I’ve got a great job offer in another city, but I’m worried about losing money on my house. What are you suggesting to candidates to negotiate?

We have heard this question a lot this year as the real estate market continues to be soft, particularly in the Midwest and large cities like Atlanta and Miami. At the same time, many companies are limiting what they cover in relocation, particularly for external hires. This combo can make relocation a tough discussion right now. There is no “one solution that fits all” answer here so I will try and address some options:

• In an ideal situation, you will meet with a realtor or two at the beginning of a job search to get a realistic view on what the real estate market looks like in your area. That way, during the interview, at an appropriate time, you can begin a dialogue on expectations in moving and let your prospective employer know what you have learned. This also shows you are taking a pro-active approach in potential problem solving.
• Can you wait the market out? Depending on your personal situation, maybe putting your house up for sale six months from now may be a better deal—Ask a realtor if renting your house for six months or a year is a realistic alternative.
• Whether you are going to try and immediately sell your home or rent it, talk to your potential employer about how much flexibility there is on the relocation package timeframe. Some policies require you to move within six months, others a year…We are seeing flexibility with a number of our clients on this part of the policy, increasing the time allowed before a move is required.
• Many companies outsource their relocation to specific relocation firms so many parts of a policy are rarely negotiable. Temporary Housing is one area where there is usually room to negotiate. Find out what their policy is on adding additional coverage.
• If the relocation policy you are reviewing is limited to moving, storage and temporary housing, ask your recruiter if a sign on bonus is an option. If so, you can use those funds to help offset part of your real estate selling costs.

In closing, keep in mind that although your house is a huge investment, it is probably not your complete investment portfolio. Investments as most of us know go up and they go down. Although you may not make money on the sell of your current home, the upside to a buyer’s market is you probably will buy your next home for much less as well.

Just like other investments, you need to decide if the job offer in hand has the long term potential for your career and a financial well being to make up for any short term loss—or perceived loss—selling your house or renting your house may involve.

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