New vs Resale

[Elkiehound]

Is it still the general consensus that typically buying new is less expensive than resale?

Seems like when you add upgrades, the increasing bond and lot premiums that may not be the case?

[graciegirl]

Is it still the general consensus that typically buying new is less expensive than resale?

Seems like when you add upgrades, the increasing bond and lot premiums that may not be the case?

New and resale are about the same cost when you consider all factors such as location, view and size and general neighborhood upkeep. In my opinion. I don't sell real estate.

I don't think it is cheaper to buy new. It is just that you are getting a brand new everything . AND a community who is new to each other.

[John_W]

Is it still the general consensus that typically buying new is less expensive than resale?

Seems like when you add upgrades, the increasing bond and lot premiums that may not be the case?

Location, location, location, the most popular phrase in real estate. That's for a reason. Anything new is exciting, how long is that gonna last. Drive around the 35 square miles of the established Villages, I know when I moved here almost ten years ago, I liked what I saw and I still do.

[TNLAKEPANDA]

A lot depends on where you want to live. In my opinion there are no Deals in the Villages. Everything is over priced... good if you bought years ago.

[dewilson58]

Is it still the general consensus that typically buying new is less expensive than resale?
Maybe.

[ML Smith]

Don’t think is necessarily cheaper to buy new. Yes, I bought new but then did a number of upgrades. I.e. rain gutters, plank flooring whole house, glassed in lanai, split a/c in lanai. If I could have found an existing similar house I would have definitely considered buying an established home. Another post was right about moving into a new neighborhood that everyone else is new too and meeting your neighbors.

[charlieo1126@gmail.com]

A lot depends on where you want to live. In my opinion there are no Deals in the Villages. Everything is over priced... good if you bought years ago. I’ve bought new 5 times in villages , usually very early in the build except one that was a close out which go very fast , in my case got there at 9 bought it at 9:5 I’ don’t buy just to make money although I always do , but I know I get restless so I want to be in position to make money

[vintageogauge]

Having a new home warranty, better windows, doors, and insulation, smart ready, on demand hot water, currently you have a choice of 6 villages selling/building new homes many of them with natural gas, no worry about the age of the HVAC, roof, appliances, hot water heater, etc., all of this in my mind makes buying new my choice. I may be in the minority on this but that is how I feel.

[Alicat5977]

Also with new you will have a bond. Many resale homes the bond has been paid. Just something to think about.

[Olsenfiber]

Of course there are pros and cons to buying new or resale. Buying new gives you new everything, both house wise and neighborhood. I’ve bought three resales in TV because I like knowing exactly what is in front, back, and on each side of my house, i.e. no surprise eyesores, or misperceptions of what my location will entail. To each their own.

[Hiltongrizz11]

Don’t think is necessarily cheaper to buy new. Yes, I bought new but then did a number of upgrades. I.e. rain gutters, plank flooring whole house, glassed in lanai, split a/c in lanai. If I could have found an existing similar house I would have definitely considered buying an established home. Another post was right about moving into a new neighborhood that everyone else is new too and meeting your neighbors.

"Upgrade"? Maybe you consider glassing in a linai and providing a)c to it an "upgrade" but you can't assume it really is. You have no linai now; you have more indoor living space.

Many want a linai in the traditional sense not a 4 season porch. There is a difference

[coffeebean]

Location, location, location, the most popular phrase in real estate. That's for a reason. Anything new is exciting, how long is that gonna last. Drive around the 35 square miles of the established Villages, I know when I moved here almost ten years ago, I liked what I saw and I still do.

John, you took the words right out of my mouth. Those who want brand new must live south of 44. That location is not "prime" in my opinion. Much prefer The Villages in the established areas around the Lake Sumter Landing area. Others may prefer the southern Villages. It is all a matter of (as the saying goes), location, location, location.

[coffeebean]

"Upgrade"? Maybe you consider glassing in a linai and providing a)c to it an "upgrade" but you can't assume it really is. You have no linai now; you have more indoor living space.

Many want a linai in the traditional sense not a 4 season porch. There is a difference

I agree. I love my outdoor space in the fresh air. I BBQ on the lanai, under the roof. I enjoy being able to BBQ in the rain and my food and me stay dry. The BBQ is placed so it is just protected by the roof. So far, the roof has remained pristine with no evidence of BBQ smoke on it or the surrounding stucco of our home

We do not sit outside in the heat of the summer so the lanai for us during those months is not usable. That is the downside to an open air space.

