Introduction

If you’re researching how much it costs to hold a property in Durham, NC, it’s likely that you’re feeling a sense of financial pressure. Whether you’re facing property maintenance costs, property tax bills, or the mounting stress of trying to sell your home, the thought of holding onto your property might be weighing heavily on you. Perhaps you’ve tried listing your home on the market but aren’t getting the offers you expected, or maybe you’re looking for a faster, more cost-effective way to sell.

You’re likely interested in understanding all the hidden and ongoing costs that come with holding onto a property for too long—everything from maintenance and utilities to taxes and insurance. You may be asking yourself: “Should I keep holding on, or is it time to sell?” This blog will walk you through the actual costs of holding a property in Durham, NC, to help you make a more informed decision.

How Much Does Holding a Property Cost in Durham, NC?

Owning a property in Durham, NC, can feel like a financial burden, especially if you’re not actively renting or selling it. While holding onto a property may seem like a safe option, the ongoing costs associated with keeping a home can quickly add up and leave you questioning if it’s worth it. When you’re dealing with a vacant property or struggling to sell in a tough market, it’s crucial to understand what you’re actually paying for as you hold onto real estate.

1. Property Taxes in Durham, NC

Property taxes are one of the most significant and often unavoidable expenses that come with owning property. In Durham, the average property tax rate is around 1.16% of the assessed value of your home. For example, if your home is valued at $250,000, you’ll be paying approximately $2,900 annually in property taxes. Even if your property sits vacant for months, you’ll still be responsible for these taxes, which can eat into your finances quickly.

The burden of property taxes can be a dealbreaker for many homeowners trying to decide whether to keep holding or sell. In some cases, owners may struggle to keep up with these payments, especially if they’re also facing other holding costs. Additionally, if you’re behind on your property taxes, you may be at risk of tax foreclosure, where the government could take your home to satisfy the debt.

For a deeper understanding of how property taxes affect your overall home sale, check out our page on What are Closing Costs Exactly in North Carolina?

2. Insurance Costs

Another ongoing cost to consider is homeowners insurance. While the exact cost of insurance can vary depending on the location and value of your home, in Durham, homeowners insurance averages around $1,200 annually. This cost covers damage to your property due to fire, weather, or theft, but it can also be a constant drain on your budget if the house is vacant and you’re not actively making income from it.

For those who may be thinking about holding onto the property for a few more years, insurance may seem like a necessary evil. However, many people don’t realize that vacant homes are often more expensive to insure, as they present a higher risk to insurers. Your rates could be higher if your house is empty and exposed to potential issues like vandalism, water damage, or general wear and tear.

3. Maintenance Costs for Vacant Homes in Durham, NC

Maintaining a vacant property is another often-overlooked cost. Even if no one is living in the house, you’ll still need to perform regular maintenance tasks, such as lawn care, cleaning gutters, and checking for any signs of damage. On average, basic maintenance services for a single-family home in Durham can run anywhere from $100 to $500 per month, depending on the size and condition of the house.

If the property falls into disrepair, you may also need to budget for more significant repairs, such as fixing a leaking roof or replacing worn-out HVAC systems. These costs can quickly add up, especially if you’re not actively using or renting out the property.

4. Utilities for Vacant Homes

Although your property may not be occupied, many utility companies still charge a minimum fee to keep the services running, such as water, electricity, and gas. In Durham, the average utility cost for a home is around $200 per month, even if no one is living there.

If the utilities are left on in a vacant home for extended periods, you could be wasting money on services that aren’t benefiting you or the property. In many cases, owners opt to shut off utilities entirely, which may incur additional disconnection and reconnection fees. If you’re trying to sell, keeping utilities on can make a home appear more “move-in ready,” but it’s a cost that needs to be factored into your decision.

5. Opportunity Cost: The Financial Impact of Waiting to Sell

An often-overlooked cost of holding onto property is the opportunity cost—what you could have been doing with the money you’ve invested in holding the home. Imagine if you could have invested that money elsewhere or used it to pursue other financial opportunities. Every month you wait to sell, you’re continuing to drain your resources, whether it’s from insurance premiums, maintenance costs, or taxes.

This is where selling your home for cash might make more sense. By selling to a company that buys homes for cash, you can avoid the long wait times, reduce your holding costs, and move on with your life. Plus, with cash offers, you can skip the repairs, realtor commissions, and the waiting game, which often results in higher overall costs.

For a detailed breakdown of the costs associated with listing your house in North Carolina, check out our page on How Much Will Listing Your House Really Cost in Fayetteville, NC?

6. Mortgage Payments and Interest Costs

One of the largest ongoing costs that homeowners often overlook when holding onto a property is the mortgage payment. If you still owe money on the property, the monthly mortgage payment will continue to be due regardless of whether or not the house is occupied. In Durham, the average mortgage payment can range from $1,000 to $1,500 per month, depending on the loan balance, interest rate, and term of the loan.

The longer you hold onto the property, the more you’ll pay in interest over the life of the loan. For example, if you hold a $200,000 mortgage at 4% interest for 5 years, you might end up paying an additional $25,000 in interest alone. This ongoing expense can quickly erode your financial flexibility, especially if you’re not generating rental income or haven’t found a buyer yet.

7. Cost of Repairs and Renovations to Make the Property Marketable

If you plan to sell your property through traditional methods, it’s common to invest in repairs and renovations to make the home more attractive to potential buyers. While this can be an investment that adds value, it also comes with its own set of costs. In Durham, basic renovation projects like painting, flooring, or minor repairs can cost anywhere from $5,000 to $15,000, depending on the condition of your property.

Major renovations like kitchen and bathroom remodels can cost upwards of $20,000 to $50,000. These costs don’t even factor in the time spent coordinating contractors and overseeing work, which can extend the selling process. If you’re already struggling with holding costs, the prospect of further investments may not seem appealing.

Moreover, even after investing in repairs, there’s no guarantee that you’ll recover the full cost when you sell. If the local real estate market is slow, you could end up spending more on renovations than you gain in return, further adding to your financial strain.

Conclusion: The High Cost of Holding onto Your Property

Holding onto a property in Durham, NC, may seem like a good idea at first, but the ongoing costs can quickly add up and become a heavy financial burden. Between property taxes, insurance premiums, maintenance, and utilities, you could be spending thousands of dollars a year to maintain a home that’s not bringing in any income. And when you factor in the opportunity costs of waiting to sell, it becomes clear that holding onto the property might not be the best decision.

If you’re feeling overwhelmed by these ongoing costs and want to avoid the hassle of traditional selling methods, consider the benefits of selling your home for cash. At Eagle Home Partners, we offer fast, fair cash offers that can help you avoid the financial strain of holding onto your property. By choosing to sell your home to us, you can eliminate the extra expenses, skip the repairs and commissions, and close quickly on your own terms. Let us help you make a smooth transition and put an end to the mounting costs of holding onto your property. Contact us today and take the first step toward a hassle-free sale.