Recognizing its importance to overall satisfaction, there has been a significant increase in pre-decision service usage within the healthcare industry.

Additionally, 84% to 90% of healthcare companies utilize a tiered policy approach to relocation. The most common are by position level or homeowner versus renter status.

Providing additional benefits in a relocation program to attract highly skilled new hires will give a healthcare company a competitive advantage. For example, home selling and buying assistance might be a very attractive benefit for a talented healthcare professional who is considering a relocation offer from a prospective employer. Levels of assistance in this area can vary based on position. A relocation policy with a strong communication plan will clearly define and describe the exceptional value that this benefit provides to new hires.

What are Self-Service Relocation Program Models?

Self-service relocation models include lump sum and managed cap programs. The point is that employees direct their own relocation process. The difference between lump sum and managed cap programs is whether the employee or the RMC manages the relocation process.

Lump Sum Program

In a lump sum program, companies provide employees with an allocated lump sum payment and let the employee choose their relocation providers and process. Some Relocation Management Companies (RMCs) offer programs such as a dedicated debit card where funds are electronically transferred to the employee after their expense report is audited. The employee has immediate access 24/7/365 via ATMs and point-of sale retailers nationwide. In addition, funds can also be electronically transferred from the card to their personal checking account.

The success of a lump sum program rests solely upon the relocating employee. They do not have the benefit of expert guidance and counseling that an RMC can provide.

Managed Cap Program

In a managed cap program, companies provide employees a specific amount of funds to spend. Employees benefit from the support services offered by the RMC. These services include policy counseling to the employee on the best allocation of their funds when choosing from an array of relocation services. In addition, they receive guidance on the taxation of particular components, saving the company a FICA tax match and gross-up on particular benefits, such as the household goods shipment and final move trip.

A managed cap program contributes to fewer budget overages and higher satisfaction levels than the lump-sum option, maximizing the benefit for both the company and the employee. Consider tiered policies by level, under a managed cap methodology. This will inherently produce greater efficiencies than other relocation program models, provide employees choice, enhance quality, and contain costs.

Healthcare Industry Talent Recruiting Trends

According to Healthcare Source’s Healthcare Talent Management Trends for 2018, healthcare companies increasingly face skilled labor shortages in several employment fields. The aging population leads to increasing demand for healthcare talent. Also, the number of retiring healthcare professionals leads to a declining talent pool, creating a gap. Traditional employment recruiting strategies are not effective in closing the talent gap. Healthcare companies can attract employees by offering relocation programs with attractive benefits.

Leveraging Relocation Program Models to Attract Healthcare Talent

Most healthcare companies report a willingness to pay for relocation. In order to get the best results from their talent recruiting efforts, healthcare companies should promote their relocation program as a highly valuable benefit. This will help the company attract and retain talent that is looking for assignments in new locations.

Communicating their interest in attracting new hires and their willingness to help employees during their relocation process helps strengthen and broaden a healthcare company’s employer branding efforts. Many healthcare companies are investing significantly in building their employer brands to attract and engage top quality talent. A well-defined and attractive relocation program that follows industry best practices tells prospective employees the company is an employer of choice within the industry.

Healthcare talent acquisition programs must attract a variety of new hires, with many different skill levels. Offering a combination of traditional and managed cap programming models, along with a tiered policy approach, provides healthcare companies with a wide range of options to attract new hires.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts have helped thousands of our clients develop relocation program models that attract and retain qualified employees. Our team can help your healthcare company by using industry best practices to design a relocation program that combines traditional and managed cap models within a tiered policy to provide the widest range of options, increasing your company’s ability to attract and retain new employees.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your healthcare company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Leveraging Relocation Benefits to Attract and Retain Talent in Healthcare

Family With Children And Pet Dog Outside House On Moving Day

Leveraging Relocation Benefits: Hiring and keeping employees who are talented and have extensive skill sets is an increasingly challenging proposition for many healthcare companies. Health eCareers notes in their 2017 Healthcare Recruiting Trends Report that over the past several years and into the future, demand for healthcare services is predicted to increase dramatically, while at the same time the supply of healthcare providers will decline, with shortages of qualified employees throughout all levels of the industry. Thirty-five percent of healthcare companies plan to broaden their talent searches to a wider geographic region, and sixty percent of healthcare companies are offering to pay for relocation.