[gregcharlesnelson@gmail]

We bought way up north in what the Frogs call the 'COUNTRY'. Very quiet. And yes we've done recent upgrades, but we bought right. We can be out of 'the bubble' in less than a minute..

[notme6w]

A quick something to think about as the bonds are high these days

[Girlcopper]

"Upgrade"? Maybe you consider glassing in a linai and providing a)c to it an "upgrade" but you can't assume it really is. You have no linai now; you have more indoor living space.

Many want a linai in the traditional sense not a 4 season porch. There is a difference

And many want to be able to use their lanai for 4 seasons and enclosing it is how. Too hot in the summer n cold in the winter so why waste the space and not enclose it???

[vintageogauge]

John, you took the words right out of my mouth. Those who want brand new must live south of 44. That location is not "prime" in my opinion. Much prefer The Villages in the established areas around the Lake Sumter Landing area. Others may prefer the southern Villages. It is all a matter of (as the saying goes), location, location, location.

Those established area homes are pushing 20 years old now, and not so "prime" in condition. Some may prefer living in the old sections but many are choosing the new areas with new amenities only available south of 44. Take a look at today's Daily Sun to see all of the new stuff going on from championship golf to open air indoor market shopping to restaurants and entertainment, lots happening in the south, noting new in the established areas.

[bilcon]

We bought 2 resales. We got so much with our second home, on the golf course, 30' pool with many interior and exterior upgrades for much less then if it was new and then upgraded. The owner died 2 years after he built the home. I also got to see the neighborhood and after 10 years in this home, still love it. The bond was much less than the new homes down south.

[Michread]

Even with a high bond, it was cheaper for us to buy new. We didn’t like the older styles of kitchen cabinets, flooring, landscaping, etc. The same older house, jasmine, would have been $20k+ more and then we would have to put money into getting it to our style inside and out.

After staying in the Spanish Springs area for a month, we like it here south of 44. A lot less traffic (few roundabouts), good access to Brownwood Square, Wildwood, Leesburg and Orlando for shoppping and the amenities we like.

[Saluce]

Also with new you will have a bond. Many resale homes the bond has been paid. Just something to think about.

Not necessarily, depends on if seller paid it off or not. Most don’t unless home is paid in full as you would never get the bond amount back if paid off earlier than the home.

[MandoMan]

Those established area homes are pushing 20 years old now, and not so "prime" in condition. Some may prefer living in the old sections but many are choosing the new areas with new amenities only available south of 44. Take a look at today's Daily Sun to see all of the new stuff going on from championship golf to open air indoor market shopping to restaurants and entertainment, lots happening in the south, noting new in the established areas.

I have to laugh when people think a twenty year old house is past its prime. That is true for mobile homes, but not for our homes. I lived for some years in a 200 year old log cabin. My girlfriend in New Jersey lives in a 300 year old house. That’s old. My home here in The Villages is twenty-two years old, and it is beautiful. It has a new roof with architectural shingles and a new HVAC system and new appliances, and the bond is paid. Those are all things I wanted in a home, and I found them. The taxes and insurance are reasonable. The house is flawless.

Most days I take a two mile walk to the mailbox and back. I enjoy the lovely houses with their mature landscaping and big trees. I enjoy noticing the various flowers that come into bloom. New neighborhoods don’t always have that sort of landscaping or trees. Someday they will, but not yet. I want to enjoy those things now, all over my village, and I don’t want to pay an extra $10,000 to have a landscaper put it in.

One of the nice things about all the new houses going up down south is that a number of people in ten or twenty year old houses move and leave behind wonderful houses for the rest of us. The Villages would be somewhat different if there were no new houses going up.

Some of you who have moved half a dozen times in twenty years to have a new house remind me of the pioneers of past centuries who would head west again because there were neighbors moving in just ten miles away. (Laughing.) Takes all types.

[Carla B]

And many want to be able to use their lanai for 4 seasons and enclosing it is how. Too hot in the summer n cold in the winter so why waste the space and not enclose it???

More windows to wash?

