More on the Bond

[jrref]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

[Bogie Shooter]

Another piece of endless discussion………..

[MrFlorida]

My take on this is, if you have the funds, pay it off.... why pay interest? No bond is a plus when selling.

[Garywt]

We have a mortgage so the bond is paid through our monthly mortgage payment. For us we don’t even know we are paying it.

[rjm1cc]

All thinks equal add the price of the home and the bond to get its cost. I wonder how many buyers forget to add the bond to the purchase price?

[Laker14]

Basically, the bond is nothing more than a loan, with an interest rate and a term over which you will pay it off. There is nothing complicated about it.
If you like the interest rate, and don't mind paying it, based upon your ability to repay the balance comfortably, or not, or your feelings on how you might do investing the money in you pocket if you don't pay it off, you choose to continue owing the balance and paying the interest, or paying it off.
If the house cost 400K with a 40K bond, I would consider the cost to be 440K. If the price of the house was 400K with no bond, I would consider the cost to be 400K...All other things being equal, I'd rather pay 400K.

[charlieo1126@gmail.com]

I’ve sold 5 homes in villages , I was in the homes no more then 3 or 4 years , you might get a couple of people who want to subtract the bond from price of home that’s a big no from me , the price is the price and all my homes have sold in less then a month , the last one same day , it works opposite when your buying I don’t care if you paid bond off it’s got nothing to do with my offer

[Papa_lecki]

I absolutely considered the bond balance in my offers. Just like in a condo set-up, I consider the monthly condo fee.

Some people look at the bond in lieu of property taxes - and don’t consider the balance. However, if the bond balance was not important - why do realtors put NO BOND in the property write up?

I think we all could find houses with no bonds that sold quickly and houses with large bonds that sold quickly.

[Laker14]

I’ve sold 5 homes in villages , I was in the homes no more then 3 or 4 years , you might get a couple of people who want to subtract the bond from price of home that’s a big no from me , the price is the price and all my homes have sold in less then a month , the last one same day , it works opposite when your buying I don’t care if you paid bond off it’s got nothing to do with my offer

That's not how I'd look at it. Money is money. Call it a bond, call it the price on the house, call it whatever you want to call it. It's money owed.

[Two Bills]

If interest on savings and investments was earning more than the interest going out on borrowings, we carried on saving.
When it changed, we paid off debts.
Worked for us.

[Stu from NYC]

We asked this question to several realtors.

They all said you will not get the bond value in the sale of the house.

As a result we are waiting a bit to see if we think we will keep this house before paying off bond.

[Two Bills]

We asked this question to several realtors.

They all said you will not get the bond value in the sale of the house.

As a result we are waiting a bit to see if we think we will keep this house before paying off bond.

Predictable from Realtors.
The lower the sale price, the easier to sell property.
$10-$20-$30,000 to a seller is a lot of money, it's only peanuts on their commission.
JMO.

[retiredguy123]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.
This topic has been discussed on many other threads. Assume you have a house for sale for $700K, with a $20,000 bond. You call your real estate agent and tell them to raise the asking price to $720K because you are going to pay off the bond. I can guarantee you that the agent will have a fit and strongly advise you to not pay off the bond. The house is easier to sell for $700K with the bond. Ask any experienced agent.

[Bogie Shooter]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

If you want more endless comments……go here.
https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/bond-325959/

[JMintzer]

The only Bond I care about...

https://www.19fortyfive.com/wp-content/uploads/2021/10/Daniel-Craig-James-Bond-Movies.jpg

[charlieo1126@gmail.com]

That's not how I'd look at it. Money is money. Call it a bond, call it the price on the house, call it whatever you want to call it. It's money owed.
That’s not what I mean , there are people who will put an offer subtracting the price of the bond , that is a big no from most sellers the bond is the buyers problem they either want the house at price or not , as far as the no bond, people I know. They make an offer on the price of home not the price the seller is trying to get because he has factored in the price of bond. The price of bond or lack of bond is right now in this market only a part of the the equation , seller can ask what he wants and usually more right now . I did on my last sale and got much more in offer because they didn’t want to lose house. I’ve never bought a home here where I even cared about the bond , and I have had many very expensive homes and condos over the years and never put more then 20% down I have better things to do with my money especially with pretty decent interest rates for so many years

[Michael G.]

That's not how I'd look at it. Money is money. Call it a bond, call it the price on the house, call it whatever you want to call it. It's money owed.

Unless you choose to buy OUTSIDE TV.
I don't think these a bond in Spuce Creek or Stonecrest to my knowledge

[Stu from NYC]

Predictable from Realtors.
The lower the sale price, the easier to sell property.
$10-$20-$30,000 to a seller is a lot of money, it's only peanuts on their commission.
JMO.

Good point.

[Papa_lecki]

Let say two houses - generally the same size, upgrades, etc. One has a 15,000 bond one doesn’t - which one are you trying to buy?

[dewilson58]

Let say two houses - generally the same size, upgrades, etc. One has a 15,000 bond one doesn’t - which one are you trying to buy?

Depends on the price.

[Topspinmo]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

The bond is not 20K when you figure in interest. They don’t want you to pay it off so the can collect interest.

If I was buying resale no bond would be big benefit for me cause I don’t like giving my money away. Most Going to make offer on house, IMO if it’s got bond you lower you’re offer if it has no bond then may be worth higher offer.

[Topspinmo]

That’s not what I mean , there are people who will put an offer subtracting the price of the bond , that is a big no from most sellers the bond is the buyers problem they either want the house at price or not , as far as the no bond, people I know. They make an offer on the price of home not the price the seller is trying to get because he has factored in the price of bond. The price of bond or lack of bond is right now in this market only a part of the the equation , seller can ask what he wants and usually more right now . I did on my last sale and got much more in offer because they didn’t want to lose house. I’ve never bought a home here where I even cared about the bond , and I have had many very expensive homes and condos over the years and never put more then 20% down I have better things to do with my money especially with pretty decent interest rates for so many years

No it’s sellers problem trying to get someone to take bond off their hands.

