Understanding Your Holding Costs: Florida Real Estate

Understanding Your Holding Costs For Your Miami Real Estate

Owning a house can be expensive! This is why when investors flip properties, the goal is to sell as quickly and efficiently as possible. Especially since…

Waiting for a Buyer and the Escrow Process Can Take Months!

By the time this lengthy selling process has been completed, you could be out thousands in holding costs! Here are just a few of the costs you will continue to face if you opt to list your house on the MLS.

Utilities

Every now and then we come across a seller who thinks, “The properties vacant surely I can turn the utilities off while it’s listed for sale?!”

Although this would be nice, it’s not an option. Potential buyers, real estate agents, photographers, inspectors – to name a few – will expect you to keep the electric, gas, water, and anything else running. Imagine having an open house event where none of the lights work, no one can use the bathroom, and the AC isn’t on.

Unfortunately, this means you could end up spending a couple hundred a month on utility bills alone. This is particularly frustrating if no one is currently living in the house.

Taxes

Your tax obligation doesn’t end until the house has sold. Depending on the size and location of your home, you could be looking at thousands of dollars you will need to cough up for property taxes. With a fast sale, your tax obligation will end right away.

Insurance

The average homeowner pays around $1,200 per year for their homeowner’s insurance. While this figure can vary significantly depending on where you live, it can still amount to a LOT of money, especially when it’s money you’re investing into a property you no longer want or care for.

Routine Maintenance

Light bulbs, gas for the lawnmower, new a/c filters… these things add up quicker than most homeowners realize. Think about how many trips to Home Depot you’re making and how much time you spend maintaining the home while it is listed. You may be surprised to find that even small costs such as these can add up significantly over a several-month period.

Not to mention the time involved as well. You’ll need to check on the property each week and expect to receive calls from your agent telling you the bulb has gone in the kitchen, or the bedroom window doesn’t open properly, and so on.

Landscaping

When you list your Miami house, curb appeal is incredibly important. For anyone wondering what’s curb appeal, the clues in the name. Curb appeal is the literal view of your home from the “curb” or street.

When trying to sell your house the traditional way, it’s important to realize that retail buyers are suckers (to put it honestly) for curb appeal. A great first impression will set the tone for the remainder of the viewing. however, this is unfortunately true for a bad first impression as well.

As such, whether you do it yourself or hire a professional to help, you need to keep on top of the landscaping, yard, and exterior of your property.

Cleaning

Of course, the inside must be kept in great condition as well. You’ll want to keep the house clean at all times and always be prepared for last-minute showings. Hiring a maid service can help, but you will need every member of your family to keep things tidy, always cleaning up after themselves.

HOA Fees

If you own a home in a development or private community, HOA costs are non-negotiable. You’ll be required to pay these costs until the property is no longer in your name.

When it comes down to it, your holding costs can add up to a small fortune.

That’s why we strongly recommend you run the numbers so you can determine which selling method will benefit you and your family most in Miami!

For more information and advice, call our office at (305) 916-3328. A member of our team would love to speak with you.
Or, click here to fill out our short form. We’ll get back to you as soon as possible with a fast, fair ALL-CASH offer on your home.

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David Veras

David Veras was born in Hialeah, Florida and has been involved in Real Estate since February 2019.

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