Flipping in The Villages
 

Has anybody noticed any flipping going on in your neighborhood, speculators buying houses only to sell them for a higher price within a short period of time?

You can sell before a year has passed, but I believe you pay some kind of penalty.

Ohhh thank you. I thought it was totally forbidden...

You cannot make money on a home sale for a new home if you sell it in less than a year. Selling fees are allowed to be added.


It is somewhere in something that we signed.

You can sell within one year without a penalty if you buy another home from The Villages. Otherwise, if any profits are received, that amount is returned to The Villages (that's what I was told from a Village Realtor).

Most of the resales are after a year of ownership. If not, there is usually a health reason or some other reason. I don't know if TV is enforcing the one year rule in the contract. Does anybody know?

After a year you can sell for whatever someone is willing to pay. That's marketing and the American way. I don't have a problem with someone smart enough to make money.

The problem today, as I see it, too many people want somebody (usually the government) to take care of them and they think they are "entitled".

I don't know if TV is enforcing the one year rule in the contract. Does anybody know?
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When we bought in September we had to sign papers we would not sell the first year. If we did sell before the year all profit would go back to the developer.

We just closed this week and had to sign an agreement stating that any profit would go back to TV within the first year. Therefore, I assume they are enforcing it.

there are deductions from the profits for improvements, bond payments and broker fees etc.

A good lawyer can help find ways....................

2 neighbors did sell theirs on an interior lot to build on the golf course right across the street and get extra square footage. Really not flipping. Both said it was enforced but any improvements can also be deducted. They made money on their resales.

1 neighbor also on an interior lot got a call from his realtor that he could sell his house for a $150k profit after his first year here so he listed it and got about 175k profit before closing costs. They decided to go back to their other home in MI. That will be a shock when they arrive tomorrow and it's minus something degrees!

I am aware of the rule about new home purchases from the developer. It is a good rule.

Has anyone noticed speculators flipping homes in existing neighborhoods?

Our neighbor just sold his after less than 2 years. I don't know the final number exactly, but looks like he cleared 20% - 25% profit.

The way to get around that is to sell furnished but I doubt many people are actually flipping houses in here because the homes are rather expensive.

Yes-we live in Pennecamp and neighbors sold a house on our street in July and new people had it for less than 3 months and sold it for 20,000 more than they paid and now the new owners filled it up with used furniture and it is a rental. Now a bad profit for a few months but they did have to pay realtor fees but still??????

I will word it differently. 3 people (speculators) in my existing neighborhood sold their "existing or used" homes for a profit of 100K to 150K within a short period of time. These were not new homes from the developer but lived in just like in other older neighborhoods regardless of how old the homes are. The neighborhood is built out.
So yes these folks are speculators. 2 reinvested in more expensive homes which in essence starts the process over again and 1 took the cash and left TV.

Flipping aside.

Real estate prices are increasing in many areas. Sellers should fetch improved prices.

Of course,if the home is a primary home, most people face increased prices when purchasing a replacement.

People might be seeing good opportunities to unload unwanted second homes they bought and no longer want.

What about a house listed by a realty other than TV? Does the rule still apply? I'd like to know just for myself. OK, the neighbor has a house for sale by owner.

Yes. North of 466.

I was not aware, but we have been in ours only a few months.

No penalty on renown. .flipping started in2007 for profit. .then came the one year rule on new homes

The reason I started this thread is I have recently noticed some houses in The Villages come up for sale at substantial markups from what they had sold for only a few months before. I do not know if they were renovated by the sellers and if so to what extent, if the sellers paid off the bonds after purchase, whether the sellers had ever moved in and did not like the house for some reason, or found a house more to their liking just after moving in or whether the homes were only opportunistically purchased to flip.

i do not belive ....

You might make a profit if you sell your house(I know I would) but if you wanted to stay in TV you would have to buy another house at an increased price so really you would only come out ahead if you decided to move out of TV.

You don't believe what?
Original buyer/ neighbor across the street-
Paid $442,000 6/2012
Sold $625,000 12/2013
OK a year and a half and $183,000 more than paid and new buyer assumed the bond.
Or you don't believe they would go back to MI?

First of all, why in the world in a free market society would anyone sign an agreement that says you can't make a profit. So many people defend the developer in saying that THEY should be allowed to make money. So why not us? Secondly, who cares if people buy and sell for a profit? That makes my house more valuable. If it wasn't such a pain to move, I would sell today. If I did, bought my house in March of last year, I would walk away with about $35,000. We just don't have the time to go through the process again.