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

man smiling while moving boxes into his new home
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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5 Terms to Include in a Competitive Relocation Package

family enjoying pizza in their new home with moving boxes around
a young family move into their new home and have pizza for their first meal

Make your relocation offer competitive by including these policies

Every year millions of people move for new jobs. Relocating for your professional career is familiar, but the relocation industry has changed since the Covid-19 pandemic. When it comes to offering relocation packages to employees willing to move for a new position, studies show that employees are more reluctant to move if there is a higher cost of living in their new destination. 

Another factor for employees not wanting to relocate is the start date. Companies often ask employees to be in their new seats within 30 days of signing the offer letter. So, what can companies do to work around these distresses? 

Companies who are asking talent to relocate for a position should look into offering employee relocation packages. These packages help offset the stress of moving by providing financial assistance and corporate housing so that the employee can relocate as seamlessly as possible. 

While every company has different opinions on what should and should not be covered regarding talent mobility, a few basic policies should be included in every relocation package. Here are five terms to make your company’s relocation package appealing to applicants so that they cannot refuse your offer:

1) Real Estate Programs or Lease-Break Assistance

A survey by Worldwide ERC showed that selling a home for less than it is worth is the most expensive part of relocating. When time is limited, employees are often forced to accept a lower sale price or pay a financial penalty for ending a lease. Often, employees are scared they will get stuck paying two mortgages or rent payments for multiple months, which could hurt them financially. 

If companies want a shot at landing top talent for an open position, they will include financial aid coverage for breaking a lease. If the employee can get out of their current rental at little or low cost to them, they are more likely to accept your relocation offer. 

For applicants who are homeowners, offering home sale assistance and home-buying assistance programs in the relocation package would be a massive perk for them. Standard relocation real estate programs include BOV, GPO, or Direct Reimbursement. Each of these programs has different pros and cons. But every moving employee will have different needs, so options can make any offer even more appealing.

2) Moving Expenses

This one may seem too easy to list, but it is essential. Very few people save thousands of dollars regularly if they may have to move unexpectedly. So, if an employee is mulling over your offer, the price of moving may be daunting in the back of their mind. But if your company were to cover or assist in the moving expenses, it could quickly put those thoughts to the rest of the employees. 

There are numerous ways to assist an employee with relocation costs. Most companies go the route of reimbursement programs, but there are packages where the company will handle everything on behalf of the employee so that they do not have to worry about it. Again, each different kind of program will have its pros and cons. 

It’s worth noting that no matter which method your company chooses to use for handling relocation expenses, some relocation technology can help keep spending within a budget.

3) Transportation Costs

Moving can be costly, by car or plane. Visiting the new spot before relocating is necessary to find housing and get to know the area. Relocation packages typically include reimbursements for two or three trips. This can also be a chance for the transferring employee to search potential neighborhoods and schools for their family.

4) Tax Implications

Relocating employees can face an unanticipated problem with taxes concerning relocation benefits. An employer may give a ‘relocation lump sum’ to cover relocation expenses, which is taxed as extra income at the employee’s ordinary tax rate.

Employees with a 25% tax rate will be taxed $2,500 on a $10,000 lump sum. This can be a financial strain, so many companies increase the lump sum to cover taxes.

5) Miscellaneous Expenses

One last suggestion to make a solid offer to a potential candidate is to have a miscellaneous expenses policy in your relocation package. Employees may incur costs when relocating. Ask them what expenses they anticipate and offer assistance to cover them, such as vacation days, spousal income loss, and packing services.

GMS Specializes In All of These Terms and Conditions

Look no further if your company needs help updating or creating employee relocation packages. Global Mobility Solutions (GMS) has been helping companies with their relocation services needs since 1987. Our expert team will listen to your wants and needs, then assist you in putting together the best relocation policies to make all your offers to new employees appealing for them to accept a relocation assignment. We specialize in helping companies provide their employees with the terms mentioned above. 

