Not making much if anything on this house

[twoplanekid]

When we first considered moving to the Villages, the Bridgeport model of home was our first pick. While the kitchen area has changed in the newer design, I still like this model of home. Well, there is an almost new one for sale in Chitty Chatty that is being sold for almost the original purchase price. I would estimate over $10,000 has been spent on landscaping not to mention the other hundreds of dollars spent on other things to made the house livable. The original purchase price in 07/2020 was $530,600 and is now listed for sale at $549,500. If one factors in what has been spent on this house and the sales commission for the sale, the current owners are not making anything off of this sale. If you’re looking to purchase a Bridgeport model, this might be a good deal for you.

Homefinder - The Villages(R) Homes and Villas for Sale (https://www.thevillages.com/homefinder/S44V.12?new&preowned&homesites&lng=-81.99355979584547&lat=28.87421165371721&lvl=0)

[bluedivergirl]

Beautiful home. Extensive crown molding, and there seem to be more than average lighting cans. Lovely back splash, too. I wonder if the home came with some of these improvements?

At any rate, I could live there (if I was inclined to move!).

[valuemkt]

You make money when you buy real estate. Of course there is no guarantee. At the price point you;ve listed, it appears it must have a water or golf course view in back. You;re complaining about a house in Chitty Chatty ? Looking for price appreciation after 6 months ?? With the number of homes being built around there, the resale will be competing against builder incentives etc. I don;t follow the logic of this being a "deal".

[Kenswing]

When we first considered moving to the Villages, the Bridgeport model of home was our first pick. While the kitchen area has changed in the newer design, I still like this model of home. Well, there is an almost new one for sale in Chitty Chatty that is being sold for almost the original purchase price. I would estimate over $10,000 has been spent on landscaping not to mention the other hundreds of dollars spent on other things to made the house livable. The original purchase price in 07/2020 was $530,600 and is now listed for sale at $549,500. If one factors in what has been spent on this house and the sales commission for the sale, the current owners are not making anything off of this sale. If you’re looking to purchase a Bridgeport model, this might be a good deal for you.

Homefinder - The Villages(R) Homes and Villas for Sale (https://www.thevillages.com/homefinder/S44V.12?new&preowned&homesites&lng=-81.99355979584547&lat=28.87421165371721&lvl=0)There's really no incentive for them to price the house any higher. A house under a year old has to turn over any profits to the developer.

[VApeople]

Well, there is an almost new one for sale in Chitty Chatty that is being sold for almost the original purchase price.

It is always interesting why a new house is being sold. I wonder if they got tired of the noise from the golf cart traffic right behind their house, the noise on CR468, or trying to turn left when leaving Chitty Chatty.

[Toymeister]

The home is less than 12 months old. Per the original owners purchase agreement they cannot make a profit in the first 12 months if they sell. This situation was put in place to stop speculation. They are pricing at original price + improvements.

There are conditions where this pricing abnormality works to your advantage, price increase by the developer, sharp increase in inflation or a shortage of some characteristic of the home, making new models dramatically more expensive.

[retiredguy123]

When we first considered moving to the Villages, the Bridgeport model of home was our first pick. While the kitchen area has changed in the newer design, I still like this model of home. Well, there is an almost new one for sale in Chitty Chatty that is being sold for almost the original purchase price. I would estimate over $10,000 has been spent on landscaping not to mention the other hundreds of dollars spent on other things to made the house livable. The original purchase price in 07/2020 was $530,600 and is now listed for sale at $549,500. If one factors in what has been spent on this house and the sales commission for the sale, the current owners are not making anything off of this sale. If you’re looking to purchase a Bridgeport model, this might be a good deal for you.

Homefinder - The Villages(R) Homes and Villas for Sale (https://www.thevillages.com/homefinder/S44V.12?new&preowned&homesites&lng=-81.99355979584547&lat=28.87421165371721&lvl=0)
I looked at new houses in that exact area when they were first built. Some of them, including this one, are too close to Morse Blvd. The traffic noise would kill the deal for me.

