Category: Home Purchase

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2023 Real Estate Trends: States People Are Moving to and Why?

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Portrait of a young man carrying a box while moving house

These are the states that are seeing a significant increase in population and some possible reasons why

Relocating for professional or personal reasons can be an excellent decision for both. New beginnings bring new opportunities to advance your career or grow yourself in a new destination. For 2023, we will use real estate trends to predict which states people will migrate to.

But before we start to look at which states are drawing new people in, let’s review some of the significant factors in why people are looking for a relocation change.

Cost of Living and Affordability

Housing affordability is decreasing as Americans seek cheaper homes and cheaper living in other states/cities. 2022 saw many moving due to money/costs, but 2023 looks to have a more steady housing market, making moving possible for many.

Americans searching for economic stability evaluated the financial implications of city vs. suburban life. Remote work has enabled many who live in costly cities to transition to cheaper places without giving up job prospects. This U.S. relocation trend explains the growing number of people departing urban regions for the suburbs.

Remote Work Options

Since the Covid-19 pandemic, most previously office-based companies have moved to either full-time remote work or hybrid schedules with remote work options. Now that many people in the workforce have the opportunity to work remotely, they now can choose to live wherever they want. 

In the past, employees would have to live within driving distance of their office to be at work on time, which made significant cities the apparent hotspots in the country. But with people able to log into work from the comfort of their homes, they are looking for homes in less crowded destinations. 

In 2023, working from home will be a permanent fixture for many companies. This will have employees seeking a new destination they have always wanted to live in. States with warmer weather and cheaper costs of living are the prominent front runners for those looking to move this year while working remotely.

Top States People are Moving to in 2023

2022 saw significant growth in certain states, trends that may repeat in 2023. Those with more room, cheaper living and remote work will be the best spots to reside in America. Here are the top four states people are migrating to in 2023:

1) Arizona

Arizona’s year-round sunny weather makes this an obvious destination for those looking to relocate to a place for outdoor activities. The Phoenix suburbs are growing in population yearly, with towns in the East Valley like Mesa and Gilbert leading the way. Hiking and golfing are activities that can happen in Arizona any day of the year.

And if taking in the sun by the pool or on the golf course isn’t something you’d want to do every day, northern and eastern Arizona have plenty of forests to explore with four-season weather. And let’s not forget the great wonder of the world, the Grand Canyon, which is a driving distance from the Phoenix area, for a weekend getaway.

2) Georgia

Georgia anticipates a rise in population. This Southern state has an impressively low unemployment rate of 2.9% compared to the national average. Furthermore, the cost of living and taxes are relatively low, making it an attractive place to live. 

Living in urban areas such as Atlanta and Savannah offers many job prospects due to the presence of renowned corporations like Home Depot, UPS, Delta Airlines, and Coca-Cola. When not working, Georgia’s inhabitants can explore the Chattahoochee-Oconee National Forest by hiking, camping, or biking, or visit the Georgia Aquarium, meander around the City Market in the Landmark District, or take in spectacular sights at Rock City atop Lookout Mountain.

3) Idaho

Idaho has a high population growth rate due to its desirable mountain location and low crime rate. People are moving into the state, particularly to the city of Meridian, faster than they are leaving. Those looking for more space and a good job have the opportunity to join a thriving economy in Boise, one of the top U.S. cities for job-seekers. People nearby enjoy going to well-known places in the state such as Craters of the Moon, Sawtooth, Lake Coeur d’Alene, and Shoshone Falls Park.

4) North Carolina

North Carolina’s low cost of living and substantial job opportunities have attracted many people. Areas like Charlotte and Raleigh have experienced population growth in recent years. Research Triangle Park comprises Oak City, Durham, and Chapel Hill, a hub for science and technology and great for young STEM professionals.

Asheville is one of the top cities to live in in the South. One of the locals’ favorite activities is bird-watching at Cape Hatteras, hiking Chimney Rock State Park, and driving the Blue Ridge Parkway.

Keep Up with GMS for Real Estate Trends

As the industry leader in relocation services, Global Mobility Solutions (GMS) always stays up with industry trends and news. Real estate trends are not only something our relocation experts monitor but study. We take great pride in knowing that our team always strives to gain as much global mobility knowledge as possible. 

If you are considering a relocation for you and your family, contact us today to see if you can take advantage of our Employee Choice Program. If you are an HR or hiring manager looking to create or update relocation policies for your company, set up a free consultation with one of our business development managers.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Home Purchase Labor Force Relocation Best Practices Relocation Challenges

What Is an iBuyer?

Fastest-selling housing markets

Explanation of an iBuyer and why transferees shouldn’t use them

There is no doubt that selling or buying a home can be complex. More prominent real estate companies started buying and selling homes through iBuying. This newer way to sell houses and property popped up. 

But what is an iBuyer? How does it work? Is it worth it for me to sell my home to one? 

An iBuyer, in simple terms, is a real estate company that leverages technology to buy and sell homes in hopes of making a quicker sale than the traditional real estate process would. The main reason is that with iBuyers, people can buy and sell homes almost entirely online, and the buyer may never even step foot in the house before signing the dotted line. 