[kyralud]

I personally like resale, if you can find something with potential and good bones. Many upgrades are in place already, (cheaper than paying for it new), landscaping and irrigation are in place, neighborhood is established, no new building construction noise, and I love looking for something with character that previous owners have already established that I can make my own. Also, oftentimes you can make an offer with pieces of existing furniture that you like in the space... big savings if you don’t have furniture or want something new. Sometimes they will leave mounted televisions, etc. Get a good realtor that knows the area and features (I used Stephen Yohn at Remax) He is a great source of all kind of Village info and can point out all the pros and cons of the property, location and features that I never would have thought of with an unbiased opinion instead of just the builder’s view of new homes.
But as others have said... to each his own! Good luck!
#lovingthelifestyle

[RedFoxRick]

My wife and I just went under contract for our first home in the villages. We found the new homes to be expensive in price, bonds (some were over $40K) and Wildwood taxes (south of 44). Location was important though, so we found a five-year-old home in Dunedin that has most everything we wanted - and we will upgrade the rest (screen room, etc). The location is ideal, as it feels like the new "center" for now anyway. The taxes are much more reasonable than the new areas south of 44 or Pine Hills area in Lake County. We also like the mature landscaping and established, but still "new" neighborhood. I just think that the taxes and bonds south of 44 make new higher priced in the long-run (even the spec houses).

[Lottoguy]

The area in the far north is the best kept secret in The Villages. Less crowded in the winter. Close to everything thing including the hospital and squares.

[billethkid]

The notion that older homes in TV are in less repair is humorous....in most homes here two little old people who have all the time in the world to keep the place pristine....

For example....we had ours built 17 years ago. We have replaced everything that can be over the last 4 years.
Better than the day we first moved in.

No right or wrong. Take the one that meets the expectations you have for what and where.

[OhioBuckeye]

A lot depends on where you want to live. In my opinion there are no Deals in the Villages. Everything is over priced... good if you bought years ago.

TNLAKEPANDA - I think that’s everywhere, even here in Texas everything is higher but I have to say preowned homes here do sell very well & new homes sells a lot higher than preowned. Florida is a place where a lot of people want to retire, maybe that’s why home price keep going up. We sold our home in TV & did make a profit & we did sell our home (Lilac) less than the least expensive new one & made a profit but it was less than what they appraised it for. TV is a very desirable place to live, maybe that’s why TV can keep under selling preowned. Go Figure!

[vintageogauge]

The notion that older homes in TV are in less repair is humorous....in most homes here two little old people who have all the time in the world to keep the place pristine....

For example....we had ours built 17 years ago. We have replaced everything that can be over the last 4 years.
Better than the day we first moved in.

No right or wrong. Take the one that meets the expectations you have for what and where.

Not so humorous. You replaced everything that can be replaced in your 17 year old home, there are many, many homes of that age that still have the original roof, HVAC, Windows, etc, all very expensive to replace. I do agree that there is no right or wrong, it's a personal decisions.

[mgrinder]

Each approach has advantages and disadvantages . New gives you new warranties, new, read small, shrubs and landscaping. You have to add your own window treatments but they are your taste, and the general location is restricted to the area being developed. Be sure you understand current amenities and services available. Get everything that prompts you to buy in writing.
Previously owned typically provide mature landscaping, tried, and perhaps tired, appliances, established neighborhood groups and activities plus there are home available throughout the Villages. And, no, I am not a realtor

[Papa_lecki]

Even with a high bond, it was cheaper for us to buy new. We didn’t like the older styles of kitchen cabinets, flooring, landscaping, etc. The same older house, jasmine, would have been $20k+ more and then we would have to put money into getting it to our style inside and out.

After staying in the Spanish Springs area for a month, we like it here south of 44. A lot less traffic (few roundabouts), good access to Brownwood Square, Wildwood, Leesburg and Orlando for shoppping and the amenities we like.

We are finding the same thing. We looked at A LOT of homes around Lake Sumter - have a few family friends near there. We would have needed to dump a lot of Monet into them. Then we looked south of 44, and seem to like the places much better.

[westernrider75]

We just bought new and had a whole spread sheet comparing costs and future costs.....new was better financially for us.

[NavyVet]

We've done both. First 2 homes were new, 3rd one a resale. Paid more than my share towards the bonds, will never buy another home with a bond balance hanging over my head.

[kenoc7]

John, you took the words right out of my mouth. Those who want brand new must live south of 44. That location is not "prime" in my opinion. Much prefer The Villages in the established areas around the Lake Sumter Landing area. Others may prefer the southern Villages. It is all a matter of (as the saying goes), location, location, location.
Or they may prefer the quiet, lack of traffic, and golf courses with trees in the north end. I do.

[DIver0258]

Is it still the general consensus that typically buying new is less expensive than resale?

Seems like when you add upgrades, the increasing bond and lot premiums that may not be the case?

All depends on personal preference, where do you want to live, looking to make friends with other new Villagers, what is your vision, and logistics. Our first home was a villa in Hadley, great area convenient to almost everything The Villages has to offer. Our new home is south of 44. We chose there because we could not find a resale that meet our criteria in the older areas. So we ended up purchasing in the southern villages with out any regrets we love it here. I am a firm believer there is no bad area in The Villages it all what you vision of paradise is.

