Experts share ways to cut moving
costs
Dallas Morning News Article
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Moving always costs more than you think, and not just because of
the unanticipated costs. "One of the single largest expenses that most of us don't
anticipate is the physical cost of moving our belongings," says Ron
Phipps, a real estate broker at Phipps Realty in Warwick, R.I., and
a liaison for the president of the National Association of Realtors.
Even if your employer is helping, you still may have to shoulder
some expenses. "Many moves, even if paid for by an employer, are being capped in
expenses or may incur some expenses not covered," says Bryan
Clintsman, a certified financial planner and head of Clintsman
Financial Planning in Southlake.
Here are some tips for cutting your moving costs:
•
Get estimates from at least three moving companies well in
advance.
Ask your friends to recommend moving companies they have been
happy with and check out the companies' records with the Better
Business Bureau of Metropolitan Dallas.
"When moving locally, it's done on an hourly basis," says Richard
Eschbacher, president of Suddath Relocation Systems in Dallas, an
agent of United Van Lines. "When moving interstate, the cost is
based on weight."
•
Know your rights.
Movers must give you an estimate in writing. Insist on a binding
estimate.
"The single most important thing is to make sure that they get a
guaranteed, written, not-to-exceed estimate," Mr. Eschbacher says.
Be sure that the estimate has all relevant shipping information,
except the actual shipment weight, and any other information
necessary to determine the final charges for all services performed.
If you agree to a nonbinding estimate, at least confirm in
writing the method of payment.
•
Nail down when the movers will pick up and deliver your goods.
"You want the moving company to guarantee a date – what day they
will load you and what date they will deliver you," Mr. Eschbacher
says. "You want a choice of a couple of days based on your
schedule, not the movers.' "
Insist ahead of time that the mover reimburse you if your
belongings aren't picked up or delivered on the promised date.
"Consider a mover with a large fleet," Mr. Eschbacher says.
"Companies with larger fleets can guarantee delivery dates.
Otherwise, you may need to stay a few nights in a hotel, which is a
hidden cost that adds to the move's overall cost."
•
Understand movers' responsibility for loss or damage.
According to the Federal Motor Carrier Safety Administration, a
mover is legally liable for loss or damage that occurs during the
transportation of goods and the delivery of services listed on the
shipping and transport document.
However, hazardous, perishable or dangerous materials, or
shipping goods that exceed the per-pound dollar amount, can limit or
reduce the mover's liability.
•
Pack the nonbreakable stuff yourself, if you want. But let the
movers pack the fragile things.
"If the mover doesn't pack it, the mover is not liable for
damage, unless it's due to negligence," says Kelly O'Connor, vice
president of sales and marketing at Daryl Flood Warehouse & Movers
in Dallas, an agent of Allied Van Lines
•
Consider purchasing some type of "valuation" insurance coverage
from the moving company, in case your goods are damaged or lost.
Moving companies are required to assume liability for the value
of the goods they transport, but there are different levels of
liability.
Valuation coverage ranges from $100 to $500, depending on how
much value you put on your goods, Mr. Eschbacher says.
•
Hold a garage sale or donate to charity.
"The best way to save money is to reduce the volume of the weight
you're shipping," Mr. O'Connor says. "Get rid of the stuff you
haven't used for years."
•
If you're paying for your move, take advantage of tax breaks
associated with moving expenses.
"If you moved because of a change in your job location or because
you started a new job, you may be able to deduct your moving
expenses if your move is closely related to the start of work," says
Phil Beasley, spokesman for the Internal Revenue Service in Dallas.
But you must meet IRS requirements for distance and time. You new
job location must be at least 50 miles farther from your former home
than your old job location was. See a tax adviser for details.
If you meet the IRS requirements, you may deduct the "reasonable"
expenses of moving your stuff. You may also deduct the expenses of
traveling, including lodging. However, you can't deduct meals.
•
When it comes to buying your new home, make sure to account for
extra expenditures other than the actual cost of the house.
"If you're buying a $250,000 house and you put down $50,000 and
you think, 'All I need is $50,000,' you need more than $50,000 for
all of your ancillary expenses like closing costs," says Mr. Phipps,
the real estate broker.
Finally, take the process one step at a time and realize that
there's also an emotional component to moving.
"Transitions by definition are very hard," Mr. Phipps says. "The
process is daunting. It takes longer ... to move stuff than you
anticipate."
