Reducing Holding Costs: Top 10 Expenses When Selling Property in Covington and Newport KY, 2023

A check list written on a steno pad with different expenses listed and a wallet and calculator and pencil near which represent a check list of expenses
Monthly Expenses

What are holding Costs?

Holding costs in real estate refers to the ongoing expenses that property owners or investors incur while holding or owning a property. These costs are typically associated with maintaining and managing the property during the period of ownership. They are clickable, so skip around if that helps you. They include Mortgage Payments, Property Taxes, Home Insurance, Utility Bills, Home Maintenance, HOA fees, Professional Fees, Marketing Costs, Closing Costs & Capital Gains Taxes.


Selling a property in Covington or Newport, KY, is a significant financial decision. However, many homeowners fail to account for the various holding costs of selling a property. Holding costs are incurred when a property is listed for sale, and they can add up quickly if you’re not careful. We also recommend keeping a ledger of all expenses to calculate what you made. And here is where you must be honest with the project and yourself. Tackle this part of the project like a business and learn to manage your expenses well.

Here’s a complete list of holding costs you can expect when you sell your property in Covington and/or Newport, KY, in 2023:

mortgage payments
mortgage payments

Mortgage Payments

One of the most significant holding costs for homeowners is their mortgage payment. Even if you sell your home, you must make mortgage payments until the sale is complete. Depending on how long it takes to sell your property, these payments can add up to a significant amount. How old your mortgage is will also dictate your equity position. Sadly, when you get those calls to refi your home, they don’t tell you that your mortgage resets. If you have a 30-year mortgage, those first years barely count toward the principal. If you need more information on “mortgage payments”, click HERE.

Picture of Uncle Sam pointed at a bunch of papers labeled Taxes.
Property Taxes

Property Taxes

Another significant holding cost for homeowners is property taxes. Property taxes are assessed by the local government and are based on the assessed value of your property. If you’re selling your property, you’ll still be responsible for paying property taxes until the sale is complete. You may also be eligible for some tax relief if you are of advanced age, so reach out to your local state and city and ask; you may be surprised at how helpful they are. PROPERTY TAXES can be confusing, so we offer you more information.

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Homeowners Insurance

Homeowners insurance is another holding cost you must consider when selling your property. You’ll need to keep your homeowner’s insurance policy active until the sale is complete to protect your property in case of damage or accidents. Great insurance is only important when you need it. Do yourself a favor and ask friends and family who they have, especially if they have made a claim. Great insurance companies help their clients. Resist going with a company because you saw their commercial on TV.

utility bills
utility bills

Utility Bills

Utility bills are another holding cost that can add up quickly. Even if you’re not living in the property, you’ll still need to keep the utilities to show the property to potential buyers. These bills can include water, electricity, gas, and internet. And if you need help with your bills, then there may be city and state programs that can help.

maintenance and repair
maintenance & repairs

Home Maintenance and Repairs

When selling a property, ensuring it’s in good condition is essential. You may need to spend money on home maintenance and repairs to make your property attractive to potential buyers. These costs can include things like landscaping, painting, and repairs to appliances or HVAC systems.  We’ve written an article all about “Repairs To Make Before Selling”, give it a read, and it should answer many of your questions. If repairs become too much and you want to sell your house fast, call us today!


Homeowner Association (HOA) Fees

If your property is part of a homeowner association (HOA), you must continue paying HOA fees until the sale is complete. HOA fees include landscaping, community amenities, and common area maintenance. Be careful with HOAs and ensure they are run well and have good reserves to cover future maintenance needs. If HOAs seem confusing, we’ve written an article all about HOAs, understand their costs and benefits, and it’s right HERE.

personal people in real estate
professional fees

Professional Fees

When selling a property, you may need to hire professionals to help. This can include real estate agents, attorneys, appraisers, and home inspectors. These professionals will charge fees for their services, which can add up quickly.  Need any recommendations on any of the above services; we can help! And as always, trust your gut, and you will be fine! And if you wish to learn more about “Understanding Professional Fees“, this article should be very helpful.

home staging
home staging

Staging and Marketing Costs

You may need to invest in staging and marketing your property to attract potential buyers. This includes professional photography, home staging services, and marketing materials. These costs can add up quickly, especially if you’re working with a real estate agent who charges a marketing fee. We’ve written an entire blog about Staging for you, and it should help answer all your questions; it’s available for free right HERE.

closing costs
closing costs

Closing Costs

When the sale is complete, you’ll need to pay closing costs. These costs include title insurance, attorney fees, and transfer taxes. Depending on the sale price of your property, these costs can add up to a significant amount. You will get a settlement statement from the closing company disclosing all the fees, and make sure you read it and understand it. If you don’t, ask questions.

Uncle Same holding a dollar bill representing Capital Gains Taxes
Capital Gains Tax

Capital Gains Taxes

Finally, you must pay capital gains taxes if you sell your property for a profit. Capital gains taxes are calculated based on the difference between the sale price of your property and its original purchase price. Capital gains taxes can add up to a significant amount depending on the time you’ve owned the property and your tax bracket. This is not tax advice, but if you are selling your primary residence, you should be able to avoid most of the taxes from that sale. Call an accountant, and they will discuss your options; it will be worth your time.

A finish line that has been broken which represents the end of the line, and if this case, it means In Conclusion.
In Conclusion

In conclusion:

Selling a property in Covington or Newport, KY, has several holding costs you must consider. By understanding these costs, you can better prepare for the financial impact of selling your property and make informed decisions. If you wish to sell fast, call or text Local Honest Homebuyer

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And here is an offer that is hard to refuse; reach out to us, and we’ll help you.  We are local real estate buyers, and we can answer your questions.  Check out our Google reviews, LOCAL HONEST HOMEBUYER GOOGLE

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