I would also point out that the rule for "no profit" in the first year is not exactly true. The seller can add the full cost for upgrades and the real estate commission to the price before any profit is calculated.

[Boomer]

If a house is not the primary residence, profit is subject to capital gains tax.

Also, in general, when it comes to pricing a house to sell, some sellers recognize that time is money.

[retiredguy123]

If a house is not the primary residence, profit is subject to capital gains tax.

Also, in general, when it comes to pricing a house to sell, some sellers recognize that time is money.
If a house is bought and sold within a year, it wouldn't qualify as a primary residence because you need to live in it for at least 2 years. Also, any profit wouldn't qualify for the capital gains tax rate. It would be taxed as ordinary income if sold in less than a year.

[Boomer]

If a house is not the primary residence, profit is subject to capital gains tax.

Also, in general, when it comes to pricing a house to sell, some sellers recognize that time is money.

If a house is bought and sold within a year, it wouldn't qualify as a primary residence because you need to live in it for at least 2 years. Also, any profit wouldn't qualify for the capital gains tax rate. It would be taxed as ordinary income if sold in less than a year.


That’s right, rg123, I knew it but did not think to put it in.

So whether it is a primary residence or a vacation home, cap gains could kick in — and perhaps mightily. Along with that, a big cap gain could throw a Medicare recipient over the threshold into IRMAA and increase Medicare premium costs two years down the road.

The listing price seeming low could simply mean that the potential for tax consequences is being factored in.

Whatever it is, it is certainly not my business. But I can rarely resist a conversation about taxes. (sigh)

Boring Boomer

[Bilyclub]

A $42,000 bond. Do they have to also pay Wildwood taxes?

[Mortal1]

When we first considered moving to the Villages, the Bridgeport model of home was our first pick. While the kitchen area has changed in the newer design, I still like this model of home. Well, there is an almost new one for sale in Chitty Chatty that is being sold for almost the original purchase price. I would estimate over $10,000 has been spent on landscaping not to mention the other hundreds of dollars spent on other things to made the house livable. The original purchase price in 07/2020 was $530,600 and is now listed for sale at $549,500. If one factors in what has been spent on this house and the sales commission for the sale, the current owners are not making anything off of this sale. If you’re looking to purchase a Bridgeport model, this might be a good deal for you.

Homefinder - The Villages(R) Homes and Villas for Sale (https://www.thevillages.com/homefinder/S44V.12?new&preowned&homesites&lng=-81.99355979584547&lat=28.87421165371721&lvl=0)

how do you know if the money they spent on the upgrades are things others will pay more for??? Answer: you don't. You're speculating on things you have no real knowledge about.

[retiredguy123]

After reading this thread, I decided to drive over and view the house. If you want sit on your lanai and listen to high speed traffic noise from Morse Blvd and low speed traffic noise from the drive through golf cart path in the rear while the afternoon sun beats down on you, with not much of a view, it would be a great house to buy. No wonder they are selling.

[CWGUY]

A $42,000 bond. Do they have to also pay Wildwood taxes?

Yes

[vintageogauge]

It is always interesting why a new house is being sold. I wonder if they got tired of the noise from the golf cart traffic right behind their house, the noise on CR468, or trying to turn left when leaving Chitty Chatty.

Or a health issue, or a death of an owner, or a number of other issues. At the average age down here a lot of things can happen over a short period of time. There are homes on the market that have never been lived in and they each most likely have a different reason.

[twoplanekid]

After reading this thread, I decided to drive over and view the house. If you want sit on your lanai and listen to high speed traffic noise from Morse Blvd and low speed traffic noise from the drive through golf cart path in the rear while the afternoon sun beats down on you, with not much of a view, it would be a great house to buy. No wonder they are selling.


I would suspect than many, many people near the Florida Turnpike and other main roads in The Villages can hear road (cars, trucks, golf cart ) noise at various times of the day and night. How many people have kissing lanais as a view? I have no knowledge of why they are selling this house but find it interesting that the house is selling with little or no appreciation. Everyone looks at things differently to come to a variety of conclusions. So, let's continue to have fun and enjoy being alive to see the sun rise and set.