While some iBuyers have been around since 2014 but mainly due to the Covid-19 pandemic, iBuyers started to take a hold of a decent portion of real estate transactions. The main reason is that home buyers and sellers could show or search for houses online and take virtual tours. Then they could make offers and complete the process online before getting to their new destinations.

iBuyers vs House Flippers

Many people confuse iBuyers as being in the same realm as house flippers. Flippers typically buy properties at low prices and then relist the house for a higher price in hopes of making a profit. 

iBuyers look for homes that are more market-ready than those houses flippers purchase. iBuyers tend to make a more fair offer for what the property is worth during the market’s value. Fees are short. All iBuyer companies have fees worked into their submission. 

Should I Use an iBuyer?

Often, people who are in a hurry to get to their new destination turn to iBuyers. They think that because their process is more accessible than the traditional way, they can be on their way sooner. But relocating for a job, using an iBuyer, is probably not the best route because you could be leaving money on the table. 

If you are relocating for a new position, the first step is to review any relocation benefits offered by your new company. For example, employee relocation packages often offer home buying and home selling programs. This means there could be special programs that help moving employees sell their current homes and buy a new house in their new destination. 

When employees take a relocation job, they often think they will not have enough time to sell their home before their start date. This would make many believe that an iBuying company is the way to go. But any reliable relocation management company (RMC) would strongly side against iBuyers. 

Advantage of an RMC over iBuyers

Some of the most sought-after relocation benefits are home sale programs. In basic terms, relocation home sale programs provide assistance to homeowners so that they can move to their new city for the desired or assigned start date. Each RMC will have different terms and conditions for its offered real estate programs. But most programs will include payments to cover real estate commissions and closing costs. Therefore, every home selling assistance program differs depending on the seller’s/buyer’s situation. The type of program a moving employee can use also depends on relocation policies specified in the employee’s offer letter. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. 

Each of these programs offers different advantages to transferees. Direct reimbursement is the most common program. This home-selling program is where the employee will list and sell their home on their own and be reimbursed by their new company for closing costs and other fees. 

The BVO program is where the RMC will buy the home from the moving employee and sell it to a buyer with a competitive offer. Finally, the GPO program is the handiest; this is where the employee will list and try to sell their home independently. If, after a set amount of time (typically 30-120 days), the employee is unable to sell their home, the RMC will purchase the home from the employee so that they can make it to their start date on time.

GMS Employs Real Estate Experts

Global Mobility Solutions (GMS) has been the industry leader in relocation since 1987. We’ve assisted in millions of moves since and have taken pride in making a seamless relocation process with top-notch customer service. We understand that selling a home in a tighter time frame adds to stress. 


That is why GMS only employs the best real estate experts to help our clients sell and buy homes promptly while getting checks next to all their needs on their list. With over 30 years of experience, GMS knows how to get relocating employees moved on time without leaving too much money on the table. For more information on our home-selling programs, please reach out to set up a free consultation on how GMS can help. Or check out our Knowledge Base for more insight on other services GMS can offer those looking to relocate for a new job.

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Buy a Home Home Purchase

Real Estate Trends: 5 Challenges Home Sellers Face

Fastest-selling housing markets

Some of the most common obstacles home sellers have to hurdle

Selling a home to move on to bigger and better opportunities can be an exciting time. But anyone who has bought or sold a home before knows that can be a long and tedious process. When selling a house or property, often the seller is under some sort of time restriction. They could be closing on their new living arrangement, maybe they’re moving for a new job with a strict start date, or need the equity from the old house for their new property. No matter the case, sellers usually don’t have a lot of time to be held up when trying to complete the transaction. 

Real estate trends change constantly throughout the year. With that being said, any real estate agent can tell you that no two real estate transactions are the same as so many different challenges can arise. No matter the situation, everyone loses out if the challenge stalls or derails the deal altogether. Here are some of the most common challenges faced when selling a home:

1) Keeping Emotions in Check

Probably the hardest part of selling a home is letting go of the time, money, and effort put into building and maintaining it. It’s not uncommon for sellers to have a hard time letting go of the house that their family has lived in for years and the memories created while living there. Many times, sellers will want to artificially inflate the price of the home due to the time and money they spent on upgrades or repairs over the years. Sellers have to remember that to buyers, this doesn’t mean nearly as much to them from an emotional attachment standpoint. The only way to overcome this is to be 100 percent sure it’s time to sell the family home and move on. Keep reminding yourself that it’s a business transaction at this point, not an emotional decision. 

It can also be easy for those selling to be worried about seller’s remorse. The easiest example is the seller may be scared that if they sell the home for X amount, it could be worth Y amount just a few days later. Working with an experienced agent or team who knows the latest real estate trends can help make sure that the final sale price is fair, profitable, and sustainable.

