Top 10 Ways to Cut Moving Costs

If you’re moving into a new home, your pockets probably feel pretty empty right now. You’ve just paid a down payment, closing costs and broker fees, so the last thing you want is an expensive move. Lucky for you, we’ve got tips to help you pack up and ship out on a budget.

1. If you don’t need it, don’t pay to move it.
   You know that treadmill you’ve been using as a drying rack? It’ll be cheaper to get rid of it now than it is to ditch it when you arrive at your new place. Movers base their prices on the amount of stuff you’re shipping, so cutting down on the clutter will simplify your life and lighten up the load in your moving truck.
   Start packing a few weeks in advance, keeping only what you use. Be realistic: If you haven’t used your bread machine in over a year, you probably won’t miss it. Sell those extra possessions online or at a yard sale, or donate them to charity. You’ll save money during the move and coat your pockets with a little extra cash for unexpected moving expenses.  We’re talking to you, the owner of the treadmill-turned-drying-rack. You can sell what you don’t need or donate it to charity. 
2. If possible, schedule your relocation after peak moving season.
   Most people choose to move in the summer months, when the kids are out of school. The least expensive time of year to move is between October and April, so if it’s possible to postpone your move, you could save some money.You may also get better service during the off-months. Moving companies often hire part-time or seasonal employees to cover the extra demand. That means you may get less experienced workers during the peak season.If it’s imperative that you move during the summer, the day of the week and time of the month can also affect moving fees. Movers are often maxed out on summer weekends and at the beginning and end of the month, when leases usually expire. Tuesdays and Wednesdays during the middle of the month are your best bet for rested workers and lower prices.
3. Get at least three in-home estimates.
   If you’re hiring a professional mover to do the heavy lifting and packing, prices can vary widely between companies. To make sure you’re getting the best deal possible, get at least three estimates.Be wary of companies that will give you estimates over the phone or Internet. To truly assess your stuff, a mover will need to come to your home. Show them everything that will be moved — even items in the basement, attic, garage and other storage areas.Make sure you know exactly what the estimates include. Local movers typically charge by the hour, while long-distance moves charge by weight. When you’ve had all three estimates, compare their prices. Usually two of the estimates will be very close together in price, and one will be very high or very low. You should select one of the median estimates. If a deal seems too good to be true, it probably is. That company may tack on unexpected charges on moving day or even hold your stuff hostage till you pay a hefty fee.
4. Don’t get scammed by a rogue mover.
   It’s easy to figure out why you should be wary of a scheming mover — you’ll be loading up all your worldly possessions and putting them on a truck with a few workers you barely know. At best, a moving con can cost you thousands more than you budgeted. At worst, your stuff can completely vanish. Here are some tips to find a reputable mover:Ask your friends and neighbors for recommendations. The best way to find a legitimate moving company is to ask around. If someone you know has had a good experience with a company, it’s likely that you will too. For maximum safety, request the same crew your friends or relatives used.Drive by the local office of the company you choose. Is their business well-kept and accessible? The quality of the building the company works from often correlates with the quality of its service. Be wary of companies that don’t have offices.

   Check out the company’s qualifications. Check with the Better Business Bureau. You can find out if the business is BBB-accredited, a process which requires a background check. You can also find out if there has been government action or consumer complaints against the company.

   Locate their operating license. Every professional interstate moving company will proudly display their U.S. Department of Transportation license and their Motor Carrier number on their website. If you don’t see the license number, move on to another website. You can verify the MC number at www.protectyourmove.gov.

   Another good resource is the Federal Motor Carrier Safety Administration (FMCSA), where you can check out your mover online at www.fmcsa.dot.gov. If you suspect a problem or have had your belongings hijacked, you can call FMCSA’s toll-free hotline at 888-368-7238 to file a complaint. The hotline is open Monday through Friday, 9 a.m. to 9 p.m.

   Other helpful Web sites include the American Moving and Storage Association’s Web site, www.moving.org; and www.movingscam.com, a user-generated site that maintains a “blacklist” of scam moving companies.