[Dgizzi]

Wonder why they are leaving already? Wow.

[Dgizzi]

Oh that’s why

[Pairadocs]

[QUOTE=Kenswing;1894471]There's really no incentive for them to price the house any higher. A house under a year old has to turn over any profits to the developer.[/QUOTE

What ????? This is still America isn't it ? I know things are changing all over the country so fast now it makes your head spin, but give a developer money you gained by selling YOUR HOME that is in YOUR name and pay your taxes on...... what ???

[CWGUY]

[QUOTE=Kenswing;1894471]There's really no incentive for them to price the house any higher. A house under a year old has to turn over any profits to the developer.[/QUOTE

What ????? This is still America isn't it ? I know things are changing all over the country so fast now it makes your head spin, but give a developer money you gained by selling YOUR HOME that is in YOUR name and pay your taxes on...... what ???

:) On 11/23/20 the annual tax bill for that property was paid. The bill was $104.89 and the owner paid $100.69 :ho:

[rmd2]

A $42,000 bond. Do they have to also pay Wildwood taxes?

How do WW taxes differ from Sumter? Just curious.

[retiredguy123]

How do WW taxes differ from Sumter? Just curious.
Sumter is a county. Wildwood is a city located within Sumter County. Some houses in The Villages are located within the Wildwood city limits. Those houses are taxed by both Sumter County and the city of Wildwood. You can view the tax bill for any house in Sumter County by doing a search of the address on the Sumter County property website. It will show how much of the bill is paid to Wildwood.

[joelfmi]

The owner is trying to make a killing, If he doesn't sell it for his inflated price he will be forced to sell it at the true worth price.

[thevillagernie]

Yea. but look at the fun you had

[joelfmi]

You hit the nail on the head.

[bowlingal]

Ask yourself why is this house for sale after less than 1 year? Something is VERY wrong

[bowlingal]

RMD2...of course they have to pay Wildwood taxes also. VERY expensive to own a house down south

[Debfrommaine]

When someone sells a home less than a year from purchase, it is not necessarily because there is anything wrong with the home or location. Life has a way of leading people in a different due to health or maybe they just found a dream home. Realtor told me taxes down "South" do have an additional Wildwood tax of $300 per $100K. The area has beautiful open green space for which the Wildwood tax might not mean much in return for that. The bonds are the bonds on both sides.

[retiredguy123]

[QUOTE=Kenswing;1894471]There's really no incentive for them to price the house any higher. A house under a year old has to turn over any profits to the developer.[/QUOTE

What ????? This is still America isn't it ? I know things are changing all over the country so fast now it makes your head spin, but give a developer money you gained by selling YOUR HOME that is in YOUR name and pay your taxes on...... what ???
The rule has been in effect for a long time. There have been times in the country when people were buying new houses and selling them for a profit before they were even built. The developer's "no profit within a year" rule prevents that type of speculation, which is not good for a stable market. I think it is a reasonable rule.

[dewilson58]

[QUOTE=Pairadocs;1894750]
The developer's "no profit within a year" rule prevents that type of speculation, which is not good for a stable market. I think it is a reasonable rule.
Agree.
I which the stock market had this reasonable rule.

[dewilson58]

Ask yourself why is this house for sale after less than 1 year? Something is VERY wrong
Death, Illness, changed their mind, found a better house, bad neighbor(s), too much dog poop, etc.

[Kgcetm]

Perhaps you should have bought Amazon! If you were looking to make money. That said, the newer homes come with small lots, cracks, noise and other conditions that will limit their value over time. Don’t worry. Be happy.

[DotComMom]

A $42,000 bond. Do they have to also pay Wildwood taxes?

Yes

[DAVES]

A home as an investment? I'm no expert but, based on reading stock market returns on average are higher. We all know, stock market real estate only go up. No one tells you
except when they don't.
Real estate can be profitable due to tax incentives and the fact that it is highly leveraged.
If, you buy a place for 300,000 and put 10% down, you have 30,000 into it. If, it goes up 10%
it is not up 10% of 30,000 or 3,000. It is up 10% of 300,000 or 30,000. Leverage also works in reverse. Remember the real estate bubble? Subprime mortgages etc?

