I’m a Real Estate Expert: 4 Money Mistakes You’re Making When Planning a Move
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
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Planning a move is filled with stress and can end up getting pricey. If you’re not careful, you can spend way more money than planned and fall into some serious financial pitfalls.
GOBankingRates spoke with Yosef Adde, a real estate investor with a background in finance and owner of I Buy LA, to discuss some of the money mistakes you may be making when planning a move.
Here’s a detailed look at common ways people waste money during a move and how to avoid these financial missteps.
Opting For the First Moving Company That Comes Up
According to Adde, most people end up losing a lot of money when moving because they simply pick the first moving company they can find. They go with the first quote that they are given without shopping around, and in some cases, they don’t verify a company’s legitimacy or whether it is registered. And that could end up costing them in the long run.
“For this reason, it is advised that they obtain no less than three estimates and provide proof of moving operation as well as engagement,” he said.
Not Taking Advantage of Off-Season Moving Rates
“It is a fact that the majority of the masses are selective when it comes to when they want to move,” Adde said. He explained people usually decide on the last weeks of the summer months and also the last weeks of the month.
To lower costs, you can try moving during off-peak seasons and times to get lower moving rates.
Not Decluttering Before Moving
Adde also noted that transporting items that either are not necessary or haven’t been used in awhile has the opposite effect of saving money.
“And ends up wasting money due to paying for the additional space, packing and transport fees,” he said. “So there is no substance in paying for anything extra when one can reduce expenses significantly by using a declutter strategy and donating or selling valuables.”
Not Looking Into Tax Deductions
According to Adde, some people may be be eligible for tax deductions for their moving expenses. Under the Tax Cuts and Jobs Act, most taxpayers do not qualify to deduct moving expenses from their taxes (though some military personnel is an exception). However, per H&R Block, that law is applicable only through 2025. If you’re planning a move after that, be sure to look into current tax laws and examine all your tax options.
Adde explained that many people tend to overlook keeping receipts and any detailed documentation of moving expenditures. These, he said, could result in some tax savings for those who qualify when it’s time to file taxes.
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