Tag: Domestic Real Estate

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Buy a Home Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Home Purchase

Virtual Agent Services: Helping Home Buyers and Sellers During COVID-19

Mature realtor holding open house" sign in front yard.

Home buyers and sellers can use a variety of virtual agent services during the current COVID-19 pandemic, if they find the right agent. A few select real estate agents offer a full suite of services to clients that are flexible and effective, meeting the demands of today’s real estate market. These virtual agent services are ideally suited to help ensure proper social distancing and other requirements necessary to protect buyers and sellers from exposure to COVID-19.

What are Virtual Agent Services?

GMS spoke with Erik R. Brown of Compass, Realtor®, TV host, speaker, and author of “One in a Million: Everything You Need to Know to Find the Best Realtor®.” Erik agreed to share his industry knowledge and market expertise on virtual agent services.

Erik notes that buyers are still buying, and homes are still selling, even during COVID-19. Many clients who were in the process of buying and selling prior to the pandemic have turned to virtual agent services. Many of these services had been in place prior to the precautions, often as part of a broader suite of exclusive marketing services. Additionally, newer tools have been created that leverage proven technology already in use in the real estate industry.

Ensuring Health and Safety with Virtual Agent Services

The health and safety of clients and communities is always a priority for the real estate industry. Erik states that these virtual agent services allow him to continue to provide the best-in-industry service that his clients deserve. Most services can be provided through digital, mobile, and social media platforms, enhancing their reach and visibility.

Virtual Agent Services for Buyers

  1. Virtual Neighborhood Walks let buyers explore new neighborhoods and communities, and help them see nearby local features such as parks, schools, and shopping centers
  1. Interactive Video Showings where a real estate agent will take buyers on a virtual journey through a home, noting specific features to enhance desirability and highlight items of interest to buyers
  1. Video Mail (V-mail) provides video directly to interested buyers so they have an immediate experience and memory of their first interaction with the home
  1. Live Virtual Buyer Events helps buyers see homes as they are used for cooking demonstration, game nights, or social events that bring life to the home and highlight unique features

Virtual Agent Services for Sellers

  1. Virtual Open Houses let sellers share their home with a targeted audience while showcasing key features to interested buyers across multiple platforms
  1. Dynamic Digital Listing Brochures helps highlight the most desirable features of a home in an immersive experience to help buyers see virtually everything of interest
  1. Digital Ads for Facebook & Instagram promote the home to a highly targeted audience with expertly designed ads optimized for the highest performance on the social media platform
  1. Real-time Digital Ad Insights capture ad campaign results quickly and easily, and let real estate agents act swiftly to market and sell the home
  1. Enhanced 3D Staging provides an upscale and sophisticated visual experience that increases appeal with high-end design and state-of-the-art visual staging technology

What Does This Mean?

As Erik notes, virtual agent services leverage proven technology to help home buyers and home sellers remain safe and protect their health during the current COVID-19 pandemic. These services also enable real estate agents to provide clients with best-in-industry solutions, valuable information, and superior results.

Conclusion

GMS’ team of global 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 team can help your company understand how to leverage virtual agent services during the current COVID-19 pandemic. This will help employees to conduct successful real estate transactions while focusing on the health and safety of everyone.

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.

Contact our experts online to learn more about virtual agent services, 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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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Home Purchase Household Goods Relocation Best Practices Relocation Challenges Relocation Management Talent Mobility

Summer Move on Tap? Start Planning Now

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

Many relocating employees choose a summer move over any other time of the year. However, several factors make this time of the year the busiest for relocation. As a result, the household goods (HHG) moving industry is often running at nearly full capacity to meet demanding schedules.

The current COVID-19 pandemic presents a significant number of additional considerations. However, transferees who plan ahead and learn basic guidelines for safe HHG moves can expect a smooth summer move.

Factors That Result in Preferences for a Summer Move

1. School Breaks

Families with children prefer to stay in place during the school year. The vast majority of school years follow certain patterns, with holiday or seasonal breaks. The months of June, July, and August are traditionally times when schools are not in session. This includes colleges as well, where students are often on the move back home once they have taken their last final exam. By planning a summer move, schoolwork is less likely to face any disruptions.

2. Weather Patterns

In much of the United States, the months of May through September offer warm temperatures, grounds covered with grass, and a number of bright sunny days. In comparison, other months offer less than ideal weather conditions. Snow and ice make travel difficult, streets and sidewalks may be muddy, and days may be gray with sleet and snow showers.

3. Common Beliefs and Practices

Many home buyers and sellers believe the best seasons for real estate transactions are spring and summer. Although other seasons offer a number of benefits, a summer move is often the result of a busy spring and summer home buying and selling season.

