Selling a vacant house: what it costs to hold it empty

Count what it costs each month

Start with a plain list. Mortgage payments, property taxes, insurance, utilities, maintenance, and other costs of owning a house can continue while no one lives in it. Write down what each one costs per month.

Then add a few that people forget. If the house is in a homeowners association, check whether you owe dues and whether the association has rules for empty homes. Think about lawn care, snow removal, and trips to check on the place. If it is a long drive, count that too.

• Mortgage payment, if you have one
• Property taxes
• Homeowners insurance, including any extra coverage for a vacant house
• Electric, gas, water, and trash
• Lawn care, snow removal, and repairs
• HOA dues, where they apply

Add it up over time

Multiply one month of costs by the number of months you think a sale could take. That number is the price of waiting. It belongs in any comparison between selling now and selling later for more.

A higher sale price only helps if the extra money is more than the cost of the extra months. Compare what you would keep after costs, not just the headline number.

Insurance can change when a house sits empty

Triple-I, the Insurance Information Institute, says most homeowners policies have a vacancy clause. It limits or excludes coverage if the property is unoccupied for typically 30 to 60 consecutive days. Many standard policies exclude or limit coverage for theft and vandalism once a home is considered vacant. Your policy sets the real rules, including how it defines vacant.

Insurers also sell vacant home policies or vacancy endorsements. They usually cost more than standard coverage. An insurer may expect proof that you kept up the house, such as keeping the heat on in winter. The NAIC, the group of state insurance regulators, warns that vacant or unoccupied homes can leave an owner exposed to losses that a homeowners policy may not cover.

Call your insurance agent now, before a claim. Say how long the house has been empty, and ask what is covered today and what you can add.

The risks of an empty house

Triple-I lists the main ones: leaks or burst pipes that go unnoticed for weeks, a higher chance of theft, vandalism, or trespassing, more exposure to fire and electrical problems, and liability if someone is hurt on the property.

The U.S. Fire Administration says unsecured vacant or abandoned buildings are more dangerous than occupied ones, and that keeping unauthorized people out is key to preventing fires. Locked doors and windows, a yard that looks cared for, and regular visits all help.

Check your city’s rules

Some cities add rules for empty houses. Cleveland, Ohio, for example, requires owners of vacant properties to register them with the city. Ask your city or county code enforcement office whether anything like that applies to your house.

Your options

Keep it and keep paying. This makes sense if you plan to use the house soon or you are waiting for a better market. Plan for the costs above, and keep the insurance current.

Fix it up and list it with an agent. This can work well if the house is in good shape and you have the time and money for the prep. The costs of repairs, cleaning, showings, and months of carrying the house all come out of what you keep.

Sell it as-is to a buyer like us. You do not need to clean it out or fix anything first, there are no fees or commissions, we pay the closing costs, and you pick the closing date. Compare what you would keep with each path.

Before you decide

Get one other number, such as a local agent’s view of what the house could sell for. Ask your insurance agent about the current coverage. Ask a tax professional about any tax effects of selling. Then choose the path that fits your money and your timing. If you want to talk it through, tell us how long the house has been empty and what shape it is in.