[charlieo1126@gmail.com]

All my homes in villages sold within a month ,the last one in one day, the longest of the 5 I owned was only 4 years old so there was a lot of money left on bond , again most people don’t care about the bond if they want the house , don’t just take my word ask anyone you know whose sold multiple homes here , FYI I bought those 5 new homes and I didn’t care about the bond price

[charlieo1126@gmail.com]

Remember just because someone advertises no bond doesn’t mean people are going to pay more then they think the house is worth. I don’t sell these homes just to make money , which I do , sometimes a lot. I sell because I get restless in all 14 homes since early 90’S might be why I’m not married lol I sell the unique furniture and art work also except the last one because it’s harder to shop now and always made profit

[Laker14]

Let say two houses - generally the same size, upgrades, etc. One has a 15,000 bond one doesn’t - which one are you trying to buy?

Depends on the price.

In this hypothetical , assume both asking prices are identical.

[JMintzer]

In this hypothetical , assume both asking prices are identical.

Same location? Same elevation? Same everything? Because in real estate everything affects everything...

[DAVES]

We have a mortgage so the bond is paid through our monthly mortgage payment. For us we don’t even know we are paying it.

We tend to be suckered, by people that are good at selling and at spinning math. Typical sale of too many things, it is only $$$$ per month. Typical of a car two year lease with $770 down and it is only 250 a month. How many only hear the 250 a month. The 770 adds 770 divided by 24 months 32.08 a month. That 250 is 282. It is all legal.

So many similar gochas. Credit card interest. Cable TV for only $$$$ a month you can add ???????????? Where does my money go? Many need to write it down to see.

[DAVES]

The bond is not 20K when you figure in interest. They don’t want you to pay it off so the can collect interest.

If I was buying resale no bond would be big benefit for me cause I don’t like giving my money away. Most Going to make offer on house, IMO if it’s got bond you lower you’re offer if it has no bond then may be worth higher offer.

"They don't want you to pay it off." We paid off our bond roughly two years ago. I can only say that both our bank and the office that administrates the bond were very helpful. Did it make sense to pay off the bond, that is another question. Wife wanted to pay it off, her brother an accountant said pay it off. He also said pay off the mortgage. I paid the bond and not the mortgage. You can bet neither my wife or her brother said you were right-we were wrong. Right now you can easily make more on investments than the interest on the bond. The market does up and down. If, you are not making more than the interest on the bond, on your mortgage, and you have the money, it makes sense to pay them off.

Family counseling? I think we all live in a corny situation comedy.

[Garywt]

We tend to be suckered, by people that are good at selling and at spinning math. Typical sale of too many things, it is only $$$$ per month. Typical of a car two year lease with $770 down and it is only 250 a month. How many only hear the 250 a month. The 770 adds 770 divided by 24 months 32.08 a month. That 250 is 282. It is all legal.

So many similar gochas. Credit card interest. Cable TV for only $$$$ a month you can add ???????????? Where does my money go? Many need to write it down to see.
I live off the amount of the monthly bills so if I put money on a lease it is to get what I pay each month down. If I take out a loan or mortgage I take it for as long as I can to keep the monthly payment down knowing I pay more in the long run. The bond is part of escrow thus my mortgage and the bank takes care of it so I don’t have to do anything with it. When we sell our house the bond will be paid off unless we both die long before we expect to but we bought at age 55 so hopefully…

[DAVES]

I absolutely considered the bond balance in my offers. Just like in a condo set-up, I consider the monthly condo fee.

Some people look at the bond in lieu of property taxes - and don’t consider the balance. However, if the bond balance was not important - why do realtors put NO BOND in the property write up?

I think we all could find houses with no bonds that sold quickly and houses with large bonds that sold quickly.

We tend to lose track of reality. First of all the realtor is a salesperson working for the property seller. If, you are selling a home you will say over and over again bond is paid.
Perhaps the home has nice landscaping, location, a pool, new ac, etc.

Even in the villages, two whatever the model name is are not worth the same price-location, additions etc. People buying your home. Are they really looking to buy a home or they have nothing better to do? Want to see how you decorated.

It is a bit of an art. Sold quickly. The seller thinks, I could have gotten more. Priced too high and the seller sits with the home and they can end up with less than they could have if it was priced properly.

[DAVES]

I live off the amount of the monthly bills so if I put money on a lease it is to get what I pay each month down. If I take out a loan or mortgage I take it for as long as I can to keep the monthly payment down knowing I pay more in the long run. The bond is part of escrow thus my mortgage and the bank takes care of it so I don’t have to do anything with it. When we sell our house the bond will be paid off unless we both die long before we expect to but we bought at age 55 so hopefully…

People think differently. I truly hope it works for you. My income was never steady. I never thought or think so much per month. In terms of age 55. I find it amusing that they cannot base your mortgage eligibility on age. The average age in the villages is 70. A person at age 70 can take a 30 year mortgage. No shortage of interesting ironies.

A misunderstanding-when you sell your house the mortgage is paid off and you or your heirs get the balance-positive or negative. If, you owe more than the sale price the difference comes out of other assets before it goes to your heirs. Any unpaid bond is a liability of the new owner.

[Jnjguy]

I didn’t think the bond was a big deal until I called and found out my interest rate was 5.99%. Way to high. I paid it off. Interest is a great thing, but it should be earned and not paid.

[mydavid]

We have a mortgage so the bond is paid through our monthly mortgage payment. For us we don’t even know we are paying it. After 18 years the bond is 25% of our property tax and only half of the bond has been reduce.

[joeharing]

His bond now has a zero balance.

[Villages Kahuna]

You’ll get very little if any “credit” for a paid-off bond when you sell your house. It’s a ”feature” like nice landscaping or interior decorating, having very little impact on the selling price. If you don’t think you can earn more than the low municipal interest rate on the bond, pay it off. But almost any investment advisor can beat that rate. Why not use house money for your benefit?

[Sandy and Ed]

Basically, the bond is nothing more than a loan, with an interest rate and a term over which you will pay it off. There is nothing complicated about it.
If you like the interest rate, and don't mind paying it, based upon your ability to repay the balance comfortably, or not, or your feelings on how you might do investing the money in you pocket if you don't pay it off, you choose to continue owing the balance and paying the interest, or paying it off.
If the house cost 400K with a 40K bond, I would consider the cost to be 440K. If the price of the house was 400K with no bond, I would consider the cost to be 400K...All other things being equal, I'd rather pay 400K.
Good answer. Add the bond to the price of the house. That is how much you are paying for the property. Add the monthly mind payment to the mortgage payment. Personally I don’t care who gets the $$ or what you call it… it all comes out of my pocket. Us?? We made sure we bought a villa with a paid bond or would have made sure the combined sales price/bond balance was within our means

[jrref]

The bond is not 20K when you figure in interest. They don’t want you to pay it off so the can collect interest.