2) Real Estate Market Conditions

When selling a home, obviously the goal for the seller is to make as much profit as possible. But listing price when selling a home can be a crucial step in the process. If listed at too high of a price it could keep potential buyers away. If at too low of a price, the seller might miss out on a chance to capitalize on earnings. It is important to know local market prices and how to effectively market your property in the current housing market.

There are so many factors that determine what each local real estate market looks like. Is it a buyer’s market? A seller’s market? Is the house located in an area where it is better to sell in spring or winter? How many houses are for sale in that area? 

Again, each market will be different so it’s hard to generalize supply and demand for an entire area. But if possible, it’s a good idea to study your local market for a few weeks, if not months, leading up to the listing of your home. The best way around this challenge is to work with a mortgage broker and real estate team who know the mark front and back.

3) Finding a Reliable and Certified Real Estate Agent

There are a few different types of specialty real estate agents that can assist with a specific type of home sale. For example, if you are moving for a new job and are utilizing a relocation package, it would probably be in the best interest to use a relocation-specialized real estate agent. These agents generally hold relocation-specific certifications, such as Worldwide ERC’s CRP certification. This certification showcases that the agent is deeply familiar with the nuances surrounding corporate mobility and how it can impact the real estate process. Additionally, these agents will be familiar with specialized home sale programs that are common in the relocation industry, such as the Buyer Value Option or Guaranteed Purchase Offer.

It’s worth noting that if your company is providing you with relocation benefits, you may need to utilize a specific network of vetted real estate agents in order to qualify for your benefits. If you’re unsure, it’s best to check your relocation policy or get in touch with your relocation specialist (GMS Relocation Coach).

4) Prepping the Home for Listing

For anyone selling a home, this challenge could involve some manual labor or some money for repairs. In order to fetch the best possible price for your home, it should be “show ready”. If there are any repairs or upgrades that the house needs, it’s a good idea to get those out of the way before marketing the home for sale. If not, sellers run the risk of having a sale held up due to negotiations about the repairs with the buyers and their agent. However, in a seller’s market, when buyers are more desperate to get a deal done, you may be able to negotiate to leave some minor repairs for buyers to tend to after the sale is complete.

5) Unrealistic Buyer Expectations/Needs

On rare occasions, you may be faced with potential home buyers who simply have unrealistic expectations. This can cause sellers additional stress and potentially derail the deal. The only advice to be given here is to remember this is a business transaction and if the deal isn’t right then walk away and be patient for new buyers.

GMS Stays Up to Date on Real Estate Trends

Global Mobility Solutions (GMS) has been helping individuals and families relocate since 1987. Our expert team stays up to par on real estate trends throughout the US and Canada to ensure that our clients’ employees are successful when trying to buy or sell a home. We want to make sure that moving is as smooth as possible and assign dedicated Relocation Coaches to each employee to guide them during the relocation process. If you have any questions about our industry-specific benchmarking studies or need more info on the relocation process itself, please reach out to us today.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Buy a Home Domestic Relocation Trends Home Purchase

Real Estate Trends: iBuyer Looks to Sell 7,000 Homes

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African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Zillow Is Done Flipping Homes with iBuying Methods

Over the last two years, many U.S. states saw a large surge in their housing market. In some cases, those selling houses, condos, and townhomes were asking more than double what they originally paid. Those prices were met by a frenzy of buyers who were looking to buy anything they could as quickly as possible. In many cases, the typical home resulted in a bidding war. 2021 was a great year to sell a home, and for many investors, it was a great year to flip a home. 

Flipping homes has been a money maker for those who know what they’re doing for a long time now. Buy a property, put some money into repairs or upgrades, then sell the home six months later at a sizable profit. As the real estate market was so fierce this year, some real estate companies started buying up properties just for the sake of selling them. 

However, as markets across the country have shown signs of leveling out, some real estate organizations have been caught with an overstock of inventory. A major name making recent news on this front is Zillow Group Inc.

Better known as simply Zillow, the online home buying and selling site is looking to unload about 7,000 houses after buying too many properties to flip. Zillow is seeking about $2.8 million in total for all 7,000 homes, which are being shown to investors now. If all these houses can be sold, it would put a huge dent in Zillow’s overflow inventory. 

The company also stated that they will try to sell the houses to several different buyers instead of in a single bulk transaction. It is yet to be seen what this challenge could do to Zillow financially, but a report from KeyBanc Capital Markets noted that 650 of the homes for sale showed an asking price of about two-thirds what they were purchased for.

What is an iBuyer?

The premise of iBuying is to purchase low, renovate quickly, and sell for a profit. Zillow, along with competitors Opendoor and Offerpad, leads the real estate market in iBuying. iBuyers work directly with home sellers to offer an instant cash amount for the home with the idea that it removes the stress and hassle of home selling from the homeowner. Additionally, the homeowner no longer needs to deal with the traditional real estate process.

However, while an instant cash offer on your property sounds like a win, it should be noted that the seller does get stuck with some fees that can range up to 7 or 8 percent of the sale price. Additionally, as the iBuyer needs to remain profitable, their instant cash offers may be lower than what an independent sale might raise on the market. On average, iBuyer costs can be higher than the home sale costs from the typical home sale model that many are familiar with, resulting in less money in your pocket once all is said and done.

