Where the Jobs Are

It’s not just the overall average size of the new American homes that are shrinking – down to 2,377 square feet last year from 2,438 square feet the year before, according to the National Association of Home Builders – but the stuff that goes in it, too.

If there’s not much work in your neck of the woods, maybe it’s time to consider relocating to a market where the hiring rate is higher and job prospects are more plentiful.

According to the U.S. Bureau of Labor Statistics, America’s unemployment rate fell to 8.2 percent in March, down from 8.5 percent at the end of 2011. Further, the economy has added more than 600,000 jobs in the first quarter of 2012, according to the BLS.

Assuming you’ve researched a new location and its employment possibilities carefully, don’t be too quick to pull the trigger on a move. Before making the major decision to uproot, it’s important to ponder other factors – including the real estate ramifications of needing to sell and buy or rent a home quickly.

While relocating to a more thriving market can offer the promise of increased income, greater job stability and possible career advancement, Claire Sheres, real estate agent with Coldwell Banker in Boca Raton, Fla., says you need to carefully evaluate housing costs, styles and availability, in addition to the cost of living (including taxes and transportation expenses) in your intended location.

If you have a home to unload, be prepared to take a loss that you should be able to make up for if you plan to purchase another residence, said Grant Cardone, CEO of Cardone Real Estate Holdings, a development company based in Los Angeles.

Additionally, it’s crucial to price your home right based on current true market value for a faster sale, Sheres said.

“Any agent can list your house, but when it’s a buyer’s market you need a first-class real estate professional on your side. Use an experienced, top agent in your area,” she says.

Delaying your relocation in the hopes that you’ll get a better price on your home the housing market improves can be a risky gamble.

“The housing market is unpredictable, so it could be a long wait,” says Gautam Godhwani, CEO of SimplyHired.com, a job-search engine. “If a jobseeker can afford to do so, it’s far better to make an investment in future success and just move to a new location. Trying to wait out the real estate market is tough, and doing so could unnecessarily set back your career.”

When it comes to choosing to rent or buy a home, explore the pros and cons of each option. Renting allows you to get familiar with an area first before committing to a major purchase. Also, it’s much easier to coordinate the timing between leaving and closing on your existing home and relocating to your leased home.

“I would always rent for the first 18 to 24 months so you can go there and put your full attention on the new job opportunity and not be distracted by the house,” Cardone says.

However, buying a home and foregoing renting can be less disruptive in the long-term. Plus, interest rates remain near historic lows, you can earn equity in your property when you purchase, and short-term leases aren’t easy to find.

Lastly, think long and hard about future employment potential prior to deciding on a move.

“Be realistic with your skill set and set your sight on a job market or community that is aligned where you have the best opportunity for employment,” says Roger Atchinson, a vice president with RELO Direct, a Chicago-based corporate relocation management company. “Research communities for companies and opportunities and be prepared to take risks, Landing a position will be easier from the destination location than being hundreds of miles away and needing to relocate, which will cause prospective employers concern over.