According to the Society for Human Resource Management’s 2017 Employee Benefits Survey, HR professionals are increasingly leveraging employee benefits to attract and retain employees. Typically, the range of benefits include health insurance, retirement savings and 401K plans, family and medical leave, and flexible work schedules.

Benefits Attract Talent

Healthcare companies recognize that having a full range of desirable benefits gives them a competitive edge attracting new hires. Many healthcare companies increased their overall benefits during 2017, in order to remain competitive in the talent marketplace. Up to two-thirds of healthcare companies reported difficulty in their recruiting efforts and a shortage of employees with specific skills. Expanding recruitment efforts to include global destinations increases the complexity of the search for talent.

The Benefits Survey notes that HR professionals reported that offering more flexible work arrangements was one of the most effective benefits their company could provide in attracting new hires. This indicates employees are looking for innovative ways to fulfill their job obligations while pursuing active lifestyles themselves and with their families.

Leveraging Relocation Benefits

Since the majority of healthcare companies report a willingness to pay for relocation, their relocation programs should be considered as a highly valuable benefit to attract and retain talent. Leveraging relocation benefits helps employers communicate their interest in attracting new hires and their willingness to help employees overcome challenges related to taking an assignment in a new location. Some of the benefits that healthcare companies can highlight in their recruiting strategies and use to attract new hires include:

Pre-Decision Services

  • Candidate Assessment
  • Cost of Living Analysis
  • Market Analysis
  • School Reports
  • Moving Cost Estimates
  • Community Search and Tours

Pre-Assignment Services

  • Work Simulations
  • Candidate Assessment
  • Orientation Tours
  • Cost Projections
  • Specialized Educational Assessment
  • Cultural Adaptation Assessments

Assignment Services

  • Assignment Management Coordination
  • Visa & Immigration Services
  • Cultural & Language Training
  • Education Assistance
  • Home Finding Assistance
  • Spousal/Partner Assistance
  • Corporate Housing Assistance
  • Vehicle Purchase or Leasing Assistance

Repatriation

  • Consultation and Exit Procedures from Host Country
  • Assignee and Family Reintegration to Home Country

Healthcare Company Relocation Programs

Relocation programs for healthcare companies should be designed to provide companies and their employees the resources and tools they need to ensure a smooth and successful relocation process. A robust program should account for ongoing employee support services, supplier management, candidate selection, relocation benefits, and expense management.

Healthcare companies should consider outsourcing their relocation management to an experienced Relocation Management Company (RMC), one that is a leading industry expert in relocation services management. The RMC will help the healthcare company:

  • Better maintain quality control of the relocation process
  • Quickly adapt to seasonal staffing fluctuations without increasing cost per relocation
  • Leverage cost through economy of scale by spreading costs over a broad client base
  • Provide ongoing support to relocating employees with a single point of coordination
  • Provide expertise in consultative resources, improving organizational and employee productivity

Conclusion

Global Mobility Solutions’ team of corporate relocation experts have helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your healthcare company by using industry best practices to design a relocation program that is attractive to your new hires, and effectively communicates your company’s value proposition in the healthcare industry.

Contact our experts online to discuss your healthcare company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Top 3 Considerations When Implementing Relocation

Shot of a group of colleagues having a meeting in a modern office

Keys to working smarter, faster, and more cost-effectively

HR, Recruitment, Payroll, Accounts Payable, IT Security, and other relocation stakeholders commonly face a never-ending variety of evolving and often overwhelming challenges when it comes to the implementation of benefits administration, which includes relocation outsourcing decisions.

As employee benefits become more complex, critical, and increasingly subject to regulatory compliance requirements, employers must accurately assess their team’s capacity when it comes to implementing relocation programs.

Global Mobility Solutions (GMS) recently compiled the data on thirty four (34) recent implementations it managed, representing key industries and includes several multinational companies (including and not limited to manufacturing, technology, healthcare, and energy). This study was derived from initial and post-implementation surveys that are focused on implementation Critical Success Factors (CSF).