Housing Inventory Overstocked through iBuying

So how did Zillow get too many homes in their inventory? 

Zillow attempted to obtain as many properties as possible to take advantage of the inventory-starved real estate market that many states have been dealing with. In many of these markets, prices were rising quickly at record-breaking speeds. 

As iBuying can be a very quick home-sale process, Zillow quickly went beyond their limits as many people were more than happy with the cash offers that were being quoted during the high housing market spike. Zillow spokespeople have suggested that it was a faulty algorithmic model used for iBuying homes quickly and selling them even quicker, the reason why the company was so quick to purchase so many properties. 

Today, due to this overstock of properties and a loss of net dollars, Zillow has made multiple announcements that they will no longer partake in iBuying practices. This means no more home flipping for the company. It will take several business quarters for Zillow to fully step out of the iBuying markets. 

However, while an instant cash offer on your property sounds like a win, it should be noted that the seller does get stuck with some fees that can range up to 7 or 8 percent of the sale price. Additionally, as the iBuyer needs to remain profitable, their instant cash offers may be lower than what an independent sale might raise on the market. On average, iBuyer costs can be higher than the home sale costs from the typical home sale model that many are familiar with, resulting in less money in your pocket once all is said and done.

How Does Housing Inventory Affect Relocation?

When moving to a new city, housing market prices and inventory will have an impact on an employee’s ability to purchase a home. Due to the hot housing market, homes are still selling quickly and at industry high prices, causing some relocating employees to be either outbid or outpriced from purchasing a home. This is causing some buyers to spend longer periods of time finding a home that meets their needs and raises concerns about temporary living accommodations during the home finding process.

For those that receive relocation benefits from their employer, the option of short-term temporary/corporate housing can serve as an important stepping stone during the move. Industry best practice shows that providing temporary housing benefits for 30, 60, or 90 days is a critical benefit that allows your transferee to find a more permanent home. 

Global Mobility Solutions team of workforce mobility experts are ready to help analyze your relocation program and assist in the development of competitive policies. Our real estate program and comprehensive home-sale assistance programs provide a balance of excellent service quality and increased selling prices. Our trustworthy network of relocation real estate agents are relocation certified and are skilled in working with employees that are relocating for professional reasons. Contact us today with any questions you may have about real estate trends or relocation services.

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Corporate relocation tips Domestic Relocation Tips Global Relocation Global Relocation Tips Home Purchase Household Goods

How to Relocate During the Rush Moving Season

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Tips for Staying Ahead of Peak Moving Season

The middle of May until about Labor Day weekend marks the peak moving season in America. During these months, moving companies and relocation specialists see substantial increases in those looking to relocate. During this time, thousands of people try to get their families moved into their new homes as quickly as possible. Many factors come into play, but the primary two are summer weather and summer vacation. It’s tough to argue that it’s much easier to move when the weather is great. Additionally, summer break is an ideal time for those moving as a family to get the kids settled into their new home before the new school year kicks off. 

When relocating for work, it is not always up to the transferee when their household goods move can take place. Many employees have a firm “report to work” date that drives their relocation timeline. It could also come down to their relocation policies and the benefits that are provided to them by their employer. 

When it comes to summer moves, it is best to get ahead of the busy moving season. Here are some tips on how to get a headstart.

The Advantages of Planning Ahead

With so many Americans moving within this tight timeframe, there are several advantages to getting a head start on this rushed window: 

  • Less stress: staying ahead of the curve when it comes to moving can help alleviate some of the stress that comes with moving. If everything is planned out, it helps assure that things will go more smoothly.
  • Cost savings: if you can book ahead of time, or move out before the busy season, moving companies are more likely to work out better pricing with both customers and suppliers. 
  • Time: while relocating dates are not always up to the transferee, trying to get a jumpstart on the process can help assure the transferee’s household goods and vehicles can be transported, by the moving company, on dates that work for them. 
  • Flexibility: If dates, costs, or anything else needs to be changed or canceled, having time to do so is key.

What to Do If Moving Dates Are Not Up to the Transferee

Moving for a new job or promotion does not always give the transferee the power of when to plan for a move. Oftentimes, relocators might be forced to ship out during the peak moving season. When this happens there are some options, first off it is highly recommended to work with a relocation services company. Employers who have built out stable relocation policies typically already have these services available and many relocation companies provide moving employees with relocation coaches to aid the move. If the employee does not have access to such services, they should review their company’s relocation policies and offer letters to understand what moving costs may be covered. 

Work with the Best to Avoid Stress

Moving is a stressful process just to go across town, but relocating to a new city and state can be an extremely complicated process, not to mention doing so during moving companies’ busy seasons. Working with an experienced relocation service company can do much more than just getting your household goods from point A to point B, they can assist in real estate needs and other relocation services. Connect with GMS today to discuss how we can help move employees and their families in a safe, timely fashion.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Buy a Home Corporate Relocation Corporate relocation tips Global Mobility Home Purchase Relocation Challenges

The Benefits of a Preferred Relocation Real Estate Agent

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Pros of Using a Preferred Relocation Real Estate Agent

If you have been offered a new position in a different city or state by your current employer, or if you are accepting a new job in a new location, you probably have dozens of questions about the relocation process and how it works. Like most relocating individuals, one of the most prominent questions is most likely the concern about selling your home. 

