Definition
Holding Costs
Also called: carrying costs
Holding costs are what a property costs to own per month regardless of use: property taxes, insurance, utilities, association dues, maintenance, and any loan payments. On vacant homes they commonly run several hundred to over a thousand dollars monthly.
Holding costs are the silent variable in every 'should we sell now or wait' conversation — invisible because they arrive as a dozen separate bills, decisive once added up. A family debating for a year has often spent five figures holding the asset they were debating.
They also explain investor pricing: a flipper's offer discounts not just repairs but the six months of taxes, insurance, and loan interest the renovation will consume. Time literally is money on both sides of the deal.
Where this matters
More terms
Definitions first. Offers when you're ready.
Tell us about the property once and vetted cash buyers respond with competing written offers — free, no obligation.
Questions first? Read the FAQ →