If I was buying resale no bond would be big benefit for me cause I don’t like giving my money away. Most Going to make offer on house, IMO if it’s got bond you lower you’re offer if it has no bond then may be worth higher offer.
Right, this is what i'm talking about. The Bond is a loan probably at a much higher interest rate than you think. Why give money away if you can't get as much interest or gain with the money. I'm not talking about listing the house for a certaing amount then telling the realitor to add $20K for the Bond payoff. I'm saying when negoiating with the Realtor on a sales price just in your head add the Bond payoff. Done. In today's market and going forward for the forseeable future i don't think $20K is going to make a significant difference in the sales price for a home $500K and higher but at least you can know it was part of the cost of the house and you want to re-coup it.I feel in any housing market there are many things that add up to "value" for a buyer and the Bond is just one of these things. When i bought here i had a choice of two very similar homes at the same price point. One had a $40K bond and the other $20K. I chose the home with the $20K bond.

[MidWestIA]

Pay off the bond then you are in competition with houses that did not I know people that did it and did NOT get the full amount back when they sold

[RuthA]

You are exactly right. While a buyer may appreciate that there is no remaining bond on the home, it will certainly not raise the selling price by $20,000 on a $700,000 home if the bond were paid off.

[dewilson58]

You are exactly right. While a buyer may appreciate that there is no remaining bond on the home, it will certainly not raise the selling price by $20,000 on a $700,000 home if the bond were paid off.

:1rotfl::1rotfl::1rotfl:

[richs631]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

Every agent will tell you that your house wil sell itself not the lack of a bond. Lack of a bond holds very little value. However if you really plan on staying in the house and have the cash to spare then pay it.

[RealJudy]

Do you realize there is interest on the bond balance?

[Travelhunter123]

I believe my bond is for 30 years, the break even point on the bond is about 14 years.
I have to live 14 years to break even
So far the longest I have ever lived in a home is 8 years

[Bay Kid]

Bonds are like credit card debt, bad.

[OhioBuckeye]

This topic has been discussed on many other threads. Assume you have a house for sale for $700K, with a $20,000 bond. You call your real estate agent and tell them to raise the asking price to $720K because you are going to pay off the bond. I can guarantee you that the agent will have a fit and strongly advise you to not pay off the bond. The house is easier to sell for $700K with the bond. Ask any experienced agent.

I’m not arguing this point but we sold 2 of our homes & still owed a lot of bond yet & had no problems selling both of them. If a buyer thinks your home is worth your asking price they’ll buy it, if not your asking to much. Retiredguy, personally I think you’re right, the buyer buys a new home you’ll have the full amount of bond, a preowned home will have all or some of the bond paid off. Personally if I knew someone tacked on their bond that they paid off I probably would walk away because theirs thousands of ther homes in TV for sale. Homes in today’s market are way up so you probably won’t have to add the bond! Selling a home is location, location, location. Not because I think my home is worth thousands more because my home is beautiful & someone is dying to get it.

[Tmcbryan]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

The real question is the interest plus fee on the bond vs how much money you are making on your invested money. If the cost plus fees is 7%; but your invested money is making making 10%, than financially it makes more sense to leave your money invested.

[ellenwelsh]

The bond is not paid through your mortgage. The payment has four component parts; principal, interest, taxes and insurance. Bond does not fit into any of these categories.

[charlieo1126@gmail.com]

I’m not arguing this point but we sold 2 of our homes & still owed a lot of bond yet & had no problems selling both of them. If a buyer thinks your home is worth your asking price they’ll buy it, if not your asking to much. Retiredguy, personally I think you’re right, the buyer buys a new home you’ll have the full amount of bond, a preowned home will have all or some of the bond paid off. Personally if I knew someone tacked on their bond that they paid off I probably would walk away because theirs thousands of ther homes in TV for sale. Homes in today’s market are way up so you probably won’t have to add the bond! Selling a home is location, location, location. Not because I think my home is worth thousands more because my home is beautiful & someone is dying to get it. I approve this post

[Yjacket74]

The bond is not paid through your mortgage. The payment has four component parts; principal, interest, taxes and insurance. Bond does not fit into any of these categories.
It could be paid thru your mortgage's escrow for property taxes. In Lake County, it's part of the Non-Ad Valorem Assessments on the Property Tax bill of which you not only pay for that VCC district 's bond but also for that VCC District's Maintenance. I assume Sumter County does the same and you should check your property tax bill.

[Bill14564]

The bond is not paid through your mortgage. The payment has four component parts; principal, interest, taxes and insurance. Bond does not fit into any of these categories.

If the person making the payments knows they are paying the bond through their single mortgage payment then how can you say it is not happening?

If their payment includes an escrow that covers the tax collector bill that comes due in November then they certainly are contributing for the bond since the bond is a part of that bill.

Technically you may be right but, the person with the checkbook makes a single mortgage payment each month that covers principal, interest, taxes, insurance, fire district fees, maintenance fees, and their bond.

[TSO/ISPF]

It could be paid thru your mortgage's escrow for property taxes. In Lake County, it's part of the Non-Ad Valorem Assessments on the Property Tax bill of which you not only pay for that VCC district 's bond but also for that VCC District's Maintenance. I assume Sumter County does the same and you should check your property tax bill.
Yes, Sumter is the same. The bonds in district 8 where refinanced a year ago and the rate was cut in half from 7 to 3.5 I believe. Not sure about the other villages districts.. The decision is largely like any investment.
What's your risk tolerance and how much are you making on savings/investments. If it's more than 3 or 4 percent, you keep the difference if you don't pay the bond off and let your savings/investments ride.

[TSO/ISPF]

Yes, Sumter is the same. The bonds in district 8 where refinanced a year ago and the rate was cut in half from 7 to 3.5 I believe. Not sure about the other villages districts.. The decision is largely like any investment.
What's your risk tolerance and how much are you making on savings/investments. If it's more than 3 or 4 percent, you keep the difference if you don't pay the bond off and let your savings/investments ride.
I should say, I don't like that you can't make extra principal payments on the bonds like a mortgage so your stuck with a lot of interest in the early years of the bond!! That's what drove my decision and the fact that we expect to stay in our current home for at least 5-7 years.

