How to Calculate Relocation to Another State and Its Costs

Relocation, whether it's across the country or across the Atlantic, requires research and planning. The Ladders, an online executive-level job board, reports that "nearly half of employers (48 percent) still offered a full relocation package to new hires in 2009 that included most major moving expenses. Another 46 percent paid at least partial expenses." It's great if your employer is covering all the relocation expenses; however, it is worthwhile for you to spend time looking at ways to manage the effort, energy and cost of relocating.

Instructions

1. Conduct research on real estate values, mortgage rates and regional differences in home prices. Compare the value of your current home to similar homes in the city or region to which you are relocating. Determine the amount of your home equity and asking price to establish a comparable lifestyle in your new home city. Access online resources for city data on cost of living indices. You can also find online resources for estimated costs for housing, utilities, food, entertainment, transportation and schools.

2. Request budget and reimbursement amounts from your new employer's human resources department relocation expert. If you are relocating overseas, ask about expatriation and repatriation costs and expenses. Factor the budget allocations into your research for housing, and work closely with your relocation expert to determine the timing and logistics of your relocation.

3. Obtain packing, moving and storage quotes from at least three companies. If necessary, ask your employer for references or rely on your company's relocation expert to select a moving company. Explore the types of services, insurance for personal belongings and storage rates. Your selection of a moving company may rest on storing your household goods if you anticipate a long wait until you're settled in your new home.

4. Access online resources to calculate expenditures such as taxes, utilities and transferable services such as Internet, cable, telephone and wireless providers. Check out the costs for gasoline and commuting times, as well as automobile and homeowners' insurance. If taxes and insurance premiums vary significantly according to communities or school districts, weigh your options of where to settle into your new place.

5. Tally the number of house hunting trips you feel are necessary. Calculate your travel costs for exploring the new area and, finally, making the actual move. Take into consideration your mode of travel and potential constraints such as timing, school enrollment, spousal commitments and the amount of personal belongings you want to take until your household belongings arrive.

References

• Atlas World Group: Corporate Relocation Study: Measuring a Moving World
• The Ladders: Companies Still Pay to Relocate: Atlas Survey
• U.S. Internal Revenue Service: Topic 455_ Moving Expenses
• Cornell University Law School: Section 5724a. Relocation Expenses of Employees Tranfserred or Reemployed
• TAO: Relocation Assistance: Making the Right Moves

Resources

• HR
• Society for Human Resource Management
• National Human Resources Association
• American Society for Training & Development
• WorldatWork
• Workforce Management