   Don’t get estimates over the phone or Internet. Legitimate movers need to visit your home to size up your stuff and give you a real estimate.

   Don’t pay a large deposit up front. Companies that demand a big down payment or ask for cash only likely aren’t reputable.

   Get everything in writing. If the company refuses to put everything — or anything — in writing, you shouldn’t purchase their services.

   Go with your gut. You need to be sure of a company before you wave goodbye to your stuff. If a rental truck arrives on moving day rather than a company-owned and marked fleet truck, you can still back out. It’s a hassle to reschedule your move, but it’s a bigger hassle to lose your belongings altogether.

5. Use what you have for packing, and then buy your own supplies.
   Most people forget to look for packing materials in the most obvious place — the basement, garage, and closet. You’ll probably need a few boxes to tote your stuff in, but pack as much as you can in containers you already have. Haul out your suitcases and plastic bins and fill them up. Instead of paper or bubble wrap, use your own towels, scarves or pillows to wrap breakables. This is environmentally conscious and efficient, plus your new basement won’t be filled with packing supplies.Once you’ve filled your existing containers, go the budget route for packing materials. While movers sell these, they’re often much cheaper in office supply stores. Ask your mover while they’re doing your estimate, and compare the prices to find the best deal.You can likely get boxes for free around your community. Ask local businesses about giving you their packing boxes; most stores throw away their materials after they unload the contents.

   You can also save your own bubble wrap, boxes and envelopes for your move. A little planning can help you save money, and you’ll save some boxes from a landfill fate.

   Don’t have the time to scrounge around town for boxes? Let someone else do it for you. UsedCardboardBoxes.com collects boxes that are on their way to the dump from businesses around the country. They also use some new boxes that are factory misprints and overruns. Then, they pack them into handy kits complete with tape, packing paper and markers. Select the number of rooms you need to pack up and the boxes will be shipped to you in one or two business days.

   Although it’s cheaper than buying brand-new boxes, the convenience is still going to cost you. For instance, the three-bedroom home kit costs $154 from UsedCardboardBoxes.com. The same setup would be $212 and $238 at U-Haul.com and BoxBros.com, respectively.

   No matter where you get those moving boxes, make sure to recycle them after the journey. Find a friend or fellow mover to give them to, or advertise online to find a taker. At the least, take them to the recycling center — not the trash bin.

6. Ask questions to unearth hidden moving costs.
   Even legitimate movers might not spill all the costs unless you ask. To get an accurate picture of your total, find out if the following fees will apply:Packing or disconnecting fees. Even if you’re paying for your movers to pack up your goods, some movers will charge extra if it’s more complicated than box-and-carry. As each company gives you its estimate, ask if it will charge extra to disassemble furniture or disconnect gas lines. If you’re filling the boxes yourself, the company may also charge if they decide your cartons need to be repacked to make the trip trouble-free.

   Extra fees for unusually heavy items. Companies often need extra manpower or equipment to move weighty items like grand pianos, hot tubs, all terrain vehicles or appliances. Make sure your company includes the heavy lifting fees in the estimate so the movers are prepared for the extra pounds and you’re prepared for the final bill.

   Additional cost for an inconvenient location. I f you’re moving to or from a seventh-floor apartment, the company may charge extra for all that additional cardio. More fees might also apply if movers can’t reach your home because of a narrow driveway or natural obstacle. Ask if your location will cost you extra when the estimator is at your home.

   A thumb-twiddling fee. Besides leaving you frazzled and disorganized, waiting till the last minute to pack can also cost you money. If you’re packing up yourself, you’ll need to be done before the movers arrive. Any extra time they spend boxing up your possessions will be billed at the hourly fee. Also, try to arrive at your new home before the moving truck. They may bill you while they wait for your arrival.

   If you’re moving locally, ask if you can get a larger truck for the same rate. Some local companies charge the same hourly rate for a 50-foot van and a 12-foot van. Make sure your estimator has allowed for plenty of empty space for incidentals in the van. If you’re being charged by the hour, double trips will tack unexpected fees onto your move.