Top 3 Critical Success Factors

  1. Implementation Management
    Assessing an organization’s goals and creating a realistic road map of key milestones is a critical part of delivering an effective implementation. The process begins by identifying the right mix of internal/external resources and flexible technology that support a collaborative approach to implementation that stays on track. This study confirms that proper planning and management is an essential to any successful relocation implementation.
  2. Cycle Times
    All organizations, large and small, have finite resources, making the maximization of productivity and cycle times a CSF. Properly planned and executed implementations reduce typical and customary cycle times.
  3. Time Investment = Real Dollars
    The old adage of “time is money” has a direct association to relocation program implementation. This is evident by the time investment required to complete implementation by multiple disciplines within an organization, such as Human Resources, Payroll, Accounts Payable, preferred vendors and the RMC.

Modern Mobility Made Easy™
What this means for you and your relocating employees
Our findings conclude that organizations with solid implementation oversight and supporting technology experience shorter cycle times, spend less and have a better overall experience. Global Mobility Solutions, a leader in corporate relocation since 1987, provides companies like yours with proven leadership, time tested procedures and advanced technology to ensure that no more than 10% of their time is spent on implementing a relocation management program. GMS completes new implementations within 5 to 22 days, while maintaining 98% planning accuracy and 100% implementation satisfaction. To learn how to quickly and easily implement your relocation program, all within your planned budget, by requesting an implementation demo.

Request a relocation implementation demo from Global Mobility Solutions

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Managing Mobility Costs

Businesspeople in a meeting

Department heads all over the globe are constantly asked to identify cost-saving opportunities within their departments. Human resources, employee mobility, talent acquisition, and procurement are no exceptions. As you scrutinize your budget, try utilizing these three steps to help better manage and ultimately reduce your relocation expenses:

Cost Estimates

Managing mobility costs starts with understanding what those expenses are. First estimate what costs should be involved with your vision of a successful mobility program. A cost estimate will provide you with a clear picture of the potential costs of individual relocation assignments. You can then use these cost estimates to correctly establish a budget prior to initiating any relocations.

One effective way to determine your cost estimates is by utilizing cost estimate technology. There are many software programs that by using the latest upgrades will help you:

  • Save time
  • Reduce human error
  • Ensure compliance

Policy Reviews

By reviewing your relocation policies, either internally or with an outside relocation management company (RMC), you will be able to identify cost-saving opportunities and eliminate expensive exceptions. When reviewing your mobility management policies, you should:

  • Do so in conjunction with cost
  • Benchmark against other companies within your industry
  • Leverage technology for key services (i.e. Virtual destination tours, online school reports, etc.)

Example:

Using online language tools can reduce relocation costs by roughly $5,000 - $20,000.

Tracking and Reporting

Lastly, you want to ensure that you are continuously tracking all expenses and reporting any overages or savings. Get a detailed account of how your cost estimates match up with your actual spending. Then the whole process repeats itself. Once you have your data:

  • Take action – Make any necessary adjustments to your budget, policy, or both
  • Review – Go over the detailed reports to identify more cost-saving opportunities
  • Incorporate technology – Save time and money by offering key services online

Global Mobility Solutions (GMS) is an award-winning RMC and, since 1987, has been helping companies save time and money with regard to their corporate relocations. As a courtesy service, GMS will review your current relocation policies and provide expert feedback to ensure that your policies are competitive within your industry and to identify any cost-saving opportunities, so you can focus on managing mobility costs.

Click here for your free relocation policy review

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5 Steps to a Successful Year-End Process

Business coworkers working together at office

While most people are happily preparing for the holidays, you’re scrambling through the year-end reconciliation of all of your relocation expenses. Well, even though it’s only November, here is a gift that will help you not only navigate this year, but help you to have a successful year-end process for years to come.

Though many relocation managers might prefer battling crazed Black Friday crowds to year-end reporting, the process tends to go more smoothly when run by the relocation department. To maximize efficiency, be sure to utilize these five steps:

