[Greg Nelson]

As we're going to be looking to buy having the bond paid has its attraction. Cost of operation is affected by taxes (bond) too

[Love2Swim]

The way the Villages sales agent explained it to us, is if someone is looking at two similiar pre-ownedhomes for sale, one has the bond paid off, and the other doesn't, which home do you think the person is going to buy? Obviously having the bond paid off makes it more attractive. But I agree, you can't automatically add the cost of the paid bond into your asking price. People are funny about selling their homes. They have a certain idea in their mind as to what its worth and they don't want to face reality sometime. I've seen people hang on to a house for two years trying to sell it at a price that is too high. When you add in the carrying costs for that amount of time - taxes, insurance, etc., they would have been better off dropping their price in the first place.

If you know you're only going to be in the home a few years, then yes, I probably wouldn't pay off the bond. If you're not sure, it can be surprising how time flies. We paid off our bond, thinking maybe we'd move in six or seven years. Its been over ten years now. If we had kept on making bond payments, we'd end up paying for the bond twice. I'm glad we made the smart decision (for our situation) and didn't end up paying all that extra interest. We paid off our home up north in 15 years to avoid paying additional interest, and I've paid for my automobiles without taking a car loan. I personally hate paying out the interest. But everyone is different.

[Greg Nelson]

I /we wouldn't buy a villa that was overpriced with a bond pay off

[RickeyD]

I wouldn't pay extra for any house with the bond payed off[emoji383]. I see no value in that, negotiations start where we subtract from the asking price the bond payoff at that moment in time. If the seller doesn't like it, I'll walk.
Any savvy buyer would do the same.

[Putt4Dough]

Originally Posted by RickeyD

I wouldn't pay extra for any house with the bond payed off[emoji383]. I see no value in that, negotiations start where we subtract from the asking price the bond payoff at that moment in time. If the seller doesn't like it, I'll walk.
Any savvy buyer would do the same.

You have just contradicted yourself. You just stated paid bond has no value, which is a joke, and then stated that you negotiate by deducting unpaid bond price from seller's asking price. So if bond is paid, you are going to pay more for the home.

Your earlier statements saying that no experienced accountant or real estate person would advocate paying of the bond is also ridiculous. No CPA is going to tell you to pay 4-7% interest on a tax, which is how CDDs or bonds are collected. Who wants to pay double for a non asset that does not appreciate.

[Boomer]

Originally Posted by RVRoadie

There is no doubt that convincing a future buyer that your house is worth more because the bond is paid is a hard sell. It is just human nature to lump an unpaid bond in with future property taxes, which is where it is collected.

For me, the biggest advantage to paying off a bond, is that it is a disincentive to be looking at new houses. How many residents have gone out to "look" at open homes and ended up buying. If you are happy with your house and you have the money, why not pay it off. Let your heirs worry about it.

So you are using a paid off bond as a behavioral modification technique. I must say, you sure do think outside the box.

[Challenger]

Originally Posted by RickeyD

I wouldn't pay extra for any house with the bond payed off[emoji383]. I see no value in that, negotiations start where we subtract from the asking price the bond payoff at that moment in time. If the seller doesn't like it, I'll walk.
Any savvy buyer would do the same.

You statement here just validates everything I have said. Hmnnn!!!

[Boomer]

Originally Posted by RickeyD

I wouldn't pay extra for any house with the bond payed off[emoji383]. I see no value in that, negotiations start where we subtract from the asking price the bond payoff at that moment in time. If the seller doesn't like it, I'll walk.
Any savvy buyer would do the same.

Originally Posted by Challenger

You statement here just validates everything I have said. Hmnnn!!!

I say, "Hmm," too.......

I think what actually happened is that Rickey misplaced a prepositional phrase. If "at that moment in time" (actually there are two prepositions and objects in that one) is moved to after the word 'start' it then becomes an adverbial prepositional phrase because in that position it would modify the verb 'start'.

