Holding costs
The costs of owning a property while you wait to sell it or fix it up: mortgage interest, taxes, insurance, utilities. They add up for every month the sale takes.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Every month a home sits unsold costs the owner interest, taxes, insurance and utilities, and that is why a price cut early often beats one later. For a flipper it is why their offer leaves room for months of carrying the house.
Part 2 of 4
A simple example
Your empty house costs $1,900 a month in mortgage, taxes, insurance and utilities. Three months of overpricing costs $5,700 before the cut.
| The month | What waiting costs |
|---|---|
| Month one at the right price | One month of carrying, then a contract |
| Three months at the wrong price | $5,700, and a cut anyway |
| A flipper's six months | $11,400 they subtracted from their offer to you |
Holding costs are the price of time, and they are paid whether or not the house sells.
Part 3 of 4
What people get wrong
That an unsold house costs nothing but patience. It costs a mortgage payment a month, and the payment is the same as the day it listed.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.