Reach out to us today to set up a free consultation. Within 24 hours, one of our business development managers will be in touch to get you started on setting up the most competitive relocation package in your industry.

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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Cost-Effective Strategies for Managing Employee Relocations

young couple in their new home playing with dogs, while unpacking
Young Asian couple or family feeling happy relaxing and play with their cat after moving to new house or apartment.

use these tips to keep relocation costs within budget

It’s no secret that relocating an employee is a costly endeavor. Creating global teams for your business can be highly beneficial. However, you might lose money on the project if you fail to play your cards right. It’s easy to feel overwhelmed with all the expenses you encounter during this process. There is so much to account for when managing employee relocations. Just a few of these things would be: 

  • Moving company expenses
  • Benefits packages
  • Acquiring accommodation
  • International transport (when applicable)
  • HR department bonuses

And the list goes on. However, it’s not all bad news. If you work strategically, you can save on relocation costs while keeping your employees happy when getting them from point A to point B.

Create tiered packages for employee relocations

The first strategy you can use to stay on budget when relocating an employee is creating tiered relocation packages. This means that the benefits package for an entry-level employee who has been with the company for three months should differ from that of an executive. This is a widespread and very effective strategy. Many employers have three or even four relocation benefit packages. You can create additional layers to those categories based on employee productivity.

Secure housing before the move

There are a lot of hidden expenses that come with moving on a whim, from renting out storage for your employee’s items to an indefinite time spent in short-term accommodation. And since using a storage unit isn’t tax deductible for businesses anymore, it’s even more expensive. Securing housing for your employee before moving is an excellent way of managing employee relocations while saving money.

Additionally, one of the most common reasons employees won’t relocate for work is that the move seems too hassle. So, securing everything in advance will not just help you save money; it’ll also help with employee satisfaction.

Introduce expense caps

Introducing expense caps is a great way to ensure your relocation program stays on budget. Expense caps are a great way to ensure no employee abuses their allowance. It’ll prevent surprise expenses from becoming the norm within your relocation program. 

When introducing expense caps, there are two essential factors to keep in mind: 

  1. Permissible exceptions – You should have some leeway in your budget if something goes wrong during your employee’s relocation. If they need to make an unplanned expense that is deemed necessary, you should be able to provide that;
  2. Expense caps should be personalized – It’s important to remember that living expenses differ in different areas. Ensure that your expense caps are calculated with the average cost of living in the area in mind.

Managing employee relocations is not ‘one-size-fits-all’

While offering every employee the same budget, guidelines, and services when managing their relocations may seem much more straightforward at first glance, you’ll quickly realize that it’s not. For example, a young single employee will require very different services than an older married employee with two kids. 

It’s essential to account for the individual needs of every employee you are relocating. Don’t worry if some mistakes come up the first few times. After a while, you’ll learn which services and guidelines are necessary for which group of employees. Ensuring that benefits packages and relocation services are tailored to the needs of your employees will help you save in two main ways: 

  1. You’ll be able to cut out any expenses that aren’t necessary for that worker; 
  2. You won’t be cutting out vital things to your employee. This will help keep morale (and productivity) up.

Other Relocation Costs to Keep in Mind

Conversely, a great option is to secure a fully furnished new home for them. That way, they only need to bring essentials and valuable personal possessions. Some other ways to cut costs on a long-distance move would be: 

  1. Choosing the suitable date – Moving during the off-season (winter and fall) can usually get you lower prices; 
  2. Shopping around – Getting estimates from a few moving companies is a great way to ensure you’re getting the most bang for your buck; 
  3. Compound expenses – If you plan on hiring professional packers in addition to movers, try finding a company that offers both. That way, you can get a deal on both services instead of paying the total price for each.

Ready for the best deal on relocation services?

Global Mobility Solutions (GMS) is your best bet to get a proper quote when it comes to relocation services. First off, all of our service providers are strictly vetted. And second off, we use a multi-bid approach when it comes to hiring vendors for each move. 