BUT "at that moment in time" in its current placement in the sentence is acting as an adjective phrase, modifying the noun 'payoff' and making it look like "payoff" means zero. I don't think he means he is subtracting zero. It just looks that way because there is a misplaced modifier.

I am deriving my conclusion from context clues throughout this thread.

I don't know if I will get "validated" but my money is on a misplaced prepositional phrase.

You're welcome.

[RickeyD]

Originally Posted by Putt4Dough

You have just contradicted yourself. You just stated paid bond has no value, which is a joke, and then stated that you negotiate by deducting unpaid bond price from seller's asking price. So if bond is paid, you are going to pay more for the home.



Your earlier statements saying that no experienced accountant or real estate person would advocate paying of the bond is also ridiculous. No CPA is going to tell you to pay 4-7% interest on a tax, which is how CDDs or bonds are collected. Who wants to pay double for a non asset that does not appreciate.

You misunderstand. The bond has no value yet the seller is adding his bond payoff to the price of his house thinking it adds value to his house. I would subtract from his asking price what he added and then negotiate down from there. I'm not in the habit of contradicting myself nor am I in the habit of thinking Irrationally when it comes to money.

[twoplanekid]

The appraised value on a house in the Villages does not include the residue bond balance.

[RickeyD]

Originally Posted by twoplanekid

The appraised value on a house in the Villages does not include the residue bond balance.

Nor does it anywhere the Kings English is spoken. Payed off future debt has no value to anyone other than the guy who payed it off.

[RickeyD]

Originally Posted by Boomer

I say, "Hmm," too.......

I think what actually happened is that Rickey misplaced a prepositional phrase. If "at that moment in time" (actually there are two prepositions and objects in that one) is moved to after the word 'start' it then becomes an adverbial prepositional phrase because in that position it would modify the verb 'start'.

BUT "at that moment in time" in its current placement in the sentence is acting as an adjective phrase, modifying the noun 'payoff' and making it look like "payoff" means zero. I don't think he means he is subtracting zero. It just looks that way because there is a misplaced modifier.

I am deriving my conclusion from context clues throughout this thread.

I don't know if I will get "validated" but my money is on a misplaced prepositional phrase.

You're welcome.

I hated English class then. I still hate it.

[dbussone]

Originally Posted by RickeyD

Nor does it anywhere the Kings English is spoken. Payed off future debt has no value to anyone other than the guy who payed it off.

I think we are currently using the Queen's English. All y'all come back now. Ya hear!


Sent from my iPad using Tapatalk Pro

[RickeyD]

Originally Posted by Boomer

I say, "Hmm," too.......

I think what actually happened is that Rickey misplaced a prepositional phrase. If "at that moment in time" (actually there are two prepositions and objects in that one) is moved to after the word 'start' it then becomes an adverbial prepositional phrase because in that position it would modify the verb 'start'.

BUT "at that moment in time" in its current placement in the sentence is acting as an adjective phrase, modifying the noun 'payoff' and making it look like "payoff" means zero. I don't think he means he is subtracting zero. It just looks that way because there is a misplaced modifier.

I am deriving my conclusion from context clues throughout this thread.

I don't know if I will get "validated" but my money is on a misplaced prepositional phrase.

You're welcome.

"At that moment in time" refers to the bond payoff as a moving target. Year after year the payoff amount is decreased until its satisfied. If a seller pays down his bond in year one at 25K then decides to sell 4 years later, that 25K has devalued itself by 3K. The seller doesn't see that so he attempts to price his house at 25K above its appraised value so as to recoup. False logic from its inception that only this seller can truly appreciate and the savvy mock. Bottom line, bond is future debt and debt has NO value.

[Boomer]

OK Rickey, but I knew you had been misunderstood. And, hey, even though I am not being validated, at least I got to write a tedious post about prepositional phrases.

twoplane makes a good point about appraisal value.

All in all, this thread has been a good one for anybody who wants to learn more about the bond and where they fit in the scheme of things. (Maybe 'scheme' is the operative word there.)

Anyway, like somebody said earlier somewhere, whether or not to pay off the bond quite simply depends..........