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
    • rent
    • utilities
    • insurance
    • 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

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