Relocating an employee isn't as simple as it once was. The current low unemployment rates coupled with the surging economy has put executive level personnel in a better bargaining position than ever. When it comes to moving to a new city, transferee demands can be high, especially where housing is concerned.

According to the results of the Employee Relocation Council's member survey, the 1997 relocating employees purchased homes through third party sources (REALTORS® and relocation companies) averaging $186,803. By contrast, the National Association of REALTORS® bi-annual survey put the average home purchase for 1997 at $126,900, a difference of $59,903.

Clearly, relocating employees can afford better homes by more than one third the price. So, what is it that they want in a home?

A recent survey of more than 325 Cendant Mobility Broker Network members revealed that the number one amenity requested by relocating employees seeking homes in new locations is a first floor master suite. According to the report, this amenity was selected as the most popular by an almost two-to-one margin over the second highest vote getter -an in-home office.

W. Bruce Wallin, president of the Cendant Mobility Broker Network, stated, "The selection of a first floor master suite by a majority of the survey participants points to an underlying trend towards increased privacy and a view of the home as a retreat, a place to enjoy family while giving parents and children separate living zones."

According to the survey, the top three amenities requested by a relocating employee, in order, are as follows:

• First floor master suite
• In-home office
• Energy savings features (i.e. gas heat versus electric heat)

Surprisingly, brokers from all four regions of the country selected the top three amenities in the same order, indicating a nationwide rather than a regional trend.

Wallin added, "It is interesting to note that in-home offices are also quickly becoming a highly regarded amenity for relocating employees. This preference reinforces what we are seeing in other parts of the population, when both flexible living situations and increasing movements toward alternative work arrangements are becoming more common."

All three of these reasons may prove a boon to the home-building industry, who can readily offer each amenity through new home builders. And, new homes can offer even more - size, builder and manufacturers' warranties, and build-to-suit requests, for only 13 percent more than the cost of a comparable existing home.

The average new home sold in 1997 was $175,700 against an existing home sales average of $154,200 by the National Association of Home Builders (NAHB) and the NAR figures. Despite well documented labor shortages and higher prices for materials, demand for larger homes continues.

"American builders are having trouble keeping up with the demand," says Michael Carliner, vice president for economics for the NAHB.

Older homes have fewer square feet, built for homeowners of different eras and lifestyles. In 1986, only 18% of new homes measured 2,400 square feet or over. In 1996, 14 percent of new homes were 3,000 square feet are greater. This is double the size of the average home built in the 1970's.

In addition, new homes can be fitted with amenities to suit the home buyer's specifications such as wiring for computers and other electronics, and offering flex space for use as a home office, nursery or whatever needs the family may have.

Many transferees are comfortable moving to new areas where they are more likely to encounter transplants like themselves. Most transferees (67%) have children, and are therefore more interested in schools, safety, crime statistics, a family-centric atmosphere, and access to parks and recreation.

With the hassles of moving, transferees don't want to deal with maintenance and retrofitting problems that are certain to be difficult and more frequent in an older home.

In response to the trend, top relocation destinations such as Atlanta and Dallas are experiencing new home building booms, while the rest of the country is expected to level off in new housing.

But new homes aren't necessarily the answer for all relocating families who want homeowner privacy, home offices, and low energy bills. There may be a high price to pay to get all those features in a new home.

The down side of new housing is that housing demands are backlogging some areas so that families may not be able to move into their new homes for six to nine months. New homes are also higher in cost in both building costs and impact fees; they may have higher taxes associated with city services and road building costs, home owner association fees, and more. New homes may also be centered in suburban communities which may require more of a commute to business centers and city amenities.

Published: January 4, 1999

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.