One guideline to work with is to make the new hire financially “whole.”
- Customary & reasonable costs in selling home:
- broker’s commission up to 6%
- attorney’s fees
- documentation costs
- transfer taxes paid by seller
- 6-12 months’ temp. living costs not exceeding candidate’s previous cost of living
- lawn or other upkeep for present house
- 2-3 house hunting trips, with accommodations, for candidate & significant other
It is reasonable to expect a minimum tenure in return for a relocation package. This can range from 6-18 months. Portions, or all, of the package can be subject to return during cut-off points within that tenure.
- All moving expenses for goods, vehicles (including boat), pets, etc.
- Incidental costs of moving, such as phone installation, auto registration, etc.
- Up to 2 points on the purchase of a new home commensurate with old one
- Non-recurring closing costs (legal fee, title search, etc.)
- Since relocation money is considered income by the federal government, a tax “gross-up” fee of 39% of the total keeps a candidate financially “whole”
- Sometimes this package is on “pay as you go” basis, sometimes it’s a lump sum