When you are thinking about selling your Kansas City house, be sure you know the costs to hold the property. 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 homes in Kansas City
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 Kansas City house can take months, resulting in potentially thousands of dollars you will have to spend. However, when you sell your house directly to Chris Buys Homes in Kansas City, the holding costs can be eliminated on only a matter of days!
Mortgage Payments
The most evident expense is the monthly mortgage payment. If you own a home you’re not satisfied with or if you are paying a loan on an underperforming rental property, the substantial mortgage payment can be a financial burden each month. Your mortgage is undoubtedly at least a few hundred dollars a month. This is money you could be allocating towards a new property instead of one that no longer meets your needs.
Utilities
Whether or not you reside in the home while it is up for sale, it is necessary to ensure that the utilities are functional for any potential buyer who may want to see the property. They will likely inspect light switches and assess water pressure, which cannot be done if the utilities are disconnected. Additionally, showcasing a home in darkness is not ideal. Moreover, inspectors require utilities to effectively perform their tasks. Although your utility bills may be lower if you are no longer living in the home, you should still anticipate monthly expenses in the range of a few hundred dollars.
Property Taxes
Property taxes can accumulate rapidly, particularly in states like New Jersey or California where high property taxes are prevalent. These costs can significantly diminish your profits, especially when they must be paid until the closing date. Traditional buyers often extend the closing process due to lender-related complexities. However, when selling directly to Chris Buys Homes in Kansas City, your financial obligations to the property can be concluded within a matter of days.
Homeowners Insurance
Homeowners insurance is an unavoidable expense for every homeowner. Depending on your home and policy, insurance costs can swiftly reduce your profits. As long as you are listed as the owner, you bear responsibility for insurance expenses. Furthermore, it is important to note that insurance premiums for rental properties tend to be higher than those for owner-occupied properties.
Maintenance
If you decide to list your Kansas City house, routine maintenance work is inevitable during its presence on the MLS. A useful guideline is to set aside approximately 1% of the property’s value each year for routine maintenance and minor repairs. This way, you are not taken by surprise by unexpected costs while trying to sell your home. And remember, the quicker 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 possibility of major repairs being needed while you are waiting for a buyer. For instance, the roof might start leaking or the hot water heater may malfunction. Such issues can be costly but should definitely be addressed to attract more buyers. It is advisable to have an emergency fund set aside to handle such expenses so that you are not left with a damaged property while attempting to sell it. When you sell directly to Chris Buys Homes in Kansas City, all expenses are covered. Repairs and all, we buy the property as-is.
HOA Fees
If the property is situated within a private community, you will be obligated to fulfill homeowners association dues until your status as the owner of the house changes. HOA fees can vary significantly depending on your specific community and may experience rapid fluctuations. It is crucial to consider these costs when the time comes to sell the property. These expenses are often overlooked during the selling process.
As a homeowner in Kansas City who intends to sell, it is essential to remain mindful of all the holding costs involved. When you tally them up, the total amount can easily reach thousands of dollars. This can significantly impact your overall profit from the sale. When you decide to sell your house in Kansas City, it is crucial to factor in the holding costs. Additionally, make sure to explore the benefits of a direct sale of your property, as it may offer you significant advantages.