If you’re planning to sell your house in Southwest Michigan with a real estate agent, you’re probably thinking about listing price, commissions, and how much you’ll walk away with at closing. But what many homeowners overlook are the holding costs—the ongoing expenses you pay while your property sits on the market.
In areas like Kalamazoo, Portage, Battle Creek, Benton Harbor, St. Joseph, Niles, Three Rivers, Allegan, Paw Paw, Plainwell, and surrounding communities, homes can sell quickly in strong markets—but they can also sit for weeks or months depending on condition, price, and competition.
Every extra day your house remains unsold costs you money.
This detailed guide breaks down the real holding costs you will face when selling your home with a Southwest Michigan real estate agent so you can understand your true financial picture before you list.
What Are Holding Costs When Selling a House?
Holding costs are the ongoing expenses you continue to pay while your home is listed and waiting to sell. These costs exist whether your home sells in 14 days or 120 days.
They include:
- Mortgage payments
- Property taxes
- Homeowners insurance
- Utilities
- Maintenance
- HOA fees (if applicable)
- Lawn care and snow removal
- Repairs required during listing
- Vacancy-related expenses
If your home takes 3–6 months to sell, those costs can significantly reduce your net proceeds.
Let’s break each one down in detail.
1. Mortgage Payments: The Largest Ongoing Expense
For most homeowners in Southwest Michigan, the mortgage is the single biggest holding cost.
Even if your home is listed for sale:
- The lender still expects full monthly payments.
- Interest continues accruing.
- Late payments can damage your credit.
Example Scenario
If your mortgage payment is $1,850 per month and your home takes 4 months to sell:
$1,850 × 4 months = $7,400 in holding costs
And that doesn’t include interest, which makes up a large portion of early loan payments.
If you’ve already moved into another home, you may be paying two housing payments at once, dramatically increasing financial pressure.
2. Property Taxes Continue to Accrue
Property taxes in Southwest Michigan are typically paid semi-annually, but they accrue daily.
Even if you don’t pay them monthly, you are still responsible for your share through the day of closing.
If your annual property taxes are $4,800:
$4,800 ÷ 12 = $400 per month
If the house takes 5 months to sell = $2,000 in accrued taxes
The longer the home sits on the market, the larger your prorated tax responsibility becomes.
3. Homeowners Insurance: You Must Keep Coverage Active
Insurance cannot lapse while your home is listed. In fact, if the property becomes vacant, your insurer may require:
- A vacancy rider
- Higher premiums
- Special coverage
Average homeowners insurance in Southwest Michigan can range from $1,200–$2,000 annually.
At $1,800 per year:
$1,800 ÷ 12 = $150 per month
4 months on market = $600 in insurance holding costs
If the property is vacant, costs may increase.
4. Utilities: Keeping the Home Show-Ready Costs Money
Even if no one is living in the home, utilities must stay on for:
- Showings
- Inspections
- Appraisals
- Buyer walk-throughs
This includes:
- Electric
- Gas
- Water
- Sewer
- Trash
In Southwest Michigan’s colder months, heating costs alone can be substantial.
Average monthly utilities for a typical home:
$300–$500 per month
If the home takes 4 months to sell:
$400 × 4 = $1,600 in utility costs
You can’t simply shut everything off without hurting your ability to sell.
5. Lawn Care, Landscaping & Snow Removal
Curb appeal matters when listing with an agent.
That means:
- Regular lawn mowing
- Landscaping upkeep
- Leaf removal
- Snow plowing in winter
- Driveway salting
Professional lawn service may cost $150–$300 per month during peak season. Snow removal in Michigan winters can also add up quickly.
Over a 5-month listing period, you could easily spend:
$750–$1,500 or more maintaining exterior appearance.
If the property looks neglected, buyers may assume deeper maintenance problems.
6. Repairs Required Before and During Listing
When listing with an agent, repairs are often necessary to compete with other homes.
Common pre-listing expenses include:
- Paint touch-ups
- Flooring repairs
- Roof fixes
- Plumbing or electrical updates
- Appliance replacements
- Deep cleaning
- Staging costs
Additionally, once under contract, buyers often request repairs after inspection.
