Don’t forget about the carrying costs, also known as holding costs, when you are getting ready to sell your Vail Valley Home. Holding costs are the costs required to maintain your home. It’s important that you’re calculating your holding costs whether you’re getting ready to sell your home or considering it. Look at the past year or two of costs you have incurred to see what costs could possibly be.
Why Should You Calculate Holding Costs?
If you are selling your home you probably want to sell quickly and for the appropriate price, right? Lots of times sellers forget about holding costs when waiting for that perfect buyer’s offer. Depending on your holding costs, selling your Vail Valley home in two months at a lower price vs. a year later at a higher price may yield a higher net to you. This is because you won’t have to pay these monthly expenses! You also might be thinking about what you want to do with the money from the sale of your home. Is it going towards another home? Or a vacation? Start looking at holding costs as opportunity costs as well. Have you added the holding costs you are now spending to that amount? Consider what you could do with the money that is currently going to monthly expenses.
How To Calculate Holding Costs
Fixed expenses will be something you will want to look at and add up. These can include homeowners insurance, mortgage payments and property taxes. Utilities like gas, electric, water, sewer, trash, phone, internet, etc., are all more examples.
Do you pay HOA (Homeowners Association) fees? Do you spend money on hot tub service or snow removal here in Vail? There can be quite the list of expenses in a mountain town for your home, so take those variable expenses into consideration. Other expenses can include appliance repair, property management fees, hot tub repair, maid service, etc.
Sit down and add up all of these costs. Look at what you will still be paying for while your home is on the market.
Negotiating.
Not getting what you want for your home can be hard. Many sellers want their home to sell for the price they think their home is worth. Some buyers may keep countering and offer below the asking price, causing the sellers to get annoyed or frustrated. This can cause many sellers to turn away those buyers hoping for a better offer. This is where you need to think hard and look at your options. You could actually lose money the longer you wait because of the holding costs. These are important so don’t forget about them. They make the difference when negotiating. Always sleep on it. Your real estate agent should be able to recommend the best option and help you through this process.
Final Thoughts and How Can I Help You?
I hope this article has shown you that I am a knowledgeable real estate agent who wants to help you and give as much information as possible. I want to provide my clients with interesting and up-to-date information so they can make informed decisions. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me.
Would you like more information on the Vail Valley/Cordillera area or the real estate market specifically? To receive my detailed monthly market report immediately, click here!
Robert Schilling
Coldwell Banker Global Luxury Specialist
Coldwell Banker Distinctive Properties
(970) 390-0705
[email protected]