How to Plan Ahead for Your Summer Move

Companies that are planning to relocate employees should be aware of several important points that can make for a smooth and easy summer move. Communication is important to ensure that every relocating employee has a good experience. Employees who have a good experience in their relocation process will arrive at the destination ready to start their new job.

Top 4 Points to Ensure a Smooth Summer Move

1. Engage your Relocation Management Company (RMC) as Early as Possible

Employers looking to arrange an employee transfer or a new hire that will be relocating, early notification to the RMC is best. A best practice is to integrate all of the company’s pre-decision services directly with the RMC. This will help ensure the RMC has visibility for any upcoming summer move, and initial planning can quickly proceed.

2. Leverage Multiple Bids to Obtain the Lowest Costs

With HHG moving demand at its peak, RMCs should provide multiple bids for a summer move. However, this requires companies to provide enough time for the RMC to obtain these bids. The last week of June is the busiest week for moves. Companies that do not provide enough time for the RMC to obtain competitive bids may miss out on substantially lower costs for the summer move. In general, RMCs who obtain multiple bids for a summer move can save companies over $1,500 per move.

3. Providing a Range of Dates is Better Than a Specific Date

As with many things in life, the ability to be flexible works well for planning a summer move. HHG moving companies appreciate flexibility for their scheduling needs. Transferees also have many other things to take care of related to their relocation. Relocating employees who can provide a range of dates for pickup and delivery are often likely to have their household goods picked up and delivered on their preferred date or the nearest alternative date.

4. When Time is of the Essence, Services Can be Provided at Additional Cost

Some situations require an employee to be on site in a new location by a specific date. Critical delivery dates may arise due to home sale closings, expiring leases, and company requirements. These situations may require services that cost extra, above and beyond the traditional summer move cost. Companies that need a transferee to be on site in a new location by a certain date should provide enough time for the employee to make the move.

NOTE: Transferees that are given very short notice for a summer move often face significant issues in terms of cost to move and space for their household goods on moving company vans and trucks. Late requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. As a result, transferees with 2,500 pounds of household goods may have no other option but to pay for the extra unused space in order to meet the deadline set by their company. Best practice is to provide a quote that covers only the space needed for the transferee’s household goods. This way, they transferee is not paying extra for space they cannot use.

What Should Employers do About a Summer Move?

Employers should contact their RMC as early in the relocation process as possible. Best practice is to work with the RMC for pre-decision services. To ensure this engagement starts as early as possible, employers should create an Application Programming Interface, or relocation API.

An API provides a framework for different computer systems to communicate and share information. Employers with a relocation API will have their internal Human Resource Information System (HRIS) integrated with their RMC’s relocation technology. RMCs with industry-leading relocation technology solutions have designed their platforms to quickly and easily integrate with each client’s HRIS.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance and insight as to best practices for obtaining multiple bids and arranging for a summer move. RMCs can help clients and transferees understand how to communicate important dates and other information relating to their summer move with HHG moving companies.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to leverage the multiple bid process to save on a summer move. Our team can help your company follow industry best practices to communicate early, incorporate flexibility, and understand all of the various options that are available for relocating employees facing a summer move.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning best practices relating to arranging a summer move for your relocating employees, 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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Buy a Home Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase United States Economy

Winter Home Sellers More Likely to Find Serious Buyers

When it comes to the best season for home sales, winter home sellers are more likely to find serious buyers. Most people commonly believe spring is the most ideal season for home sales. As a result, sellers often wait until spring arrives to consider listing their home for sale.

Home sales during summer and fall lead to a reduction in market inventory. Sellers who wait for spring to place their home on the market further reduce the number of homes for sale in the winter months. As a result, winter home sellers gain a clear advantage. Less homes on the market allows their home to have greater visibility among serious buyers.

5 Specific Advantages for Winter Home Sellers

Beyond less competition from other homes, there are 5 specific advantages for winter home sellers:

1. Buyers in winter are serious buyers

Many people enjoy winter for its snow-filled beauty and wide range of outdoor sports such as ice skating, skiing, and sledding. However the season is also known for several major holidays, unpredictable and sometimes caution-producing weather, travel, and year-end work commitments. Only serious buyers would be looking for a home during this season. Buyers who make an appointment to see your home are not window shopping for homes as spring buyers often do. Rather, they are specifically interested in your home and its amenities. Winter home sellers can be assured that buyers truly want to purchase in the near term. Many times these serious buyers are relocating to take a new job or transferring to a new location with their current company.

