What Are Relocation Companies And What Do They Do?
Kevin Graham6-Minute Read
October 19, 2021
Whether you’re looking to make a big move for career or personal reasons, there are many balls in the air when you’re moving a significant distance. This is where a whole industry of real estate relocation companies has sprung up to help.
Let’s learn how a relocation company can make your move a breeze.
What Do Real Estate Relocation Companies Do?
A relocation company, also known as a “relo company,” can help you with the various stages of moving, including finding a new home and even helping to sell your old one. Relo companies are often hired by corporations to assist in relocating employees.
Relocation companies are typically hired by a corporation to help move its employees from one area to another. An office closure or expansion often requires talent to move locations.
Corporate relocation services often help with employee relocation assistance that can sometimes include the sale of the employee’s current home, as well as the purchase of a new home in the new location. This is a huge financial burden lifted for those employees making the sacrifice to move.
You will often be assigned a relocation professional to take the point on managing your entire process. This person will be your go to for any questions and concerns surrounding your relocation.
What Services Can Relocation Companies Provide?
Relocation companies offer a variety of services that fall into two main categories: moving coordination and the handling of real estate transactions. Let’s dig into a bit more to some specific services often provided by relo companies:
A relocation company can help with every aspect of the moving process, from packing and physically moving your belongings to your new home, to providing resources in your new city for dry cleaning.
Many relocation companies have concierge services to help you adjust to your new surroundings. For international relocation, they may offer to help with visas and other necessary documentation or set up language lessons for you in your new city.
Help Finding A New Home
Depending on the level of service, a relocation company can help you find a new home in the city you’re relocating to. Some relocation companies may cover some or all of the closing costs on your next home.
Prior to accepting a position that requires you to relocate be sure to review the relocation off or agreement to see what level of service you will receive for your move.
Assistance In Selling Your Home
Some relocation companies will assist in the sale of your current home so you can focus on the move and all the personal tasks that come with moving a long distance. The home would remain in your name as the owner for the first few months on the market. The relocation company will offer advice on pricing, marketing and any other tips to sell the home quickly.
When buying from relocation companies, the process is very similar to traditional properties, but it’s important to know a few things that could come up. Due to the nature of relocation, delays can happen and there are more riders, amendments and disclosures that will need to be signed. Relocation companies tend to accept fewer contingencies as well. It’s not uncommon for relo properties to be sold as-is.
Coverage For Moving Expenses
A variety of expenses and services can be delegated to a relocation company. This isn’t an exhaustive list, so always be sure to review your relocation agreement to clarify your specific services and moving costs.
House hunting travel: The company may cover the costs of traveling to the new location to find a suitable home. These costs typically include transportation and lodging expenses.
Home sale/purchase costs: If you’re a current homeowner, the costs of selling your current home and purchasing a new home could be included in your relocation. This could include closing costs, real estate commissions and other expenses attached to the sale or purchase.
Job search assistance: If you have a partner who needs to find new employment, your relocation company may be able to assist in the search.
Transportation: Companies often reimburse the expenses to get to your new home. You may need to keep your receipts to be reimbursed for fuel and meals while traveling.
Temporary housing: If you’re unable to find a home in time for your move, your relocation company may provide a furnished rental or hotel until your new home is ready.
Moving: The costs associated with the physical move, like a moving truck and fuel.
Packing and unpacking: Packing can be a pain. Luckily, some relocation companies offer a “full pack” service. They hire movers to pack up your personal items and transport them to the new home. They often will place your items in the room they belong in the new home to expedite your unpacking process.
What Are Corporate Relocation Management Companies?
Corporate relocation management companies specialize in helping companies with the task of relocating employees being transferred to other offices. Companies often make the services of a corporate company available as part of a moving package.
Corporate Relocation Services
Corporate relocation management companies can relocate employees domestically and internationally. One of the big things they do if necessary is help your company buy your home and manage the sale of your home so that you can move right away if they need to be somewhere on short notice. They might also help with temporary housing and coordination of services and resources.
Relocation Vs. Moving Companies
Relocation companies offer services above and beyond what a standard moving company typically offers. As we discussed earlier, a full-service relocation offer may pay for costs associated with the sale or purchase of a home, they can assist a spouse in their employment search, etc.
Moving companies are great if your move is simple and you don’t have far to go. They offer services like packing and unpacking your items and towing vehicles to your new location.
How Much Do Relocation Companies Cost?
It’s hard to give a true estimate of relocation service because there are so many moving parts, so to speak. If you’re a renter, a few thousand dollars could get you to a new part of the state. For a homeowner, it could be $60,000 to $80,000, including the costs associated with the sale of the home, physical moving, transportation, etc.
The good news is, most companies offering relocation employment opportunities will foot the bill for the hassle of moving to better position their company.
How Do I Find A Relocation Company?
Many companies will have a preferred relocation company and you won’t need to concern yourself with finding a reputable company.
If you do need to find a relocation company on your own, you should definitely take the time to review their reputation online and read reviews. Be sure to look at their service offerings and ensure it covers all that you will need to make your move a success.
We recommend working with a real estate agent to weigh out your options. Real estate professionals are able to attain designations through continuing education in areas they are passionate about. A great place to begin your search for a Certified Relocation Professional (CRP) is www.worldwideerc.org. This designation is a highly regarded, competency-based credential that demonstrates a broad understanding of the field of employee mobility with the United States. Their database includes real estate professionals that have gone through training to provide their expertise.
The Bottom Line
Whether you’re moving for your employer or just need a change of scenery, the relocation industry is there to help. Every step of the way be sure to ask for specifics and always reference your relocation agreement or contract for clarification.
Moving can be an exciting time in your life and it can be overwhelming. If you find yourself struggling with what to do, we recommend finding a real estate agent that can help you navigate the choppy seas of relocation.
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