Many transferees who are getting ready to move (or those still weighing options with an offer) often wonder if they are on their own for selling their house or if the corporate relocation company that their employer is partnering with will do that. Going a level deeper, those moving then wonder if they are in charge of hiring their own real estate agent. 

The answer to that question is simple; you have the power. Many relocation policies offer support when it comes to home selling assistance. If home selling assistance is one of your relocation benefits, then it is an excellent idea to capitalize on that. Now the question becomes, should I use a friend or family member to sell my home or be assigned a specialized relocation real estate agent? While many transferees may want to go with the first option, it might make more sense to allow the relocation specialist to handle the sale. Here’s why. 

Using an Experienced Relocation Real Estate Agent

Many relocation companies urge the relocating employee to select an agent from their vetted real estate network because they can then guarantee that the agent is familiar with relocation policies and will be knowledgeable of the nuances in the relocation process. This will ensure that the transferee is maximizing their benefits by taking advantage of every aspect offered in the home-sale program. Transferees that stick with their company’s established home sale program commonly sell their homes more quickly and arrive at their destination with less stress and are ready to work. 

In leveraging your company’s home sale program, your relocation company’s point of contact can coordinate the entire move process for you – from the relocation appraisal process to the moving of your household goods, and finally the end of the sale of your property. Additionally, relocation real estate companies will recommend multiple agents for you to interview before making a decision, placing you in control.

Real estate agents who are not experienced with the relocation process might not be as active, might not know how to maximize savings and profits, or might not have an understanding of how to properly utilize relocation benefits. If they have little to no understanding of how corporate relocation processes work, this will slow down the sale of your home.

Out-of-Network Fees

In addition to the valuable experience that a vetted relocation-specialized agent can provide, it is better to use a relocation company’s agent because many relocation companies charge sizable out-of-network or referral recovery fees when agents outside of their networks are utilized. In fact, many companies specifically state in their relocation policies that the usage of an authorized agent is mandatory in order to receive your benefits. In this case, you will not be able to benefit from specialized home sale programs designed to help you sell as quickly as possible, for as much as possible.

Get the Most Out Of Relocation Real Estate Benefits

Selling your home is just one of the first of many steps to take for a successful relocation for you and your family. That is why it is important to work with relocation specialists who have the knowledge to get you the best deal possible for your home. If you have any questions about relocation real estate benefits or need to get in touch with a vetted, relocation real estate agent who can guide you through the entire process, please contact us online today. One of our team members will reach out to assist you with all of your questions.

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Buy a Home Global Mobility Home Purchase Relocation Best Practices

What to Do When Corporate Housing Prices Are Too High

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Minimalist designed living room interior scene in the evening

Looking at Short-term Housing Options

Corporate housing, also known as temporary housing, is a common benefit offered in a relocation policy. Corporate housing is a short-term housing option for transferees who might not have an established home available in their new destination. Typically available in 14, 30, 60, or 90-day increments, temporary housing offers a period of transition for those transferring locations. Most temporary housing units come fully furnished, with kitchenettes, and are pet-friendly. 

Corporate housing sounds like a simple concept: the company pays for an employee to stay in accommodations in the short-term, while their long-term living situation is being arranged and finalized. However, what happens if the long-term housing for an employee takes longer than expected? What happens if corporate housing prices are much higher than expected in the new living area? Are employees now on their own when it comes to living solutions?

While the specific answers to these questions will depend upon the relocation policies of the company, many transferees might ask about Airbnb, VRBO, and other short-term rental options. Some companies might be quick to approve that idea and offer reimbursement packages on short-term rentals for transferees. However, there are some downsides to consider for companies allowing their employees these options over covering the expenses for corporate housing. Those temporary housing options don’t offer the same coverage and come with more risk.  Additionally, it could end up costing the company more money in the long run. Here is a breakdown as to why the use of Airbnb and VRBO could potentially backfire on companies relocating their employees. 

Potential Overpayment

When working with a relocation consultant on policies for transferring employees, corporate housing pricing is typically broken down to a per-employee, per-night basis. When third-party solutions are used (like Airbnb), and employees are allowed to seek their own short-term housing options, many companies provide a predetermined amount of support. The amount provided may exceed the level of support actually needed by the employee for suitable accommodations, leading to overpayment by the company. In the end, the company might not be getting as good of a deal as it could be. 

In this scenario, the company could see employees pocketing the difference between their temporary housing allowance and the actual cost of accommodations. If an employee sees in the relocation policy that he or she qualifies for $X amount of benefits, then they can book something cheaper but still claim the entire amount and keep the balance. 

