Corporate: Home Acquisition

The cost of getting into a new lease or buying a new home may be reimbursed in part by your company. There are often additional benefits available to assist with duplicate housing and high cost of living areas.

  • New lease fees: most companies will reimburse you for broker fees incurred to find a new rental home. The reimbursement is usually limited to a percentage of your lease, usually one to two months’ rent cost. Security deposits and other fees will not be covered in this payment.
  • Home purchase costs: select settlement expenses for the purchase of a home may be reimbursed after the closing. The coverage generally includes all one-time fees paid to acquire the loan, except for taxes, insurance, broker finder’s fees, escrows and other recurring expenses. Typical items reimbursed include Points (see below), bank fees, appraisals, title insurance premiums, courier charges, survey’s and other similar charges.

Mortgage Points: even though ‘points’ paid are part of your mortgage interest payments, some companies will reimburse a portion of them. Points are actually interest paid at the start of a loan in exchange for a lower overall mortgage interest rate. Each point is 1% of your mortgage amount. This benefit is often not provided when mortgage rates are very low.

  • Bridge loan assistance: to assist you with buying a new home, your company may provide an interest free loan for the available equity in your home. You will need to sign a promissory note to repay the loan when your current home is sold.
  • Cost of living allowance (COLA): if the company moves you from a low to high cost of living area, you may receive some form of monetary assistance. Calculations for COLA payments are scientific, using published city living differentials, and are usually paid out over a one to three year time period. Cost of living payments are one of the more rare benefits given, because of the high cost and amount of administration involved.
Move Lingo

Definitions and Acronyms

 

Valuation: Move insurance for your household goods

Realtor:    A Broker who subscribes to the Realtor network

MLS:         Multiple Listing Service: proprietary real estate listing database

 

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MOVING TIPS

The 3 Phases of a Successful Move

 

1] Properly research the new destination before you decide to move. Understand your financial and social impact to you, and download the free assessment form. Stressed Out by Moving

 

2] Learn about each step of the move process to get your move started in an organized way.

 

3] Manage transition and stress from the very beginning. Each family member needs to be fully engaged throughout the entire move to properly assimilate into their new environment.