distressed home in jacksonville

11 Sep

The Actual Costs of Holding onto a Vacant Home in Jacksonville

The Actual Costs of Holding onto a Vacant Home in Jacksonville

 

Did you know that nearly 17 million homes in the United States are vacant? Precisely, it’s 17,019,726.

The number itself is mind-boggling.

Some of them are abandoned or distressed, whereas others are just under-utilized or vacation homes.

And if you are currently holding onto a vacant home in Jacksonville, you might be wondering how much will it actually cost you and whether you will be able to afford it or not.

Don’t worry if you are in a difficult situation!

In this blog post, I’ll reveal the actual costs of holding onto a vacant home in Jacksonville.

 

 

The Actual Costs of Holding onto a Vacant Home in Jacksonville

 

These costs include:

  • Mortgage Payment
  • Taxes
  • Liens from City
  • Utility Costs
  • Repair Costs

Mortgage Payment (Depends on Your Mortgage)

Got an existing mortgage?

If your home’s vacant and you haven’t rented it out yet, you will have to take care of the monthly mortgage payment all by yourself.

Maybe, in the past, you used to cover this cost via the monthly rent.

But, now, with no tenants in place, you’ll have to pay it out of your own pocket.

If you don’t have an existing mortgage, then it’s a huge relief.

However, that doesn’t mean that there aren’t any other costs you won’t have to deal with.

Say Hello to Taxes!

Taxes

Unlike other US states, there’s no state income tax in Florida.

However, if it’s a rental home, you’ll be subject to Federal taxes. And the same applies while selling your property.

Add Florida Property Taxes to the list.

If you own a real estate property, either as an individual or a business, you’ll have to pay the property tax on it.

There’s no minimum or maximum when it comes to property tax. Whether you own a $10,000 home or a $100,000,000 one, you will owe the property tax on your vacant home in Jacksonville.

These taxes vary depending on the county your home is located in.

Here are the 5 counties in Jacksonville along with their respective property tax rate:

  • Duval: 0.97%
  • Saint Johns: 0.88%
  • Clay: 0.87%
  • Nassau: 0.85%
  • Baker: 0.78%

These taxes are used for:

  • Local Levies
  • General Government Services
  • First-Responders & Other Law enforcement personnel
  • Municipal Employees’ Payment
  • Recreational Services
  • Protective Services
  • Resident Services like Garbage Pickup and Others
  • Land Construction & Municipal Infrastructure

If you already make a monthly mortgage payment, it’s important to know that the Florida Property Tax is already a part of it.

Ideally, here’s what a standard mortgage payment includes:

  • Principal
  • Homeowner’s Insurance
  • Interest
  • Florida Property Taxes

So, firstly, you should review your current mortgage statement and learn whether the property taxes are already a part of it or not.

If not, you can pay it by heading over to the Florida Department of Revenue’s website.

 

Liens from City

For the ones who don’t know what a lien is, it’s the cost of improvement, fine, system development charge, or other assessment fees against a home or property.

If not paid on time, it stays recorded against the property.

Once paid, it’s termed as “satisfied.”

If you don’t pay the City lien on time, it may even lead to foreclosure.

The following are the types of fees or debt that you may have to worry about that can be issued as city liens:

  • Building Violations
  • County Debts
  • Municipal, like Sewer, Water, Solid Waste
  • Special Assessments
  • Open & Expired Permits
  • Code Enforcement Violations
  • Mechanic’s Liens
  • IRS Back Taxes
  • Real Estate Property Taxes

Note: Some of these may be listed as “Unrecorded Liens.”

Hence, in this case, research is of utmost importance.

 

Utility Costs

As your property’s vacant, no one will be turning on the HVAC or consuming electricity, however this may not be wise in Florida where the humidity can damage the property even more.

So, unfortunately, there will be minimal utility costs you’ll have to take care of.

If it’s a long-term vacancy you are anticipating, consider shutting off these utilities for saving yourself some money.

But upon doing that, you should know that there are some risks involved.

What if the temperature drops and there’s no hot water or heat on your home? This will increase the risk of burst pipes.

So, it would be best if you were extremely careful here.

 

Repair Costs

A vacant home in Jacksonville poses a higher risk of water damage, vandalism, fire damage, theft, squatters, etc.

If not taken care of, you might end up paying thousands of dollars to cover these repairs.

In addition, upon being vacant for a prolonged period, your home may start rotting.

The paint may start peeling off.
The non-working appliances may fall into disrepair.
There might be plumbing leaks.

There’ll be so much uncertainty with your vacant home in Jacksonville.

In the end, you’ll have to pay for all it out of your own pocket.

 

Knock Knock! It’s Yellow Bird Home Buyers!
We’re Here to Solve Your Problems

 

So, what actually should you do?

Firstly, I’d advise you to assess your finances and learn whether you will be able to cover all of these costs.

If you can, it’s okay. You may choose to keep the house vacant, but only if you are emotionally attached to it or would like to rent it out in the near future.

You’ll obviously have to pay all of it out of your own pocket.

Go for it only if it’s worth it.

And if you want to avoid all of this hassle, it’s time you finally decided to sell your house.

If you sell your vacant home in Jacksonville via the traditional way, you’ll have to deal with carrying out repairs, cleaning, listing it on the real estate market, scheduling open homes, etc.

Whereas, with Yellow Birds, you’ll be gaining 15+ years of home buying experience with a 100% customer satisfaction rate.

Right from getting in touch with you and guiding you throughout the process of sending you the best offer for your house, we’d be turning the entire process quick and easy for you.

No Closing Costs! No Inspections! No Realtor Fees! All Cash Offer!

We’ll be making it simple for you.

Don’t wait around! Get in touch with us TODAY!

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