[Yjacket74]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.
I paid off my bond in the 3rd year and the decision was based on 2 things:
1) How long did I plan to stay in the house ?
2) Did I have the money to pay it off ?

Since I am not one of those who moves every 5 years (I hate moving), it behooved me not to pay the almost 5% interest on the bond and I had the money to pay it off. Given my life expectancy if I had not paid the bond, I would have paid twice as much for interest than for principal. Besides, the bond paid becomes part of the cost of the house for tax purposes when it is sold.

If you plan to move every 5 years, in my opinion, don't pay it off.

[merrymini]

People obviously do not do the math. My bond was paid at closing because it was at about 6 percent interest over 30 years. The decision saved ME MONEY. The selling price of a house is arbitrary depending on the market. I would trust a realtor as much as I would trust a lawyer. They care more about moving a house more than what the house goes for because they make more money on how many houses they sell not selling your house for $20,000 more. Not much discussion on the new bonds and what heights they have gone to.

[skippy05]

depends on the market at the time of sell. today's market: tons of buyers willing to pay, pay fast, pay in cash, willing to overpay. the market 5 years from now? anyone's guess. But today's market has never been seen before. Will it last?

[Topspinmo]

Good answer. Add the bond to the price of the house. That is how much you are paying for the property. Add the monthly mind payment to the mortgage payment. Personally I don’t care who gets the $$ or what you call it… it all comes out of my pocket. Us?? We made sure we bought a villa with a paid bond or would have made sure the combined sales price/bond balance was within our means

You forgot to add the interest on 40K it’s just not 40K.

[Topspinmo]

You are exactly right. While a buyer may appreciate that there is no remaining bond on the home, it will certainly not raise the selling price by $20,000 on a $700,000 home if the bond were paid off.

20K on 700K home is chicken feed. Either way their going to pay and pay more it there bond due to interest on bond payments.

[Topspinmo]

Every agent will tell you that your house wil sell itself not the lack of a bond. Lack of a bond holds very little value. However if you really plan on staying in the house and have the cash to spare then pay it.


Yes, there lots of pigeons around for the agents to pluck.

[Worldseries27]

The bond 40k surely means the real question is do you want a new home or not in the villages

[Worldseries27]

i approve this post
i second that

[Worldseries27]

if the person making the payments knows they are paying the bond through their single mortgage payment then how can you say it is not happening?

If their payment includes an escrow that covers the tax collector bill that comes due in november then they certainly are contributing for the bond since the bond is a part of that bill.

Technically you may be right but, the person with the checkbook makes a single mortgage payment each month that covers principal, interest, taxes, insurance, fire district fees, maintenance fees, and their bond.
amen

[Bogie Shooter]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

You have been proven right..

[Dorebea]

From a buyer’s perspective:

Do not count on selling your home in the future for house price + bond.. Say there are two houses valued at $400k with a bond of $30k and one house has the bond fully paid off. All other things being equal many buyers (including me) would not pay the additional $30k for that one house over the other. While some people will only look at ‘bond paid’ homes, they may pay somewhat of a higher price but not the full bond amount. In fact if they are taking a mortgage there are some additional impacts for them: 1). Higher downpayment. 20% of a larger loan amount), 2). Bigger debt ratio which impacts credit score and ultimately the loan interest rate, and most importantly 3). they may not qualify for the higher price / mortgage.

From a seller’s perspective - When / if you sell your house in the future you will need to pay off the outstanding balance on your mortgage, but you do not have to pay off the outstanding balance of the bond. That just gets carried forward to the new owners. That leaves more profit for you. In the meantime, you may find better alternate uses for that money.

The right decision for you will be whatever best fits your financial situation and goals. The suggestions to consider your cash flow status, interest rates on the mortgage and the bond, how long you plan to keep the house, your risk tolerance etc are excellent.

Note: I do not currently own a house in The Villages but am looking to buy and have been researching this very question myself. Good luck!

[Papa_lecki]

From a buyer’s perspective:

Do not count on selling your home in the future for house price + bond.. Say there are two houses valued at $400k with a bond of $30k and one house has the bond fully paid off. All other things being equal many buyers (including me) would not pay the additional $30k for that one house over the other. While some people will only look at ‘bond paid’ homes, they may pay somewhat of a higher price but not the full bond amount. In fact if they are taking a mortgage there are some additional impacts for them: 1). Higher downpayment. 20% of a larger loan amount), 2). Bigger debt ratio which impacts credit score and ultimately the loan interest rate, and most importantly 3). they may not qualify for the higher price / mortgage.

The right decision for you will be whatever best fits your financial situation and goals. The suggestions to consider your cash flow status, interest rates on the mortgage and the bond, how long you plan to keep the house, your risk tolerance etc are excellent.

Agree, its a personal decision. But in the scenario above, buyer needs an extra $6000 for down payment (20% of $30k) and ratios, vs paying an extra $60k in principle/interest?

[wisbad1]

We asked this question to several realtors.

They all said you will not get the bond value in the sale of the house.

As a result we are waiting a bit to see if we think we will keep this house before paying off bond.
I wouldn’t even use a realtor, houses go fast. Burnsteen will help you for $1000. You saved thousands of dollars

[Topspinmo]

Remember just because someone advertises no bond doesn’t mean people are going to pay more then they think the house is worth. I don’t sell these homes just to make money , which I do , sometimes a lot. I sell because I get restless in all 14 homes since early 90’S might be why I’m not married lol I sell the unique furniture and art work also except the last one because it’s harder to shop now and always made profit


As you say homes sell fast here bond or no bond.

[Dorebea]

Agree, its a personal decision. But in the scenario above, buyer needs an extra $6000 for down payment (20% of $30k) and ratios, vs paying an extra $60k in principle/interest?

They would need the extra $6000 for downpayment AND then also pay the mortgage interest over the life of the loan on that additional $24,000 ($30,000-$6,000).

[Love2Swim]

We have a mortgage so the bond is paid through our monthly mortgage payment. For us we don’t even know we are paying it.

