Ten Common Mistakes of Relocating / Transferee Homebuyers
Transferees typically move more often than other homebuyers – therefore - purchase mistakes cannot always be overcome by appreciation (equity) over time. Transferee homebuyers commonly overpay and/or lose equity in their home by:
- Working with a real estate professional who does not possess adequate knowledge of the area and relative property values.
- Working with a real estate professional who is unable to identify customer needs, recognize when those needs change, and identify a sensible process for reaching decisions.
- Purchasing without considering issues of resale.
- Purchasing the largest, most expensive or over-improved home for the neighborhood/ community.
- Purchasing emotionally for personalized decor or status - ignoring the consequences of buying an overpriced property.
- Purchasing new construction in an area that is less than 80% developed.
- Purchasing in an area inconvenient to employment centers (for transferee and/or spouse).
- Purchasing a home that does not have adequate features for the price range or has an unpopular floor plan.
- Purchasing with the intent of remodeling, extensively redecorating or reconditioning a poorly maintained property.
- Purchasing in an area that is experiencing declining value.
What Will Drive Home Values in the Future?
Think about resale when you buy your home - at the time of sale, a home becomes a commodity. Market value is determined by the amount that well informed buyers have agreed to pay today on comparable properties. The seller's investment in and/or emotional attachment to the home are not determining factors.
Terms affect price - The more liberal the terms, the higher the price the seller will obtain. The more restrictive the terms, often times, the lower the price.
Location, location, location - Convenience to employment centers, schools, transportation, as well as lifestyle opportunities, drive buyer demand.
Buyers typically pay more for new construction - At the time of resale; newer occupied homes may have to compete directly with new construction by discounting price.
The cost of capital improvements may not be fully recovered - Although future buyers may find improvements appealing, sellers seldom re-coup what they actually cost.
Deferred maintenance negatively impacts value - Buyers expect a property to be well maintained. The typical buyer will discount the value more than the actual cost of repairs.
Buyers seldom pay for the seller's decorating - The seller's decorating choices should be viewed as a cost of personal enjoyment. Neutral decorating appeals to most buyers and will typically shorten market time for the seller.
Buyers expect specific features and amenities within each price range - Buyers quickly discount the price if room spaces, quality and features are lacking for the price range. Buyers purchase based upon comparison.
Incurable defects have a dramatic impact on value - Buyers resist busy streets, unpopular floor plans, and properties that are inconsistent with the character of the neighborhood. Sellers of these properties should allow for a longer market time or price below market to sell within an average market time.
Asking price drives value - Knowledgeable buyers respond quickly to inspect a new listing. An overpriced property suggests that the seller is unrealistic, which makes buyers reluctant to negotiate. Over time, when the price is reduced, buyers lose interest or are concerned that no one else desires the property. This puts the seller at a disadvantage and can cause a below market sale price.
Full Household Goods Move - What to Expect on Moving Day
- When the movers come to do the packing, simply stand back and let them do it. They are professionally trained on how to pack every possible household item. A good idea is to designate an area of a room or a closet and mark on the door "do not pack". Place everything you would not want packed in that area.
- Remember the packers will not try to decide for you what should be packed and what should not. This includes garage door openers and keys & trash in trash cans!
- It is a good idea to unplug all electronics and place wiring and remotes into labeled plastic zip-lock bags to make set-up/ unpacking easier.
- Movers will generally not pack anything that is physically attached to the home, such as paper towel holders, light fixtures, and drape tracks. Take these down and leave out for the crew. Chemical or flammable items cannot be packed, so leave them where they are.
- The movers will leave what they cannot pack. When they are finished you can go through the house and make your own arrangements for these items.
- The driver will make a written inventory and record condition of items. These inventory sheets will be used if you need to make a claim, so it is imperative that everything is listed.
- If you do not agree with the mover’s assessment of the condition of an item, note your exceptions on the original inventory form. The driver will provide you with a copy.
- You will be asked to sign a Bill Of Lading releasing your belongings. Carefully review and keep a copy. This document outlines the moving company's limitations and liability, so do not hesitate to ask the driver any questions!
- Before signing the Bill of Lading, take a walk around to make sure nothing has been overlooked.
- Give the driver contact numbers of where you will be in transit and at the destination.
- The driver will give you scheduled arrival date and time. Often it is a range of dates, so you must be available during that entire time. If you are not present when the truck arrives at destination, your goods may end up in storage at your cost.
- The driver will give you the inventory sheets, as each box is carried into the house, the workers will call out the box numbers so you can check them off. When finished, you will sign that inventory form, so review it carefully.
- Do not sign anything until all boxes have been checked. By signing this, you acknowledge that you received everything and that you agree with the driver as to the condition of your belongings. Make a note on the form of missing boxes or damage.
- If you suffer property damage, or auto damage, note on inventory sheet and call the moving company immediately.
- Pay special attention to large oversized items wrapped in moving blankets. Often times pieces are lost such as: vacuum attachments or furniture hardware. You may want to remove those items in advance and place in zip-lock storage bags for easy access upon set-up.
- If you have requested and paid for unpacking, (check your relocation policy to see if this is covered, it may not be) it will be done by the driver the day of unloading or the day after. Movers unpack by emptying boxes and placing the items on counters or floors, in the rooms designated by you ahead of time on each box. Having movers unpack is mainly to dispose of packing materials. If you must unpack yourself, request a "debris pick-up" from your moving agent. They will only come once to pick up the crushed boxes, so be sure to schedule it once you are 100% unpacked.
- Special insurance is needed since your homeowners' policy rarely covers goods in transit. Even when it does, there may be limitations on mileage and other restrictions. As a benefit to you, your employer has made arrangements with your mover to cover “x amount value” of your household goods. Please refer to your corporate relocation policy for the exact coverage you will automatically receive.
- Items that you packed yourself cannot be included in the special insurance coverage. If you have items in boxes already, have the movers repack them.
- Even the special insurance has limitations, some are listed in your relocation policy, and some are listed here: For example, antiques, furs may not be covered. Only external appliance damage is covered. Malfunctions that cannot be traced to mishandling are not covered. Again, be sure to keep the damaged items, even if they are of no use to you any longer. If items are not available for inspection, the mover can decline liability.
- It is a good idea to obtain a written appraisal of any antique or unique items to verify value.
- If damage occurs, call the mover immediately and they will provide you with the necessary forms – many companies allow you to complete them on-line now.
- Keep the damaged items; they usually must be available for inspection by the claims adjuster.
- Sometimes you are allowed to file only one claim, and do so within a certain number of days after the delivery date, depending on each company. This is why you must unpack everything before filing a claim. If some items are in storage or you just put them in closets, please speak with the moving company about how long you have to unpack them and file the claim.
- Do not wax or oil wood furniture before moving, as it may soften the wood, making it vulnerable to imprinting from furniture pads.
- Pianos/organs must be prepared for the move by a technician, and adjusted once delivered. Discuss this with your mover BEFORE moving day. This will be an extra cost to you.
- Unplug electronics 24 hours in advance of moving so they will be at room temperature on moving day. Moving equipment with internal heat retained can cause damage. Upon delivery, wait again until items are room temperature before turning them back on.
- Pets are family, but cannot be sent along on the moving truck! You can transport them yourself in an auto or put them in proper carriers and ship on an airline, or arrange for delivery with a pet carrier service. Consider these when deciding:
- Length of trip
- Pet's age and temperament
- Some states have laws concerning entry. Contact the State Veterinarian or Animal Health Division before you move.
- If you choose the airline, they have strict instructions on carriers, blackout periods during summer months, etc. Be sure to call each airline for their policies.