Is your Burr Ridge estate costing you more to hold than you’ll gain by waiting to sell? You are not alone if you feel stuck between market headlines and real-life bills. With a clear, local cost-of-carry breakdown, you can decide with confidence and protect your net proceeds. This guide gives you Burr Ridge inputs, simple formulas, and an illustrative example you can copy into a spreadsheet. Let’s dive in.
Why carry math matters in Burr Ridge
Burr Ridge sits in a premium price band, with recent snapshots showing median sold prices around the high six to low seven figures, including readings near about $805,000 in 2025. You can scan a current market snapshot for Burr Ridge to see the latest trends from Rocket Homes. Burr Ridge median price context.
Mortgage rates affect both your cost to hold and buyer demand. In 2025, 30-year fixed rates have been in the mid 6 percent range, based on Freddie Mac’s weekly survey. Current mortgage rate reference.
Property taxes and ownership costs in Chicagoland are meaningful. Effective tax rates around 1.8 to 2.2 percent of market value are common planning inputs in Burr Ridge, though your parcel’s bill rules. Local tax context.
What to include in cost of carry
Use the list below to capture the full picture. Replace estimates with your actual bills where you can.
- Mortgage interest. Use the interest portion of your payment. If you need a quick estimate, multiply your current mortgage balance by your interest rate. Rate context: mid 6 percent in 2025. Freddie Mac weekly survey.
- Property taxes. Start with your latest bill. As a planning range, many Burr Ridge owners use 1.8 to 2.2 percent of market value. Effective tax benchmarks.
- Homeowners insurance. Illinois averages often fall around 2,000 to 3,000 dollars per year for typical coverage levels, higher for large estates. Insurance benchmarks.
- HOA or condo dues. Several Burr Ridge subdivisions post dues in the several hundreds per month. Check your community’s documents for exact figures. Subdivision overview with HOA ranges.
- Maintenance and capital reserves. A conservative baseline is 1 percent of home value per year, with larger or older luxury homes often budgeting higher. Maintenance rule of thumb.
- Utilities and services. Include electric, gas, water, refuse, lawn and snow, security, and seasonal landscaping.
- Opportunity cost of equity. If you hold the home, the equity you could unlock by selling has a potential return elsewhere. Many owners model a 3 to 6 percent after-tax rate to test sensitivity.
Build your worksheet
Gather your numbers
- Estimated current sale price or CMA for your home. Use village-level data as a starting point, then refine with a Burr Ridge specialist. Market snapshot
- Mortgage balance and interest rate.
- Latest property tax bill and county designation, DuPage or Cook.
- Insurance renewal premium.
- HOA dues and transfer policies if applicable. Subdivision HOA context
- Recent utility costs and typical maintenance spending.
Plug in these formulas
- Annual interest cost = Mortgage balance × interest rate.
- Annual property tax = Market value × effective tax rate.
- Annual insurance = annual premium.
- Annual HOA = monthly HOA × 12.
- Annual maintenance = market value × maintenance percent.
- Annual utilities = sum of bills for a typical year.
- Equity if sold today = Estimated sale price − mortgage payoff − expected selling costs.
- Annual opportunity cost = Equity if sold × opportunity rate.
- Annual carry cost (no principal) = interest + taxes + insurance + HOA + maintenance + utilities + opportunity cost if you include it.
Sample Burr Ridge scenario (illustrative)
Assumptions:
- Estimated sale price: 800,000 dollars. Median price context
- Mortgage balance: 500,000 dollars at 6.3 percent. Rate reference
- Property tax: 2.0 percent of value, about 16,000 dollars per year. Tax benchmark
- Insurance: 2,400 dollars per year. Insurance benchmark
- HOA: 0 dollars in this example.
- Maintenance: 1 percent of value, 8,000 dollars per year. Maintenance rule of thumb
- Utilities: 7,200 dollars per year.
Annual carry cost, excluding principal and opportunity cost:
- Interest: 31,500 dollars.
- Taxes: 16,000 dollars.
- Insurance: 2,400 dollars.
- Maintenance: 8,000 dollars.
- Utilities: 7,200 dollars.
- Total: about 65,100 dollars per year, roughly 5,425 dollars per month.
Including opportunity cost of equity:
- Equity if sold, simple: 800,000 minus 500,000 equals 300,000 dollars.
- Opportunity cost at 4 percent: 12,000 dollars per year.
- Economic carry including opportunity cost: about 77,100 dollars per year, roughly 6,425 dollars per month.
