What to Consider Before Moving to a New State Maryland

Moving is almost always a challenge, but moving to a new state can be even more complicated. Here’s a look at some common reasons for interstate moves and factors to consider when planning your relocation.

Homeowners typically decide to move from one state to another for one of three reasons: a corporate relocation, a new job or retirement. Each of those reasons involves different criteria and considerations in the decision-making process.

Corporate plans pay moving expenses
Corporate relocations typically involve a transfer to a specific state that's dictated by the employer. But a job in one state needn't necessarily preclude a personal residence in another state, especially if the office is near the state border. For example, the south side of Charlotte, N.C., is not far from South Carolina, which has lower taxes and housing costs.

Corporate relocation plans vary, but some employers will pay for one or more house-hunting trips, moving expenses, costs associated with the sale and purchase of your home, and basic living expenses while you're in-between residences.

Discounts, rebates can cut moving costs
Relocating to a new state without corporate reimbursement can be costly, so you'll want to shop around for discounts and rebates that can reduce your out-of-pocket expenses. Some membership clubs and warehouse stores offer rebates or preferential prices on real estate, mortgage and long-haul moving services.

If you decide to move across state lines to take a new job, you should research the local job market: If your new position falls short of your expectations or your company is down-sized, merged, acquired or closed, will you be able to find work near your new home or will you be unemployed in a place with only limited job opportunities?

Retirement is the primary reason why people voluntarily move to another state. Some choose to move closer to their relatives; others head for warmer weather. Considerations for retirees often include the tax structure and cost of living as well as access to top-rated or affordable medical care.

Here are some other issues to consider:

Schools. If you have school-aged children, the quality of the state's public or private schools likely will be the most important criteria in your decision of where to live.

Taxes. State income, property, sales and other taxes are well worth researching before you decide to move to another state. Some states have a very low tax burden; others will take a large bite out of your budget every year. Business owners may need to research state business taxes and costs as well.

Costs of living. Major categories of living expenses such as housing, transportation, food, clothing, recreation and utilities also vary from state to state. For instance, some states have high winter heating costs while others have high summer cooling costs. If you'll need to own a car rather than rely on public transportation, add the cost of the car, plus maintenance, license fees and insurance to your budget.

Weather. Climate is both a quality of life issue and a financial consideration. Bitter-cold winter weather keeps people indoors and increases costs for utilities, clothing and maintenance of your home and vehicles. Very hot summer weather also keeps people indoors and increases utility costs. Temperate climates may have much more expensive housing costs. (Some climates are plagued by annoying species of insects as well.)

Disaster risks. Severe weather like snow or ice storms, hail, floods, tornados, hurricanes and brush fires are other risks that vary from state to state. And at least one type of natural disaster--earthquakes--can happen in any sort of weather. Some of these risks can be mitigated with specialty insurance. It’s worth looking into what type of special insurance you may need before you move to a new state.