Villages Housing Bubble

[Yorio]

I read some where that only 8000 homes were sold up to year 2000. This would mean that many homes were bought during the crazy bubble which lasted until the end of 2007. I don't know how many homes were sold up to the end of 2007 in The Villages but I am sure quite a few. Is the reason I hear no major distressed calls from most buyers would be that most bought at a higher price but you were also able to sell your old homes at a much higher price? And that you paid in full without any mortgage? Since most other areas in Florida are in pretty bad housing crisis still, The Village owners do not seem to have been affected. We don't hear any word about foreclosures here. I have difficult time explaining to friends why we don't have problems in The Villages. They were told that Florida was hit the hardest. Your thought?

[keithwand]

Supply and Demand.

[Cedwards38]

I could have bought a less expensive, and still nice house somewhere else in Florida, and still enjoyed the Florida sun, but we choose to purchase in TV because we were willing to pay for the lifestyle that goes along with the home. That's worth a lot, at least to my wife and me.

[rp001]

There are foreclosures here..I have one on my block in Lynnhaven. My understanding is the homes on the market now are beginning to rise in price,atleast that is what a realtor friend has said to me....A lot to be said for Location....Location....Location

[Tom Hannon]

I could have bought a less expensive, and still nice house somewhere else in Florida, and still enjoyed the Florida sun, but we choose to purchase in TV because we were willing to pay for the lifestyle that goes along with the home. That's worth a lot, at least to my wife and me.

I agree with you. This is our last lap around the track. We've sacraficed all out life. It is time for us. TV lifestyle is our reward. We deserve it. And if it cost a little more than other places who cares. We can't take it with us.

[eweissenbach]

I have looked at homes in TV that were bought in the 2007 area that are now being offered at $50,000 and more under their sales price. I have seen a few foreclosures in TV, but relative to other parts of Florida and the country as a whole, way fewer. A couple of factors IMO - Many people pay cash for their homes here, as they have sold a more expensive home prior to buying here - This is a retirement destination, so most people are not taking job offers with relocation, not losing their job, necessitating a sale, and not looking for an ever bigger home. If they are they can still afford to sell at a loss and move on. The other issue is that while home prices in TV have come down in the last five years, they have not come close to bottoming out like they have in other areas. Also, many of the areas, particularly in Florida, that have experienced huge drops in value, were areas where speculators as well as individuals, had come in and driven up prices on condos and homes, and the developers overbuilt given that demand. When the market dropped they were left with plunging prices, causing foreclosures, and unsold inventory that dropped precipitously in value. Over supply - under demand; has not happened in TV.

[lovesports]

You're right, people who bought at the peak of the market (me) took quite a loss when selling their homes in today's market. Also, there are foreclosures and short sells, more than most people realize.
But you are right, the baby boomers are really kicking into gear now. More demand than homes. Plus as you said, most working couples are fine financially in here.
We know 2 women who bought with their boyfriends and when the boyfriends left, they couldn't make the payments. Both ended up in foreclosures and the women have no money now. Sad.
There are hardship cases. I know a couple of people who were flipping homes and they got caught. But the majority of us are doing fine, even if we bought when the bubble was peaking.

[thistrucksforyou]

I agree with you. This is our last lap around the track. We've sacraficed all out life. It is time for us. TV lifestyle is our reward. We deserve it. And if it cost a little more than other places who cares. We can't take it with us.

TOTALLY !

:coolsmiley:

[QuincyM]

If The Villages Real Estate is selling a pre-owned home, is the listed price on the web page negotiable?

[gomoho]

If The Villages Real Estate is selling a pre-owned home, is the listed price on the web page negotiable?

Not as much as a listing with an MLS agent. Remember the Villages Real Estate sales agents are representing the seller not you. An MLS agent can work as a buyer's agent representing "you the buyer" not the seller. So their goal is the best price they can get for you. And believe me as a former REALTOR the difference in commission is not that great if they get you a better price. But if a Village sales agent gets top dollar for the seller that gets them more referrals. So "buyer beware"!

[bike42]

Remember the Villages Real Estate sales agents are representing the seller not you. An MLS agent can work as a buyer's agent representing "you the buyer" not the seller. So their goal is the best price they can get for you. And believe me as a former REALTOR the difference in commission is not that great if they get you a better price. But if a Village sales agent gets top dollar for the seller that gets them more referrals. So "buyer beware"!

This is not true. The price on a pre-owned home is totally negotiable on either MLS or VLS listings. You can make any offer you want. The owner can accept or refuse any offer you make, or counter-offer. The agent (either MLS or VLS) makes his/her commission on the price agreed to between you and the owner.

VLS has agents who work primarily with sellers, and those who work primarily with buyers. The LISTING agent is the seller's agent, but you can see any VLS house with the VLS agent of your choice. If you feel that any agent (MLS or VLS) is not working in your best interests, change agents.
VLS agents are just as eager to make a sale as MLS agents.