Most relocation services companies (RMC) will have a trusted partner vendor they use most of the time. Which is why their prices stay set at what they are. But GMS will get multiple bids from different vendors so that our savings on relocation costs get passed on to you. 

If you’re ready to hear more about how GMS can help save your company money on relocation costs, contact us today to schedule a free consultation.

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Many Ocean Shipping Lines Are Moving to Aircraft

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Airplane flying above container port.

Many household goods shipping companies are investing in air travel

As shippers look for more efficient ways to ship household goods worldwide, ocean freight companies are increasingly turning to air cargo. Although airfreight represents only a tiny section of the broader cargo industry, the pandemic has caused it to become more prominent due to supply chains, travel bans, and consumer spending issues.

 

Air travel has become increasingly important for companies engaged in maritime trade due to the recent pandemic. With more people shopping online, household goods shipping companies are struggling to keep up with demand. This has caused ships to be idly anchored at congested ports, unable to dock for weeks at a time. Further complicating matters is a shortage of workers assigned to load and unload vessels. Containers that could be used to hold exports are instead sitting unused, while exporters with plenty of goods to ship need help to get containers.

 

 

The three dominant European container shipping companies (AP Moeller-Maersk, CMA CGM Group, and Mediterranean Shipping Co.) have primarily avoided airfreight, feeling that it is an expensive distraction from their core businesses of operating giant vessels, container terminals, and related logistics operations around the world. However, executives claim that many customers are now opting for air shipping because it is more cost-effective and reliable. Maersk, the world’s largest container shipping company, began an air cargo division in April last year and now has a fleet of 15 planes.

 

Ocean Freighters Turning to Buy Air Planes

Boeing and Airbus are now part of this equation as they started selling freighter versions of their newer widebody planes. These freighters are more fuel-efficient than older cargo jets. And to show the rising demand for converting old passenger planes into freighters, it should be noted that some have been booked up for years.

 

In recent reports, Maersk is anticipating free cash flow to be about $19 billion by the end of 2022. The company plans to obtain seven Boeing 767s (purchase three and lease four) by the new year. The idea would be to have aircraft fly routes between Asia, the United States, and Europe. 

 

Last year, Maersk moved into the air cargo game and increased volume by 100% after purchasing German air freight company, Senator International. In addition, Maersk has been buying airplanes for its air cargo division, which was formerly called Star Air. The division, contracted by United Parcel Service Inc. and Germany’s DHL to fly freight, now operates with 15 Boeing-made 767 freighters.

 

Also, earlier this year, CMA CGM, the world’s third-biggest ocean shipper, agreed to share cargo space with Air France-KLM. And on top of that, CMA CGM said it would buy a 9% stake in the airline.

 

Numbers released by the International Air Transport Association (IATA), last year, the airfreight industry grew over 21%. This means that revenue will increase to $289 billion in 2022, up from $238 billion last year.

 

Boeing reported that about 400 freight planes had been added to the world fleet in the past three years. This is an eye-opening 20% rise. Boeing is now estimating that the global freighter fleet will increase to about 3,600 by 2040. To put that number in perspective, it is currently around 2,000.

How Increased Airfreight Will Affect Global Mobility & Relocation Industry

In the past, airfreight for relocations was too expensive, and many relocation companies didn’t even consider it an option. However, the lowering costs and the congestion of ports have now made a more realistic answer for many.

 

As airfreight rates become more affordable, international relocation companies can choose to ship household goods by air. With more employers turning to lump sum packages for relocations and ocean shipping delays being a common factor, transferees are leaving more of their belongings behind when they move abroad for a work assignment. The fewer belongings the employee brings means the quicker they can move, meaning the more likely they are to choose airfreight for their next relocation. Although the airfreight method is still quite costly, it eliminates many relocation delays, significantly improving the transferee’s experience.

