The comments to yesterday's post about IBM layoffs in Dutchess County have generated some interest. Of course, Dutchess County is not exempt from troubles that face the rest of the nation. People are loosing jobs all over the country. But, for Dutchess County, IBM is THE only major employer - followed by the hospitals and medium sized colleges.
Some of these IBM employees might be able to find other work outside of the area. If they want to remain in the computer, semi-conductor or engineering fields they will most likely move away. This could lead to a rash of relocation. But, not all of these moves will be employer sponsored. Few of these sellers will be entitled to the generous relocation benefits of yesteryear.
The comment below from Kelly Sibilsky was, for me, affirmation that I should post a follow up about the state of employee relocation. Kelly commented as follows:
To add insult to injury, just a few years ago when people lost their jobs they could count on a relocation package from their new future employer which would help them in the house-selling/house-buying arena. Now, relocation packages are few and far between. This economy has definitely taken it's toll on everyone, every industry, everywhere.
I have confirmed through two very reliable sources - generous relocation packages are gone. Since I worked at a relocation company prior to entering the real estate field as an agent, I still have contacts there. I've also handled many relocation transactions as a real estate agent and have kept in touch with the happenings of the relocation company where I once worked.
It's my understanding that relocation companies are laying off many employees too. Their corporate clients have cut back on relocation packages, and therefore the 3rd party companies which oversee employee relocation have less work these days. This is filtering down to some of the relocation company suppliers too. A secretary I know was just laid off at the local law firm which handles all home sale transactions for one major relocation company throughout New York. IBM is a client for that relocation company.
I suspect many individuals who have been laid off at our local IBM plants will be left holding the bag. Kelly is so right when she stated "To add insult to injury"... When reality finally sets in about a job loss, the bigger slap in the face for some sellers will be finding out there are no relocation benefits, no buy-out and no guarantee their house will sell. Not only will they have to confront declining home values, they will also face the high costs associated with moving. I know - I paid for my last move ...$10,000 for the shipment of household goods, $13,000 in Realtor fees to get my house sold, closing costs and attorney fees on the new house. It adds up. And, that was 10 years ago when I figured I actually got by cheap at just over $30,000 in relocation expenses. A $10,000 lump sum helped towards that move but it was a huge financial set-back just to get ahead. In the end, it was the price we had to pay for a strategic career move which involved advancement, long-term growth and opportunity. A few years later. I learned that the average employee move costs a company $55,000 - and, that was 7 years ago.
For sellers who are forced to go it alone on their relocation expenses, at least the positive side is that they might be gaining opportunities where others can't. There will be some people who might not be able to find a job here or elsewhere. It's not going to be easy for many - to find a job or sell a house! I am prepared to be a good listener to many of my future clients.
At least I can say, I've been where they are - trying to sell a house and move out of town without a relocation package is NOT easy. I was lucky to have had a good Realtor who got my house sold fast. I listened and complied with all her recommendations and once I accepted the cost of things, I let reality take over so the anxiety wouldn't.
One thing that sets me apart as a Realtor when it comes to servicing these sellers, is that I can honestly say I understand because of my own life experiences.
Picture of Rail Bridge at dusk 
It was the longest bridge in the world when it opened in 1888, and it will be the longest pedestrian bridge in the world when it reopens in October 2009. A fire destroyed the railroad portion of the bridge in 1974. After 34 years of dormancy, the Poughkeepsie-Highland Railroad bridge is undergoing a makeover. Local officials and business owners hope it will bring millions of tourist dollars to Dutchess and Ulster counties each year. Click on the links below for more information.