2. Days on the market are less of a concern to serious buyers

Some home buyers use the number of days a home is on the market as an indicator. This indicator could mean any of several things, such as:

  • Condition of the home and property is not comparable
  • Location of the home is not desirable
  • Pricing compared to other homes on the market is not consistent
  • Seller does not have motivation to sell or is hard to work with

However, days on market is less concerning to serious buyers in winter. For example, winter home sellers whose home has been on the market since fall may benefit from buyer’s interest in working with sellers who are fully intending to sell.

3. Realistic decisions on pricing are easier to make during winter

Winter home sellers have an advantage when listing their home. Comparable homes on the market since the summer and fall seasons provide an excellent guide for realistic pricing. These home sellers often have adjusted their pricing to be consistent with or slightly below recent sales. This in turn will help them attract the right buyers looking for homes like theirs. Realistic pricing decisions for winter home sellers are easy to make by reviewing comparable homes.

4. Sellers who need to buy face less competition as they search for their new home

While buyers are searching for homes, winter home sellers gain from having less inventory for their home to compete with. At the same time, if those sellers need to buy a home, they also benefit from having less buyers to compete with. Sellers who must also buy have an advantage since winter holds down excess competition from other buyers. If they are the only ones looking at a specific home, chances are good that their offer will be taken seriously.

5. Spring season is just around the corner, just in case more buyers are needed

Some winter home sellers may not sell their home before spring arrives. The arrival of spring usually brings many more buyers into the market, including more families with children who want to plan moves during the summer. More buyers coming into the market means there will be more views of the home listing and perhaps more visits to the home. Winter home sellers may be seen as especially motivated to sell. As a result, homes should be freshened for the new season, and pricing should be reviewed to determine if it is still comparable or if adjustments must be made.

What Should Winter Home Sellers do?

Winter home sellers should consider placing their home on the market. Those who are able to do so benefit from serious buyers, less competition, and the ability to have their home ready to sell early in spring if they have not yet sold. Something to keep in mind is that a few markets exhibit stronger buying patterns during the winter season. Scottsdale, Arizona winter home sellers often experience the best home sale outcome by listing their home for sale in January.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients and their transferees with real estate needs when it comes to relocation. We can help your company understand how to obtain the best advantage for home sales and purchases, whether selling a home during winter as part of a relocation by leveraging the GMS Buyer Value Option (BVO) program, or buying from winter home sellers in a new location.

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.

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

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

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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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Labor Force Talent Mobility

North American Van Lines Survey Shows Why Americans Stay in Their Hometown

North American Van Lines’ recent survey shows why Americans stay in their hometown. Over 2,000 respondents were asked if they moved in relation to their hometown. Of those that have moved but remained in the same city or area, several reasons impacted their decision including:

  • Ability to stay close to family members
  • Cost of living is lower than other locations
  • Knowledge of and preference for local area
  • Environment, weather, and climate are more favorable
  • Near to place of work

Primary Reason Americans Stay

Those who responded to the North American Van Lines survey that stay in or close to their hometown represent:

  • Men: 68%
  • Women: 75%

The primary reason that Americans stay in their hometown is to remain close to their family members. This reason is remarkably consistent across genders.  48% of men and 51% of women reported staying close to family members as their primary reason for doing so.

Results Show the Importance of Family Support in Relocation

For the survey respondents who have moved out of state away from their hometown, 70% reported work as the primary reason for their move. Since Americans stay in their hometown to remain close to family, those that choose to relocate for their job often inquire about support for their partner, spouse, and family members. Important points for family members, partners, and spouses to consider in a relocation may include:

  • Care for elderly parents and relatives
  • Child care arrangements
  • Community resources and networks
  • Educational opportunities
  • Healthcare options and resources
  • Home finding resources
  • Job market and career assistance for spouses and partners (very important consideration as to why Americans stay in their hometown)
  • Transportation options including driver’s licenses
  • Utility setup and connections

Case Study Shows Importance of Spouse and Partner Career Support

GMS’ Case Study on Educational Institution Relocation Programs shows the importance of local job and career assistance for partners and spouses. Our client learned that new hires were departing within a year due to the lack of local job support for partners and spouses. By redesigning their relocation policy and adding career services for partners and spouses, our client was able to significantly increase their new hire retention rates.

What Should Employers do About the Primary Reason Americans Stay in their Hometown?

Employers should review their relocation program to ensure it follows industry-leading best practices with regard to family matters as well as partner and spouse career support. Companies should work with a qualified and experienced RMC that can help them design a relocation policy that promotes successful relocations. Partner and spouse career considerations should be included in the transferee’s relocation experience. Family support is also critical to reduce any disruption from the move. Having full family support provides peace of mind for the transferee, their partner or spouse, and their family members.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation policies and programs that address the reasons why Americans stay in their hometown. Our team can help your company design a robust relocation program. As a result, the program will provide the best relocation experience for your company’s transferees and their family members.