 

Global Mobility Solutions (GMS) is the industry leader in Global Mobility, which is why we stay on top of all topics regarding relocation. Visit our Knowledge Base to learn more about hot topics in the relocation industry. And feel free to reach out to us with any questions regarding the household goods shipment.

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Answers to Housing Market Questions Heading into 2023

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Family in front of their house

As we near 2023, here are some hot topics regarding the real estate market

Over the last three years, many real estate markets saw record-high home prices. As the interest rates continue to rise, there are many questions regarding the housing markets across the country heading into 2023. Many buyers and sellers wonder if these high prices will stay consistent or continue to increase. 

 

Here we cover some questions that many have about the future of the real estate market and how it may affect relocation programs next year:

What Caused Home Prices to Rise So Much in the Last Two Years?

The short answer is high demand and low supply. According to the Federal Housing Finance Agency (FHFA) Home Price Index, the national average on home prices went up 15% in 2021 and 9% in 2020. Historically prices have only grown about 5% each year until then. 

 

Because of the historically high demand, the Federal Reserve drove down mortgage rates and borrowing costs to record lows to better support economic activity. The thought was to make monthly payments on expensive homes more manageable. But while that was happening, the number of homes for sale declined as many people were waiting out the Covid-19 pandemic and its effects on the market.

What Will Happen with Home Prices in 2023?

With a rise in mortgage rates, we have seen new and existing home sales slow down considerably. According to the National Association of Realtors, existing home sales were down almost 20% when compared year over year. At the same time, median home prices sold somehow went up 7.7%.

Demand may have slowed in most major markets, but the number of homes for sale continues to be at historic lows. Experts predict that the national average home prices could continue to rise, but if so, it will be much slower than in the past two years. For 2023, the Mortgage Bankers Association (MBA) and Fannie Mae predict existing home price growth of 3.1% and 3.2%, respectively.     

 

In summary, potential buyers might not have to deal with as much competition, but property appraisals are likely to remain high.

Will there be a housing market crash similar to 2007–08?

Experts will say that they do not see the market conditions as a “housing bubble” compared to 2007-2008. During the period leading up to that bubble burst, too many mortgage companies were greenlighting buyers who did not have financial positions to manage monthly payments. Back then, many home loans were made with no money down on the property, so the buyers did not even have equity in the property. 

 

As the home prices eventually declined significantly, this made it easier for the new homeowner to walk away from the house, which created the crash. But today, mortgage qualifiers have much stronger credit profiles and equity in their properties. According to the New York Federal Reserve, most home loans made over the last two years have gone to those with high credit scores of 760+ rather than the low scores of the Housing Bubble period. 

In addition, the housing market in 2007 had a surplus of homes for purchase in the decade before the COVID-19 pandemic, but new home construction did not keep up with the demands of a growing population.

With the price increases, is housing affordability an issue for the U.S. economy?

The high cost of housing and increasing mortgage rates make it difficult for more people to afford a home. This has been a problem in the economy for several years, with the lack of affordable housing being an issue since the Great Recession. As the supply of homes becomes tighter, builders are incentivized to construct larger homes with more significant profit margins. With an increase in the availability of these higher-priced segments, builders have slowly begun moving down the price-point scale.

GMS Is Always In the Know On the Housing MarkeT

Global Mobility Solutions (GMS) always stays up to date on the real estate market in almost every need within the US, and most international market trends. Our dedicated real estate team works with the best relocation real estate agents and mortgage brokers to assure excellent service and outstanding home sale and buying assistance programs. 

 

On top of that, our corporate housing providers are all thoroughly vetted before being passed on to clients. At GMS, we understand that the up and down housing market can be a big reason why an employee might decline a relocation assignment, which is why we do everything in our power to get them from point A to point B without going into financial distress over their home sale or home buying portion of the relocation process. 

