If you do not pay attention to your house holding costs, you may be caught off guard by how expensive it is just to own and upkeep a house. These costs are even more upsetting when you have to spend your hard-earned money on an unwanted property. Keep reading to learn about all the typical holding costs you will encounter as a property owner in Augusta.
Owning real estate is not cheap! When a house flipper buy and renovate a property, it is paramount to finish the renovation and sell the house as fast as possible. The longer they hold onto the property, the less profit they are going to make. Holding too long? They actually will end up losing money. If you aim to sell a house you no longer want to own, you probably think about listing with a real estate agent. However, that is not the optimal option. Using a realtor to find the right buyer and go through traditional escrow process can take months. By the time the process has been completed, you could be out thousands in lost holding costs! Below are the list of costs you will have to face when putting your house for sale on the MLS with an agent.
Typical Holding Costs
Utilities
Even when you move out of a house, you can’t just disconnect the electricity and water. Utilities needs to remain active since they help your electrical, plumbing, and HVAC functioning properly. If a potential buyer walk into your house with no utilities, they will be quickly turned off and move on to their next house on the list. Utilities cost are especially destrimental if you have a large house that needs to be kept warm or cool while waiting around for a buyer. GA is actually in the top 5 most expensive states for utilities, with average utilities cost of $350 per month. Therefore, when selling houses in Augusta, you could be looking at thousands by the time the property has actually sold.
Taxes
As the saying goes, tax and death are the two certain things in life. You will continue paying property tax up to the date you sell the house. According to the U.S Census Bureau.The average American household spends $2,471 on property taxes for their home each year. But if you sell your house fast to a direct cash buyer, your tax obligation will end right away.
Routine Maintenance
Replacing light bulbs, batteries, gas for your lawnmower, new a/c filters,… these things add up quicker than you may think. Take the time to consider how many trips to Home Depot you’re making, and how much time you are spending simply maintaining the home while it is listed. Ask your self, is longingly waiting for a traditional sale worth the hassle?
Surprise Repairs
When selling to a typical buyer with a realtor, 9 times out of 10 the buyer will ask for repairs after the property inspections. Not to mention there may be additional surprise repairs popping up while the property is waiting to be sold. Pouring money and labor into fixing up a house you will soon no longer own can be very exhausting. On the other hand, if you sell to a fast cash buyer like HBI Home Solutions, they will buy the property as-is; you don’t have to worry about doing any repairs whatsoever.
Insurance
The average homeowner pays around $1,200 per year for their homeowner’s insurance. While this number can change a lot based on your location, it can ultimately be a major expense. One that you don’t want to spend on an unwanted house.
Landscaping
When you list your Augusta house, curb appeal is incredibly important feature. After all, it is the first thing a buyer will see when they get to your property. You really want to put the best effort to maximize curb appeal. Whether you plan to DIY or hire a professional lawn care company, keeping up with the landscaping will cost you time and money.
Cleaning
Of course, the inside of the property must be kept in great condition as well. You’ll need to keep your house in tip-top shape, always prepared for a last-minute showing. Hiring a maid service is an option, but you will need every member of your family to follow rules, cleanup after themselves, and tidying things up.
Other Holding Costs
Last but not least are several examples of miscellaneous holding costs you may come across. It depends on your location and property to see which ones apply to you.
HOA Fees
If you own a home in a development or private community, you’ll be required to keep up with the HOA costs up to the date you transfer title to the new homeowner.
Property Management
Perhaps you have an investment property in Augusta, but you are living at a long distance and wish to sell. You may be dealing with property management fees and other costs as a landlord.
Home Watch Services
If you live out of the area and aren’t renting out the home with a property management company, you will likely have someone who you have hired to check on the house for you every so often.
When it comes down to it, your holding costs can add up to a small fortune. Once you have made the decision that you would like to sell your house in Augusta, the faster you are able to do it, the more money you will be able to put in your pocket. We invite you to run the numbers for your property so you can determine the selling option that will work best for your house in Augusta!