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.

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

Contact our experts online to discuss your company’s relocation program and the need to address the reasons why Americans stay in their hometown, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends

What are the 2019 Top 10 Fastest Growing Cities in the United States?

Cities in the United States grow for various reasons, but the fastest growing cities share several things in common. Demographics in the US show that overall population growth was 0.6% in 2018, the lowest level recorded in 80 years. Several states are experiencing population declines, and might benefit from unique programs to increase immigrants with high levels of skills. However, some US cities are expanding much faster than others and the nation as a whole. What are the fastest growing cities in the US?

Top 10 Fastest Growing Cities

The 2019 top 10 fastest growing cities in the US are:

  1. The Villages, Florida
  2. Myrtle Beach-Conway-North Myrtle Beach, South Carolina-North Carolina
  3. Midland, Texas
  4. Austin-Round Rock, Texas
  5. George, Utah
  6. Greeley, Colorado
  7. Bend-Redmond, Oregon
  8. Cape Coral-Fort Myers, Florida
  9. Orlando-Kissimmee-Sanford, Florida
  10. Raleigh, North Carolina

What is driving the population growth in the fastest growing cities?

Pleasant Climate

The US overall population growth is relatively anemic. However, the broader trend of retirement-age Americans relocating to cities with desirable climates is driving population growth in several cities. Climate is one of the most important factors that drives retirement-age Americans to move to other cities. Several of these locations also have some of the nation’s most pleasant and temperate climates.

Economic Growth

Another factor that the fastest growing cities share is a focus on economic growth. Healthy economies and vibrant job markets draw those looking for opportunities. Many of these cities have thriving economies with diverse economic bases. As a result, these cities become economic engines for their regions, driving continual growth and expansion. Business-friendly policies and favorable tax benefits further increase the desire to relocate to the fastest growing cities.

Natural Beauty

Several of the fastest growing cities are situated in some of the nation’s most beautiful locations. Some are located along the pristine beaches of a southern coastline. Others are within easy driving distance to stunningly beautiful national parks, mountains, state parks, conservation areas, and national forests. Many of these cities have a number of city parks, rivers, and lakes that support extensive recreational activities.

What Should Employers and Job Seekers in the Fastest Growing Cities do?

Employers in the fastest growing cities should review their corporate initiatives to ensure they can leverage these city’s population growth. They should work with a qualified Relocation Management Company (RMC) that can provide a full range of pre-decision services, career services, and mobility consulting.

Employers may consider relocating new hires or transferees to fill positions in the fastest growing cities as growth continues. They should provide transferees and their family members with as many valuable resources as possible to help increase relocation success.

Job seekers looking for opportunities should consider these as good places to find a job. They should also look into leveraging career services to enhance their job search and increase the likelihood of success in the job market.

Employers not currently located in one of the fastest growing cities should look into the possibility of expansion or relocation for their business. Cities that are growing generate a number of opportunities for companies, including:

  • New customers
  • Growing workforce
  • Higher quality of life
  • Sustainable business growth

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to fill positions in their local markets, including the fastest growing cities in the US. Our team can help your company understand how to use pre-hire assessments to identify qualified candidates. Also, we can help your company design a relocation program following industry best practices that results in higher relocation success rates and greater transferee satisfaction.

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s need to leverage growth in the fastest growing cities, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Buy a Home Domestic Relocation Domestic Relocation Trends Job Market Job Seekers Talent Mobility United States Economy

United States Migration Patterns: Where are People Moving To?

United States Migration Patterns: Where are People Moving To?

A recent study by United Van Lines tracking 2018 United States migration patterns shows which states people are moving to.  According to the study, the top 5 states experiencing the highest rates of inbound migration are:

Top 5 States Growing due to United States Migration Patterns

  1. Vermont
  2. Oregon
  3. Idaho
  4. Nevada
  5. Arizona

To understand these patterns, it is best to look at a number of local as well as national trends and how these trends impact each state.

Vermont

Vermont benefits from United States migration patterns impacting employment and jobs. This state has a relatively small population compared to other states. Therefore, significant growth in employment is due mostly to people moving to the state to take new jobs or as a transferee within their company. Vermont industries experiencing exceptional growth include:

  • Renewable and Clean Energy including the highest number of solar jobs per capita in the nation
  • Tourism and Outdoor Recreation including top destinations for skiing, camping, and hiking
  • Food Processing including craft beer, cheeses, and maple products
  • Financial Services and Insurance including #1 ranking in the world for assets under management in captive insurance

Vermont is also well known for its beauty, with mountains, lakes, and four distinct seasons. The state has many pristine areas, and tourism is a significant industry. As a result, retirement is another factor driving United States migration patterns with Vermont as a choice retirement destination.