For more information on our real estate case studies or other industry trends regarding global mobility programs, feel free to reach out to us today for a free consultation. Our award-winning relocation team is ready to answer any questions you may have.

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How to Prepare International Transferees for U.S. Home Purchase

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Home consultation

Here are some tips for international employees to use when looking to buy a home in the U.S.

Moving to a new country for a new job can be a lot of work. Preparing the family for the move, finding a place to live, ensuring all visa documents are accounted for, etc. There is a lot that goes into international relocation. As many people know, purchasing a home is one of the lengthiest parts of the relocation process. The home-buying process can be extended, and those not used to real estate regulations in the US will find it even more confusing. 

For those relocating to the US for a job on an H1-B visa or even those looking to buy a home to live in a while on a long-term international assignment, the standard process for buying a home in the US differs significantly from most countries in Asia or Europe. 

The first and most crucial step when preparing to move overseas is to review your international relocation package provided by your employer carefully. See what relocation benefits your new company offers, then ask how to utilize each. Many international relocation service providers will help companies create unique benefits for each transferee. And in most cases, relocation benefits include home-buying programs that can help in a significant way, both process-wise and financially. 

With that said, here are a few things to keep in mind when purchasing a home if you are relocating to the U.S. for work: 

Visa & Immigration Documents Needed to Buy a Home in the U.S.

Working with a full-service relocation management provider can help immensely with visa and immigration documentation. They can help you file for the proper visa, in turn, they can also help you with which immigration documents you will need to apply for mortgage approval when buying a home in the U.S. Each mortgage lender will have different requirements when filling out applications, but among the most common documents needs are: 

  • Valid foreign passport
  • U.S. visa and/or a driver’s license
  • Social security number or ITIN
  • Bank statements 
  • Financial documentation from your foreign bank
  • Evidence of reserves
  • Paycheck stubs
  • Tax return for the last two or three years

Can International Transferees Buy a Property without a US Credit Score?

Yes. International buyers are eligible for loans from U.S. mortgage providers even if they do not have a U.S. credit history. In some cases, lenders even offer special programs for immigrants and non-resident buyers with no credit to get a competitive rate still. And some relocation management companies work with lenders to set up specialized programs for H1-B and L-1 visa holders.

Next Steps After Mortgage Approval

Once the international transferee has been approved for a mortgage from a U.S. brokerage, they know their realistic budget. From there, they should work with a real estate agent specializing in relocation home purchases. These relocation preferred real estate agents will know how to handle the transaction regarding closing date, move-in date, days to close, and other aspects that might vary from an international move. 

Once a real estate agent is chosen, the transferee and agent can start working together on finding their dream home in the new destination. It’s worth checking your relocation package to see if your new company includes any house-hunting trips. These trips are usually a few days so that you can view homes with your real estate agent. It also serves as a time to check on international schools if relocating with children. 

Once a budget and area are set, then comes time to start putting offers on houses that are appealing. Your real estate agent will help you arrange a competitive bid on a property, then assist in negotiating with the seller for a final price. Remember that relocation packages will often include home-buying programs that can help with closing costs and commissions.

After the Offer is Accepted

If your offer is accepted and the home inspection goes well, you are ready to start your relocation process. The typical closing window for a home sale in the U.S. is about 30-45 days. Once all your visa and immigration paperwork is filed and accepted, you can work with your relocation service provider to begin scheduling movers to assist with getting your household goods to the new destination. A reputable global mobility provider will provide a relocation coach who can help you every step of the way through the moving process.

Keep Taxes Top of Mind

The home buying process in the U.S. might present a different variety of taxes compared to what you are used to in your country. A few tax regulations to keep in mind when closing on a home include Capital Gains Tax, Withholding Tax, and State Property Tax.

 Be sure to stay in the loop on all taxes due by asking your mortgage lender and real estate agent. If you are assigned a relocation expert to assist you in moving, they should have some insight into what taxes should be paid. They also might know of some tax breaks that can help you from buying a home.

