Quote:
Originally Posted by Rainger99
It seems that a lot of pre-owned houses are for sale - and the asking prices are significantly higher than the purchase price even for houses built in the last five years.
Assume a home with a view (golf course, water, preserve) and a home without a view (wall or kissing lanai) and that there have been modest improvements in all homes (no pools) but some upgrades and landscaping totaling no more than $25,000.
Ballpark, how much should a new home (veranda, designer and courtyard villa) increase in value after 1,2,3,4, and 5 years?
Has there been a significant change now as compared to houses built in 2015?
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There can be a big difference between the asking price you see on real estate ads and what houses actually sell for, and from that sales amount remove 6% for the agent, and taxes, and house insurance, and title insurance, and repairs the buyer may require. My next door neighbors’ house is now “Sale Pending” after six months. They started off asking $465,000 which I thought was way too much for a 1600 sq ft courtyard villa, given that my 1200 sq ft courtyard villa has an estimated price of $313,000. (I bought it two years ago for $310,000.) The last asking price for their home was $375,000, and they may be selling it for less. After all their costs, they may get about $340,000. If they had a mortgage and bought a new house with a mortgage or bridge loan, figure in six months of making dual home payments, taxes, insurance, amenities fees, etc. Ouch!
Four or five years ago, used home prices were going up an amazing amount. But that’s because people could get mortgages at 3.5% interest, so they could afford bigger mortgages, so more homes were selling fast, so sellers raised their prices in a sellers market. However, now interest rates are much higher, and the estimate for this area is a 1% price increase in sales price in the past year. Yes. One percent.