Oregon

Oregon benefits from United States migration patterns impacting employment and jobs. The state’s economy is one of the fastest-growing in the nation. This is due in part to significant job growth in the manufacturing sector including:

  • Computer and electronic products
  • Machinery
  • Primary metal

Oregon’s landscape includes mountains, lakes, rivers, forests, and waterfalls. The natural areas encourage an outdoor lifestyle, and several state parks are ideally situated for camping, hiking, biking, and boating.

Idaho

Idaho has seen growth from United States migration patterns relating to retirement. More than half of movers into the state were in the age range between 55 an 74 years old. New residents to Idaho gain access to several lifestyle features they could not have in more populated areas, including:

  • Outstanding National Parks
  • Mild climate with four seasons
  • Neighborhood walkability
  • Low cost of living
  • Educational and cultural centers

Idaho has a relatively low estimated population of 1,790,000 residents. Comparing Idaho to other states, population density is 19.8 people per square mile versus the national average of 434.9 people per square mile. New York by comparison has 419.0 people per square mile. Idaho is known for wide open spaces.

Nevada

Nevada benefits from United States migration patterns impacting employment and jobs. Most migration to the state is for people to take a new job. The state’s growth industries include:

  • Tourism including Gaming
  • Clean Energy Initiatives including Solar, Wind, and Geothermal
  • Mining including Gold, Silver, and Lithium
  • Aerospace and Defense including several Air Force Bases
  • Information Technology powered by a strong Digital Infrastructure

With no income tax, low property taxes, and a warm climate, retirees find Nevada a welcoming place. Around half of movers into the state were in the age range between 55 an 74 years old.

Arizona

Arizona benefits from United States migration patterns relating to retirement. Most of the moves to Arizona were for retirement, followed closely by moves for a new job or as a transferee. There are several reasons people choose Arizona for retirement, including:

  • Generally pleasant climate
  • Exceptional natural attractions such as the Grand Canyon
  • Low cost of living
  • Greater number of retirees for social groups
  • Tax-friendly policies

Arizona is increasingly diversifying its economy, with growth in a number of industries including:

  • Bioscience Research and Development
  • Technology and Innovation
  • Manufacturing including High Tech
  • Aerospace and Defense including top ranking University Programs
  • Business and Financial Services including Data Centers

According to a new economic report by State Policy Reports, Arizona ranks #3 in the nation for economic momentum. The momentum is based on Arizona’s growth in categories such as population, employment, and personal income.

What Do United States Migration Patterns Mean for Employers?

Employers in the states of Vermont, Oregon, Idaho, Nevada, and Arizona benefit from United States migration patterns that draw a variety of new residents. Growing industries with burgeoning job opportunities tend to generate additional jobs. As a result, communities grow in population and related services are needed such as housing, retail, insurance, and child care. Demand for employees may be strong in these states and many other locations, especially during tight labor markets.

What Should Employers do About United States Migration Patterns?

Employers in locations that benefit from United States migration patterns should review their company’s growth plans and requirements for jobs across all levels of skill sets. A company’s growth plans will impact the number and type of jobs required to meet business plans and goals.

Since the nation is experiencing low unemployment, employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company determine how to leverage United States migration patterns for talent acquisition and management.

GMS was the first relocation company to register as a .com, 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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs. Since United States migration patterns may lead to a growing local population and potential future workforce, be sure your company’s relocation program supports talent acquisition. Give our experts a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Home Purchase

What is the Buyer Value Option Program, and How Does it Work?

Family With Children And Pet Dog Outside House On Moving Day

Companies can save money with the Buyer Value Option program. However, many companies are not aware of what this program is, and how it actually works. Global Mobility Solutions (GMS) has many clients who use this program. As a result, our clients have much success and higher satisfaction levels for new hires and transferees.

What is the Buyer Value Option Program?

Most corporations use a form of tax assistance, known as tax gross-up, to help offset the tax impact felt by the transferee receiving reimbursement. The gross-up expense can add substantial costs.

The GMS Buyer Value Option program lowers costs from income tax gross-ups associated with the reimbursement of transferee real estate closing costs.

The GMS Buyer Value Option program avoids the costly process of “grossing up” dollars used to pay for the commissions and closing costs on the sale of a transferee’s home. Typically, commissions and closing costs are associated with the sale of a transferee’s home. These two expenses represent the majority of the total costs incurred during a relocation. Reimbursement to a transferee of these expenses is considered taxable compensation by federal and state authorities.

How Does the Buyer Value Option Program Work?