  1. Create a year-end checklist. A detailed checklist will help identify all of the information you need to accurately report year-end compensation. Your checklist should include due dates, responsible individuals and departments. Establishing the responsibility for reporting all of the relevant compensation data is an important component, and can include wages, imputed income, benefits, equity, taxes, and more. This year-end checklist will help you identify all the resources you will need to create a complete and accurate report. Your itemized checklist needs to include items such as early cutoff dates and all employees who will receive the tax filing services (employees on the tax eligibility list), as well as provide for the time needed for verification, approval and processing. A well-developed checklist will also set firm deadlines for the reporting and tax filings.
  1. Set up a year-end preparation call. When setting due dates, be cognizant of the vacation times made mandatory by some countries around the end of December. During the call, review your year-end checklist with all involved parties to ensure that they are aware of their role and due dates. Use this call as an opportunity to build understanding and develop relationships that will make year-end reporting easier in the future. If you have not already held a year-end preparation call, schedule one as soon as you finish reading the rest of this article!
  1. Verify all of your data! Accuracy is vital, especially when it comes to compensation reporting. Data such as addresses and tax ID numbers/Social Security numbers should be confirmed, as well as wages, benefits, sick and vacation time. Double-checking data prevents backtracking and costly errors down the line.
  1. Finalize your data. Make sure that the final payroll reports of the year have been included, plus any end-of-the-year benefits. Be sure to back up the program data again and be sure to save it in a secure location should it need to be referenced in the future.
  1. Get ready to submit your report. Double-check the deadlines for all the countries on your list and be prepared to provide specific data for each. Tax providers may ask for data for different assignee/transferee populations. Be sure to adhere to your year-end deadlines and, whenever possible, send the data ahead of time. Some international locations may have very tight turnaround times to make that final tax payment of the year.

As with anything, practice makes perfect. The more you follow these five steps, the easier year-end reporting will become for you and you can be confident of a successful year-end process.

Learn more about how to save time and money while managing your corporate relocations.

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Overcoming a Reluctance to Move

Excited Family Carrying Boxes Into New Home On Moving Day

Relocating one’s self – and in some cases one’s family – to a new, unfamiliar location can be a stressful, frightening experience, regardless the financial opportunity. A recent Worldwide ERC study evidenced that “Family resistance to move” was cited as the overwhelming reason why candidates were reluctant to relocate.

How can a human resources department, that has already spent a lot of time and money searching for the right candidate, ensure that an offer that includes relocation is accepted? How can they take the anxiety out of moving?

Pre-decision solutions are designed to assist both the employee and the company in determining the benefits and challenges of a potential relocation and overcoming reluctance. First, a mobility management company engages the candidate or transferee early in the process. Since mobility management companies are not bound by the same EOC rules that apply to human resource departments, they can ask more specific questions about lifestyle and family. This creates a complete picture of what would make the transferee comfortable in a new setting. This can include information about schools, shopping, activities, desired commute, and much more. Because the process includes questions that go beyond job performance, spouses and families feel more involved with the relocation process. The mobility management company further reduces stress by arranging community tours, housing information, and cost of living analyses. A pre-decision program can remove all the unknowns – generating positive excitement for the transferee and overcoming a family’s resistance to move.

Global-Mobility-Solutions-Pre-Decision-HR-Benefits overcoming reluctance

Global-Mobility-Solutions-Pre-Decision-Transferee-Benefits overcoming reluctance

For the company, pre-decision solutions are proven to increase offer acceptance and decrease time to acceptance. Additionally, because of built-in programs like Candidate Expense Management, the final cost of relocation have been shown to be less when utilizing a pre-decision solution. The Program Manager of Talent Acquisition at Providence Health and Services said of her experience with pre-decision, “By initiating relocations prior to the face-to-face interview, we know that transferees have arrived more quickly, have settled better, and stayed longer.” What more could a human resources department want?

To learn more about mobility pre-decision solutions, please visit www.gmsmobility.com/pre-decision/

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7 Reasons Your Home Is Still On The Market

Phoenix, Arizona, USA downtown cityscape from above at dusk.

Your home is still on the market: Your house is still on the market, and it doesn’t look like it’s going to budge anytime soon. According to Jonathan Smoke, Chief Economist of Realtor.com, “the median age of inventory is now 80 days”, and its a smear that nobody wants on their listing. That figure is up 6.7% from August, and depending on your reason for moving, timing seems to be everything. You’ve planned carefully and cleaned up your home before trying to show it, so where did you go wrong?

You’re Charging Way Too Much

When setting the price of your property, you can’t just set a price without conducting thorough research. According to the experts, every single house can sell, for the right price, of course. If you want to sell your house quickly, it is wiser to lower its price early on, than to wait for another few months then lower it according to market restraints. Zillow suggests, “estimates are intended as a useful starting point to help you determine an independent and unbiased assessment of what your home might be worth in today’s market. Comparing your home to recently sold properties can also help you understand what your home is approximately worth. Ultimately, your real estate agent or appraiser will be able to inspect your home physically and take into account special features, location and market conditions for the right price.” This highlights the absolute necessity of finding a quality agent. Think your home is worth more than its appraised value? You’re not alone. Quicken Loans data shows homeowner perceptions commonly exceed appraiser opinion, illustrated in the graph below.

