Hidden expenses when relocating for work

Hidden expenses when relocating for work

Hidden expenses can send the high of relocating for an exciting new job crashing back down to reality. Small but unforeseen fees in every phase of the move can quickly add up, causing significant, unplanned strain on your bank account. With a little research, you can better understand all the costs associated with your relocation, helping you to properly budget and avoid unnecessary stress.  

What is involved in a relocation?

With moving, timing is everything. The time given for a relocation usually occurs in a tight window.  This can lead to a gap in time between selling your old home and relocating to your new one, and certainly can effect your wallet. A relocation is also usually a little different than a simple move because there is typically a greater distance involved, which is where even more costs add up. Then there is the search for a new home from afar or, if you’d prefer to search locally, the need to secure temporary lodging. Once you move, there are the costs of setting up your new home to make it comfortable for you. This can all seem daunting, but we are here to tell you that it doesn’t have to be. 

Tips for relocating

At the Creig Northrop Team, we want your relocation to go as smoothly as possible. With these tips, you can be relaxing in your new home in no time! When relocating, we suggest you:

Secure temporary housing. If your current home sells before your new one is available, take advantage of temporary accommodations like CouchSurfing.com or Airbnb.com. You can save considerably over a traditional motel or hotel. This is also a good idea if you would like to move to your new location early to look for homes in person. 

  • Get a trusted realtor. When moving to a new city, it’s important to secure a realtor that you trust to do the legwork of finding homes that meet your requirements. Have them put together a schedule of open houses within a small timeframe, so you can maximize any trips you need to take to view potential homes. This will save on extraneous trips and expensive last-minute flights. 
  • Pick the best seasons to move. If possible, hold off your relocation until the summer or winter. If you have children this will help in their transition because the move will fall at the ends/beginnings of new school semesters rather than the middles. 
  • Research new expenses. Do your homework in regards to your new location’s tax laws, insurance rates and utility costs. Besides the obvious property taxes, you could see increased income and sales taxes. Car insurance rates vary state-to-state as do minimum liability requirements. Depending on the state, you could be required to pay for flood, tornado and other types of hazard insurance you never had to consider before. If your new home is in a community with a homeowners’ association, you may also be paying association fees. And don’t forget basic utilities. They could be considerably higher in your new location. A realtor in the area can help you understand your new costs in your new location. Plus, they may even be lower than where you are coming from. Knowing if your costs will be higher can help you save, and make sure you have a healthy emergency fund after your move (and some play money for exploring your new surroundings!) 
  • Save your receipts! The IRS advises the importance of maintaining “an accurate record of expenses you paid to move.” You should save items such as receipts, bills, cancelled checks, credit card statements and mileage logs.”  For more information on the deduction of certain expenses of moving to a new home because you changed job locations can be found on the IRS Publication 521.

Understand that every relocation is going to have hidden expenses – it’s inevitable. But knowing where they come from and how to budget for them can make for a smoother transition into your new home and into the next stage of your career.  

For help with an upcoming relocation, click here to contact The Creig Northrop Team so we can put you in touch with one of our relocation specialists.

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