GMS Can Help International Transferees Relocate

Global Mobility Solutions (GMS) specializes in helping corporations worldwide relocate their employees internationally. We help companies create competitive international relocation packages that attract top talent for open positions. From there, we assign a relocation coach to each transferee. 

This gives a single point of contact to each employee relocating. This relocation expert will help the employee handle all aspects of the relocation process, including getting them in touch with a relocation real estate agent. 

GMS only works with the top real estate agents across the U.S., and we ensure that all agents specialize in working with relocating families. Our expert relocation team also specializes in visa and immigration applications.  If you are ready to hear more about how GMS can help you with your global mobility needs, please reach out today to set up a free consultation.

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Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

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What Is an iBuyer?

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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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
Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges Visas and International Travel

Immigration Options for Remote Work Policies

woman filling out visa and immigration paperwork
Close-up of person carry information from passport to usa visa application form. Man planning to move abroad. International and legal immigration concept

Companies can still be held responsible for immigration rules on remote employees

There’s no doubt that the Covid-19 pandemic changed the remote work options for millions, maybe even billions, of employees worldwide. Companies sending their employees to work from home worked out well in numerous industries for organizations and employees alike. Employees like the flexible work schedules that remote work policies offer, while companies were initially surprised but overall pleased with their productivity. 

 

There’s still some debate about whether companies should remain in full-time remote work settings or urge employees to return to the office. While many organizations decided against a full-time office return, some factors should be weighed in. Again, there is no denying that offering remote work flexibility helps hire and retain top talent, but from the company’s standpoint, they need to make sure all of their bases are covered. 

 

Are companies responsible for immigration regulations if their employees live in a different country than the headquarters? For example, does it make a difference if the employee relocates independently or is asked to do so for a global assignment? 

 

Companies should arm themselves with visa and immigration knowledge when creating remote work options for their workforce. Here are some immigration matters to keep in mind as employees turn to the digital nomad lifestyle: 

Employees with H-1B Visa

Employees with H-1B status can only work at the specific locations listed on their Form I-129 petition or Labor Condition Application. However, they can also work remotely if their home is within a reasonable commuting radius from their employer’s office (if their home is outside of the MSA listed on the LCA or not within a reasonable commuting distance, then an amended H-1B Petition would need to be filed by the employer to allow for this working arrangement). If working remotely full-time or in a hybrid arrangement, they will be asked to post a Notice of LCA at two locations in their new home for up to ten days. The employer can then update what is known as a Public Access File with records of the posted LCA, including the new location and the dates for the work assignment. 

 

In the meantime, H-1B employees traveling as digital nomads face various immigration issues due to the location-specific requirements of the visa type. It’s also important to point out that remote employees’ H-1B site visits still happen. So, those employees who work in a remote environment may be able to attend a site visit at their house.

Employees with E and L Visa Status

Entrepreneurs and investors who want to start a business in the United States or transfer multinationals from other countries around the world to a U.S. location often use E-2 visas, which must be issued according to bilateral treaties. In addition, the E-2 visa applicant must have the same nationality as the company’s ultimate owner.

 

The L-1 visa requires foreign and U.S. companies to share a joint ownership group. The foreign company must have also hired the employee in a managerial, executive, or specialized position for at least one year out of the immediately prior three years. The employee also must arrive in the U.S. to take on a similar managerial position. 

 

USCIS and other governmental agencies usually require evidence of a permanent, physical office address when evaluating E-2 or L-1 petitions. However, this may challenge companies/employers who do not have a physical location or address. In addition, USCIS also requires a physical mailing address for most forms, which could be troublesome for U.S. companies composed of digital nomads. 