   You’ll need money to move yourself, too. Don’t forget to include the costs to get yourself from point A to point B in the budget. If you’re traveling a long distance, you may need a place to stay while your belongings are en route. And don’t forget refreshments for your friends, family and movers!

7. Get portable storage and delivery.
   So you’ve made the decision to pack up and put down your roots in a new place. Maybe you’ve found a better apartment across town or a dream job across the country. Maybe you’re buying your first home or retiring to a cozy cottage in the woods. Now it’s time to decide how you’re going to get there. Before you start filling boxes with your belongings, consider which moving options work best for you.Move consultant. If the mere sight of a cardboard box leaves you feeling overwhelmed, consider hiring someone to handle the nitty-gritty of your move. These consultants are the relocation industry’s answer to wedding planners and travel agents — they can arrange for movers, pack your stuff, switch over your utilities, and transfer school and medical records. If you can swing the price tag, or if your company is ponying up for relocation costs, a consultant can make your move relatively stress-free.

   Moving company. A professional mover does the heavy lifting while you supervise. (For an extra fee, most companies will handle the packing, too.) Prices and reliability can vary widely between companies, so compare quotes from three local companies before hiring, and check their history with the Better Business Bureau or American Moving & Storage Association. If you’re on a tight budget, you can usually get a lower rate by moving during the school year, especially mid-month.

   Portable storage. Companies like PODS and 1-800-PACKRAT will deliver a storage unit to your door. (Make sure you have enough parking on your property to accommodate the unit.) Pack at your own pace; when you’re ready to move, they’ll pick it up and deliver it to your new digs. You do all the grunt work, but there are two key benefits: You can leave any excess belongings in the unit for long-term storage, and they’ll hold onto the unit if there’s a gap between your move-out and move-in days.

   Rental trucks. Renting a box truck can be a cost-effective alternative to hiring a moving company — as long as you plan ahead. A 10-foot moving truck will generally hold an apartment’s worth of stuff; a 24-foot truck can accommodate a three-bedroom house. Always err on the larger side, unless the idea of playing Tetris with your dining room set appeals to you. Read the fine print about mileage allowances and fuel surcharges, and make sure your rental company has an outpost near your new home or you may be returning to your old neighborhood sooner than you think.

   Friends and family. Free labor is fabulous, but don’t plan on hauling all your furniture in your uncle’s pickup. After the sixteenth trip back and forth, you may find yourself scratched off the holiday guest list. Enlist them for help with packing and loading instead, and expect to return the favor when it’s their turn to move.

8. Rent a truck for a totally DIY move.
   The most cost-effective moving method is, of course, doing it yourself. Renting a box truck can be a cost-effective alternative to hiring a moving company. A 10-foot moving truck will generally hold an apartment’s worth of stuff; a 24-foot truck can accommodate a three-bedroom house. Always err on the larger side, unless the idea of playing Tetris with your dining room set appeals to you.Read the fine print about mileage allowances and fuel surcharges, and make sure your rental company has an outpost near your new home — or you may be returning to your old neighborhood sooner than you think. Also, if you need to tow your car, make sure you reserve the proper equipment at the time you reserve the truck.

   You’ll need all the free labor you can find on moving day, so organize your friends and family to help. But don’t plan on hauling all your furniture in your uncle’s pickup. After the sixteenth trip back and forth, you may find yourself scratched off the holiday guest list.

   Enlist them for help with packing and loading instead, and expect to return the favor when it’s their turn to move. Organize your goods before they arrive to streamline the moving process. Also, make sure to provide them with plenty of snacks and drinks to keep them happy and hydrated.