But you are paying that extra interest on it over time....

[Love2Swim]

So I"m just curious. How much are the bonds in the new sections, on a house say that costs $500,000?

[Bogie Shooter]

So I"m just curious. How much are the bonds in the new sections, on a house say that costs $500,000?

Cost of the house has nothing to do with bond amount.

[Love2Swim]

I realize they are different in the different neighborhoods, villas vs. homes etc. Im just curious what the bonds are in the newest home neighborhoods?

[Bogie Shooter]

I realize they are different in the different neighborhoods, villas vs. homes etc. Im just curious what the bonds are in the newest home neighborhoods?

Bond Amortization Schedules (https://districtgov.org/departments/Finance/amortization.aspx)

[flower7330@gmail.com]

We are considering purchasing a new spec home in TY and I'm trying to get a handle on what the monthly expenses will be. One area that I am confused about is the bond.
Is there interest on the bond? If you pay the bond off is there still a monthly maintenance charge?
Thank you for info anyone can provide.

[Bilyclub]

We are considering purchasing a new spec home in TY and I'm trying to get a handle on what the monthly expenses will be. One area that I am confused about is the bond.
Is there interest on the bond? If you pay the bond off is there still a monthly maintenance charge?
Thank you for info anyone can provide.

Yes, there is interest on the unpaid balance of the bond. There is also a yearly maintenance fee which never goes away. My interest was over 5% and the yearly maintenance around $800.

VCDD FAQs (https://www.districtgov.org/faq.aspx)

A District 13 Bond: https://www.districtgov.org/departments/Finance/amortization/Sumter/District%2013/S13%20-%20Unit%2069V.pdf

[Papa_lecki]

Bonds in District 13 are around $40,000 - I’ve seen 38,000 to 43,000. Interest rates are in the mid 3%.

Mine (district 10), was originally in the low $20,000 and my interest rate is 5.2%

[EdFNJ]

/// never mind. Misread the post

[jebartle]

I can see that in your case this is not an option, but if home bought in lady lake, lake county, no bond, problem solved

[VApeople]

Do you realize there is interest on the bond balance?

Of course, we all know that.

Like any loan, you pay interest on the balance of the loan.

[Laker14]

If the bond, or lack of a bond, really did not impact the selling price then two things would happen:
1. Realtors would not include "BOND PAID" in the description of the property they write up for flyers and internet listings, and..
2. Automobile dealers would include a "bond" (hey folks, it's not part of the price. It's a "bond") when selling cars. And people would pay it because "hey, I got a good price and the bond doesn't count".

[CoachKandSportsguy]

Market pricing -> Identical houses, one with bond one without bond, the market price will be the price the house based upon the house without the bond. ie, the bond is irrelevant to the sales price. ergo, you cannot add the price of the bond you paid off to the market price of the house, and be competitive, that's what the realtors are saying. However, that is not the correct way of looking at getting your money back from paying off the bond early.

The correct way is based upon the house price appreciation assuming a price increase of 3% a year, and the bond being 10% of the initial value of the house, the bond being paid off with the appreciation of the house is shown in the graphic attached.

So depending upon how long you want to live in your house, with your individual cash flow statements, paying off the bond is a better answer if you still have cash availability to do so now and you have no plans on moving, versus depending on investments which may or may not sustain that return in the future. With the huge price appreciation you probably already have the bond payoff returned in appreciation. So with appreciation, then you can also rationalize not paying off the bond, because you may lose capital appreciation on the source of the payoff, which is a valid point of view as well.

Either way, always remember that paying off the bond reduces fixed expenses, resulting in more free cash flow from SS and RMD in the future, as well as less risk of losing the capital returning the bond equivalent payment, through unanticipated events.

The future is always uncertain, sometimes more uncertain than at other times

finance guy

[MX rider]

Market pricing -> Identical houses, one with bond one without bond, the market price will be the price the house based upon the house without the bond. ie, the bond is irrelevant to the sales price. ergo, you cannot add the price of the bond you paid off to the market price of the house, and be competitive, that's what the realtors are saying. However, that is not the correct way of looking at getting your money back from paying off the bond early.

The correct way is based upon the house price appreciation assuming a price increase of 3% a year, and the bond being 10% of the initial value of the house, the bond being paid off with the appreciation of the house is shown in the graphic attached.

So depending upon how long you want to live in your house, with your individual cash flow statements, paying off the bond is a better answer if you still have cash availability to do so now and you have no plans on moving, versus depending on investments which may or may not sustain that return in the future. With the huge price appreciation you probably already have the bond payoff returned in appreciation. So with appreciation, then you can also rationalize not paying off the bond, because you may lose capital appreciation on the source of the payoff, which is a valid point of view as well.

Either way, always remember that paying off the bond reduces fixed expenses, resulting in more free cash flow from SS and RMD in the future, as well as less risk of losing the capital returning the bond equivalent payment, through unanticipated events.

The future is always uncertain, sometimes more uncertain than at other times

finance guy

Agree, I think bond or no bond does affect the price. We bought a 10 year old house in TV that has some bond left. Compared to similar houses we were looking at it was priced below them just about the amount of the bond. So for us it was pretty mush a wash.

[Topspinmo]

We have a mortgage so the bond is paid through our monthly mortgage payment. For us we don’t even know we are paying it.

But you are and the interest is why they (who ever collecting interest) don’t want you to pay it off.

[Topspinmo]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

For some the bond don’t matter, they like throwing money away. For some of use we don’t like paying extra and value or hard earned money we saved decades for. It’s personal choice.

[Topspinmo]

Market pricing -> Identical houses, one with bond one without bond, the market price will be the price the house based upon the house without the bond. ie, the bond is irrelevant to the sales price. ergo, you cannot add the price of the bond you paid off to the market price of the house, and be competitive, that's what the realtors are saying. However, that is not the correct way of looking at getting your money back from paying off the bond early.

The correct way is based upon the house price appreciation assuming a price increase of 3% a year, and the bond being 10% of the initial value of the house, the bond being paid off with the appreciation of the house is shown in the graphic attached.