GMS Has Visa and Immigration Specialists Standing By

When companies put together remote work policies, it is essential to have visa and immigration specialist assistance. Organizations do not want to expose themselves to fines, additional taxes, or other compensation obligations because of a lapse in immigration paperwork. Working with Global Mobility Solutions (GMS) can assure companies that their visa needs are up to date. Our team has over 30 years of experience in helping companies put together relocation packages emphasizing immigration regulations. 


Set up a free visa assessment consultation with one of our experts to ensure that your company is covered on all fronts when moving employees worldwide. And for other help on visa and immigration topics, check out our Knowledge Base.

We're Here to Help! Request a Courtesy Visa Program Consultation

Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

Categories
Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Best Practices

Best Education Options for Expat Families

kindergarten teacher welcoming new international student
Rear view of a friendly female kindergarten student on his first day of school.

Taking a look at schooling options for international transplants

When an employee accepts an international assignment or position, they have to think about how their family will adapt to the new destination. One of the most stressful situations for a family moving overseas is the thought of school for the kids. Moving is hard enough on children, then add on learning a foreign language, and they are probably scared about making friends, fitting in, etc. 

First and foremost, relocating families should do everything to get their children proper language training classes. It would be worth checking the relocation package as language classes can often be included. While looking into the relocation benefits, it is common for companies to provide family and spousal support programs. There could be good programs in the program to help family members adjust. After the move, the kids can start school. 

Expat families heading to a foreign country will have plenty of questions regarding everyday life. However, one of the main questions that should be brought into the conversation should be, “what are the best education options for my children in our new country?” 

Every family has different expectations and opinions on their children’s education needs. But it should be noted that there are a few options for education overseas. Of course, each option will have pros and cons, but doing what is best for each child is essential. 

Option 1: Online Schooling from Home Country

Today’s technology offers numerous options for students to complete and submit assignments from anywhere. Since the Covid-19 pandemic, many families have turned to virtual learning as their primary education situation. However, there are pros to allowing children to do online school while living aboard. 

First off, kids won’t have to be pushed into the deep end when learning a new language. If they are doing online school from their native country, they can do their assignments in their language while learning their new language at their own pace. This may help children feel more comfortable. It’s also possible that kids can keep in touch with classmates and teachers they like, helping ease the stress of a long-distance move. 

The major con with this option is that it might take longer for kids to make friends and find activities to do in the new destination. In addition, online classes will require kids to be on the computer for most of the day, which means they might not have as much interaction with children their age. An excellent alternative to the cons of this option could be to enroll kids in local sports programs and other after-school activities. 

It’s worth mentioning that homeschooling is always an option. The pros and cons are similar to online school, but with more added pressure and work for the parent(s) in charge of the kids’ schooling. 

Option 2: Public School

If the children of the expat family already have a foundation in the new language, then the public school could be a great choice. In theory, attending a local school would make it easier for the kids to meet new friends and learn about fun, local activities. In addition, it would be a reasonable assumption that most local schools also have their language training classes to help the expat children understand more of the new language. 

The apparent con with this option comes up if the relocating children minimally speak the local language. This can make it difficult for the new students to keep up in class and make friends. Not to mention adds an enormous amount of stress and public anxiety being in a school where it’s hard to understand teachers and other students.

Option 3: Enroll in a Private International School

It’s safe to say that the online school route is probably the most used by expat families for education options. But before the Covid-19 pandemic made online classes a new commonality, many international relocators used private schools for their children. In many cases, expat families would seek out private schools that offer classes in their native language. 

This option provides relocating students with familiarity as they can still interact in their own language. The good thing about this option is that in many of these schools, they do teach the curriculum in the destination’s language so that children still learn their new language at a great pace. It’s an obvious point out, but this option is probably going to be the most expensive.

How GMS Can Help Expat Families with Children

Global Mobility Solutions (GMS) is the industry leader in relocation services. Our experienced team has been helping expat families with international relocation since 1987. Some of the pre-decision services we provide include Virtual Destination Spotlights. These spotlights are customized packets about the new location including general information, expatriate housing, schooling, and education info, cultural awareness, visa and immigration information, and more.

