Are you considering selling your house to a real estate agent? If so, before you pull the trigger, there are a couple of thinkings you should be aware of when it comes to working with an agent. These include the fact that agents take a long time to sell houses, charge a ton of fees and expenses, and that they’ll inevitably require you to invest lots of time and effort into cleaning/styling your house before the process is concluded. However, one of the largest inconveniences that most, if not all, homeowners face when they sell a house with a realtor is holding costs.
But what are holding costs, you may wonder. Well, to put it simply, “holding costs” (or carrying costs in real estate) are the monthly expenses that a homeowner has the pay to maintain a property. And while they may initially feel insignificant (like a few real estate taxes here and there), you’ll discover just how significant they are when you have to wait months for your agent to sell your house (which is around the average time it takes to sell a house on the open market).
Carrying the weight of the home you intend to sell can actually lead some into financial ruin. However, the more you know about these costs before selling your house, the more you can do to prevent them from consuming your bank account. To help you with this, we are going to take a deep dive into holding costs in this blog and discuss what they entail. For more information on the subject of selling houses, you may also want to read our blog about 5 Things Homeowners Don’t Know About Selling a House in Shakopee MN.
Breakdown Of Holding Costs in Saint Louis Park MN
Read on to discover what holding costs are in [marjet_city] MN and how you can go about avoiding them.
If you’re still a little bit confused about what “Holding Costs” are, we’re here to help. Holding costs are expenses that you’ll experience when you have to hold on to a house over a long period of time, that is refusing to sell. These are typically faced by home buyers who purchase a second home, while their “Old House” lingers on the market. Holding costs could mean anything from the old home’s mortgage payments, maintenance costs, taxes on the property, water and electricity bills, etc. These expenses can add up quickly when your listing sits for an extended period on the open market… And you will be responsible for paying them.
Below, we’ll explore how hiring a real estate agent, instead of selling your house directly for Cash, could result in you being buried under a mountain of holding costs.
1. Monthly Overhead
Utility bills that roll in every month like clockwork are included in the breakdown of the holding costs you will face when selling your house with a real estate agent in Saint Louis Park MN. As such, it is very important to remain aware of them, when you decide to sell your house using an agent. Selling with a real state agent usually takes 3-6 months. As such, you’ll have to pay 3-6 months’ worth of water and electricity bills, as well as any other utilities that may be functional in your old house. This can quickly escalate into an extreme financial burden as the property lingers on the market. 3-6 months is only an average estimate… selling your house with an agent might actually take a whole lot longer.
2. Insurance Costs
Homeowners insurance is another expense that will be added to your overall holding costs when selling your house with a real estate agent in Saint Louis Park MN. You’ll be required to keep up with these payments because many lenders require home insurance, in addition to PIP mortgage insurance if you still owe a balance of more than 80 percent on your mortgage note.
3. Real Estate Taxes
Property taxes wait for no man and will continue to accumulate while your house is listed. This is another expense in the breakdown of the holding costs you will face when selling your house with a Saint Louis Park real estate agent.
4. House Mortgage Payments
Your mortgage payments won’t wait for your buyer to come along. As such, mortgage payments are another expense that you’ll have to add to your holding costs when selling your house with a real estate agent in Saint Louis Park. Naturally, your lender will expect your payments to continue.
5. Cost of Home Repairs
Repairs are a never-ending theme of homeownership. In order to keep your house in good shape for the eventual sale, it’s important to maintain repair costs when selling your house with a real estate agent in Saint Louis Park MN.
6. Upkeep and Maintenance Costs
Maintenance also needs to be added to the breakdown of the holding costs you’ll face when selling your house with a real estate agent in Saint Louis Park. Maintenance must remain ongoing, especially when your home is listed and you want to attract buyers. If you’ve already moved, you’ll have to add travel expenses or pay someone to help you monitor the property and keep everything in order.
Instead, Sell Your House to FastPath Home Buyers
Read on to learn more about how selling your home fast to FastPath can save you from having to face expensive holding costs.
All of these costs can add up to thousands of dollars while your house sits on the MLS. Additionally, there is no guarantee that they will be reimbursed when your house actually does sell. So why wait any longer? You can sell to FastPath Home Buyers instead! Save yourself the time, energy, and hassle of listing your home… We offer a quick home sale with a guaranteed closing date! You can forget about the utility bills, homeowners insurance, property taxes, or mortgage payments. Repairs and maintenance will no longer be a concern.
If you’d prefer to not have to worry about holding costs at all, you should consider selling directly to our company. Here at FastPath Home Buyers, we buy houses for cash in Saint Louis Park. When you reach out to us, we are prepared to purchase your house in as little as 7 days, so you won’t have to worry about any holding costs. We also charge No Fees or Commissions… and are prepared to accept your house “as-is”, so you won’t even have to worry about cleaning your house (let alone having to Pay for Expensive Repairs).
So, what are you waiting for! Contact us today, either by calling (612) 351-2384 or by filling out the short form below, and we’ll get back to you with the highest possible offer.
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