Selling your home can be a stressful time. The last thing you want to happen is to have your house sit on the market for too long and be stressed for an extended period of time. There are 7 fees that can accumulate when your house is on the market for too long. If your house sells faster, you will not incur these additional expenses. You will want to hire an experienced real estate broker to help you price your home right at the beginning of the listing. Or you may want to consider working with a company that can help you sell faster and get cash for your property.
The first monetary loss you will most likely experience is if your house on the market for too long will happen if you price it too high. Many sellers want to price their house high so they can get the most money for it. Of course you want to get the highest price for your house, but if you price it too high you many actually lose money in the long run. Some sellers price their houses high and then lower the price a few times, as time goes by, if it doesn’t sell. This is dangerous because this is chasing the market. When sellers do this and other real estate brokers and buyers see this price-dropping trend, they often think that something is wrong with the house. Then they will offer a very low price because they feel that they have more bargaining and negotiating power. As a seller you want to stay ahead of the market and price your house correctly at the very beginning of your listing.
One fee that will accumulate if you have your house on the market for too long is the money you owe in property taxes. You pay annual property taxes, and when you sell your house the tax amount is prorated to the day of closing. The longer your home is on the market the more taxes you will be responsible for.
Another fee that will accumulate is the interest you are paying on your current mortgage. Mortgage interest is also paid through the date of closing. So if your house sits on the market for too long, you are possibly unnecessarily paying extra mortgage interest. This is especially true if you are making money on your house and the proceeds of the sale will be used as a down payment on your new home purchase.
Other fees that will accumulate when your house is on the market for too long are utilities. This is especially true if your house is vacant and is sitting on the market. You have to keep your utilities on during the listing period because buyers need to be able to see if everything works in the house. And inspectors need to make sure everything works such as all of the faucets, the furnace, the air conditioner, the hot water heater, all of the appliances, and so on.
Another fee that will keep accumulating while your house is on the market is homeowners association dues. Homeowners association dues are prorated to the day of closing, as well. And the longer your house sits on the market, the longer you are responsible for these dues.
You are also responsible for keeping up your lawn, landscaping and snow removal during the time that your house is listed for sale. This takes time and money, whether you are doing it yourself or having a landscaping or snow removal company perform these services for you. There are subdivision and city standards that mandate upkeep on landscaping and snow removal.
Finally, another fee that will accumulate when your house is on the market for too long is general cleaning and upkeep. Many homeowners have their house cleaned thoroughly and have their carpets steam-cleaned and floors polished before they list their home. If the house stays on the market for too long, you will have to keep the house clean and take care of general upkeep.
In order to avoid the extra fees when your house is on the market for too long, make sure you price it right or sell for cash quickly.