Are you holding on to a vacant property in Raleigh and you aren’t exactly sure why? Every day that the property sits vacant, you are spending money on it. Before you hold on to it for another day, we have some things for you to consider. It might be time to think about selling your Raleigh home! How much does holding a property cost in Raleigh? Keep reading to find out!
Any property flipper and they will tell you that the faster you make the flip, the more money you will make–holding vacant property costs money! And if you are holding on to the property for sentimental reasons or because you “might” use it one day, you are only throwing your money away. The property you own should be working for you NOW. It can be your primary residence or providing a monthly income via a rental property, even vacation property should be rented whenever it is not being used. If your Raleigh house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In Raleigh
Property Taxes
Property taxes can be high with recent changes to the tax code, they are no longer deductible either. this is especially true for homeowners in Holly Springs and Cary NC. As long as you are listed as the owner of the home, you will be responsible for the taxes on it. By selling your house in a timely manner, you can immediately end your tax obligation for the home.
Utilities
Monthly utilities add up quickly. If you were to add up the amount you’ve spent on electricity, water, and gas, you might be surprised at how high that number is.
Even if you aren’t residing in the home while selling it, you will still need to keep the lights and the water on for the people who come to see your house. If the home is vacant during the sweltering summer months it is advisable to set the A/C to a comfortable temperature. The heat will need to be kept on a lower setting during winter months to prevent pipes from freezing. If your house is older and less energy efficient, you are likely to have utility bills significantly higher than what you would find in a new home.
Maintenance & Repairs
The main threat to a vacant home is the potential for an undiscovered water leak. I had a friend that sold his house in Apex and showed up to find water pooling in the kitchen area 3 days before closing. One of the valves to the washing machine began to leak and went undetected.
The lawn will also need to be maintained. The City of Raleigh is very aggressive about enforcing the height of lawns within city limits. Monetary fines are imposed for properties with overgrowing grass.
HVAC units need to be maintained as well, and unfortunately, are frequently vandalized or stolen from homes that have been vacant for a long time. Its easy for these costs to total into the thousands of dollars on an annual basis.
Homeowners Insurance
Houses that have been vacant for more than 30 days require a special insurance policy. If there is a loss due to fire, theft, or water damage, the insurance company will not pay out if they discover the home has been vacant passed the 30-day limit (you will still be liable for the mortgage balance). The premium for a homeowners insurance policy will vary based on the house and its location. You can expect to pay over $1000 annually for an average Raleigh home.
Mortgage Payments
It can be difficult to come up with a mortgage payment each and every month for a property you don’t want to own. The average mortgage payment nationwide is well over $1000 each month. Some people are struggling to pay thousands of dollars each month when in reality they would be much better off selling the property.
Keep in mind that this is the case with inherited homes as well. The estate is liable to continue to pay the mortgage. The late charges, fees, interest, and attorney fees can erode an inheritance very quickly.
Opportunity Costs
What else could you be doing with the money you have tied up in the house? You could very well be missing out on a better home or investment opportunity. Look around at what else is out there and decide if you are truly happy with your current situation. If your property isn’t doing anything for you, it might be time to find something new!
As you can see, selling your home now as opposed to later can help you keep more money in your pocket. For every day you continue to own it, you will also continue having to be financially responsible for it. The bills and maintenance costs add up quickly. Run the numbers for yourself and make the decision that makes the most sense for you!