[Dgodin]

We bought way up north in what the Frogs call the 'COUNTRY'. Very quiet. And yes we've done recent upgrades, but we bought right. We can be out of 'the bubble' in less than a minute..
Overall, getting a great location and neighborhood is far more important than the initial cost. Buy an existing home and youll get to enjoy the upgrades the former owner made, but perhaps need to make some changes. Build or buy new and you'll have a clean slate to work with but you'll buy some upgrades.

We built new on an empty lot in the historic area and were fortunate to find a lot on a golf course, not for the golf but for the view. We were able to build new and not have a bond. But we had to add stairs to access the garage attic, an epoxy floor for the garage and driveway. And we furnished the place.

But our main criteria was the location not cost. We really liked the easy access via golf cart to 3 grocery stores, medical, Lowes, Walmart, etc in the historic area. Golf cart access was an important consideration as we are full timers and we thought about what our life would be like in 20 years when we may have more difficulty driving a car . For others it may be proximity to recreation or the town squares. Also consider what surrounds the house. There are many lots along the villages perimeter, natural areas, ponds (lakes) where you can enjoy an unobstructed view or a courtyard villa which offers privacy and some neighborhoods see a lot more traffic than others.

[Worldseries27]

[QUOTE=Girlcopper;1864546]And many want to be able to use their lanai for 4 seasons and enclosing it is how. Too hot in the summer n cold in the winter so why waste the space and not enclose it???[/QUOTE
110% CORRECT
ALSO STICK " RELATIVES "AND OUT OF STATE ACQUAINTANCES OUT THERE

[yanksansky]

I agree completely. We upgraded the gutters, water softener system and are now adding a birdcage to extend our Lanai. Privacy screens also coming. All at decent prices.

[CoachKandSportsguy]

Not necessarily, depends on if seller paid it off or not. Most don’t unless home is paid in full as you would never get the bond amount back if paid off earlier than the home.

For round numbers, lets say the bond is 10% of construction price.. $30K on a $300K house, for a total of $330K. Lets say the house price increase is 4% annually from $300K. 4% compounded over the next three years is a 12.5% increase, or $337K.

So three years of modest price increases will return the cost of the bond paid off. After 5 years of living in the house the value will be $365K, which easily recoups the price of the bond, and more.

What you won't recoup is the interest you pay for not paying the bond off early, so I don't know what math you are looking at, but from a simple financial point of view, only a flipper after a year or two won't get his money back, unless the house sells significantly above the total combined cost, which is always possible.

sportsguy

[Kenswing]

For round numbers, lets say the bond is 10% of construction price.. $30K on a $300K house, for a total of $330K. Lets say the house price increase is 4% annually from $300K. 4% compounded over the next three years is a 12.5% increase, or $337K.

So three years of modest price increases will return the cost of the bond paid off. After 5 years of living in the house the value will be $365K, which easily recoups the price of the bond, and more.

What you won't recoup is the interest you pay for not paying the bond off early, so I don't know what math you are looking at, but from a simple financial point of view, only a flipper after a year or two won't get his money back, unless the house sells significantly above the total combined cost, which is always possible.

sportsguyBut don't you need to take into account the opportunity cost? Right now the interest rate on a bond is 3.67%. That's almost as good as a free loan. Instead of paying that off why not invest in something that pays more?

[CoachKandSportsguy]

But don't you need to take into account the opportunity cost? Right now the interest rate on a bond is 3.67%. That's almost as good as a free loan. Instead of paying that off why not invest in something that pays more?

Your answer isn't relative to the point made which was bond payoff early and recouping the cost when sold. The statement made was that one does not recoup the bond cost if paid off early when selling a house unless paid off on the amortization schedule.

Your point is a profit/income/wealth maximization / optimization answer with just a generalized assumption of a low interest rate.

sportsguy

[Marathon Man]

Your answer isn't relative to the point made which was bond payoff early and recouping the cost when sold. The statement made was that one does not recoup the bond cost if paid off early when selling a house unless paid off on the amortization schedule.

Your point is a profit/income/wealth maximization / optimization answer with just a generalized assumption of a low interest rate.

sportsguy

And that statement was generally correct. That is because you can not re-coop the bond by adding it to your asking price. Buyers will not look your way. As far as re-cooping the bond with appreciated value - OK, but that growth takes place whether you pay off the bond or not. Paying the schedule means I keep more profit after selling.