This type of support may also put some employees in tougher spots than others when it comes to finding affordable options. The flat level of support provided may not be enough to cover the cost of reasonable temporary living accommodations.

Conversely, if your relocation program has pre-identified and pre-approved corporate housing units already selected, your costs will become more predictable and you can be confident that you are providing the necessary level of support your transferees need.

Billing Could Become a Nightmare

Companies that allow employees to use their relocation benefits for their own housing could also end up in a billing nightmare. Many companies’ policies are not written to address the unique challenges that come with employees booking their own accommodations through third-party housing providers. Without established limits and a streamlined expense reimbursement policy, an HR or accounting team may need to process numerous third-party vendors who utilize different billing methods. This could also result in the accounting department having to spend more time cutting reimbursement checks to each individual employee. 

The workaround for this pain point is to have transferees utilize corporate housing units approved by the company where a predictable direct billing relationship already exists. Additionally, a more consistently applied program is made possible when the relocation specialists working with your transferees are already familiar with your temporary housing providers.

Risk Considerations and Lack of Quality Control

Companies need their employees to have sufficient housing accommodations while relocating and starting their new positions. Allowing individual employees to book their own third-party housing might expose themselves and your company to unneeded risk. If an employee Airbnb or another company’s rental, there is no guarantee that the living accommodations will be clean, safe, or reparable at any given moment. 

For example, with a corporate housing apartment, if something were to go wrong the company would have an established contract with the corporate housing company that covers items such as repairs. This provides for timely repairs or the replacement of the malfunctioning equipment ASAP. With a third-party rental that is chosen by the employee, there is no way for your company to contractually guarantee timely repairs or replacements. This places more risk on the employee and your organization and is not likely to be covered in the employee’s relocation policy. The last thing a transferee needs is to deal with while relocating for a company is an issue with where they are staying.

Additional examples of risk exposure that may arise through the use of vacation-style rentals include:

  • Property safety inspections
  • Lack of appropriate safety equipment (such as door/window locks and fire extinguishers)
  • No documents safety plans in the event of a fire or natural disaster
  • Challenges around property insurance

Lastly, with third-party rentals, there may be little in the way of an established check-in process. This can lead to complaints related to customer service or quality, as employees might be left scrambling if the check-in process goes awry. If the employee shows up to the rental unit, and the unit is not sufficient, or they are told it is no longer available, it will put the employee in a tough situation where they are left to their own devices.

The workaround for this pain point is to have transferees utilize corporate housing units approved by the company where a predictable direct billing relationship already exists. Additionally, a more consistently applied program is made possible when the relocation specialists working with your transferees are already familiar with your temporary housing providers.

GMS Can Provide Your Employees With Suitable Corporate Housing

Airbnb, and other rental companies like it, are a great option for those looking to take a vacation.  However, for companies that are relocating multiple people a year for business purposes, this might not be the best option. Working with a qualified corporate relocation company, like GMS,  policies can be put into place that will ensure your employees have suitable temporary housing units ready for them when they arrive in their new town or city. Contact us today online if you are ready to start looking at corporate housing solutions for your relocation program or have any questions about temporary housing for your relocating employees.

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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Buy a Home Home Purchase

2020 New Home Sales Rising Faster Than Supply

Woman with dark hair and white shirt, man with dark hair and blue shirt, both looking at blueprints, in front of new construction, as they pursue a plan toward 2020 New Home Sales

2020 new home sales are rising faster than home builders can replenish their supply. Sales of new homes rose to its highest level in over 14 years during the month of August. As a result, there is a very low 3.3 months’ worth of inventory. Generally, the new home sales market is considered “balanced” when there is a six month supply of new homes for sale.

Home buyers can expect to see rising home prices. However, the greatest demand is at price points below $300,000 for first-time home buyers. In hot markets such as Orlando, Florida, new residential construction rose by 22% from August 2019 to August 2020. Across the United States, much of the rising cost is attributable to a severe housing shortage. Builders have not kept pace with demand for several reasons. Many still have fears ever since the 2008 market crash. Also, they may have difficulty in building due to zoning issues or neighbor concerns about parking and density.

Home Builders Facing High Lumber Prices, Other Constraints

  1. Lumber futures reached a record high of $1,000 per 1,000 board feet in September. The commodity has been the top-performing major raw material during 2020, due to high demand from home builders and home owners undertaking do-it-yourself (DIY) home remodeling projects.
  2. Buildable lots have been in low supply, hampering 2020 new home sales. As early as January, 40% of single-family builders reported the supply of lots was low, and 18% reported the supply as very low. Because of the low supply, lot prices have been increasing, and lot sizes have been decreasing.
  3. Construction workers continue to be in short supply. The Home Builders Institute recognizes a shortage of workers. This shortage is due to increasing demand for housing and a low supply of existing homes for sale. Skilled workers are retiring from the home building industry. However, not enough new workers coming into the field to replace those who are retiring.

