Bond on new home

[geri317]

Does anyone know what the bond would be on a new 3 bedroom villa, frame or concrete? I have heard there has been quite an increase on homes built south of 466A.

[jimbo2012]

There is a search option on the top of the page,

take a look here (https://www.talkofthevillages.com/forums/villages-florida-new-members-forum-115/bond-prices-66307/)

[geri317]

Thank you!

[KeepingItReal]

.....

[graciegirl]

Does anyone know what the bond would be on a new 3 bedroom villa, frame or concrete? I have heard there has been quite an increase on homes built south of 466A.

Apparently not an increase as those prices that Jimbo and others have shared aren't much different than the price of our bond for a Camellia in 2008.

I still wish that they were included in the price of the home so that it wouldn't be so different and so confusing. All it is, is the price of the roads and electrical lines and water lines and all that stuff that other builders back north always include into the price of the home itself. Here it is separate. I always tell people to add about 21K to the price of a designer and you will get the "real" price.

[jane032657]

$15,000 for Haciendas of Mission Hills

[Advogado]

Apparently not an increase as those prices that Jimbo and others have shared aren't much different than the price of our bond for a Camellia in 2008.

I still wish that they were included in the price of the home so that it wouldn't be so different and so confusing. All it is, is the price of the roads and electrical lines and water lines and all that stuff that other builders back north always include into the price of the home itself. Here it is separate. I always tell people to add about 21K to the price of a designer and you will get the "real" price.

Agree. I find it surprising that the FTC has not taken action against the Developer for that very reason. The advertised price of new homes is deceptive, and this benefits the Developer, who is competing against lower-bonded pre-owned homes. (Sorry, I know that you hate anything critical of the Developer, and I do appreciate the fact that the Developer has built a nice place here, and I am not about to leave.)

However, what you tell your friends is not exactly right (even assuming your $21K is correct). Simply adding the bond to the advertised price doesn't reflect the fact that the interest rate on the bond is higher than the interest rate on a mortgage, and that can make a significant difference in cost over the years.

[buggyone]

Always has seemed downright silly to me that so many people come down to The Villages and refuse to look at pre-owned homes that offer so many benefits over new homes. The major one is the bond. Established neighborhoods have a much smaller bond than the new ones.

[janmcn]

Always has seemed downright silly to me that so many people come down to The Villages and refuse to look at pre-owned homes that offer so many benefits over new homes. The major one is the bond. Established neighborhoods have a much smaller bond than the new ones.

I totally agree with you. The bond on my first house, a courtyard villa, was $2000. Why are these bonds now six times higher? If the cost of the infrastructure was included in the price of a new home, there would be an incentive to keep the cost down. As it stands now, there is no incentive on keeping costs down. These costs never show up until the new buyer is handed his bond.

[graciegirl]

Always has seemed downright silly to me that so many people come down to The Villages and refuse to look at pre-owned homes that offer so many benefits over new homes. The major one is the bond. Established neighborhoods have a much smaller bond than the new ones.

Maybe simply because, and I have heard this many times from people who post on here, that this is their lily pad (long awaited retirement home) and they wanted to have the choice in how it would be, all new and shiny and unlived in. Many folks have never had a brand new home before.

There is NOTHING wrong with resales if you can find the one that is the house of YOUR dreams. And some resales have lower bonds but the newer resales may have quite a bond bill.

I think that there is a wonderful place for everyone and some people's dream house is in Stonecrest.;) NO BONDS.

[eweissenbach]

Apparently not an increase as those prices that Jimbo and others have shared aren't much different than the price of our bond for a Camellia in 2008.

I still wish that they were included in the price of the home so that it wouldn't be so different and so confusing. All it is, is the price of the roads and electrical lines and water lines and all that stuff that other builders back north always include into the price of the home itself. Here it is separate. I always tell people to add about 21K to the price of a designer and you will get the "real" price.

From a marketing point of view the bond is much preferable. They can advertise a much lower price than if the infrastructure costs were included in the price, and many (wouldn't guess a percentage) buyers don't seem to see it as part of the purchase price. I was at an open house and a very successful real estate lady (whom I would never use) argued with me when I said I simply included the bond in the sales price. She said something to the effect that, "Oh no, you can't look at it that way, it is paid along with the taxes." It was all I could do to keep from laughing out loud. As though an extra couple thousand a year or so wouldn't be noticed. I have not studied the bonds as thoroughly as some, but I think it allows the developer to get the money to pay for the improvements before selling the homes, so that they can put all the amenities in place before home construction and sale begins. I don't see the bond as a big problem, although the interest on it is higher that current mortgage rates, but one should definitely take it into consideration as part of the home's cost.

[EdV]

...Simply adding the bond to the advertised price doesn't reflect the fact that the interest rate on the bond is higher than the interest rate on a mortgage, and that can make a significant difference in cost over the years.

So include the bond balance in the mortgaged amount and pay the bond off at the next closing period. Problem solved and it�s tax deductible too.

[eweissenbach]

So include the bond balance in the mortgaged amount and pay the bond off at the next closing period. Problem solved and it’s tax deductible too.

One problem solved, perhaps, but another problem; if you decide or need to sell your home after paying off the bond, many people, including some with The Villages Realty have said you cannot expect to recoup the bond payoff in your selling price. In other words new $200K home with $20K bond - pay off the bond and value of the home in the resale market is approx. $200K (depending on the market of course). That is a downside to the bond being seperate from the price of the home. For example, if someone looks up the price I paid for my home in Missouri, it will have the improvements made by the developer included. In TV the price would show as $200K in the example above.

[jimbo2012]

I agree 110%

[Golfer in Sanibel]

One problem solved, perhaps, but another problem; if you decide or need to sell your home after paying off the bond, many people, including some with The Villages Realty have said you cannot expect to recoup the bond payoff in your selling price. In other words new $200K home with $20K bond - pay off the bond and value of the home in the resale market is approx. $200K (depending on the market of course). That is a downside to the bond being seperate from the price of the home. For example, if someone looks up the price I paid for my home in Missouri, it will have the improvements made by the developer included. In TV the price would show as $200K in the example above.

Yes and no. The last home I built in Ohio had a recorded price which didn't include the lawn or landscaping or deck or patio or irrigation system or granite countertops, ect, ect. Really, I had $110K in it in addition to the price recorded for the home. The bond included or not is a non-issue. I's not even 10% of the price of a home. When you resell, the main determination of the value of your home will be what others, like yours, sold for in the previous 6 months. What you have invested in it is irrelevant.

[eweissenbach]

Yes and no. The last home I built in Ohio had a recorded price which didn't include the lawn or landscaping or deck or patio or irrigation system or granite countertops, ect, ect. Really, I had $110K in it in addition to the price recorded for the home. The bond included or not is a non-issue. I's not even 10% of the price of a home. When you resell, the main determination of the value of your home will be what others, like yours, sold for in the previous 6 months. What you have invested in it is irrelevant.

Any after market upgrades or expenses are, of course, not included in the original sales price. I was trying to keep the example simple, and not take such things into account. And yes, the market will determine the price you can get for your home on the resale market - the point remains that if you can get $200,000 with a remaining bond of $18K for example, you are better off than getting $200,000 after having paid off the bond. Also, I disagree that 10% of the price of the home is a non-issue, at least it is an issue for me.