Be sure to know the costs to hold a property in Northport if you are thinking about selling. Keeping the property might be costing you more than you think. In our latest post, we take a look at the most common holding costs homeowners face when trying to sell their house in Northport.
Holding costs can quickly eat away at the sale price you will eventually receive for the house. As long as your house is on the market, there are a number of costs you will be responsible for. When selling your house to a private buyer who requires financing, the process to sell your Northport house can take months, resulting in potentially thousands of dollars you will have to spend. However, when you sell your house directly to Sell My House Now USA, the holding costs can be eliminated on only a matter of days.
The most obvious expense is the monthly mortgage payment. If you own a house you’re not happy with, or if you are paying a loan on an under performing rental, the hefty mortgage payment can be a lot to deal with each month. Your mortgage is undoubtedly at least a few hundred dollars a month. This is the money you could be spending on a new property instead of the one that’s no longer working for you.
Whether or not you are living in the house while it is up for sale, you will need to make sure the utilities are working for any potential buyer who may want to see the house. They will likely check out the light switches and the water pressure – things that can’t be done if you have turned off your utilities. Plus, you can’t really show a house in the dark. In addition, inspectors will need the utilities on in order to do their job. While your bills might be lowered if you are no longer living in the house, you should still plan on paying a few hundred dollars each month to your bills.
Depending on where you live, the taxes can add up fast. People living in states like New Jersey or California will see these costs eat away at their profits even faster due to high property taxes which must be paid. You are responsible for the taxes up until the closing date. When working with a traditional buyer, the closing can take months due to the lenders red-tape. When selling directly to Sell My House Now USA, your financial obligations to the house can end in only a matter of days.
Homeowners insurance is a necessary evil every homeowner is faced with. Depending on your house and policy, your insurance can help to quickly eat away at your profits. As long as you are listed as the owner, you will be responsible for the insurance costs. You should also keep in mind that insurance will be high for landlords as opposed to owner-occupied properties.
If you decide to list your Northport house, your house will inevitably need maintenance work while it is listed on the MLS. A good rule of thumb is to set aside 1% of the properties value for routine maintenance and minor repairs each year. This way you aren’t blindsided by unexpected costs while trying to sell your house. And remember, the faster you sell your house, the less maintenance you will be responsible for.
In addition to the regular repairs and maintenance you will likely face, there is always a chance a major repair will be needed while you are waiting for a buyer. Maybe the roof starts leaking or the hot water heater blows. Things like this can be costly but should definitely be fixed in order to attract more buyers. You should always have an emergency fund set aside to deal with such expenses so you aren’t stuck with a damaged property while trying to sell it. When you sell directly to Sell My House Now USA, all expenses are covered. Repairs and all, we buy as-is.
If the property is located in a private community, you’ll be stuck with those homeowners association dues until you are no longer listed as the owner of the house. Depending on your community, HOA fees can be high, and some can change rapidly. Don’t forget to factor these costs in when it’s time to sell. Things like this can often be overlooked when trying to sell the property.
As a homeowner in Northport who wants to sell, it is important you keep all of your holding costs in mind. When they are all added up, the amount can be thousands. This can severely alter how much you are making on the sale. When selling your house in Northport don’t forget to account for the holding costs and to find out how a direct sale of your property will benefit you.