Are you holding on to a property in Kalamazoo and you are not exactly sure why? Every day that you continue to own the property, you are spending money on it. Before you hold on to it for another day, consider the point below; it might be time to think about selling your Kalamazoo home! How much does holding a property cost in Kalamazoo? Please keep reading to find out!
If you ask anyone who flips properties, they will tell you the faster you make the flip, the more money you will make on the house. Plain and simple, owning real estate costs money. If you are holding on to the property for sentimental reasons or because you “might” use it one day, you are only throwing away money. The property you own should be working for you now; it can be your primary residence, providing a monthly income, or be used for recreational purposes. If your Kalamazoo house isn’t doing one of these things, it might be time for you to consider selling it.
Property Taxes
Property taxes can be high! If you are listed as the owner, you will be responsible for the taxes on the home. By selling your house in a timely manner, you can immediately end your tax obligation for the home.
Utilities
Monthly utilities can quickly add up. If you were to add up the amount you have spent on electricity, water, gas, tv, and internet you might be surprised at the high amount of costs. 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 want to see your house. 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
A good rule of thumb for maintenance costs is to set aside 1%-4% of the value of your home. This rule states that you should plan to spend about 1%-4% percent of your purchase price on maintenance each year. For example, if your house was purchased for $250,000, you should plan to spend about $2,500-$10,000 on home maintenance per year. Of course, these numbers can vary widely, but this is just an estimated guide for reference.
Homeowners Insurance
The premium for a homeowners insurance policy will vary based on the house and its location. You can expect to pay an average of $1,000 annually for a Kalamazoo home.
Mortgage Payments
It can be difficult to come up with a mortgage payment each month for a property you may not want to own. The average mortgage payment nationwide is well over $1,000 each month. Some people are struggling to pay thousands of dollars each month when they would be much better off selling the property.
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!
Selling your home now as opposed to later can help you keep more money in your pocket. Every day you continue to own it, you will also continue to have the financial responsibility and the bills and maintenance costs add up quickly!
Are you holding onto a property you aren’t using? We can help! Fill out this short form or give us a call today! (269) 775-4095