How to read this: if expected appreciation is 2 to 3 percent, that equals 16,000 to 24,000 dollars on an 800,000 dollar home, which does not fully offset a 65,000 dollar annual carry in this example. Your outcome improves if your mortgage rate is lower, your tax bill is below the baseline, or if targeted pre-sale improvements raise your sale price meaningfully.
If you might rent instead
Single-family rentals in Burr Ridge can command above-average rents for the region, but vacancy and management costs matter. If renting, add a vacancy allowance of 5 to 10 percent, management fees of about 5 to 9 percent of collected rent, and higher repair reserves for tenant turnover. Local management fee context. Get recent rental comps and a management estimate before you decide.
Selling costs to model now
Commissions and industry changes
Many transactions still see seller-paid commissions, and industry rules are evolving. For planning, model a total commission of 5 to 6 percent, then test lower negotiated scenarios to see the impact on your net. Industry update overview
Typical closing costs
Beyond commissions, plan for title and transfer fees, attorney or settlement costs, prorated taxes, HOA transfers, potential credits, and payoff-related fees. As a planning range, total seller costs, including commission, often fall around 6 to 8 percent of the sale price in many Illinois transactions. Add a line for pre-list repairs or staging. For Burr Ridge estates, that can be a few thousand dollars to well into five figures, depending on scope.
Taxes on the sale
If you meet the primary residence rules, you may exclude up to 250,000 dollars of gain if single or 500,000 dollars if married filing jointly, under Section 121. If the home was a rental or if your gain exceeds the exclusion, speak with a tax professional. IRS Section 121 guidance
Break-even and sensitivity testing
- Vary annual appreciation, try negative 5 percent up to positive 10 percent.
- Test your mortgage rate plus or minus 1 percent, especially if you plan to refinance or carry a second loan.
- Move maintenance from 1 percent to 2 or 3 percent for larger estates.
- For each scenario, compare the net present value of holding 1, 3, and 5 years to selling now and investing proceeds at your chosen opportunity rate.
This exercise shows how long you need to hold for appreciation and principal paydown to overcome carrying and transaction costs.
Local factors that change the math
- County matters. Burr Ridge spans both DuPage and Cook, which affects assessment cycles, levies, and due dates. Always use your parcel’s current bill and county timelines when modeling.
- Insurance costs can move. Large homes or special exposures can increase premiums, so refresh quotes when you update your worksheet.
- HOA rules differ. Some communities have transfer fees or special assessments. Confirm before you list or rent.
What this means for you
Run the carry numbers with your exact mortgage balance, tax bill, insurance premium, HOA dues, and realistic maintenance. Then compare that annual cost to your expected appreciation and the one-time cost of selling. If you plan to list, targeted pre-list improvements can lift price and reduce time on market, which directly improves your net.
If you want a clear, local plan, you can lean on a renovation-first listing approach. Johnny coordinates scope, budget, trusted vendors, staging, and Compass-enabled marketing so you avoid guesswork and stress while aiming for higher proceeds.
Ready to see your hold versus list decision in hard numbers, and where smart updates could move your net? Reach out to Johnny Kloster for a confidential Burr Ridge analysis and a renovation-backed listing plan.
FAQs
What is “cost of carry” for a Burr Ridge estate?
- It is your annual ownership cost to keep the home, typically interest, property taxes, insurance, HOA dues, maintenance, utilities, and, if you include it, the opportunity cost of tied-up equity.
How do I estimate Burr Ridge property taxes?
- Use your current bill if possible, or plan around 1.8 to 2.2 percent of market value as a starting point, then confirm based on your parcel and county.
Do today’s mortgage rates change my decision to hold?
- Yes, carrying a higher rate increases interest cost and can reduce buyer purchasing power, so include your actual rate and test the impact of rates in the mid 6 percent range based on current surveys.
Should I count principal or only interest in carry cost?
- For cash flow, include principal and interest, but for true economic carry, count interest and treat principal as forced savings, then decide if you will also include an opportunity cost on your equity.
If I rent my Burr Ridge home, what extra costs apply?
- Add vacancy allowance, management fees around 5 to 9 percent of collected rent, leasing fees if applicable, and a higher repair reserve for turnover and wear.
What seller costs should I plan for in Illinois?
- Model a total of about 6 to 8 percent of sale price for commissions and closing costs, plus a realistic budget for pre-list repairs, updates, and staging.
How can Johnny help improve my net proceeds?
- Through a renovation-first listing plan, Johnny scopes cost-effective updates, manages contractors and staging, and launches Compass-enabled marketing so you focus on the decision while aiming for higher net proceeds.