[CFrance]

You hit the nail on the head.
Who did?


Puleeeeeeeeeeeeeze quote the thread you are responding to. Even the Admin requested that.

[Lakeside5012]

It is a shame to add this cloud to the seller's opportunity to sell the house. Would any of us want someone pointing out the flaws in our property publicly if we hoped to sell our home. All homes have upsides and downsides and it is ultimately the buyers decision to consider these things. I don't think the original post had ill intentions. This thread should be taken down on the seller's behalf.

[Spalumbos62]

[QUOTE=Pairadocs;1894750]

:) On 11/23/20 the annual tax bill for that property was paid. The bill was $104.89 and the owner paid $100.69 :ho:

Nosey..are we?

[Boomer]

It is a shame to add this cloud to the seller's opportunity to sell the house. Would any of us want someone pointing out the flaws in our property publicly if we hoped to sell our home. All homes have upsides and downsides and it is ultimately the buyers decision to consider these things. I don't think the original post had ill intentions. This thread should be taken down on the seller's behalf.


I agree with you completely.

I posted a couple of times early in this thread to make the point that there are times when it is advantageous to sellers to factor in capital gains tax consequences when pricing a house. Sometimes a wash is better financially for a seller. A smart seller considers every aspect of a sale, including the time is money philosophy.

BUT THEN, the thread continued to include an absolutely cringeworthy post from someone reporting to have actually made it a point to drive past the house and then returned to TOTV to rip on the house. (shudder) That creeped me out and made me regret taking part in the thread — even though it was just my general commenting about some sellers being tax-smart.

THEN came all sorts of rude, baseless, downright tacky speculation on the personal lives of an unknown homeowner just trying to sell a house that they do not want or need anymore for reasons that are none of anyone else’s business.

This kind of thing has happened before on TOTV. It is rude and downright disgusting sometimes.

Btw, the house in the pictures looks lovely and is beautifully decorated by someone with exquisite taste.

Thank you, Lakeside 5012, for posting what I have been wanting to post this morning.

Boomer

[twoplanekid]

It is a shame to add this cloud to the seller's opportunity to sell the house. Would any of us want someone pointing out the flaws in our property publicly if we hoped to sell our home. All homes have upsides and downsides and it is ultimately the buyers decision to consider these things. I don't think the original post had ill intentions. This thread should be taken down on the seller's behalf.

I did not! As I look at houses almost every day for the fun of it, this house stood out in that the spread between purchase and selling price with the improvements seemed to be a good value for the buyer. It's amazing how much house data is accessible for free looking at public records. If I were looking at a house, I would look at this one and make up my own mind as to if it would be a good deal for me to purchase it.

tax data -> Sumter County Property Appraiser (http://www.sumterpa.com/GIS/?pin=G23B012)

District billing -> https://bsaonline.com/Ub_OnlinePayment/OnlinePaymentDetails?PaymentSearchCategory=Address&PaymentApplicationType=UtilityBilling&PaymentSearchText=5030&uid=2523&ReferenceKey=S44V.12&ReferenceType=0&RecordKey=141936&RecordKeyType=8

[vintageogauge]

Perhaps you should have bought Amazon! If you were looking to make money. That said, the newer homes come with small lots, cracks, noise and other conditions that will limit their value over time. Don’t worry. Be happy.

Where are you getting you information. There are more homes south of 44 with 4 car garages on large lots than in any of the other villages, we have no cracks, no more noise than anywhere else in the villages and there are no other conditions that would limit the value, just the opposite exists down here. There are dozens of re-sale homes south of 44 in the $600,000+ range that are selling almost as quickly as they are listed.

[retiredguy123]

I agree with you completely.

I posted a couple of times early in this thread to make the point that there are times when it is advantageous to sellers to factor in capital gains tax consequences when pricing a house. Sometimes a wash is better financially for a seller. A smart seller considers every aspect of a sale, including the time is money philosophy.

