Relocation aggravation: Housing mess creates hassle

Date: June 15 2008
Source: Pittsburgh Tribune-Review
Website: http://www.pittsburghlive.com/x/pittsburghtrib/business/s_572829.html

Jessica Holcomb prepared for a new job, a new company and a new part of the country. What she wasn't prepared for was a low-ball home appraisal and high closing costs involved in her relocation.

"I had to come up with $80,000 in down payment and closing costs between the two homes," said Holcomb, 30, who left her hometown of San Antonio, Texas, for Pittsburgh and a job at Carmeuse North America a few months ago

"Had the company not hired Aires -- American International Relocation Solutions -- to help me with every part of the move, paid for two months in an apartment and the clincher -- agreed to pick up $14,000 in closing costs, I couldn't, wouldn't have taken the job."

Holcomb's situation isn't unique. The nation's ongoing housing downturn -- falling home prices and ultraconservative home appraisals by lenders -- has applied the brakes in the $32 billion business of corporate executive relocations.

While Western Pennsylvania's home prices haven't plummeted like those in cities such as Detroit, Las Vegas and Miami -- where prices are down as much as 25 percent -- relocation experts agree that the housing mess is impacting executives moves, whether executives are coming or going.

"We've had people turn down promotions because they didn't want to take a big loss on their home," said Jeff Wangler, vice president of Findlay-based American International Relocation. The housing downturn is causing many companies to rethink their relocation policies, he said.

"It's the No. 1 issue domestically for the relocation industry," said H. Cris Collie, CEO of Worldwide ERC, an Arlington, Va.-based relocation industry grade group.