[asianthree]

made a lower offer on a preowned and didn't have any problems, after all its the sellers money not the villages

[gomoho]

This is not true. The price on a pre-owned home is totally negotiable on either MLS or VLS listings. You can make any offer you want. The owner can accept or refuse any offer you make, or counter-offer. The agent (either MLS or VLS) makes his/her commission on the price agreed to between you and the owner.

VLS has agents who work primarily with sellers, and those who work primarily with buyers. The LISTING agent is the seller's agent, but you can see any VLS house with the VLS agent of your choice. If you feel that any agent (MLS or VLS) is not working in your best interests, change agents.
VLS agents are just as eager to make a sale as MLS agents.

Beg to differ - I was specifically told by the VLS agents they represent the seller not the buyer. Of course the price of the home is negotiable - my point is the VLS seller agent negotiating the deal with a buyer is looking for the highest price for the seller to maintain their reputation with sellers. VLS agents will also tell you VA loans on preowned "just aren't done here" because Citizens is not approved to do VA loans. I obtained a VA loan on a preowned and closed in 30 days so I'm just saying look at all your options and ask lots of questions so you are sure you have the full story.

[cybermuda]

If The Villages Real Estate is selling a pre-owned home, is the listed price on the web page negotiable?

We offered 10% less (on a price that had already been reduced considerably from the original asking price) and it was accepted the same day

Makes us wish we'd offered 20% less :-)

All depends on how keen/desperate the sellers are to sell

[Yorio]

Guess most people from 2001 to 2007 didn't opt for mortgages so bubble busting didn't affect them or didn't care. Even if the homes went down in price, if this was the "last" home who cares as long as they love the lifestyle. By the time our children get hold of the house, we wouldn't care where the house appreciated or not. If it goes up, it's fine and if it doesn't it's fine too. I like this attitude and I'll abide by it. Hi Tom, see you in November.

[graciegirl]

Beg to differ - I was specifically told by the VLS agents they represent the seller not the buyer. Of course the price of the home is negotiable - my point is the VLS seller agent negotiating the deal with a buyer is looking for the highest price for the seller to maintain their reputation with sellers. VLS agents will also tell you VA loans on preowned "just aren't done here" because Citizens is not approved to do VA loans. I obtained a VA loan on a preowned and closed in 30 days so I'm just saying look at all your options and ask lots of questions so you are sure you have the full story.

I do not believe that The Villages agents will tell you ANYTHING but the truth. I think they would be canned in a heartbeat. There are lines of folks waiting for their job. They don't have to do much of anything to sell houses here. One out of every 100 homes sold in this country last year was sold in The Villages. ONE PERCENT. We live in one of the most marketable areas in this country. VA loans will not be accepted on new builds. But resales are pretty much like anywhere else, make an offer etc. Citzens First is NOT the only bank in town. There are most of the national bank branches that you are used to. And loans can be obtained quickly if you have a good financial credit history, just like anywhere else. I had heard about three years ago that about half of people buying here pay cash, but haven't heard anything about that lately.

I think that if a resale home doesn't sell here fairly quickly, it is overpriced, smells like cigarettes or pets, or is way too cluttered. I like to watch the market and read the homes for sale list from The Villages on their site and the MLS from Lyle Gant's site almost every day.

The real estate situation here is completely unlike anywhere else. I was very sceptical at first when I heard you couldn't make an offer on a prebuilt brand new house from The Villages. Well you can't. It is what it is. I am really glad to be living in a place where homes are desired.

I think that if I were trying to sell a villages home in this market, I would sell by owner. McLinn Burnsted Law Offices, that close for The Villages, and are probably owned by The Villages did all of the legal stuff when we sold our house in Hadley last year and it cost about $700. We split the cost with the buyers.

[Barefoot]

If The Villages Real Estate is selling a pre-owned home, is the listed price on the web page negotiable?

List prices of resale homes are negotiable whether on MLS or VLS. I've bought homes through both systems. As a former real estate broker, I look for good deals!

MLS - I find MLS agents are more apt to encourage a lower offer. But I think there are more overpriced properties on MLS rather than VLS. Just one person's opinion.

VLS - I find VLS resales tend to be priced more accurately, but of course, some are overpriced. VLS agents will tell you that most pre-owned homes in TV that are listed by VLS sell for appriximately 97% of list price. They will discourage low-ball offers. We offered 15% less because the house was sitting vacant, so we figured the owners were motivated.

But ultimately, it's your money, and it's your decision on what to offer.