So depending upon how long you want to live in your house, with your individual cash flow statements, paying off the bond is a better answer if you still have cash availability to do so now and you have no plans on moving, versus depending on investments which may or may not sustain that return in the future. With the huge price appreciation you probably already have the bond payoff returned in appreciation. So with appreciation, then you can also rationalize not paying off the bond, because you may lose capital appreciation on the source of the payoff, which is a valid point of view as well.

Either way, always remember that paying off the bond reduces fixed expenses, resulting in more free cash flow from SS and RMD in the future, as well as less risk of losing the capital returning the bond equivalent payment, through unanticipated events.

The future is always uncertain, sometimes more uncertain than at other times

finance guy


I can ask what I want, that don’t mean someone will pay. Anything used only worth as much as someone will pay. The rest is just guidelines.

[Topspinmo]

Of course, we all know that.

Like any loan, you pay interest on the balance of the loan.

Some don’t mind paying it. I don’t like giving my money away.

[MX rider]

But you are and the interest is why they (who ever collecting interest) don’t want you to pay it off.

But if he got a good rate he's paying about 3% on that bond. If you have the cash, why not invest it? Over time you'll make more than 3%.

Same reason we got a mortgage instead of paying cash for our home. Borrowing for a mortgage is dirt cheap, although the rates are going to be creeping up due to the Fed.
In our case most of my money is in my 401k, so theres income taxes to be paid when I draw money out. I'd rather not get hit with that big tax bill.

All that said, there's no real right or wrong here. Everyone's situation is different.

[Topspinmo]

But if he got a good rate he's paying about 3% on that bond. If you have the cash, why not invest it? Over time you'll make more than 3%.

Same reason we got a mortgage instead of paying cash for our home. Borrowing for a mortgage is dirt cheap, although the rates are going to be creeping up due to the Fed.
In our case most of my money is in my 401k, so theres income taxes to be paid when I draw money out. I'd rather not get hit with that big tax bill.

All that said, there's no real right or wrong here. Everyone's situation is different.


Or I could loose it.

[MX rider]

Or I could loose it.

No argument here. Life's full of risks. The trick for all of us is to manage them.

[CoachKandSportsguy]

I can ask what I want, that don’t mean someone will pay. Anything used only worth as much as someone will pay. The rest is just guidelines.

Absolutely theory versus reality . . . . the question I was asking is about how does one get their money back if the bond is paid off early. Everyone is different, and setting the price above the market means that you are expecting/hoping that a buyer comes along who agrees with you.. . If you are the only house in the desirable neighbor, there is no comparable, therefore the probability increases of the sale.

There are two main issues affecting the pricing of a house relative to market:
the number of similar houses for sale
the motivation of the seller.

The higher motivated the seller, the lower the price. Time is costing him/her money he or she doesn't have.

The should you pay off the bond is a cash flow question. Can you afford the bond payment and the potential loss of the asset and income from it in a trade off against more free cash flow against income, mostly SS and RMD. Not paying off the bond when one can risks the future increases of the remaining cost of the life style increasing faster than income, and therefore reducing free cash flow in the future.

That is the counter point to its a fixed amount, and therefore will be covered by income inflation. What is not taken into consideration is that not all incomes and expenses inflate / deflate together at the same rate.

man, those down hill skiers are crazy!

[VApeople]

If the bond, or lack of a bond, really did not impact the selling price then Realtors would not include "BOND PAID" in the description of the property they write up for flyers and internet listings,

In my opinion, you are exactly right.

[CoachKandSportsguy]

If the bond, or lack of a bond, really did not impact the selling price then two things would happen:
1. Realtors would not include "BOND PAID" in the description of the property they write up for flyers and internet listings, and..
2. Automobile dealers would include a "bond" (hey folks, it's not part of the price. It's a "bond") when selling cars. And people would pay it because "hey, I got a good price and the bond doesn't count".

Maybe, though I disagree

1) realtors including "Bond Paid" is marketing, and any positive spin is for attractiveness. May or may not be part of the price setting, very unknown
2) drug induced reasoning

What no one knows is and can't really quantify the value of the intangibles between houses which any one particular buyer may value more than any other buyer. Humans are funny and unpredictable creatures. Are all 3-2 designer models equal in resale of the same sq footage? If you bought a lot, and then built your designer, why did you pick that particular model? If you have an affinity for a Begonia, then the relative number of begonia options will influence the price you will pay for your designer. . . that factor is what the seller of a higher than market price house is hoping.

so the bond may or may not have any relationship to the buyers' motivation. All this discussion about paying off the bond is about the annual cost of ownership of paying off the bond with interest over 30 years, relative to future income, future expenses, and cash flow from your financial asset and income structure.

[Laker14]

Absolutely theory versus reality . . . . the question I was asking is about how does one get their money back if the bond is paid off early. Everyone is different, and setting the price above the market means that you are expecting/hoping that a buyer comes along who agrees with you.. . If you are the only house in the desirable neighbor, there is no comparable, therefore the probability increases of the sale.

There are two main issues affecting the pricing of a house relative to market:
the number of similar houses for sale
the motivation of the seller.

The higher motivated the seller, the lower the price. Time is costing him/her money he or she doesn't have.

The should you pay off the bond is a cash flow question. Can you afford the bond payment and the potential loss of the asset and income from it in a trade off against more free cash flow against income, mostly SS and RMD. Not paying off the bond when one can risks the future increases of the remaining cost of the life style increasing faster than income, and therefore reducing free cash flow in the future.

That is the counter point to its a fixed amount, and therefore will be covered by income inflation. What is not taken into consideration is that not all incomes and expenses inflate / deflate together at the same rate.

man, those down hill skiers are crazy!

the "market price" is vague and variable. The "comparable sales" that realtors and assessors use gets one in the ball park, and that is largely based on the supply and demand at that point. However, the final price is tweaked by upgrades and features, and how valuable those upgrades and features are to a specific buyer.
It's silly to think that comparing a house with no bond, to one with a 15K or 20K bond wouldn't enter into a buyer's decision making process, just as comparing a house that has the granite counter tops and crown molding they like would affect the desire to purchase.

In fact, I'd argue that it would have a greater effect because everyone likes money, but not everyone has the same taste in other "features". I may want granite, but "not that granite".
Money is money. Everyone likes it.
Another advantage to the buyer of having the bond paid off, and subsequently added to the purchase cost, is that cost can be amortized longer, and at a lower interest rate, typically, than the bond payments.

