Understanding and navigating today’s mobility market can be challenging. Here’s what you need to know.

Navigating the cross currents of talent mobility and ever-shifting real estate market conditions stands firmly among the most complex parts of any mobility manager’s job. Today’s imbalanced market gives home sellers the upper hand in most U.S. destinations and is creating a unique set of challenges. The collision of persistently higher interest rates with low inventory and soaring prices sets the stage for a clash between demand and supply that makes red hot commodities of homebuyers’ time and money.

How to adapt

With home prices increasing quickly and regular homebuyers having to compete with investors for limited inventory, mobility managers should think about ways to help relocating homeowners with purchasing homes at destination.

First, think about the time it takes. Today, it’s normal for buyers to make offers on multiple properties before getting one. Since the housing market can make it take longer to buy a home, mobility managers might need to change or improve their policies to give extra help. Some changes could include:

• Shifting focus from coverage of duplicated housing expenses to extended temporary living support at destination.
• Providing additional home finding trips and/or extending allowable length of stay in the destination location.
• Extending the time limit on use of home purchase benefits so buyers can assimilate to the destination market and negotiate with knowledge and confidence.
  

Next, think about the money. More time to buy a home can also mean more costs, so mobility managers should look at how money is being used in their mobility policies. Depending on how generous the program is, changes can often be made without increasing the cost. Here are some changes to consider:

• Making cash-based benefits available earlier in the move process to improve the negotiating position of homebuyers who need to offer competitive down payments, earnest money or escrow deposits.
• Allowing reasonable coverage of multiple purchase appraisal and inspection fees knowing that buyers may be more likely today to face purchase contracts that fall apart before closing.
  
• Front-loading any applicable allowances for increased cost of living or housing to prioritize help with the shock of entering a high-cost market rather than gradual assimilation.

The best mobility policies work well no matter what the market is like. Right now, with the market favoring sellers, it might be better to make small changes that are added as temporary updates to the policy. This way, long-term changes aren’t created and mobility managers can stay in control. No matter the market, it’s important to make sure employees use the preferred brokers and lenders. These professionals can help buyers deal with the special challenges of their destination market, like time and budget limits.