Home Sellers Usually overvalue their homes. your home is still on the market

You Have A Bad Real Estate Agent

Lack of communication, resources and leadership are signs of a bad real estate agent. While over 90% of transactions involve a real estate agent, an inexperienced real estate agent can’t even compare to one that abides to NAR’s code of ethics. Many agents will not spend more than a couple of hours a week trying to sell your property. If your agent falls into these categories, start contacting him regularly to remind him that you need to sell your house as soon as possible. Teresa Mears reported, Michael McGrew, (CEO of McGrew Real Estate in Lawrence, Kansas) treasurer of the National Association of Realtors stated, “it’s about communication. Tell your agent what isn’t working and ask them to fix it.”  Open communication with your real estate agent can save you literally hundreds of dollars at closing, by closing sooner. The best way to ensure you’re working with a quality agent, is to use vetted and reviewed agent networks. If you’re relocating for work, your company likely provides some real estate assistance through a relocation management company like Global Mobility Solutions, and has access to hundreds of experienced and talented agents.
bad-agent your home is still on the market

Your House Doesn’t Look Appealing

Most homeowners live with the impression that their house is the best home in the universe. Don’t live under the same illusion. You need to realize that your clients do not see the things the way you see them. People’s perception of your house is not influenced by feelings or strong emotional connections. They only look at it from an objective point of view. Staging your home is critical to selling your home fast. According to National Association of Realtors, “the median dollar value to stage a home is $675 and the majority of buyers’ and sellers’ agents believe staged homes also increase the dollar value buyers are willing to offer by one percent to five percent at closing. While only 4 percent of Realtors said staging has no impact on buyer perceptions.” To solve this problem, hire a third party for a free staging consultation to get an edge on your competition.

Real Estate Home Staging Importance your home is still on the market

Withholding Important Information

Never do this, even though it’s tempting sometimes, it could cost you dearly in the end. Misrepresentation can lead buyers and especially agents to go onto the next home. While all houses have warts, refrain from engaging in colorful coverups. Now, you don’t need to go the other way around and list only its drawbacks either. Promote your property using plain language, without exaggerating or hiding important aspects. Real estate agents have many resources at their disposal i.e. memberships, marketing companies, brokerages and associations to draw on. Relying on their associations can save you time and money as well. Again, herein lies the importance of selecting a quality real estate agent.exaggerating your home is still on the market

You’re Still Working On It

If you are engaged in some minor or major work on your property, don’t even think to sell it. Modern buyers are only looking to buy houses that are fully remodeled or renovated in todays competitive market. First of all finish the renovations or major repairs before placing your house on the market. In addition, curb appeal is and always will be the most important. That explains why the NAR and their members, once again, “rated exterior projects as some of the most attractive and valuable home improvements for homeowners.”

renovating your home can help it sell quicker as long as you complete improvements prior to listing your home is still on the market

Your House is not listed Online

More and more buyers are now looking for houses online. Make sure your property is listed on all major real estate sites, including but not limited to Zillow, Trulia and Homefinder. There are over 250 real estate websites that can be easily accessed using the internet today. Additionally, list your house on sites that are mobile optimized. This is crucial to todays Millinium and Gen Y consumers. These tech savvy, busy customers will always prefer their smart phones or tablets over their laptops to navigate online. The top 20 major real estate brokerages have relationships with these sites, and it is automatic once it becomes active in the local Multiple Listing Service. However, every once in a while the listing doesn’t make it in. Have your agent check these sites in the first week to assure your online presence.