Once a transferee receives a valid offer to purchase from a 3rd party buyer, and after GMS has been able to verify that all contractual terms are customary, the transferee turns the sale of the home over to GMS. GMS purchases the home from the transferee and subsequently transfers the home to the 3rd party purchaser. All closing costs and realtor commissions are paid by GMS and billed directly to the employer. Since the transferee does not incur any home sale expense, regular reimbursement of these expenses is not required.

The Buyer Value Option program allows the transferee to move quickly, and maintain their focus on the new job and community rather than on the sale of their home. Once their home is turned over to GMS, the transferee relinquishes all obligations including attending the actual closing. GMS manages the entire sale and closing process on behalf of the transferee. Transferees gain peace of mind with the knowledge that GMS is handling the sale of their home. They can also focus on their new home and enjoy their new surroundings.

What is the Buyer Value Option Process?

  1. Employee lists home with the help of GMS
  2. Similar to a traditional sale in the transferee’s eyes
  3. Once a buyer is found, GMS transfers the title from seller to GMS
  4. GMS sells to the outside buyer at closing
  5. The client is billed 10% for commission and closing costs prior to closing, eliminating the transferee’s out-of-pocket costs
  6. Home sale is closed by GMS
  7. Equity is wired in full to the transferee’s account of choice after closing
  8. GMS refunds the difference back to the client
  9. To complete the transaction there are strict IRS guidelines that must be followed

How Does the Buyer Value Option Program Reduce Risks for Clients?

The Internal Revenue Service requires putting the client at risk of owning the home in order to receive the tax benefit. If the buyer falls through prior to closing, the client will be financially responsible until a new buyer is found.

  • On average, 1.5% of properties fall through within the industry
  • However, less than 0.5% have fallen through in the last 3 years at GMS

How Do Employees Save Time?

The GMS Buyer Value Option program does not require the transferee to appear at closing. This lets the employee focus on their position and objectives, while settling in to life in their new community.

How Does a Company Save Money With the Buyer Value Option Program?

Since tax gross-ups are not required, companies can achieve significant savings. In order for an employee receiving a $24,000 home sale reimbursement to net the actual amount of the reimbursement and not feel an impact on their take home pay, it will cost a company $43,800. This cost can escalate even further if a company elects to take an individual’s actual tax bracket into consideration.

By utilizing the GMS Buyer Value Option program there is no tax gross up, and a company saves $19,800. Since the transferee does not have to appear at closing, companies also save on return trip costs.

What Should Companies With a Home Sale Program Do?

Companies that are currently reimbursing employees for the commission and closing costs on their home sale should look into the GMS Buyer Value Option program. Home sale expenses are the only remaining tax-protected relocation benefit when a company utilizes the GMS Buyer Value Option program. Companies can save the tax gross up on the reimbursement, and gain additional benefits including:

  • No need for the employee to be at the closing of their home sale
  • No return trips necessary to attend the closing if your employee is already at the new destination
  • The employee can more quickly adapt to their new role and become an effective member of the team

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop their home sale and Buyer Value Option program. Our team can help your company understand how it can save the tax gross up on home sale reimbursements.

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.

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

Contact our experts online to discuss your interest in the GMS Buyer Value Option program, or give us a call at 800.617.1904 or 480.922.0700 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.

Categories
Domestic Relocation Domestic Relocation Tips

Massachusetts May Retain Deduction for Moving Expenses

The state of Massachusetts may retain deduction for moving expenses that the 2017 Tax Cut and Jobs Act (TCJA) eliminated at the Federal level. According to the Massachusetts Revised Working Draft TIR 19-XX: Impact of Selected Provisions of the Federal Tax Cuts and Jobs Act on Massachusetts Personal Income Tax under Chapter 62 published on April 1, 2019:

Section B., “Amendments to which Massachusetts does not conform for the purposes of G.C. c. 62,” notes in sub-section III that the exclusion from gross income afforded under IRC § 132(a)(6) and (g) and the deduction allowed under IRC § 217 are still allowable for eligible Massachusetts taxpayers.

What does the 2017 Tax Cut and Jobs Act Require?

Beginning in 2018, the TCJA requires the following changes:

  • Eliminates the deduction for moving expenses
  • Unreimbursed moving expenses are also not deductible
  • Employer reimbursed moving expenses are:
    • Not deductible (this is the basis for Massachusetts choosing to retain deduction)
    • Included in income
    • Taxable to the taxpayer

What is the Impact of Massachusetts Choosing to Retain Deduction for Moving Expenses?