In Southwest Michigan, inspection repair requests can range from:
- Minor: $1,000–$3,000
- Moderate: $5,000–$10,000+
These expenses directly reduce your net proceeds.
7. HOA Fees
If your home is in a community with a homeowners association, monthly dues continue until closing.
HOA fees may range from:
$100–$400 per month
If the home sits for 6 months:
$250 × 6 = $1,500 in HOA holding costs
These payments cannot be paused while listed.
8. Opportunity Costs: The Hidden Financial Drain
Holding costs aren’t just monthly bills.
There’s also opportunity cost:
- Equity locked in the property
- Delayed investment opportunities
- Delayed relocation
- Extended financial entanglement
If you’re waiting months for a sale, your capital remains tied up.
For sellers facing divorce, job relocation, or financial hardship, delays can create serious stress.
9. Price Reductions & Extended Market Time
If your home doesn’t sell quickly, price reductions may follow.
Each price reduction:
- Signals potential buyer hesitation
- Extends time on market
- Increases total holding costs
For example:
Initial listing: $325,000
After 45 days: Reduced to $310,000
After 90 days: Reduced to $299,900
By the time it sells, you may have:
- Reduced the price by $25,000
- Paid $8,000–$12,000 in holding costs
That dramatically affects your final net proceeds.
10. Agent Commissions & Closing Costs on Top of Holding Costs
In addition to holding costs, traditional sales often include:
- 5–6% real estate commission
- Seller-paid closing costs
- Title fees
- Transfer taxes
- Concessions to buyers
On a $300,000 home:
6% commission = $18,000
This is separate from holding costs.
When you combine:
- Commissions
- Closing costs
- 3–6 months of holding expenses
- Repair costs
Your net proceeds may be far lower than expected.
Total Example: What Holding Costs Can Really Look Like
Let’s assume:
Mortgage: $1,900/month
Utilities: $400/month
Insurance: $150/month
Taxes: $400/month
Maintenance: $250/month
Total monthly holding costs = $3,100
If the home takes 4 months to sell:
$3,100 × 4 = $12,400
That’s before commissions and repairs.
Now imagine 6 months:
$3,100 × 6 = $18,600
Holding costs alone can erase a significant portion of your equity.
How Long Do Homes Typically Sit in Southwest Michigan?
Market time varies depending on:
- Pricing
- Condition
- Location
- Season
- Buyer demand
- Interest rates
Even in strong markets, 30–60 days is common. In slower periods, 90–120+ days is possible.
The longer the listing period, the more holding costs accumulate.
When Listing With an Agent Makes Sense
Despite holding costs, listing may still be the right choice if:
- The home is updated and move-in ready
- Market demand is strong
- You can afford several months of carrying costs
- You want to pursue maximum possible value
- You are not under time pressure
But you should understand the financial tradeoffs.
When Holding Costs Become a Major Problem
Holding costs can become overwhelming if:
- You’re relocating
- You’re going through divorce
- You inherited a property
- You’re facing foreclosure
- The home needs significant repairs
- You can’t afford two housing payments
In these situations, speed and certainty may outweigh waiting for top dollar.
Final Thoughts: Know Your True Costs Before Listing
Selling your house with a Southwest Michigan real estate agent can absolutely work—but it’s critical to understand the full financial picture.
Holding costs include:
- Mortgage payments
- Taxes
- Insurance
- Utilities
- Maintenance
- HOA fees
- Repairs
- Time on market
Every month your home remains unsold reduces your net proceeds.
Before listing, calculate:
- Your monthly carrying cost
- Your likely time on market
- Your expected commissions
- Your potential repair expenses
Only then can you determine whether listing aligns with your financial goals.
If you prefer to avoid months of holding costs, repairs, showings, and commission fees, I Buy SW MI provides a simple alternative. We buy houses as-is throughout Southwest Michigan and can close on your timeline—often in days, not months.
Visit our Contact Us page today to request a no-obligation offer and see how much you could save by avoiding extended holding costs.