[eweissenbach]

FWIW I have made a few interesting (to me) observations over the last few months. One, for whatever reason, the pre-owned homes listed on MLS have seemed to decrease drastically recently. I don't know why and I can't say that is scientifically accurate, but I check the listings on a regular basis on both MLS and VLS, and it is what I have observed. VLS listings, in the meantime have seemed to hold their own. One home that we looked at twice on open house back in March was listed through one of the MLS realtors. Very nice home in a good location and seemed to be priced very competetively with LOTS of upgrades, including a pool and golf car garage. It was on the market almost six months on MLS. In June I noticed it showed up as a new listing on VLS. They had kept the price the same and removed the "turn-key" status, possibly to use as a negotiating tool. Within a week the house was shown as pending, and soon was gone from the site, so presumably was sold. Now I have no axe to grind with any of the realty services, and spent ten years as a realtor mylelf, so have some empathy for all of them. However, it looks to me, based on the two observations I related, that the Villages is doing the best job of listing and selling property. (Which they should, because of the natural advantages of having all the new homes, and getting first shot at anyone on lifestyle preview, among other things.)

[Pturner]

On our TV per-owned, we paid about $50k less than the previous owners had paid. However, the previous owners purchases a bigger home in TV when they sold this one. So, while they technically took a hit on this one, in reality they probably made up for it by buying a premier home in the same down market, no doubt paying the same $50k less for it than its with the price during the bubble.

Remember too that the value of your home only matters when you are buying or selling it. For those who purchases during the peak with plans to live there until they croak, the only financial impact of the downturn is to reduce their property taxes.

[PaPaLarry]

FWIW I have made a few interesting (to me) observations over the last few months. One, for whatever reason, the pre-owned homes listed on MLS have seemed to decrease drastically recently. I don't know why and I can't say that is scientifically accurate, but I check the listings on a regular basis on both MLS and VLS, and it is what I have observed. VLS listings, in the meantime have seemed to hold their own. One home that we looked at twice on open house back in March was listed through one of the MLS realtors. Very nice home in a good location and seemed to be priced very competetively with LOTS of upgrades, including a pool and golf car garage. It was on the market almost six months on MLS. In June I noticed it showed up as a new listing on VLS. They had kept the price the same and removed the "turn-key" status, possibly to use as a negotiating tool. Within a week the house was shown as pending, and soon was gone from the site, so presumably was sold. Now I have no axe to grind with any of the realty services, and spent ten years as a realtor mylelf, so have some empathy for all of them. However, it looks to me, based on the two observations I related, that the Villages is doing the best job of listing and selling property. (Which they should, because of the natural advantages of having all the new homes, and getting first shot at anyone on lifestyle preview, among other things.)
Plus, they advertise for FREE!!!!!

[eweissenbach]

Plus, they advertise for FREE!!!!!

That is partially true, however there is a cost for publishing and distributing a newspaper and for operating a radio and tv station. The developer and/or his employees is/are marketing savvy to the extreme, and have been pitch perfect or it would not have worked this well.

[pqrstar]

Not as much as a listing with an MLS agent. Remember the Villages Real Estate sales agents are representing the seller not you. An MLS agent can work as a buyer's agent representing "you the buyer" not the seller. "

A real estate agent is working for the person who pays the commission.

[gomoho]

A real estate agent is working for the person who pays the commission.

Not if the buyer has a "buyers agency agreement". The seller is paying the commision to the listing company for representing them during the sale process.
Has nothing to do with the buyer's agent except the listing company agrees to share the commission with them.

[Jim 9922]

[QUOTE=Barefoot;531072]
VLS - ---- VLS agents will tell you that most pre-owned homes in TV that are listed by VLS sell for appriximately 97% of list price. They will discourage low-ball offers. We offered 15% less because the house was sitting vacant, so we figured the owners were motivated.

QUOTE]
VLS agent usually state that "VLS "LISTINGS" sell for 97%." What they don't tell you is that VLS stats include the new home sales which are usually sold at listed price. VLS "lists" and "sells" both preowned and their new built in same agency and therefore can "claim" the 97% result. I've been told by a couple of different agents that their preowned is actually about 86% - 88% of orginal listing, which approximates the other MLS agencies.
All's fair in love and advertising, especially with real estate agents.

[eweissenbach]

The simple fact is that real estate is the purest example of supply and demand. A house is worth EXACTLY what a willing buyer will pay for it, no more; no less. The real estate agent can do whatever they want, but in the end, they do not control the offer or the acceptance. They may try to influence the negotiation, but they cannot control it. Even new homes are subject to supply and demand - ever notice the price reductions on some new homes? Those price reductions are not because the developer wants to give potential buyers a break - they are because the property has not generated the higher offer and they want to sell the property and move on. If you are interested in property, do your homework, find the property you want, and make an offer that makes sense to you. You will either get the property at your price or agree on a price that makes sense to both you and the seller. The agent is simply the facilitator of that negotiation. I know, I have been on all three ends many times.