Homeowners often find themselves spending thousands of dollars in prepping costs before selling property in Long Island and months into listing a property lingering on the market when they ask themselves, “why didn’t anyone warn me about this.” While not typically considered as a part of the cost to list a home on the traditional market, holding costs can create adverse economic effects as time passes, decaying the potential profits.
To help you understand these costs ahead of time, we’ve created a guide for homeowners selling property in Long Island for calculating your holding costs.
While difficult to calculate in advance, price drops are a part of holding costs when a listing isn’t moving, real estate agents often lower the asking price as a response. An agent can provide you with probabilities on the right listing price for homeowners selling property in Long Island by comparing recent sales of similar homes on the market and how much you will pay in commissions. Unfortunately, when you list your home on the market or with a real estate agent, what they cannot provide you with is your closing date. Sadly, even without a price drop, the greater the number of days on the market, the final sales price is likely to be far below the current market value.
Your utility bills can add up to a tidy sum, and while it may seem a logical step to save money if you’ve relocated before a sale, don’t cut the power to cut your holding costs. Not only will your real estate agent be less than pleased, but buyers also will not be able to “flip the switch” and may be turned off by this fact. Additionally, buyers may wonder if all of the systems will be in working order when the power is back on. Discovering issues, such as the heating and cooling systems during the inspection phase, can create turmoil, cause delays and possibly cost you the deal.
Maintenance and Repairs
Maintaining and repairs are holding costs that do not end until closing. Now, more than ever, you’ll want to keep the landscaping sharp and perform any minor maintenance that is required. When selling your property in Long Island, the last thing you want is for your home to appear abandoned. Not only could it affect the first impression of potential buyers, but it could also send a signal out to those with less than the best intentions that no one is watching the property. Complete any necessary repairs immediately; as you know, minor problems can quickly grow into significant issues.
Mortgage, Taxes, and Insurance
The holding costs associated with carrying the mortgage, often bundled with your property taxes and insurance, can become highly burdensome as time passes, most especially if your circumstances have forced you to relocate before selling your property in Long Island. As a result, you may find yourself holding two properties and bearing the costs of travel between homes or hiring a caretaker for the property you have listed.
If located in a development with a homeowners association, don’t forget to add your monthly HOA fees when calculating your holding costs when selling your property in Long Island.
Don’t forget to add in any payments for your improvements when you calculate your holding costs. You’ve got to spend money to make money, or so they say. Suppose you’ve gone through the headaches of making repairs and find yourself further in debt in the hope of realizing a higher profit. Regrettably, for homeowners selling property in Long Island, planning to pay off the loan quickly after the sale, you may find yourself making payments for much longer than planned.
Why risk the devastating effects of holding costs when you can sell faster to a direct buyer from CoMax Properties?
With the power of cash, holding costs get wiped off of the closing table. There will be no need to make further deductions from our offer as you may find yourself doing with a listing; we charge no fees, there’s no need to prep or make repairs because we buy homes as-is, this means the offer from CoMax Properties is what you receive at closing. CoMax Properties can provide you with a guaranteed closing date, often in a matter of days or a few weeks. In addition, if you haven’t relocated yet and need a little more time, CoMax Properties doesn’t need to move in when you leave, so our direct buyers have the flexibility to close on a date that works for your move to your new home. The direct buyers at CoMax Properties are straightforward so that you can compare which method of home sales is best for your circumstances and will fully detail what you would earn on the deal through a traditional listing or by selling your property in Long Island to CoMax Properties. Call CoMax Properties at (516) 704-7025 or send us a message to learn more.