Real Estate Apartments Mortgages Home Values Zillow your home is still on the market

You Launched in the Wrong Season

If you want to sell your house to a certain group of people, you need to know exactly when it’s the best time to put your house on the market. For instance, retirees usually tend to buy during the hot season, while young families move in spring or late fall. Nela Richardson, Redfin’s chief economist says, “just as buyer demand follows a seasonal pattern, so do home prices, in addition, over the past five years prices have increased by an average of 3 percent month over month in the spring and ticked down by about 1 percent each month during the fall. To get the best of both worlds, sellers need be informed on both local buyer demand and recent sale prices in their neighborhoods before deciding when to list their homes and for what price.” While your home still sits on the market, timing can be everything, depending on where you live and the buyer you’re trying to reach. Seasons don’t appear to be a huge advantage or disadvantage to listing in any season, since the variance in prices is only by a few percentage points however they do vary on the time it takes on selling a home.” A recent Google Consumer Survey of real estate search terms illustrates the seasonal interest in property perfectly. Almost like clockwork!

seasonal homes Google search volume your home is still on the market

Home is Still on the Market – Insider Tip From GMS Director Of Real Estate Services

“It’s in your best interest to interview more than 1 real estate agent. Find out what each agent thinks about your area and your home’s potential pricing. It doesn’t cost you a dime to have it done. If you’re relocating for work, check to see what benefits are made available to you and use your company resources! If they work with a relocation management company like Global Mobility Solutions, then they’ll have access to hundreds of reviewed, vetted and experienced real estate agents. Following these simple steps can drastically reduce your home’s time on the the market and improve your chances of selling your home at a fair but beneficial price.”

Julie Schultz
Director of Real Estate Services
Global Mobility Solutions

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Navigating Silicon Valley’s Housing Market

Typical Australian suburb from above in autumn

Imagine having to relocate to the most expensive metropolitan area in America. An area that stretches from the southern banks of San Francisco to San Jose County, better known as Silicon Valley. A place where “only 44 percent of Santa Clara County households could afford to purchase an entry-level home — defined as costing $833,850, or 85 percent of the county’s median sale price.”  The housing sector has seen an explosion in population “reaching three million people just last quarter at a rate of one person for every sixteen seconds”. As the world’s leader for thousands of startup companies and high tech corporations, it has hit an all-time high in housing cost; forcing workers farther away from their place of employment and schools.

The combination of high-income industry leaders, a rising population and shortage of land is the perfect storm for the future rising cost in real estate. It is important to note that sales data mentioned is not adjusted and accounted for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home, but rather by the price per square foot. Which is determined by how much space a buyer is willing to pay for the property. So when shopping for a home, by focusing on off-peak seasons, i.e., November through February, will help save time and money.

silicon valley housing market“Click Map to Navigate Housing Market in Silicon Valley.” – Powered by Google Maps

Prior to looking for a home without sacrificing your other needs, you may have to consider driving a few extra hours to save money. According to the Silicon Valley Leadership Group and the Silicon Valley Community Foundation in 2015, the average commute time of workers rose by 8 percent in which 1 in 6 commuters travel two or more hours each day to work and growing. It could be difficult to make price comparisons, regarding commute times by having too many locations. So it’s best to limit yourself to two or three locations. By choosing the right real estate agent, they will be able to determine a cost comparison on price per square foot. As well as discovering several resources in the different areas by saving precious contract time and money in the end. Without these vital factors this will cost the winning the offer on the home. If the buyer is not ready to buy they should wait. Only if one has a strong stomach, nerves and able to take strong suggestions from their Realtor.

Currently, housing is being underpriced in hopes of getting an overbid. The strategy works bringing in offers over a $1000/square foot. Looking for the needle in a haystack can be time-consuming, but possible. If there is no time to wait and have a weak stomach, then cash is your quickest answer. While choosing to rent, remember it is always more expensive in the long run. Plan carefully. Renters are being priced out of the areas as prices are increasing, less than 25 percent of workers and just 40 percent of households in metro San Jose can rent or buy average-priced housing.” While Justin Fichelson, stated that “We’re slowing down. Instead of seeing 30 percent appreciation, homeowners may see 10 to 15 percent appreciation, echoing Zillow’s assessment last week that the pace of appreciation is slowing. Redfin had a different take on the strength of the Bay Area housing market. Such debates are common as some perceive shifts in the housing market.” However, housing markets fluctuate during seasons, and while going into the holiday season, we are going to see a slight change in the market.

