Talk of The Villages Florida - View Single Post - Would the 38K bond on new homes be a deal breaker?
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Old 05-02-2020, 11:48 AM
Love2Swim Love2Swim is offline
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Originally Posted by SnowflakeinDeLaVista View Post
My husband and I look at it the same way we do with houses up north where the bond is already calculated into the price of the home: we combine the home price with the remaining bond to evaluate if the house is worth the cost. TV salespeople will tell you buyers do not consider the bond in making buying decisions, but they are wrong at least in our case. In some ways it seems like buying a new car in that as soon as you roll that car off the lot the value goes significantly down. Your house gets appraised. If the appraisal does not equate to the home price plus bond then you paid more than the market value for it. If you are ok with that then go for it. Also consider that many homes with the bond paid are older so may need renovations. You should likewise consider the cost of those renovations in you evaluation of an older house with no bond. We just bought an older home with no bond that was in need of some renovations. The market value was $25k more than what we paid and we are expecting to pay about $15k to renovate. The area is beautiful, great location, and we have equity from square one. A great buy for us.
Also, some pre-owned homes may have had upgrades or replacement maintenance done which increases the value. We live between 466 and 466A, and almost everyone in our neighborhood has a new roof recently, new AC/heating unit, etc. with the bonds almost paid off. Many have added granite and stainless, hurricane shutters, etc. and have mature landscaping. I'd advise people not to jump in and buy a new home, but check the pre-owned homes and see what's out there. You can save a lot of money and maybe end up with a nicer lot and better location in The Villages.