DRRC Winter Business Meeting

As individual members of the Detroit Regional Relocation Council Relocation America attended this year’s DRRC winter business meeting on March 7^th. The theme for our meeting was Destination Detroit: Economic Impact for 2012.   Our very own Stuart Elsea, President of Financial Services, Real Estate One, Inc. was one of three distinguished speakers who participated on a panel of experts.  Joining Stuart on the panel was Peggy Black, President of the Michigan Economic Developers Association and Maureen Krauss, Vice President of Business Attraction for the Detroit Regional Chamber of Commerce. 

Top Apps For Travelers And Expats

When you travel or live overseas having the right tools becomes essential to completing your daily tasks. While you may be familiar with resources such as guide books and maps, I wanted to share with you some applications that might make for less stressful travel/living.

With thousands of applications available to download, finding the right applications can be a challenging, so after some research, here is my list of the top applications for travelers and expats. 

Year-End Real Estate Market Trend Report

Below is a link to this year’s edition of the 2011/2012 Year-End Real Estate Market Trend Report. Special thanks to Real Estate One for putting together this comprehensive and easy to read report.

In 2011, Southeast Michigan enjoyed one of the most active residential real estate markets in the country in terms of number of homes sold or leased as well as the first stirrings of appreciation.  It is expected this trend will continue into 2012, enjoy.

http://www.realestateone.net/MyWebLinks/FlipBook/REO/index.html

 

 

Safety thru Common Sense

The attached post was prepared by Ralph Newkirk, Foreclosure Division Manager for Real Estate One, our sister company.  In his post, Ralph makes some great points regarding staying safe while inspecting vacant properties.  I thought I would re-post it to the Relocation Review since his advice is solid and applies to both agents that list corporate inventory and Relocation Directors. 

Time and distance tests

Moving expenses incurred by a transferee, within 12 months of starting work in the new location, may be qualified moving expenses. The transferee would need to pass both the time and distance tests as set forth by the IRS. 

Low appraisal, What to do?

A low appraisal value can torpedo any home sale transaction. Both buyer and transferee have already agreed on a price and the buyer is busy choosing colors when suddenly the lenders appraised value comes in much lower than the sales price.

This scenario has played itself out countless of times in many home sale transactions but who really is to blame and what can you do about it?

Google maps update

A recent update to Google Maps is putting an end to the inconvenient process of searching and re-searching for directions online.

In the past this scenario would play out frequently.  Your transferee is researching directions/destinations for his/her home finding trip.  They need to walk away from their computer for a time and when it comes time to actually heading out; the directions that were previously searched are gone.  What this means is having to search again for the places/directions and then remember which route was the preferred one.

Google is taking care of this behavior with its update.

Tax gross up 101

What is tax gross up?  A tax gross up means the company has increased an employee’s pay, bonus, or any other taxable income so the employee doesn’t actually pay his/her own (estimated) tax. If they are told they are getting a million dollar bonus, the tax gross up means they actually get a check for $1 million after taxes.  As most relocation costs are considered income to the transferee and subject to tax, tax gross up has the potential to greatly increase a corporation’s relocation cost.

Tax gross up is a legal business practice. If it is not done correctly, it can result in an audit and can bring adverse affects on your transferring employee and your corporation. An incorrectly filed tax gross could mean employees might have to file a tax extension. In some cases, they might need to file an amended tax return owing to wrong W-2 statements.  It’s advisable to hire services from a third party relocation management company that offers gross up tax assistance. 

When your transferee becomes a landlord

What to charge for monthly rent can be quite a challenge for those transferees that have never been a landlord.  When the property rents out too quickly it often indicates you are not charging enough for rent .   Setting it too high and the home will sit vacant.  So, how does your transferee go about setting a rental rate that is in line with the current market?

If your transferee is considering hiring a property management company to handle all operations and maintenance of the property, they can provide him/her with fair market value rents in the area which will illustrate the correct rental rate to charge. Some individuals prefer to do the research themselves first, regardless of the eventual outcome.

A great place to start is the Department of Housing and Urban Development or HUD.  Their website www.hud.gov contains information on Fair Market Rents for the 40th and 50th percentiles.  What does this mean?  Well, it is basically the rental dollar amount that 40% (or 50%) of the rents are below. Most areas will use the 40% mark, while larger metropolitan areas will fall into the 50% arena.  There are other websites that allow you to type in a city or county and receive basic rental rates for that region. This, of course, is very generic information, but it will give you a broad idea of where rents in your area stand.  Websites such as rentometer.com, rent.com, craigslist and rentals.com are quality resources for researching local rental rates.  Be sure to compare “apples to apples” when it comes to your property’s location, square footage, bedrooms and bathrooms.

Select a few homes that closely resemble your property from the best websites, and contact the owner or management company directly. Below are a few things to ask to make sure the home’s rental rate isn’t priced too high for the location. 

Are you underinsured?

“What is carrier valuation?” Carrier valuation is a declaration by the transferee (person being moved) of the maximum amount of the carrier’s liability in the event of a transit-related loss or damage of their household goods.

Valuation is not insurance. In other words, valuation provides a certain level of protection for loss or damage caused by a carrier while the shipment is in the care, custody, and control of the carrier. The amount of coverage is predetermined by the transferee prior to the move and may not be sufficient in the event of a loss.

WHAT DOES IT COVER?

When you move, your personal property is loaded onto a moving truck. While most moves go smoothly, accidents do happen and some items may be lost or damaged during shipment.  Prior to the move a carrier representative will discuss with the transferee the amount of liability the carrier is responsible for in the event of loss or damage. At the time of the move a descriptive inventory list will be developed by the carrier and the transferee. This list includes the count and condition of the shipped items when they come into the care, custody, and control of the carrier. At times the transferee may have certain items that carry a higher value than normal such as artwork, jewelry, collectibles etc….

Rick Bruce, Regional Director of Business Development for Corrigan United Van lines, recommends any items of high value such as jewelry, coins, and iPods, be moved personally by the transferee.  If the transferee is unable or unwilling to do this, then these items must be recorded and reported on a special form called the high value inventory form (here is a sample).  “The determination of the value of the transferee’s entire shipment is a very important part of the moving process” he says.  The amount of coverage needed is pre-determined by the transferee prior to the move.