Ever since Zuckerberg, founder of Facebook, moved to Palo Alto – prices have increased dramatically. Along with the idea of buying multiple lots and rebuilding, brokers are calling Silicon Valley a tear-down market. Anything in the $4 million and below range will likely be demolished, or they will need to rent and place their money in another investment. However on the other side of the spectrum, lower to middle-income housing plans are being implemented by city, state and federal officials. San Jose affordable housing law was upheld earlier this year by state Supreme Court. The California Building Industry Association and the Pacific Legal Foundation announced on Tuesday, and they have asked the U.S. Supreme Court to review a June decision by California’s highest court. Clearing the way for San Jose to implement a long-planned “inclusionary” housing ordinance. Lawyers for the industry argue that San Jose’s law and others like it across California violate federal constitutional protections against the “taking” of private property. Requiring developers of new, for-sale homes to set aside 15 percent of units as affordable housing, or pay a fee.

Instead of using the term “housing bubble”, which is widely used and less understood, a correction in the housing price index will continue into 2016. While San Jose and San Francisco “are projected to have yearly growth rates of around 3%, entering winter 2015-2016 on the downside is of great concern. What started as ‘red hot’ at the start of 2014 may end as ‘in the red’ come 2016,” stated by Alex Villacorta from Clear Capital. As 2015 begins, eight years after the peak and six years after the crash, real estate markets across the country are transitioning from the recovery phase to the expansion phase. For many areas, like Silicon Valley, the expansion phase is well under way. According to Glen Mueller (Full report Author of The Cycle Monitor) Boston, New York, Denver, and San Francisco, are already experiencing incredibly tight rental markets and robust new construction in apartments. Between now and then, aside from the occasional slowdown, the real estate industry is likely to enjoy a long period of expansion.

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How to oversee and provide support for millennial transferees

Couple on floor next to moving boxes

The face of talent management is changing for a wide variety of reasons, but the impact of technology has been a particular catalyst for this evolution.

Today’s new workforce wants to be a part of the new globally connected workplace. Businesses are beginning to see the value in relocation assignments in new and diverse markets, and it’s often young adults who are making the trip to a new location. Companies are investing in the future of talent mobility because millennials are not only well-versed in the technology that’s driving mobility growth, but also because young adults are the future of the modern-day workforce. According to a recent PricewaterhouseCoopers study, Gen Y currently accounts for one-quarter of the workforce. By 2020, that figure will increase to 50 percent.

Support millennials during relocation
Their skills are in high demand, seeing as increased relocations and development in technology are coinciding with one another. However, since industry practices are evolving, the manner in which companies support and oversee transferees will have to mature as well.

A recent Deloitte study outlined a support framework for companies to follow during relocation management. The framework is based on the business value of sending an employee to a new market and the development value for talent growth. Millennial relocation is primarily characterized as a “learning experience” in that it doesn’t cost companies a lot to move young talent, but the developmental ceiling is high since the employee is looking for diversity in experience and professional growth.

Millennial employees want their companies to embrace new technology.
Millennial employees want their companies to embrace new technology.

Businesses that move young employees are helping to develop well-rounded leaders of the future. When it comes to millennial support, businesses are primarily focused on developmental reinforcement above all else. PwC found Gen Y employees are more committed to personal learning and development than flexible work hours and cash bonuses from their employers. Seventy percent of millennial respondents said work-life balance was very important to them, so businesses need to moderate the number of hours young assignees work.

Before and during the move, businesses should be ready to offer rental assistance programs, especially those with housing options. Young employees are active, experience-seeking individuals who want to be surrounded by others like them. Helping transferees find lodging in a walkable or culturally vibrant neighborhood is a great place to begin during a relocation, especially since young employees don’t own vehicles like they did in the past. In fact, a recent AAA Foundation for Traffic Safety study found from 2007 to 2011, the number of automobiles purchased by adults aged between 18 and 34 dipped nearly 30 percent, Fast Company reported.

Millennials also have different needs than previous generations; they expect employers to adopt new technology and the flexibility it brings to their lives. Certain rental assistance programs can extend the resources young employees desire to better help streamline the transition. Things like mobile apps and do-it-yourself tools are two aspects of a strong millennial relocation as well. Even corporate resources like hands-on job training or settling-in services that help the employee acclimate to his or her new surroundings are highly beneficial during the process. Millennial transferee support doesn’t stop once the wheels hit the ground in their new location; rather, it’s an ongoing process that requires meeting their complex needs and doing so in a fashion that they can ultimately connect with on a comfortable level.

Since the demand for talent mobility is growing, companies need to adjust with the evolving state of the industry. Young employees are a good investment from a business and developmental standpoint, but they need to be supported with the right technology and continual training and support that will fuel professional growth.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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