Having a bond is not a deal breaker, but having a bond or not having a bond is an influencer of final agreed upon price. Right now, demand for housing is so high, that influence may be minimal, but in a regular market, it will have more of an influence.

[Laker14]

Maybe, though I disagree

1) realtors including "Bond Paid" is marketing, and any positive spin is for attractiveness. May or may not be part of the price setting, very unknown
2) drug induced reasoning

What no one knows is and can't really quantify the value of the intangibles between houses which any one particular buyer may value more than any other buyer. Humans are funny and unpredictable creatures. Are all 3-2 designer models equal in resale of the same sq footage? If you bought a lot, and then built your designer, why did you pick that particular model? If you have an affinity for a Begonia, then the relative number of begonia options will influence the price you will pay for your designer. . . that factor is what the seller of a higher than market price house is hoping.

so the bond may or may not have any relationship to the buyers' motivation. All this discussion about paying off the bond is about the annual cost of ownership of paying off the bond with interest over 30 years, relative to future income, future expenses, and cash flow from your financial asset and income structure.

Highlighted above: Your response to an argument you can't refute with logic.
Money is money. People aren't stupid. People may agree to pay the bond, but its existence or lack thereof is an influencer, whether they are buying a car, or a home. It still comes down to whether they want to pay for it, and how much they are willing to pay for it. Call it a bond, call it a "dealer add-on", to the buyer it's still money, and the less the buyer has to pay, the more attractive it will be.

[dewilson58]

Having a bond is not a deal breaker, but having a bond or not having a bond is an influencer of final agreed upon price.

I agree.

This assumes people have a brain and have the ability to think, I agree bond balance impacts.

Assuming bond balance is not a consideration, assumes people don't understand.

[CoachKandSportsguy]

Highlighted above: Your response to an argument you can't refute with logic.
Money is money. People aren't stupid. People may agree to pay the bond, but its existence or lack thereof is an influencer, whether they are buying a car, or a home. It still comes down to whether they want to pay for it, and how much they are willing to pay for it. Call it a bond, call it a "dealer add-on", to the buyer it's still money, and the less the buyer has to pay, the more attractive it will be.


Drug induced referred to a car purchased being the same as a house purchase, when there are factors of 10 differences in price and length of paperwork and loan durations, and asset lives. they are not the same comparisons, just like relating CPI to house prices. CPI is the price of liquid every day living. House assets are illiquid and seldom bought and sold within a year. The topics are similar, price increases, but the logic doesn't work

When there is a financial transaction, there is a buyer and a seller. You just described the buyers viewpoint of every house being unique, and the desirability of the intangibles by the buyer, not disagreeing there, and there being price insensitive buyers

What the conversation is about is the seller's point of view, So from a seller's point of view, if the house is priced at market and you decide to recoup your paid off bond by adding that cost to the market price of the house. So market price plus 7% remaining on a 10% originated LTV bond. What the effect of the higher pricing between two identical houses is that the seller is waiting for that unique buyer to find the desirability worth the extra price. Your glossy generalization misses the point that the sale might never happen if the price particular buyer never comes along. Which is why you see houses on markets for 6 + months when housing markets are normal

The factors I described in the prior posts would cause that desirability to afford the increase above market price, or the seller waits along time randomly hoping that the buyer who is much less price sensitive will be looking at that particular house for sale.

Your point is that there are price insensitive buyers, the fallacy with your point is that the seller most likely doesn't want to wait an abnormally long time to sell the house if a motivated seller, ie, needs the money sold to maintain lifestyle. . ie, can only afford to own one house at a time, which i would presume is the majority of the population, with whom real estate professionals have to sell to every day.

and finally, yes behavioral economics shows that many to most people handle money in stupid ways, extremely suboptimal spending. The higher the price tag, the less number of people who can make stupid financial decisions.

[rustyp]

Anyone having a problem selling a house in TV at present with or without a bond (including the price of bond baked in)? I say the winner was the person that paid off the bond and saved the interest for years.

[Catalina36]

I know there has been endless discussion concerning whether to pay off the Bond or not. But for example, if you have a $20,000 bond on a $700K house and you pay it off, when you go to sell it at some point i would think you could probably re-coupe the $20K because there is no bond to pay. At this price point you can easily add $20K to the price of the house assuming it will be one of the many selling points of the house. This assumes the $20K you are spending to pay off the bond isn't making much interest in the bank or whatever you may have it invested in these days.

I really Don't Believe if 2 identical houses are for sale and everything being the same.
#1 house has a Bond balance of 20K, and #2 house has no Bond. I don't believe the house with no Bond is worth 20K more. Maybe the house is with a Bond is worth less than then the # 2 house. Most definitely the house with NO BOND will sell faster.

[VApeople]

realtors including "Bond Paid" is marketing, and any positive spin is for attractiveness.

I guess you are saying that realtors think a house is more attractive to buyers if the bond has already been paid.

If a house is more attractive, do you think buyers would be more inclined to pay more for the house?

[Bay Kid]

A bond is like a bad credit card loan.

[Stu from NYC]

A bond is like a bad credit card loan.

Not quite bond carries low interest rate

[Bilyclub]

Not quite bond carries low interest rate

Mine is over 5%. That's like a juice loan now.

[Laker14]

Drug induced referred to a car purchased being the same as a house purchase, when there are factors of 10 differences in price and length of paperwork and loan durations, and asset lives. they are not the same comparisons, just like relating CPI to house prices. CPI is the price of liquid every day living. House assets are illiquid and seldom bought and sold within a year. The topics are similar, price increases, but the logic doesn't work

When there is a financial transaction, there is a buyer and a seller. You just described the buyers viewpoint of every house being unique, and the desirability of the intangibles by the buyer, not disagreeing there, and there being price insensitive buyers

What the conversation is about is the seller's point of view, So from a seller's point of view, if the house is priced at market and you decide to recoup your paid off bond by adding that cost to the market price of the house. So market price plus 7% remaining on a 10% originated LTV bond. What the effect of the higher pricing between two identical houses is that the seller is waiting for that unique buyer to find the desirability worth the extra price. Your glossy generalization misses the point that the sale might never happen if the price particular buyer never comes along. Which is why you see houses on markets for 6 + months when housing markets are normal

The factors I described in the prior posts would cause that desirability to afford the increase above market price, or the seller waits along time randomly hoping that the buyer who is much less price sensitive will be looking at that particular house for sale.