BUT THEN, the thread continued to include an absolutely cringeworthy post from someone reporting to have actually made it a point to drive past the house and then returned to TOTV to rip on the house. (shudder) That creeped me out and made me regret taking part in the thread — even though it was just my general commenting about some sellers being tax-smart.

THEN came all sorts of rude, baseless, downright tacky speculation on the personal lives of an unknown homeowner just trying to sell a house that they do not want or need anymore for reasons that are none of anyone else’s business.

This kind of thing has happened before on TOTV. It is rude and downright disgusting sometimes.

Btw, the house in the pictures looks lovely and is beautifully decorated by someone with exquisite taste.

Thank you, Lakeside 5012, for posting what I have been wanting to post this morning.

Boomer
I agree. I'm sorry that my post was cringeworthy. It was not worded properly. I was trying to point out that the traffic noise may be an issue for some buyers, which is something that has been discussed many times on this site.

[jmcica@aol.com]

It is a shame to add this cloud to the seller's opportunity to sell the house. Would any of us want someone pointing out the flaws in our property publicly if we hoped to sell our home. All homes have upsides and downsides and it is ultimately the buyers decision to consider these things. I don't think the original post had ill intentions. This thread should be taken down on the seller's behalf.
I agree- terrible. We are looking to buy but hate the homes with kissing lanai???! I wouldn’t start a
Post about that. I keep it to myself. How many of you have those types of homes.
This was not in good taste.

[eddie888]

I do believe the best houses to purchase are the ones between 44 and 466 a. Those are the ones that are raising in value fast.

[twoplanekid]

As the creator of this thread, my desire was to highlight this particular house that I thought might be a good deal for purchase because of the low delta between purchase and enhancements vs. selling price. Everyone has their likes and dislikes about any house. And, they are free on this forum to express them if they so choose. . We live in a free society where we can express our thoughts. However, I might suggest that everyone should be careful and kind when expressing judgments.

[vintageogauge]

I do believe the best houses to purchase are the ones between 44 and 466 a. Those are the ones that are raising in value fast.

Why would you say that, there are a multitude of homes north of 466A that are priced the same as an equal home south of 466A and they cost less when they were purchased, same holds true for south of 44 and even more so in a much shorter period of time. Almost all of the villages have had substantial price appreciation over the last couple years.

[CoachKandSportsguy]

I do believe the best houses to purchase are the ones between 44 and 466 a. Those are the ones that are raising in value fast.

Rising in value is not in any way the to determine the best houses to buy. A house is not an investment, its shelter and provides no income. Therefore every other measure of the house is more important

[Topspinmo]

I think anybody selling house short term would be happy to break even after the pay every Tom, dick, and harry that got there fingers in legal pie of selling real estate.

[Stu from NYC]

Rising in value is not in any way the to determine the best houses to buy. A house is not an investment, its shelter and provides no income. Therefore every other measure of the house is more important

Typically the value of the house will rise over time.

May not be the best investment but it is an investment while providing shelter.

[rlcooper70]

Look at it positively ... are the people buying another bigger house around the corner? Find out where they are moving and you might have a better idea of the reason. Some people love the night time noises or nature. Others feel differently. Find out "where" they are moving for your clues. No one makes money buying and selling within a year - that's never the reason

[CoachKandSportsguy]

Typically the value of the house will rise over time.
May not be the best investment but it is an investment while providing shelter.

The Truth? Your House Is Not An Investment - Money Under 30 (https://www.moneyunder30.com/why-your-house-is-not-an-investment#)

Stop Thinking of Your House as an Investment (https://www.wisebread.com/heres-why-your-house-is-not-an-investment)

just because the price moves up and or down, does not make something an investment

[twoplanekid]

As of today (2/5/2021), this house is now pending. :coolsmiley:

[Timothyimitchell]

You make money when you buy real estate. Of course there is no guarantee. At the price point you;ve listed, it appears it must have a water or golf course view in back. You;re complaining about a house in Chitty Chatty ? Looking for price appreciation after 6 months ?? With the number of homes being built around there, the resale will be competing against builder incentives etc. I don;t follow the logic of this being a "deal".

6 months you shouldn't plan on making a cent after commission. Cmon man