When you’re preparing to sell your home, of course you take in
to account the typical costs – repairs, remodeling if your home is badly outdated, the agent’s commission, possibly sharing responsibility for closing costs, and on and on. But have you considered what it’s costing you simply to stay in your home for the duration of the 6-12 months that it can take for your home to sell?
In an average market, a home listed by an agent may take 6 months or more to sell. Homes for sale by owner usually take even longer – up to a year or more. During this time you’ll be stuck with what are called carrying costs – the expenses associated with living in your own house. These include the mortgage and insurance, plus maintenance and any repairs that come up during that time. Depending upon the amount of your mortgage payment, carrying costs could run you better than $10,000.
Homes for sale by owner don’t fare much better – while you won’t have to pay the commission, you could be out even more money than those selling with an agent due to the longer period of time it takes to sell.
When you’re deciding between selling your home yourself, with an agent, or to a real estate investor, take these costs into consideration. They could just be adding hassle to your life without much appreciable reward. An investor can close your sale within days, put cash in your pocket, and eliminate carrying costs.