It’s helpful to get a handle on the numbers by taking a realistic inventory of all the recurring expenses to hold your property while it’s on the market. Holding costs, such as your mortgage, taxes, insurance, maintenance, or the costs to relocate before the sale of a primary residence, can add up quickly when you watch the clock and wait for your house to sell. For example, if your costs to hold the property add up to $2,500 a month, and it takes three months to sell, your holding costs for the sale of your house were $7,500.
Depending on the condition of your property, especially those with older homes need to consider the probability of covering unexpected repairs. By understanding your holding costs, you can genuinely understand what you’re profiting from on your sale; read on as we explore how to calculate your holding costs when selling your house in Atlanta.
Mortgage, Taxes, and Insurance
While there’s no guaranteed closing date when you list a property for sale on the Atlanta real estate market, an agent can provide you with the average days on the market for similar properties. You can start by adding up one of the most significant drains on your profits, typically your monthly payments for your mortgages, taxes, and insurance as a part of your holding costs when selling your house in Atlanta, and multiply by the estimated time until closing. Professional investors like those at We Buy Any Atlanta Home want to help you sell for the highest possible profit. The local professional investors at We Buy Any Atlanta Home operate with total transparency. The professional investors at We Buy Any Atlanta Home will provide a detailed comparison of what you could profit by listing vs. a direct sale so you can make the best decision for your situation.
Utilities
Agents highly recommend leaving the utilities on during the listing. It’s standard practice to leave them on for a few days after closing so that final inspections and walkthroughs can be thorough, so you must also add this amount to accurately calculate your holding costs when selling your house in Atlanta. Professional investors like those at We Buy Any Atlanta Home save sellers from carrying this extra load. The professional investors at We Buy Any Atlanta Home save sellers even more because they never charge commissions.
Maintenance
When you’re property is for sale, it’s essential to keep the curb appeal at its peak, which requires sellers to keep up with maintenance work and expenses like lawn care, adding another cost to the calculations for your holding costs when selling your house in Atlanta. By buying your house directly, professional investors like those at We Buy Any Atlanta Home can help you eliminate your maintenance costs and all of the work and worry. In addition, the professional investors at We Buy Any Atlanta Home save sellers even more by working with a full-service in-house team of industry specialists, including every pro necessary to get you to the closing table without paying any closing costs or hidden fees.
Travel
Suppose you need to travel to care for a property. You may pay airfare, lodging or other transportation costs or a management fee for someone to care for the property if you cannot travel. In that case, this is another cost you’ll need to calculate for an accurate picture of your holding costs when selling your house in Atlanta. Professional investors like those at We Buy Any Atlanta Home offer a guaranteed closing date, often in as little as a few days. The professional investors at We Buy Any Atlanta Home have the flexibility to allow you to select the calendar date for your closing if you’re not in a big hurry.
Repairs
Unexpected repair costs are always possible and should be another factor in calculating your holding costs when selling your house in Atlanta. While you may have prepped and made necessary repairs to put your house on the market and attain a fair price, a professional inspection can help uncover hidden problems before the sale. Armed with this information, you can decide whether to invest the time and money in repairs or disclose the issues to potential buyers and address any resulting contingencies during negotiations. Typically, buyers have an unrealistic opinion of the expenses and demand completing the repairs or that the seller completes the repairs before closing. Professional investors like those at We Buy Any Atlanta Home buy houses as-is for cash. The professional investors at We Buy Any Atlanta Home will take on the risks of making any repairs.
The professional investors at We Buy Any Atlanta Home can help you calculate your holding costs when selling your house in Atlanta without obligation. The professional investors at We Buy Any Atlanta Home and the entire team work to make the process simple and easy for sellers. At We Buy Any Atlanta Home, we want you to feel good about working with us long after closing and agree our offer was fair. Don’t forget to ask about our current investment property inventory at We Buy Any Atlanta Home. Call We Buy Any Atlanta Home at 770-225-8846.
If you’re planning to sell your house in Atlanta, it’s important to understand the costs associated with holding onto the property until it sells. These costs can add up quickly and significantly impact your profits. In this article, we’ll walk you through the steps to calculate your holding costs, so you can make informed decisions and maximize your returns.
Understanding Holding Costs
Holding costs refer to the expenses associated with owning a property until it sells. These costs can include mortgage payments, property taxes, insurance, utilities, maintenance, and more. The longer your property sits on the market, the higher your holding costs will be.
Calculating Your Holding Costs
To calculate your holding costs, you’ll need to determine the length of time you expect to hold onto the property and estimate the expenses you’ll incur during that time. Here’s how to break it down:
Step 1: Determine Your Expected Holding Period
The first step is to estimate how long it will take to sell your property. This can vary depending on the state of the market, the condition of your property, and other factors. Look at recent sales data in your area to get a sense of how long similar properties have taken to sell.
Step 2: Estimate Your Monthly Expenses
Next, you’ll need to estimate the monthly expenses you’ll incur while holding onto the property. These can include:
- Mortgage payments
- Property taxes
- Insurance
- Utilities (water, gas, electricity)
- Maintenance and repairs
- Homeowner association fees
Make sure to factor in any additional expenses that may be unique to your situation.
Step 3: Calculate Your Total Holding Costs
Once you have your expected holding period and monthly expenses, you can calculate your total holding costs. Simply multiply your monthly expenses by the number of months you expect to hold onto the property.
For example, if your monthly expenses total $2,000 and you expect to hold onto the property for six months, your total holding costs would be $12,000.
Minimizing Your Holding Costs
While holding costs are inevitable when selling a property, there are steps you can take to minimize them. Here are a few tips:
Tip 1: Price Your Property Competitively
Pricing your property too high can lead to it sitting on the market for longer than necessary, which will increase your holding costs. Work with a real estate agent to determine a fair and competitive price for your property based on market conditions and recent sales data.
Tip 2: Stage Your Property
Staging your property can make it more attractive to potential buyers and increase the likelihood of a quick sale. Consider hiring a professional stager to help you showcase your property in the best possible light.
Tip 3: Consider Renting Out Your Property
If you’re having trouble selling your property and your holding costs are becoming a burden, consider renting it out instead. This can generate rental income that can offset your holding costs and make it easier to hold onto the property until you’re ready to sell.
Conclusion
Calculating your holding costs is an essential step in selling your house in Atlanta. By understanding the costs associated with holding onto your property, you can make informed decisions and maximize your returns. Remember to factor in all of your monthly expenses and estimate your expected holding period to get an accurate picture of your total holding costs. And don’t forget to take steps to minimize your holding costs, such as pricing your property competitively, staging it, and potentially renting it out.
The professional investors at We Buy Any Atlanta Home can help you calculate your holding costs when selling your house in Atlanta without obligation. The professional investors at We Buy Any Atlanta Home and the entire team work to make the process simple and easy for sellers. At We Buy Any Atlanta Home, we want you to feel good about working with us long after closing and agree our offer was fair. Don’t forget to ask about our current investment property inventory at We Buy Any Atlanta Home. Call We Buy Any Atlanta Home at 770-225-8846.