New Construction Loans for 2020 New Home Sales

Transferees looking for a new construction loan should be aware of how it differs from a traditional mortgage loan. Tim Hofmann, Vice President, Construction Lending Administration Manager at TIAA Bank previously shared that a new construction loan has the following features:

  1. Can be thought of as a specific dollar amount “line of credit”
  2. The length of a new construction loan coincides with the time to build the home, usually around 12 months.
  3. Home builders/borrowers obtain funds by submitting requests for draws to the lender.
  4. New construction loans are not sold off to investors; they remain within the lender’s portfolio.
  5. Each draw request is accompanied by an interest payment at that specific time on what is drawn.
  6. Following completion of the home build, the lender grants a mortgage for the new home.
  7. The new mortgage issued by the lender results in paying off the construction loan balance.

What Does This Mean for 2020 New Home Sales?

Transferees seeking a new construction loan to build a home should first review their current financial arrangements with a qualified lender. Depending on their financial circumstances, transferees with mortgages on their current home may still be able to qualify for a new construction loan. Lending requirements will determine if they can qualify for a new construction loan while still holding their current mortgage debt.

What Should Employers do?

Employers that have transferees who are seeking a new construction loan for their relocation should direct them to speak with qualified lenders and financial advisors for guidance on 2020 new home sales. They should also direct them to speak with an experienced and qualified Realtor® who can assist them in determining where they want to live in the new location.

Employers should also review and benchmark their relocation policy with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations involving new home sales are ideal sources for policy updates and best practice information. They will also understand the reasons why employers should always encourage transferees to buy instead of rent.

There may be some necessary relocation policy enhancements to allow for exceptions that arise from transferees who want to obtain a new construction loan. The 2020 real estate market balance between supply and demand is not equal. As a result, pricing, availability, and speed of real estate transactions may impact the ability of transferees to obtain financing. These same issues may also hinder transferees’ ability to arrange new home sales in their most preferred locations.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for transferees looking to purchase a new home. During the challenging 2020 new home sales market, it is important for employers to provide new hires and transferees with guidance and resources. This will help employers ensure a smooth and successful relocation process.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn how to help transferees maneuver through the 2020 new home sales market, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand new construction loans for relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Buy a Home Domestic Relocation Domestic Relocation Tips Home Purchase

Relocation Mortgage Application: Top 5 Questions for Transferees

Portrait happy family sitting on couch, hugging, unpacking cardboard boxes with belongings in modern living room, looking at camera, happy wife and husband moving into new house, relocation

Many transferees seek to buy a home in their new location, and will need to submit a relocation mortgage application. GMS recommends that companies should encourage transferees to buy a home instead of renting. Transferees who buy a home establish roots in their new community and can settle in more comfortably. Also, if a company offers home purchase benefits, this sends a strong signal of commitment on their part to the transferee.

What is a Relocation Mortgage?

A relocation mortgage is an alternative mortgage product. Transferees may be eligible for benefits that will help them move and purchase a home. In some cases, employers may contribute subsidies to help cover the costs of closing. They may help transferees obtain a lower interest rate on the mortgage by paying an upfront fee, also known as paying for points.

GMS spoke with Anthony Hughes, Relocation Account Manager at Quicken Loans. Anthony agreed to share his advice and guidance for transferees who need to submit a relocation mortgage application.

Top 5 Questions for Transferees Who Plan to Submit a Relocation Mortgage Application

Anthony highlights 5 major questions that transferees must address when they are working with the dedicated team of VIP relocation mortgage bankers at Quicken Loans. Answers to these questions will provide information that is helpful for the mortgage process.

By knowing the transferee’s answers to these questions, it will help ensure the team at Quicken Loans is setting proper expectations for them from the first call through closing. Anthony states that Quicken Loans’ goal is for each transferee’s mortgage experience to be as seamless and stress free as possible during their relocation.

Relocation Mortgage Application Top 5 Questions

Question #1: Employment

  • Are you a new hire? Transferring internally?  Did you get a promotion?
  • What is your start date for your new role, what is your new role, and how much will your new income be?
  • Do you have an offer letter available to provide us?

Question #2: Timeline/Goals/Awareness

  • Have you relocated before?
  • When are you looking to have everything finalized?
  • Do you have a timeline in place?

Question #3: Departure Home versus Destination Home

  • What are your plans with your current home?
  • Do you need to sell your current home to have the funds to qualify for your new mortgage?
  • Do your benefits include a Guaranteed Buyout Option (GBO) or Buyer Value Option (BVO) that will impact your relocation mortgage application?
  • How much are you looking to spend on your new home?
  • Are you familiar with the real estate market in the new area?

Question #4: Assets

  • What assets do you have on hand?
  • What are your account balances?
  • Where are the funds coming from for your new home purchase? Proceeds? Equity advance? Cash on hand? Gift?

Question #5: Credit Report

  • What is included in the credit report?
  • What is your score?
  • Could we utilize dedicated down payment funds in a better way?

Reviewing the Answers on the Relocation Mortgage Application

Anthony shares that once Quicken Loans has reviewed these top 5 questions with a transferee, the team will provide them with details around the Quicken Loans Mortgage First program. This program enables Quicken Loans to fully underwrite the transferee’s loan prior to their first house hunting trip. Quicken Loans’ Mortgage First approval is stronger than just a traditional pre-qualification. As a result, this approval can give transferees the upper hand when making an offer on a new home.