Massachusetts taxpayers may benefit from the state choosing to retain deduction for moving expenses. These taxpayers may also benefit from the state choosing to exclude moving expenses from gross income calculations. Governor Charlie Baker signed the state of Massachusetts’ Fiscal Year 2019 budget into law in July 2018. The plan supports his administration’s full commitment to balancing the state budget from a structural standpoint. Since Massachusetts currently has a healthy budget status, the ability to retain deduction for moving expenses should not materially impact state finances.

What Should Employers do Since Massachusetts is Choosing to Retain Deduction?

Employers in the state of Massachusetts should keep aware of changes to local tax laws. They should highlight the state’s interest to retain deduction for moving expenses to new hires and transferees. This is a favorable benefit for those choosing to relocate to Massachusetts.

Massachusetts has a need for workers. Recently Massachusetts had the largest construction worker shortage in the United States. Employers should work with a qualified Relocation Management Company (RMC) that has the experience and knowledge to help them understand how to leverage tax law changes for their relocation program.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how local tax laws may impact their relocation programs. Our team can help your company determine how to highlight the benefit of Massachusetts choosing to retain deduction for moving expenses to new hires and transferees.

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.

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

Contact our experts online to discuss your company’s relocation program and ways to highlight Massachusetts choosing to retain deduction for moving expenses, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Buy a Home

8 Differences Between a Relocation Appraisal and a Mortgage Appraisal

Portrait of mixed raced couple sitting together with bills, calculator and digital tablet calculating their expenses

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Appraisal for their home. This type of appraisal has a different purpose and use when compared to a Mortgage Appraisal. An understanding of these differences will help clients as they work with their Relocation Management Company to manage a successful relocation.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on the differences between a Relocation Appraisal and a Mortgage Appraisal.

What are the Differences Between a Relocation Appraisal and a Mortgage Appraisal?

According to Mark A. Gronke, Fidelity Residential Solutions points to 8 specific differences between a Relocation Appraisal and a Mortgage Appraisal. Clients should understand what these difference are, and how they relate to their company’s relocation program. These differences cover broad areas including purpose, use, marketing, and analysis of the appraisal:

Purpose of the Appraisal

  • A Relocation Appraisal will provide an estimate of the anticipated sales price. By comparison, a Mortgage Appraisal will provide an estimate of the home’s market value. Some homes may appraise for more than the contract sales price during a Mortgage Appraisal. This only looks at the anticipated sales price, not the value of the home.
  • The decision making timeframe for a Relocation Appraisal is short term. The timeframe only covers up to 120 days. This accounts for the planning, review, and implementation of the transferee’s relocation process. A Mortgage Appraisal has a decision making timeframe that is long term. The timeframe may cover up to 30 years, the life of a 30 year mortgage. Mortgage lenders look into the future to ensure the home’s value will remain intact over the life of the mortgage.

Use of the Appraisal

  • The intention of a Relocation Appraisal is solely to facilitate corporate relocation. The client receives the report. The client may be looking at indicators that relate to how long the home may reside on the market. By comparison, the intention of a Mortgage Appraisal is to facilitate mortgage lending. A mortgage lender receives the Mortgage Appraisal. The lender may be looking at indicators that refer to the value of the home and its condition. They also may be looking at other factors when considering lending on the property.
  • A Relocation Appraisal would be completed using the Worldwide ERC® Summary Appraisal Form (updated 2010). This would be completed by a trained and licensed real estate appraisal professional following the ERC’s specific set of definitions and guidelines, who is working for the client. A Mortgage Appraisal would be completed using the Uniform Residential Appraisal Form (1004). This would be completed by a trained and licensed mortgage appraisal professional, who is commonly working for a licensed Appraisal Management Company.
  • A Mortgage Appraisal notes the design and appeal of a home. By comparison, a Relocation Appraisal emphasizes design and appeal as critical considerations. Since the Relocation Appraisal has such a short time frame of only up to 120 days, these factors may have a major impact on the corporate relocation process.

Marketing Time and Market Value

  • For a Relocation Appraisal, the marketing time is not to exceed 120 days. This timeframe only reflect the period covering the relocation process. A Mortgage Appraisal’s marketing time does not have a limit, as it does not correspond to a specific, time-defined process. While there may be specific dates related to mortgage terms, the ability to change those dates or accept a lower interest rate in return for paying additional points could extend the timing, if the mortgage lender is in agreement.
  • Marketing a home occurs after the date of a Relocation Appraisal. However, a Mortgage Appraisal is conducted after a home has already been on the market. By the time a Mortgage Appraisal is conducted, there could have been changes to the marketing program or a host of any number of other factors. This information may impact the market value of the home, and in turn the Mortgage Appraisal.