Your point is that there are price insensitive buyers, the fallacy with your point is that the seller most likely doesn't want to wait an abnormally long time to sell the house if a motivated seller, ie, needs the money sold to maintain lifestyle. . ie, can only afford to own one house at a time, which i would presume is the majority of the population, with whom real estate professionals have to sell to every day.

and finally, yes behavioral economics shows that many to most people handle money in stupid ways, extremely suboptimal spending. The higher the price tag, the less number of people who can make stupid financial decisions.

that's a lot of words to dance around a simple subject. When I shopped for my home in TV, I definitely looked at the bond. 375K purchase price, with bond paid = 375K.
375K + 15K bond= 390K...Next question: Is house #2 worth 15K more than house #1? It may or may not be to the prospective buyer, but to assume the 15K bond isn't even a factor is just nutty thinking.

Similarly, House #1 purchase price (including bond) = 365K, but has a nice new roof that won't need replacing for 15 years. House #2 purchase price (including bond) will need a new roof in the next 2 years, and my estimate for the roof is 15K. Which house is really going to cost me more? I am factoring in that roof cost. In fact that is exactly the scenario for the house we bought.

The car analogy is an analogy. Analogies are comparisons of similar ideas, not comparisons of identical things. My analogy compares the fallacy of thinking a buyer doesn't care about a $20K bond, to the fallacy of thinking a car buyer wouldn't object to an added cost above the purchase price, simply because it's called a "bond". That analogy holds.

[dewilson58]

Okay, can we talk about James Bond now???

:pray:

[Laker14]

Okay, can we talk about James Bond now???

:pray:

he's a hoser.

[Stu from NYC]

Okay, can we talk about James Bond now???

:pray:

Didnt something quite bad happen to him recently?

[JMintzer]

Didnt something quite bad happen to him recently?

Yeah, his movie died at the box office... :popcorn:

[Bilyclub]

Yeah, his movie died at the box office... :popcorn:

Oh contraire,

Over the weekend, “No Time to Die” eclipsed $730 million in global ticket sales, making the James Bond sequel both the year's highest-grossing Hollywood film and the top performing film at the box office since COVID-19 appeared on the scene and nearly shut down the movie business.Nov 22, 2021

[Stu from NYC]

Yeah, his movie died at the box office... :popcorn:

Nope his movie did very well

[JMintzer]

Oh contraire,

Over the weekend, “No Time to Die” eclipsed $730 million in global ticket sales, making the James Bond sequel both the year's highest-grossing Hollywood film and the top performing film at the box office since COVID-19 appeared on the scene and nearly shut down the movie business.Nov 22, 2021

https://c.tenor.com/POFUd2Qj7h4AAAAM/the-joke-you-over-your.gif

[Bay Kid]

Not quite bond carries low interest rate

Can't write off any interest is what makes this bad money for me.

[Laker14]

Can't write off any interest is what makes this bad money for me.

it's a minor point, but maybe a good one, that perhaps most buyers would rather see that bond debt wrapped up in the mortgage. Generally a better rate, longer term and the interest would be deductible if itemized.

All of that, would in my estimation, make it more attractive to a buyer to have had the bond paid, and hence, increase the value of the home. They might not care coming into the process, but a little nudge from a realtor could maybe help the buyer see the value in that.
My realtor, who generally did a bang up great job representing and advising me, as a buyer, tried to tell me that the presence of a bond did not affect the price of the home. We had a discussion very similar to the one on this thread, back and forth, and he left the conversation understanding that it definitely would affect MY price. Money is money, whether you call it a bond or something else.
I got the impression that he threw that out there, and maybe it sticks for some people. It probably does. But it makes no sense.

[Bilyclub]

https://c.tenor.com/POFUd2Qj7h4AAAAM/the-joke-you-over-your.gif

Another attempt at humor fails and then an attack.

[Stu from NYC]

it's a minor point, but maybe a good one, that perhaps most buyers would rather see that bond debt wrapped up in the mortgage. Generally a better rate, longer term and the interest would be deductible if itemized.

All of that, would in my estimation, make it more attractive to a buyer to have had the bond paid, and hence, increase the value of the home. They might not care coming into the process, but a little nudge from a realtor could maybe help the buyer see the value in that.
My realtor, who generally did a bang up great job representing and advising me, as a buyer, tried to tell me that the presence of a bond did not affect the price of the home. We had a discussion very similar to the one on this thread, back and forth, and he left the conversation understanding that it definitely would affect MY price. Money is money, whether you call it a bond or something else.
I got the impression that he threw that out there, and maybe it sticks for some people. It probably does. But it makes no sense.

The two real estate agents we consulted both said not worth doing it unless you expect house to be long term habitation as you will not get full price of bond from buyer. Getting closer and closer to deciding we are staying here and making bond go away.

[dewilson58]

Funny.....................the Mod removed a thread on masks, stating we have had enough threads on masks.

When will we have enough threads on bonds.....pay, don't pay.

:MOJE_whot:

[JMintzer]

Another attempt at humor fails and then an attack.


:1rotfl::1rotfl::1rotfl:

[JMintzer]

Another attempt at humor fails and then an attack.

Ask someone to explain it to you...

[Laker14]

Funny.....................the Mod removed a thread on masks, stating we have had enough threads on masks.

When will we have enough threads on bonds.....pay, don't pay.

:MOJE_whot:

shortly after someone blames the problem on the current or previous presidential administration.

[Stu from NYC]

Funny.....................the Mod removed a thread on masks, stating we have had enough threads on masks.

When will we have enough threads on bonds.....pay, don't pay.

:MOJE_whot:

New people keep joining totv with different perspectives so like to see new threads.

[snbrafford]

We moved here in 2018 and I had some trouble getting my head around the "bond". We bought a house that was 9 years old so the previous THREE owners had paid down the balance of the bond. We have not paid off the bond as that money is making more sitting in our investments. Plus, if we like many other villagers buy another house in TV, it may or may not have a bond that will probably have more years left on it. We hope to stay in this house and get the bond paid off in a few more years yielding more money in our pocket at that time. When it gets down to 1-2 years left, we may pay it off at that time.