24 (not the tv show)

[ricthemic]

After two years of reading this great board and of trying to get to TV we finally made it last Saturday unfortunately for only 24 hours (had to fly to WPB for a funeral). Rented a car and drove up Sat morning, stayed at a wonderful hotel lake side in downtown ft sumpter. Spent three hours with a great TV sales rep, Paul Jewell. We love the whole place. TV defineitly exceeded our expectations.
I have a basic real estate question: The new houses/villas are selling for less than the existing units. Some 3 BR CYVs are 20 K less if purchased new. This is perplexing but what I REALLY need to know is are the bank appraisals (in this economy) actually higher for a used house than a brand new one with a one year warranty. Basically the sq footage and comps should not be that different...
We have bought and sold many houses and the bank appraisal is the most important thing. Does not make sense to go through the entire buying process only have the lender tell you your down payment in insufficient.
Thank you in advance for your answers.

Rich from Cape Cod

[rshoffer]

You will be surprised how quickly you spend 20 grand after you move in: Pull-out shelves, blinds, palm trees, landscaping,.... The add ons are endless.... Also, many of the older homes have the bond paid.

[Ohiogirl]

I'm in the process of refinancing - bought a CYV almost 3 yrs ago, almost at the height of the market (they had 1 small price increase after). I've kept a close watch on sales and listings. My appraisal came back much higher than I expected (probably not a true market value) but still am sure it hasn't lost value - might be slightly unique in that it's a 3 bedroom CYV - not as many on the market. When I bought, resales were quite a bit higher than new, which I thought was odd at the time.

Keep in mind the new ones do have a higher bond, but really don't think there are any problems with appraisals on new construction as they are selling quite a few every month. That alone provides the comps.

[JohnN]

yes it is perplexing why new are less costly than pre-owned, and there are things you can do in upgrades for sure. We bought new because we liked the area a lot and wanted to "do it our way". Appraisals generally pass without a problem (assuming you're talking the pre-owned since they're higher priced.

In my opinion, which many may well disagree - I think the preowned folks kick up the price a bit to try and cover the sales commission they'll pay and to allow a bit of negotiating room. That doesn't get much press but I believe it.