In the event that you are considering selling your Boston home, be sure you understand the expenses to hold the property. Keeping the home might be setting you back more than you could ever imagine. In our most recently released post, we take a look at the most common holding costs property owners experience when seeking to sell their homes in Boston.
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 Boston house can take months, resulting in potentially thousands of dollars you will have to spend. However, when you sell your house directly to Fast Home Sales, the holding costs can be eliminated on only a matter of days!
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.
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 prospective buyer who may want to see the home. They will likely check out the light switches and the water pressure… things that can’t be done if you have turned off your utilities. Plus, you can’t really show a home in the dark! In addition, inspectors will need the utilities on in order to do their job. While your bills might be lowered if you are no longer living in the home, you should still plan on paying a few hundred dollars each month to your bills.
Depending on where you live, the taxes can add up fast. People living in states like Massachusetts or California will see these costs eat away at their profits even faster due to high property taxes which must be paid. You are responsible for the taxes up until the closing date. When working with a traditional home buyer, the closing can take months due to the lenders red-tape. When selling directly to Fast Home Sales, your financial obligations to the home can end in only a matter of days.
Homeowners insurance is a necessary evil every property owner is faced with. Depending on your home and policy, your insurance can help to quickly eat away at your profits. 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.
If you decide to list your Boston 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. And remember, the faster you sell your house, the less maintenance you will be responsible for.
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 but should definitely 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 Home Sales, all expenses are covered. Repairs and all, we buy as-is.
If the house is located in a private community, you’ll be stuck 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 Boston who wants to sell, it important you keep all of your holding costs in mind. When they are all added up, the amount can be thousands. This can severely alter how much you are making on the sale. When selling your house in Boston, don’t forget to account for the holding costs. And don’t forget to find out how a direct sale of your property will benefit you!