What is "relocation assistance?"

[mookie]

As some of you might already know, DH and I are conisidering a job transfer from Chicago to Colorado. His company has also mentioned offering relocation assistance. This mightbe a stupid question, but what exactly is it? Do they just help you find a house, or do they help you move and do they help you sell your home? Do they pay for all of these expenses?

Can you tell I'm new at all of this?

 

[CEDmom]

It means different things in different companies and in different situations. In my company they've done as much as covering all closing costs and moving expenses plus a few trips to work with a relocation specialist in finding a home, getting kids settled in school etc. They've also done as little as give just a flat $ amount that wouldn't cover much more than moving expenses. You really need to ask for specifics.

 

[disney4us2002]

I'm sure it depends on the employer. I had a friend move out of state and they paid realtor fees on the sale of their home and closing/deposit fees on their new home as well as for packers/movers and storage until the new home was ready. I think too they paid the rent until they actually found their new home. It was quite a sum of money.

 

[golfgal]

I agree, it really depends. Sometimes it means they will buy your house, pay closing costs on a new one, pack and move your stuff, hook up your utilities at the new house, etc. Other companies it might be just packing and moving your stuff. Some companies might send you a booklet from the chamber of commerce in the new town and call it "relocation assistance".

 

[EthansMom]

The company might pay for some or all of the following: movers to move your belongings and autos, your travel expenses, storage of your belongings while you buy a house, temporary living while you buy a house, meals during travel, moving your pets, closing costs and/or realtor commissions when selling your present home, closing costs and/or inspections when buying a house... With his current job, my DH got all of that and the company paid the points on our new mortgage to buy down the interest rate and provided "gross up" (you have to pay fed & state taxes on much of this stuff -- "gross up" is when the company pays for the stuff AND gives you enough money to pay the taxes too).

The downside with relocation assistance is that you'll have to sign a document agreeing to repay the relocation money if you leave the company within a certain amount of time. With some companies, it's one year and with others it's two years.

Edited to add: Make sure you get the details of the "relocation assistance" in any offer package. A good relocation package could save you thousands of dollars. (On our last move, I think the relocation package ended up being on the order of $25-$30k.)

 

[PlutoPony]

Agree that the amount and type of assistance varies greatly so you'll have to get details from the company. But even if the package isn't for a lot of money, they may give you assistance that's very valuable; for instance they may not pay for your move but they will give you a connection to a preferred mover at their corporate rate. That can be a big help! In general companies seem to be cutting backing the $$ they offer in relocation assistance so having a package at all may be a big deal!
One other thing to remember - the assistance given is considered taxable income (like paying closing costs, etc.) and I think will show up in a W-2 statement. The REALLY generous companies will also pay the taxes on this additional income using some calculation. If yours doesn't, just make sure you're not surprised for your tax bill next spring.
Good luck!