GMS offers another destination service in the coaching stage: detailed school reports. These reports show detailed information on educational options at the transferee’s new destination, including a “report card” on the school’s rating/performance. Here at GMS, we understand that an international move can be a trying task for the whole family which is why we do our best to make the relocation process as seamless as possible. 

We're Here to Help! Request a Courtesy Visa Program Consultation

Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

Categories
Choosing a Relocation Company Corporate Relocation Domestic Relocation Domestic Relocation Challenges Relocation Best Practices Relocation Challenges Relocation Programs Talent Mobility

Why Relocation Services Should Include Spousal & Partner Support

Happy couple carrying cardboard box
Happy couple carrying cardboard box and pot plant in new house

The Importance of Providing Spouse & Family Support for a Successful Relocation Process

Relocating for a job can bring many new opportunities to one’s professional career. But moving to a new destination for a job can also mean uprooting a partner, or even an entire family. When a candidate accepts a new position and agrees to move for the job, many negotiate to get relocation costs covered by the new company. Companies that are regularly involved in the talent mobility process work with relocation management companies (RMC) to construct relocation packages that are enticing and helpful to employees. 

But do these relocation benefits ever include any support for the transferee’s spouse or family? Any modern RMC representative would highly recommend including partner/spousal support and family support offerings to recently hired employees. There are many reasons companies should be happy to help ease the transition for their new employees’ families. For example, if the employee knows their family will have an easier time moving, they are more likely to accept the position. Finding the right candidate quickly cuts down on the time of the job search. Also, knowing their family will be taken care of during the relocation process because of special relocation benefits, the employee can have their mind on their work. 

There is no one size fits all relocation package. Each talent mobility assignment is different and should be treated as so. With that being said, there are numerous relocation services that RMCs can provide to moving employees’ spouses and other family members. Let’s look at some of the more common programs worked into the relocation process.

Area Orientation Trips

Orientation trips are a relocation benefit that tends to get overlooked. Many RMCs would recommend that companies cover at least one or two (if not more) orientation trips for the employee and their partner/spouse. The main reason to add this into a relocation package for the employee to utilize it as a house-hunting trip. Including this service helps the employee and their family get somewhat familiar with the lay of the land for their new destination. These trips can also be used to check out different schools and activities for those relocating with children. Taking a tour of a local school might help the family decide which neighborhood they might want to settle in. If the transferee’s kids play sports or participate in other after-school activities, then take advantage of the trips to meet and greet with coaches and directors so that they are not starting from square one once arriving in the new city. Area orientation trips can give kids and spouses a new, exciting spin on the move if a dream house is discovered while house hunting.

Spousal Career Services

Another perk that should be included in relocation packages is career services for the moving employee’s spouse or partner. It’s not unusual for a domestic partnership to make up a dual-career household; this means if the family is moving for one person’s job, there is a chance the other will have to quit or alter their career. But there are ways that companies can work with RMCs to include spousal career services in their talent mobility benefits. These programs can offer comprehensive career assistance along the lines of: 

  • Quick Start Job Search Preparation (marketing tools, job search assistance manual)
  • Job Search Assistance (market information, access to searchable data)
  • Personal Branding (online profiles, personal website, blog, video)
  • Partnering Services (online courses for job search execution)
  • Resume Writing Services (resumes, cover letters, LinkedIn profile)

Spouses who are moving with their partner can use this time to their advantage. Some people hold off on a career change, but right after a relocation could be a perfect time. If the moving spouse has to resign from their current position anyway, then it could be a new beginning they need to switch industries or positions, maybe even start their own business. In very lucrative relocation offerings, there may even be grants and financial support benefits for the employee’s spouse to get special training for a new job. And sometimes, some RMCs might even work in entrepreneurial opportunities for relocating partners.

Language Training

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

GMS Offers Relocation Services with Spousal Support

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

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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