Holding Costs = $___________________________
Your home continues to cost you money while you wait for a buyer. You still have to pay the mortgage, utilities, property taxes, and Netflix fees. It’s not so bad—just budget business as usual. But if you, say, must move for a new job before your house sells, you can wind up supporting two properties for an indefinite time. Realtor.com statistics say that homes typically remain on the market for 86 days on average. After you sign a contract, it takes another 30–60 days (or more) to close. And just to fuel more nightmares, about 1/3 of all real estate transactions fall through, and you have to start the march all over again. Fun fact: On average, 18% of FSBOs were unable to sell within their anticipated timeframe in 2015, according to an Inman article.
Back Payments and Taxes = $__________________
Every missed or late mortgage payment, property tax, mechanics lien, and homeowners’ association dues turn up at closing. Some of these debts come with interest or penalties. Before you close on your sale, you’ll have to pay everyone in full.
Loan Prepayment Penalties = $_________________
Many lenders punish you if you pay back their loans early. It’s called a prepayment penalty, and your current loan may have one as part of the original mortgage agreement or as a rider. Search your paperwork to discover the terms of any prepayment penalty. FHA, VA, and USDA loans do not penalize you for early payment, but many non-government, conventional loans do. 21
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