A company relocates to a commercial mecca such as Dallas/Fort Worth or transfers executives to its Bay Area hub. These highly-skilled workers are filling much needed positions in the high-tech, finance, info-tech and bio-tech fields, but what kind of housing will they find when they arrive? Will their new home be more than their salaries can afford?

What happens when these human resources arrive and discover their housing costs are double, triple or quadruple what they left behind? Some companies are already having trouble getting certain executives to move to high-cost relocation centers, as highlighted in a June telecast of "20/20." They don't want to give up their spacious five-bedroom homes on golf course or lakeside lots to live in a small, modest three bedroom home in Silicon Valley.

What happens when these new workers arrive and discover their housing costs may double, triple or even quadruple? Some unprepared transferees head back home after wasting a lot of company time and expense. Others flounder for weeks trying to adjust.

In Dallas, many transferees arrive expecting ranch-style homes on sprawling acreage. They are surprised to learn that homes are built at high costs on relatively small lots, except in developing areas further away from work centers. Plano, a top 10 national relocation destination, has the second highest cost of living in the state of Texas.

Petey Parker, relocation director for Dallas-based Ebby Halliday Realtors, says, "The first thing we have to do is educate the human resources personnel of incoming or expanding companies that markets change, and sometimes rapidly. If the HR manager arrived two years ago when houses were 15% cheaper than they are now, they don't know what is happening and they give the wrong information to transferees. Then we are the ones dealing with unhappy campers. Our job is then to educate the transferee about our housing market. All houses aren't like TV's Southfork."

One company in California, Security Pacific, is combating the problem by offering a free service by its local real estate experts to prepare and educate transferees before they make their big move. California residents moving out of state also benefit through knowledge of this national relocation service.

Ilene Clancy, relocation director of Security Pacific Real Estate Services of Walnut Creek is careful to put the right real estate professional with transferees. She says, "Our relocation agents spend a great deal of time customizing the relocation package for each client. It's not always the high-end, top producer who is the right candidate for the job. I look for sensitive, professional agents that have the extra time to spend orienting and educating transferees about different Bay Area communities"

"The major considerations that we take into account for relocation planning are schools, commute, price and quality of life," Clancy explains. "Quality of life varies the most. Some people's major concern will be crime statistics, while another's will be proximity to outdoor activities."

"We're not miracle-workers. We can't change the reality of the Bay Area housing market, but we can keep prospective transferees well-informed of the costs associated with their move."

Published: July 18, 1998

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