If you’re considering selling your house in Lehigh Valley, it’s essential to understand the costs associated with holding onto the property. The expenses of maintaining ownership might be higher than you realize. In our latest post, we examine the most common holding costs that homeowners encounter when attempting to sell their homes in Lehigh Valley.
Holding costs can quickly diminish the overall sale price you ultimately receive for your home. While your property is on the market, you’ll be responsible for various ongoing expenses. Selling your Lehigh Valley house to a private buyer who needs financing can prolong the process, potentially costing you thousands of dollars. However, when you opt to sell directly to iBuyLehigh, you can eliminate those holding costs and close in just a matter of days!
Mortgage Payments
The most obvious expense you will encounter is your monthly mortgage payment. If you find yourself unhappy with your current home or struggling to pay off a loan for an underperforming rental property, those substantial mortgage payments can quickly become a financial strain. Typically, your monthly mortgage is likely to be several hundred dollars, an amount that could be better utilized toward investing in a new property that aligns more closely with your lifestyle and financial goals.
Additionally, carrying the weight of an unwanted mortgage can hinder your ability to save for other important expenses, such as retirement or education for your children. This financial burden may also limit your flexibility in pursuing new opportunities, whether that means relocating for a job or simply seeking a fresh start. The longer you hold onto a property that no longer meets your needs, the more money you risk losing, making it all the more crucial to consider the implications of your mortgage payments as you contemplate your next steps in the real estate market.
Utilities
Regardless of whether you’re residing in the home while it’s on the market, you must ensure that the utilities remain operational for any prospective buyers who want to tour the property. They will likely test light switches and check the water pressure—tasks that are impossible if the utilities have been turned off. Additionally, showing a home without power is impractical! Inspectors will also require the utilities to be on in order to fulfill their responsibilities. While your utility bills may decrease if you’re not living in the house, you should still budget a few hundred dollars each month for these expenses.
Property Taxes
Property taxes can accumulate quickly, depending on your location. Residents in states like New Jersey or California may see these expenses erode their profits at an even faster rate due to the high property tax rates. You remain responsible for property taxes until the closing date. When working with a traditional buyer, the closing process can extend over several months due to the lengthy procedures involved with lenders. Conversely, when you sell directly to iBuyLehigh, your financial responsibilities tied to the property can cease in just a few days.
Homeowners Insurance
Homeowners insurance is a necessary obligation for every property owner. Depending on your home and policy, insurance can quickly diminish your profits. As long as you’re listed as the homeowner, you will need to cover the insurance costs. It’s important to note that insurance premiums tend to be higher for rental properties compared to owner-occupied homes.
Maintenance
If you choose to list your house in Lehigh Valley, it’s inevitable that maintenance work will be needed while your home is on the MLS. A good guideline is to set aside 1% of the property’s value each year for routine maintenance and minor repairs. This proactive approach can help you avoid being blindsided by unexpected expenses during the selling process. Remember, the quicker you sell your home, the less maintenance you’ll be responsible for.
Repairs
In addition to routine maintenance, there’s always the possibility of encountering significant repair needs while waiting for a buyer. For instance, if the roof develops a leak or the water heater fails, these issues can become costly but must be addressed to make your home more appealing to buyers. It’s wise to maintain an emergency fund for unexpected repairs, ensuring you won’t be left with a damaged property while attempting to sell it. When you sell directly to iBuyLehigh, we cover all expenses. We purchase homes as-is, including any necessary repairs.
HOA Fees
If your property is situated in a private community, you’ll continue to incur homeowners association dues until you no longer own the house. Depending on the community, HOA fees can be substantial, and some may fluctuate rapidly. Be sure to factor in these costs when it’s time to sell, as they can easily be overlooked during the selling process.
As a homeowner in Lehigh Valley looking to sell, it’s crucial to keep all your holding costs in mind. When added together, these expenses can reach into the thousands, significantly impacting your profits from the sale. When selling your house in Lehigh Valley, remember to account for these holding costs and explore how a direct sale of your property can benefit you!