9. Get moving insurance.
   Even with the most careful movers, accidents can happen. Though you’re paying hundreds or thousands of dollars to get your stuff to your new home, typical moving insurance pays about 60 cents per pound for damaged goods. That means if your plasma TV breaks in transit, you’ll be reimbursed about $60 — even if you paid $800 for it last year.You’ll need to buy moving insurance to get the peace of mind that your goods will be replaced if broken. First, check your homeowner’s insurance to see if it covers damages that occur in transit. If it doesn’t, consider one of the following options:

   Full value insurance. This type of insurance covers your whole shipment, so it’s the most expensive. If anything is lost, damaged or destroyed, the movers can either offer to repair the item, reimburse you with cash or replace it with a similar item. This plan puts the most pressure on movers to get your stuff to its destination safely.

   Some moving companies limit their liability for expensive items, so make sure to ask about your mover’s policy before signing up. Also, make sure you notify the movers of any expensive items in your shipment to insure that they’ll replace them if damaged.

   Released value insurance. This is typical moving insurance that covers goods for 60 cents per pound. It’s usually offered at little to no cost to you, but it also offers you little to no protection or peace of mind. If you choose to save money with the “I hope nothing gets broken” insurance policy, make sure to tell your mover. Otherwise, they may automatically charge you for a full value policy. Check your contract — you may not be eligible for released value insurance if you pack your own moving boxes.

   Third-party insurance. If you choose the mover’s released value option, you may be able to get additional coverage from an outside company. With third-party coverage your mover is liable for 60 cents per pound of damaged goods. The insurance company would pay any remaining costs.

   Need to claim your insurance benefits because your boxes are damaged or missing? Read up on how to handle loss or damage during a move.

10. Deduct your moving expenses from your taxes.
    Moving, in short, isn’t fun. Whether you pack and move your own stuff or pay someone else to do it, it takes time, energy and lots of money. Lucky for you, some of those expenses could be tax-deductible.TO QUALIFY FOR RELOCATION DEDUCTIONS:

    You must start a job within a year of your move. It is not necessary that you arrange to work before heading to a new locale.

    Your employer cannot reimburse you for the expenses. If your employer does reimburse your expenses, you must claim the money as income on that year’s tax return.

    You must pass the “distance test.” Your new job or business must be 50 miles further than your old job was from your previous home. If you don’t have a previous workplace, your new job must be 50 miles from your former residence. If you move less than 50 miles, you must prove that your move was necessary for work or that a closer home is saving you time or money to get the deduction.

    You must also pass the “time test.” Once you relocate, you must work full-time for at least 39 weeks during the 12 months after you move. Self-employed workers have to meet the first criteria, plus they must work full-time for a total of 78 weeks in the first 24 months. If you moved in 2007 but did not meet the “time test” until after the tax deadline, you can still deduct the moving expenses. You can also file an amended return in 2008 after you’ve met the time limit.

    THE BENEFITS

    If you’re eligible, you can start deducting expenses as soon as your belongings are on their way to a new town. You’ll figure your moving expenses on Form 3903.

    WHAT YOU CAN DEDUCT:

    Travel by car. If you (or a member of your household) drive to your new digs, you can deduct the cost of gas and oil — provided that you keep and document your receipts. You can also deduct the standard mileage rate of 20 cents per mile.

    Packing and moving belongings. You can deduct the cost of packing, crating and moving your stuff from your former home to your new home. You can also deduct the cost of shipping pets or cars.

    Storage costs. Once you move from your former home, any storage costs for the next 30 days are deductible.

    Lodging expenses. You can start deducting expenses for lodging the day your furniture is removed from your old house. If your family does not travel together, you can deduct expenses for one trip per person.

    WHAT YOU CANNOT DEDUCT:

    Food expenses. All the snacks, drinks and meals bought on your trip come from you own pocket.

    Moving costs for new furniture. If you buy furniture on the way to your new home, you cannot deduct the price of moving it. You also can’t deduct the cost of the furniture — no matter how good of a deal you get.

    Detours or sightseeing on the way to your new home. You’re on your own if you deviate from the most direct route to your new place.

    Costs associated with buying or selling homes. This includes closing costs, mortgage fees and improvements to help sell your old home.

    Trips other than the actual move. Costs from pre-move house-hunting trips or returns to your old haunt are not deductible.

    Always consult your tax advisor. For more information about moving expenses, read IRS Publication 521.