Know Your ‘Holding Costs’  When Selling Your Home In Omaha.

If you’ve decided to sell you home in Omaha, Nebraska.  You’ve probably taken in to consideration the obvious costs such as prepping its for sale, promoting your house and closing costs.  One fee though, you might not of taken into consideration is something call ‘holding costs’ also known as ‘carrying costs’.
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These costs certainly vary from home owner to home owner, and can consist of many variables that can potentially raise this cost of quickly.  Though, these costs can be avoided through selling your home to a cash buyer, rather than taking a chance on an open market.  But, if you do decided to sell on an open market, it’s important to know what to watch out for.  Let’s take a look all the components of ‘holding costs’.
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Define: Holding Cost
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Put simply, holding costs can be the monthly, quarterly, and in some cases yearly costs that you as the seller may incur as your home remains unsold on the market.  Standard holding costs include mortgage payments, Insurance, Property taxes, Maintenance, Homeowners’ association (HOA) dues.
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As you’re focusing on selling your home, often times it can be easy to over look the reoccurring costs associated with your home.  As there are many factors that affect your holding costs the biggest is how long your property sits on the market.

What Are the Most Common Holding Costs in Omaha? Although no two sales are the same.  Below we will explain the most common holding cots that you can expect when your home is on the market.
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Mortgage Payment:  Unless you own your home outright, you should take into consideration the possibility of having to continue to pay the mortgage and any outstanding loans you might have on the property throughout the time your home sits on the market.  These costs can add up quickly and if you aren’t able to stay at that property while it’s on the market, you run the risk of having to pay multiple holding costs at once.

Homeowners Insurance:   One holding cost you may have to consider is your homeowners insurance.  Sometimes totaling over $2,000 annually on a $150,000 home.  This can significantly cut into your profits especially if your home sits on the market for longer than you expect.

Property Taxes:   An additional holding cost worth taking into account as the property tax, the average rate in Omaha is 1.80%.  On a $150,000 home this can total over $250 each month your property sits on the market.  Rapidly decreasing your potential profits from the sale of your home.

Utilities: You pay utilities now and will be obligated to throughout the span of time your house is on the market.  Electricity, gas, water, trash service, and lawn care are all services that must be maintained throughout the duration of the time your home is for sale.  Depending on the size and location of your home this can be over $350 per month.

HOA: Some neighborhoods or communities throughout Omaha will require you to pay a monthly Home Owners Association fee.  The fees typically cover the costs of maintaining the building’s common areas, such as lobbies, patios, landscaping, swimming pools, etc.  If you still own your home you are still obligated to continue to pay these.

Why is knowing your holding costs so important when selling your home?
Holding fees can add up quickly, so knowing exactly how much you’re spending per month while your home is on the market can help you make better financial decisions and better prepare for delays in the sale of your home.  Since the average time for a home to be on the market in Omaha is around 2-3 months these costs can add up quickly.  This is why taking into consideration a No Obligation Cash Offer For Your Home can help you avoid the unknowns when selling your home.