Retrospective Analysis 

  • A retrospective analysis for an appraisal is an overall review of factors that could impact the appraisal’s results, such as any risks that could affect the sale price of the home. The client will use the information for forecasting purposes. A Mortgage Appraisal does not provide for any forecasting in a retrospective analysis. A Relocation Appraisal, however, includes a forecasting component. This is important for clients so they can understand aspects of the Relocation Appraisal that may have future budgetary impact.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program may not understand the differences between a Relocation Appraisal and a Mortgage Appraisal. The employer should understand that they are the client for the Relocation Appraisal. As a result, the employer will receive the Appraisal from the professional. Employers should understand that the Relocation Appraisal is not a Mortgage Appraisal.

What Should Employers do?

Employers should communicate guidance for their transferees who may have questions regarding their home’s Relocation Appraisal. Employers should work with their Relocation Management Company to understand the Relocation Appraisal and how it relates to their company’s relocation and home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Appraisals. We can help your company understand how a Relocation Appraisal relates to your company’s home sale program.

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

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

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 Global Relocation Global Relocation Challenges Home Purchase Relocation Challenges

Mortgage Loan for Foreign Nationals Relocating to the United States

Happy family is standing with keys from their new house in hand. Smiling and looking at camera.

Many of Global Mobility Solutions’ clients have transferees relocating to the United States from outside the country. Often, they will need a mortgage loan to buy a home. These transferees may not have established credit in the US. As a result, they will not have a credit profile that lenders can use to determine their creditworthiness.

GMS spoke with Michael Farner, an expert at Quicken Loans who agreed to share his advice and guidance on this topic.

How Can a Foreign National Obtain a Mortgage to Buy a Home in the US?

According to Michael Farner, if a foreign national has established credit in the US over a period of time long enough to have all three credit bureaus reporting, Quicken Loans would also be able to lend at that time.

Quicken Loans and other mortgage companies have a program to support foreign nationals who are relocating to the US and want to obtain a mortgage, but who have not established credit in the US. The program entails work on the part of Quicken Loans to create a credit profile for the foreign national.

Important Points to Note for Program Eligibility Include:

  1. There must be 0 credit established in the US to qualify for this program. In other words, the foreign national must not have obtained any other credit instrument. Examples may include a loan to buy a car or a credit card in the US.
  2. The foreign national must provide a social security number.

If the foreign national is eligible for the Quicken Loans program, the lender will then build a credit profile for the customer. To do this, the lender may examine the foreign national’s debt in their departure country. This examination will include:

  1. Information on payments for housing, including rent payments, showing 24 months of history for each credit reference.
  2. Information for three other “non-housing” debts that can establish payment histories. Examples may include insurance, utilities, or automobile loans. These debts must also show 24 months of history for each credit reference.

The foreign national may need to assist the lender in obtaining information. The lender may ask the foreign national to participate in a conference call with their departure country’s financial institution.

Once Quicken Loans gathers sufficient information, they will build a credit profile for the foreign national. The credit profile will determine how much they can borrow on a mortgage loan, and the terms of the mortgage.

What are the Features of a Mortgage for a Foreign National?

A mortgage for a transferee who will be relocating to the US is similar to a mortgage for any US-based customer who is seeking to buy a home.

For a foreign national, a mortgage will generally feature the following:

  1. Finances the purchase of an existing home.
  2. Length may be 15 or 30 years.
  3. Interest rate may be fixed or variable.
  4. Foreign national borrower makes principle and interest payments for the life of the mortgage.
  5. Mortgage is often sold to investors in the bond market.

Do Foreign National Transferees Need to Sell Their Current Home Before Applying for a New Mortgage?

Foreign national transferees who are relocating and who currently own a home in their departure country may want to keep their current home. Everyone’s situation is different, and what is possible depends on a number of factors:

  1. Is there a mortgage on the current home in the departure country?
  2. If yes, what is the amount of the current home mortgage?
  3. What are the amount and terms of the mortgage loan for the home in the US?
  4. Can the transferee obtain approval for the total debt load? This would include their current mortgage and the new mortgage loan in the US.

What does this mean?

Foreign national transferees who want to obtain a mortgage in the US to buy a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home in their departure country may be able to obtain mortgage for a home in the US. However, this depends on their financial circumstances. Importantly, transferees should understand that they must obtain approval for the total amount of current mortgage debt and the new mortgage loan in the US.

What should employers do?

Employers with foreign national transferees looking to buy a home in the US should direct them to speak with qualified lenders and financial advisors for guidance. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from foreign national transferees who want to obtain a mortgage in the US.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining mortgages to purchase a home in the US. Therefore, our team can help your company understand how best to proceed by providing guidance to foreign national transferees on obtaining information from qualified lenders and financial advisors.

Contact our experts online to discuss your company’s relocation program needs, 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 foreign national 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.

Request your complimentary relocation policy review

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