In the real estate industry, holding costs, or carrying costs refer to the expenses a property owner needs to incur of any type until he/she decides to sell the property to another party. When you think “I need to sell my house South Florida“, these holding costs can be a real menace, significantly eating away at your sale price and hence eventual profit margin, depending on how long your home is on the market. In pursuit of looking for the right buyer or right price, these costs could be cleaning the inside of your pocket without you even knowing it. In this post, we will explain and estimate the most common holding costs Florida homeowners incur. If you are an individual looking to sell your home or have had your property on the market for months and cannot afford to bear the holding expenses; Find out how selling your home to a reliable investor like Your Trusted Home Buyer can help you eliminate the financial obligation in a manner of days rather than months!
As of October 2020, the Florida median home price was $262,291. Using this data, a mortgage payment on a home with the same price tag (assuming a 20% down payment) would be $1,515 (inclusive of all tax) over a 30-year period. This is a hefty sum to continue paying while your home is listed on MLS. by selling your home to Your Trusted Home Buyer, you could be saving thousands of dollars, by closing in as little as one week, and receiving a fair, direct cash offer.
Florida’s average real property tax is 0.98%, and the average Florida homeowner pays around $1752 a year in property taxes. This figure will vary across counties. Like all other holding costs, you are responsible to pay them until the final date of closing which could be months, given the process of working with traditional buyers and the bank’s red tape.
This year, Florida’s average cost of utilities per month was $300. This figure is inclusive of electricity, internet, cable, natural gas, and water. Utilities are an unavoidable expense, even if you vacate your home. Selling traditionally means your home will go through several open houses and inspections, which require all utilities to be functional. Not to mention the expense of getting your property thoroughly cleaned for said events.
Repairs and Maintenance
Your home will need to be pristine if you are looking to sell via MLS. That repair you have procrastinated on and looked to postpone? Finally needs to be done. Furthermore, there is always the risk of a major repair needing to be done while you are looking for a buyer. By selling to Your Trusted Home Buyer, you do not need to worry about repair costs- we buy the property as-is.
Home Owner Association (HOA) fees
On average, HOA fees can vary between $200-$300 per month. Even if you vacate your property that is yet to be sold, the association can continue to charge you for the facilities even if you are not using them.
The expenses listed above are some of the most common carrying costs a homeowner will continue to pay while looking to sell his/her home. These are close estimates, and while these figures may vary for you, the point to be noted is that you are potentially spending thousands of dollars a month to hold the property while you look for a buyer, which will chip away at your sales price.
At Your Trusted Home Buyer, we are a group of local homebuyers who can help you. We buy houses South Florida and all cities in Florida. You can sell your house quickly and hassle-free, all while making you a fair, direct cash offer. Here we prioritize you over the final price! If you are looking to sell your house and avoid these holding expenses, visit our website and get a cash offer on your house in a matter of minutes!