What Does This Mean?

Transferees who want to submit a relocation mortgage application to buy a new home should review their current financial arrangements with a qualified lender. Anthony states that Quicken Loans has several informative guides to help transferees understand the relocation mortgage application process, including a “Do’s and Don’ts of Relocating to a New Home” flyer. Transferees who have a mortgage on their current home may be able to obtain another mortgage for a new home. However, this depends on their specific financial circumstances. Transferees should understand that they must be approved for the total amount of current mortgage debt and their new mortgage loan.

What Should Employers do for Transferees Who Want to Submit a Relocation Mortgage Application?

Employers with transferees looking to buy a new home should direct them to speak with qualified lenders and financial advisors for guidance. They should review their relocation policy to ensure their policy represents industry best practices and provides strong support for their talent acquisition program.

Employers should also work with an experienced and knowledgeable Relocation Management Company (RMC). By engaging the RMC early in the process, employers will be assured of all the important points that relate to the transferee’s ability to buy a new home and arrive to their new location on schedule.

Conclusion

Global Mobility Solutions’ team of domestic relocation experts has helped thousands of our clients understand how to communicate important points relating to how transferees should submit their relocation mortgage application. Our team can help your company understand how to proceed by providing guidance to transferees on obtaining important and timely information from qualified lenders and financial advisors.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to discuss how to provide guidance for a transferee in submitting their relocation mortgage application, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand mortgage loans for transferees. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase United States Economy

2020 Best States for Homeowners

Three bison grazing in front of the Teton Range in Grand Teton National Park, Wyoming, a state that is #1 on the 2020 Best States for Homeowners ranking

What are the 2020 best states for homeowners? While the world may be in the midst of the COVID-19 pandemic, the housing market has been performing at a blistering pace. According to Lawrence Yun, Chief Economist and Senior Vice President, Research at the National Association of Realtors®, the housing market is booming due to record low interest rates, and to current homeowners looking for larger homes with the shift to remote work. Yun also believes this trend will lead to a secondary level of demand into the next year.

Pursuing the American Dream of Homeownership

Homeownership is a consistent goal in the pursuit of the American dream. It is often cited as the number one way that people can build wealth. The United States Census Bureau reports that the median net worth of homeowners is 80 times larger than the net worth of renters. Beyond building wealth, there are several economic reasons why people want to own a home, and several personal reasons.

Economic Reasons for Homeownership

  • Tax benefits let homeowners deduct mortgage interest, property taxes, and some home buying costs
  • Homes appreciate in value over time
  • Mortgage payments help homeowners build equity in a home
  • Equity in a home is a form of savings
  • Fixed-rate mortgage payments do not increase over the years

Personal Reasons for Homeownership

  • Freedom to make changes and upgrades
  • Stability helps reinforce neighborhood relationships
  • Desire for more space
  • Further distance from neighbors
  • Ability to pursue hobbies and interests more easily
  • Avoid dealing with security, pet, and utility deposits

The 2020 Best States for Homeowners

Home buyers will want to know the 2020 best states for homeowners so they can plan accordingly. SmartAsset recently published their sixth annual study on the 2020 best states for homeowners. The financial technology company analyzed several factors that home buyers may consider as they seek to purchase a new home. These factors include ten metrics that cover prices per square foot, costs for insurance, property taxes, closing costs, and other factors.

2020 Best States for Homeowners

  1. Wyoming
  2. Idaho
  3. Indiana
  4. Utah
  5. New Hampshire
  6. Massachusetts
  7. Maine
  8. Arizona
  9. Wisconsin
  10. Washington

Importantly, the study notes that homes appreciated in the five western states by over 5% on an annual basis the past year. Also, the three states in the Northeast rank high for low insurance costs and low burglary rates.

2020 Worst States for Homeowners

  1. Connecticut
  2. Illinois
  3. Texas
  4. Maryland (tie)
  5. Kansas (tie)
  6. California
  7. Louisiana
  8. New Jersey
  9. Delaware
  10. New Mexico

Of the 2020 worst states, metrics such as insurance, home appreciation, and effective property tax rate are comparatively less favorable than similar metrics in the 2020 best states for homeowners.

What Does This Mean?

Home buyers with the flexibility to locate in other markets should be aware of the 2020 best states for homeowners. As housing market demand continues to rise, buyers should work with knowledgeable and experienced real estate agents. Employers with new hires and transferees who are looking to purchase a home one of the 2020 best states for homeowners should work with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations are ideal sources for information relating to local housing market requirements. They will also understand the reasons why employers should encourage transferees to buy instead of rent.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for their new hires and transferees who are looking to buy or sell a home. Our network of top agents market homes following industry best practices. As a result, they will help home buyers and sellers understand how to find and purchase homes in the 2020 best states for homeowners.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn more about the 2020 best states for homeowners, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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