When you consider selling your Minneapolis house, be sure you know how much it will cost you to hold the property. Keeping the property might cost you more than you are aware. This post takes a look at the most common holding costs homeowners face when trying to sell their homes in Minneapolis.
Holding costs can quickly eat away at the sale price you will eventually receive for the home. 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 Minneapolis house can take months, resulting in potentially thousands of dollars you will have to spend. However, when you sell your house directly to Fast Cash Homes MN, the holding costs can be eliminated on only a matter of days!
Mortgage Payments
The most obvious expense is the monthly mortgage payment. If you own a home you’re not happy with or if you are paying a loan on an underperforming 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 money you could be spending on a new property instead of the one that’s no longer working for you.
Utilities
Whether or not you are living in the home 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 home. They will likely check out the light switches and the water pressure. Of course, you can’t really show a home in the dark! Additionally, inspectors need the utilities working in order to do their job. Calculate these costs to consider into your monthly interim budget required until your sale closes.
Property Taxes
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 the hardest, due to high property taxes in those states. 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 Fast Cash Homes MN, your financial obligations to the home can end in only a matter of days.
Homeowners Insurance
Homeowners insurance is a necessary evil every homeowner is faced with. Depending on your home and policy, your insurance also eats away at your profits. For 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.
Maintenance
If you decide to list your Minneapolis house, your home 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 home. Naturally, the faster you sell your house, the less maintenance you will be responsible for.
Repairs
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, and will need to 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 Fast Cash Homes MN, all expenses are covered. Repairs and all, we buy as-is.
HOA Fees
If your property is located in a private community, you’re faced 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 Minneapolis 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 in the thousands. This can severly alter how much you are making on the sale. When selling your house in Minneapolis, don’t forget to account for the holding costs.
Make sure to be aware of alternatives, and be sure to find out how a direct sale of your property will benefit you!