When you’re deciding whether to list or sell directly, the single most underestimated line item is carrying (aka “holding”) costs—the money you spend every month you still own the property. Even if you’re not living there, you’re still paying to keep the lights on, mow the lawn, insure it, and service the mortgage. Those costs quietly nibble away at your net until they become a bite.
Below is a clear, modern breakdown (Georgia-savvy) plus a quick worksheet you can copy to get your real number in 10 minutes.
What Counts as a Holding Cost?
Think of holding costs as everything you pay because you still own the house:
- Mortgage (P&I) – Your principal and interest payment.
- Property Taxes (prorated monthly) – You’re on the hook until the attorney closes and prorates at funding.
- Homeowners Insurance – Higher if the home is vacant or used as a rental.
- Utilities – Power, water/sewer, gas, trash—kept on for showings/inspections.
- HOA/Condo Dues – Ongoing until title transfers.
- Yard/Pool Care & Cleaning – Curb appeal matters during marketing.
- Maintenance Reserve – A realistic set-aside for small fixes (1% of value per year is a common rule).
- Repairs/Breakdowns – Water heater, roof leak, HVAC hiccups… Murphy’s Law loves the MLS.
- Vacancy/Security – Occasional rekey, alarm, or board-up if vacant.
- Opportunity Cost – The money you can’t put toward your next place or payoff while you wait.
Your Quick Holding-Cost Worksheet
Grab last month’s bills (or reasonable estimates) and fill this in:
- Mortgage (P&I): $ ______ /mo
- Property tax (annual ÷ 12): $ ______ /mo
- Homeowners insurance (annual ÷ 12): $ ______ /mo
- Utilities (avg): Power $ ___ + Water/Sewer $ ___ + Gas $ ___ + Trash $ ___ = $ ______ /mo
- HOA/Condo dues: $ ______ /mo
- Lawn/pool/cleaning: $ ______ /mo
- Maintenance reserve (≈ 1% of value ÷ 12): Home value $ ______ × 0.01 ÷ 12 = $ ______ /mo
- Other (alarm, pest/termite bond, parking, storage): $ ______ /mo
Total Monthly Holding Cost = add every line above.
Pro tip (Georgia sellers): Many buyers will ask for a clear termite letter (WDIR) and proof of utilities on for inspections. That’s time + a little money—plan it into your month.
Example: The Real Cost of a 90-Day Sale
Let’s say a typical Georgia house has:
- Mortgage P&I: $1,650
- Taxes: $300/mo (≈ $3,600/yr)
- Insurance: $100/mo (≈ $1,200/yr)
- Utilities: $250/mo
- HOA: $75/mo
- Maintenance reserve (1% of $300,000 ÷ 12): $250/mo
- Lawn/pool/cleaning: $120/mo
Monthly total:
1,650 + 300 = 1,950
- 100 = 2,050
- 250 = 2,300
- 75 = 2,375
- 250 = 2,625
- 120 = $2,745 per month
If the MLS path takes 90 days to fund (list → contract → due diligence → appraisal → clear to close), your holding cost is:
$2,745 × 3 months = $8,235 out of your net.
That number grows if you:
- make a price reduction,
- get hit with a last-minute repair request, or
- fall out due to financing/appraisal and re-start the clock.
Where Sellers Underestimate (and Lose Time/Money)
- Utilities for inspections: You can’t inspect in the dark; plan 4–8 weeks of active service.
- Vacancy insurance surcharges: Non-occupied policies often cost more—verify your rating.
- Due diligence renegotiations: In Georgia, buyers often re-trade after inspection; set a capped credit upfront to avoid the “second negotiation.”
- Seasonal yard care: Summer growth in Middle Georgia is no joke—budget for bi-weekly service.
- Small failures: Even a $350 plumbing fix + service call eats an entire week of your monthly reserve.
MLS vs. Direct Sale: Put Both on the Same Net Sheet
- MLS Route
- Ask price: $ ______
- Likely contract price after concessions: $ ______
- Less: commissions (~5–6%): $ ______
- Seller-paid closing costs/credits: $ ______
- Pre-list prep (paint, landscaping, staging, photos): $ ______
- Holding costs (your worksheet × expected DOM): $ ______
- Repair requests after inspection: $ ______
- Estimated net on funding day: $ ______
- Direct Sale to Middle Georgia Cash Homes
- As-is cash offer: $ ______
- Commissions: $0
- Seller credits/repairs: $0 (we buy as-is)
- Closing costs: $0 (we can cover standard seller costs)
- Holding costs: minimal (we can close in ~7–21 days)
- Estimated net on funding day: $ ______
Now you’re comparing apples to apples—with time priced in.
How to Shrink Your Holding Costs (Without Torching Price)
- Front-load disclosure. Share service receipts and recent tune-ups up front; it cuts re-trades and days lost.
- Thursday launch, weekend surge. Concentrate showings Fri–Sun and set a Monday review time to create urgency.
- Offer a capped credit, not open-ended repairs. Keeps you on schedule and your budget intact.
- Or skip it all with a written, as-is cash offer from Middle Georgia Cash Homes—no showings, no repairs, no fees, and a firm closing date with a Georgia closing attorney.
Bottom Line
Holding costs in Georgia aren’t just “a couple of bills.” For many sellers, they’re thousands quietly shaving your net—especially if the sale slips a month (or two). Do the worksheet, price your time, and choose the path that delivers the best net + certainty for your situation.
Want a no-pressure, written as-is cash offer you can plug directly into your worksheet? Call Middle Georgia Cash Homes at 478-216-1795 and we’ll show you your true net side-by-side with the MLS route—so you can move on confidently.