Common Mistakes Consumers Make When Moving
By Janet Friesen – Browning / United Van Lines
- Don’t wait until your home is sold before preparing move quotes. It is recommended to start preparing moving quotes as soon as you put your house on the market. In our current market, homes are taking longer to sell, but once sold are closing very quickly. You need time to research your movers in your area and obtain a visual survey. There are also rate changes for movers due to fuel surcharges and seasonal rates. Movers can guarantee their rates for 60 days. Many times, you can save money if obtaining the survey prior to their rate changes.
- Getting a quote over the phone or Internet. The internet provides us with so much information at our fingertips. Be careful in understanding the difference
between a mover and a broker. A broker is a company that arranges for the truck transportation to others, utilizing for-hire-carriers. Brokers do not assume responsibility for the cargo and usually does not take possession of the cargo. The internet is a wonderful tool for finding a moving company in your area but not a safe was to schedule your relocation.
- Know who you’re doing business with. If your paperwork or estimate doesn’t
look right or one mover gives you a price significantly lower than the others, it might be in your best interest not to do business with that mover. Movers are basing your rates upon the “actual weight” of your shipment. If a mover provides you with a low-ball estimate, several things could happen. As the driver arrives to load you and identifies this “significant” error in weight, he can refuse the shipment and the local agent will have to pick your goods up and shuttle it to their warehouse or they will attempt to obtain additional funds from you. If the driver does pick your shipment up and the weight is wrong, you can also be forced with an overflow due to not enough space in the van. An overflow of items will also be re-handled and could take extra weeks for final delivery.
- Paying a deposit. This is definitely a red flag. Reputable movers will not ask for
deposits up front. Remember if you make a deposit and change or cancel your move, you may not get your deposit back. There are two ways of paying for your move. You can either pay with a credit card which would be charged 24 to 72 hours prior to your move date, or you can pay by cash, certified check, or money order to the time of delivery.
- Understanding Valuation. Understand the basic liability that the moving
industry has is .60 per pound per article. Movers will provide you with options
for “replacement” valuation for your goods in transit. You need to follow up with your current home owners policy and verify what they will cover. Many home owners policies already cover fire, theft, and collision while in transit, but my not cover “physical” damages.
On July 26, 2008 Congress passed the Economic Recovery Act of 2008 (P.L. 110-289) where the federal government attempted to stimulate the housing industry by passing tax legislation (the Housing Assistance Tax Act of 2008) giving certain benefits to new home owners. The legislation provides a taxpayer the opportunity to receive a tax credit equal to 10% of the purchase price of a residence provided that the purchase meets the following:
1. The purchase must be for a first time homeowner which is further defined as a purchaser who has not owned a house for the previous 3 years.
2. The purchase must be for taxpayer’s principal residence.
There are several restrictions on the purchase which includes the following:
- The maximum amount of the credit is 7,500.00
- The income levels are restricted according to the following. For single individuals the full amount of the credit is available to those who make less than 75,000.00. Married couples who file joint tax returns are not restricted provided that their income does not exceed 150,000.00. There is a phase out for modified adjusted gross income for ranges within 20,000.00 of the maximums amounts reflected earlier.
The credit actually works like a loan, in that it must be repaid. The rules for repayment include the following:
- The taxpayer must pay an additional 500.00 per year for a period of up to 15 years if needed to repay the full amount of the tax credit taken originally.
- If the principal residence is sold before the tax credit is repaid then the remaining balance must be satisfied
- If the property is sold at a loss the remaining balance is forgiven.
The legislation allows a taxpayer to make use of this opportunity until they expire July 1, 2009