Offer Express reveals the 5 holding costs that home sellers must be aware of

 Offer Express: Holding costs can eat into your sale profits

Gahanna, United States - /Offer Express, LTD/

Holding costs that can deplete your home sale profits 

Awaiting a home sale via traditional listing or an FSBO? Calculated the potential profits after deducting the repair, marketing, staging, and real estate commission costs? Have holding costs been considered? Offer Express, a premier real estate solutions company in Ohio, highlights the costs that home sellers often fail to consider when they try to sell their homes and end up with more loss than profit when the house is sold.  

Holding costs are the recurring monthly expenses that are necessary to keep a property up and running while it is not being used. Home sellers must keep an eye out on these expenses when the sale is delayed so they can plan appropriate selling and investment strategies. 

1. Lost profits 

When a home stays on the market for too long, it can give the jitters to any home seller or a real estate agent. Once a buyer makes an offer through traditional listings, it takes 90 days to close the deal considering the repair requirements, paperwork, mortgage approvals, and so on. However, when a traditional listing fails to attract a buyer for too long, the next best step is usually to lower the prices to attract buyers. Moreover, if the real estate market has fallen, the home seller needs to align with the current rates. This means that not only do the home sellers pay more in the form of holding costs such as maintenance until the house is sold but they also lose more money as they slash the final price of the house. This means poor deals and poor profits. 

2. Utility bills 

Home sellers often move out to a new property as they repair, market, and stage their old homes in preparation for sale. To be able to showcase the house, the main utilities such as water, heat, and gas must remain active until a buyer makes an offer. When buyers come for a home inspection they would like to see if these utilities are functioning properly. So until the offer is made, these utilities will continue to recur monthly bills that become a part of the home seller’s holding costs. This holding cost is minimal to the cost of losing a potential buyer who may walk away due to disconnected utilities. 

3. House taxes

Until the house is sold, the liability to pay house taxes lies with the home seller. This is a holding cost that home sellers must consider before deciding to venture into the traditional sale process. It can take time. What if the home sellers are struggling to pay house taxes on the house on sale and their current residence? Their financial plans can get derailed with the pressure of double house taxes. In these cases, home sellers can opt for cash offers and avoid this holding cost.

4. Maintenance 

A house must be cared for to keep it attractive to buyers. Since traditional selling processes require staging events, maintenance becomes a necessity. Hiring a professional staging team, trimming lawns, servicing HVACs, and other unexpected repairs can cost a lot of money. Moreover, home sellers may need to organize more than one staging event to get the right buyer. The maintenance of the house is a recurring cost that can’t be avoided until the house is sold.   

5. Insurance 

Again, until the house is sold, it is the home seller's responsibility. Home sellers have to bear the expense of insurance and protect their homes from fire, water, and storms. In addition to other holding costs, the insurance amount can burn a hole in the home seller's pocket. They may want to reconsider their selling process. 

Holding costs are often not considered when planning a home sale. These costs are recurring costs that are a common cause of financial strain when home sellers are seeking buyers via traditional listing or FSBO. This route of sale takes time and the holding costs keep adding up, depleting the final profits from the future home sale. An alternative to traditional listings is cash offers. Cash buyers such as Offer Express offer swift and fair cash offers to home sellers who are looking to close a deal at the earliest. 

Why Offer Express?

Highly motivated, knowledgeable, ethical, and resourceful - the Offer Express team is qualified to handle any real estate transaction. The real estate solutions company buys houses and wholesale properties; partners with local agents; and offers investment opportunities to money lenders.

Offer Express is known for its cash deals that are extremely fast and hassle-free. Besides buying homes, the company also sells renovated and ready-to-move-in homes. With its focus to help all clients with their individual real estate goals, Offer Express is guided by its core values, mission, and philosophy.

Have you found yourself typing “Sell my house fast Cincinnati OH” in your Google search? Don’t look any further! Call (614) 820-5777 to know more about the real estate services at Offer Express.

source https://offerexpresss.blogspot.com/2022/04/offer-express-reveals-5-holding-costs_8.html