New Home Purchase restrictions
 

I am an old timer here in the Villages and am shocked to learn what my daughter is going through trying to buy a new house in Brownwood.

A $2,500 non-refundable deposit.

10% of the house purchase price due within 7 days, which is non-refundable if her mortgage doesn't get approved.

And, she can't sell within a year and earn any profit on it - any profit would all go back to the developer.

Shame on them. The father would have never done this to us old timers! I knew they'd get greedy after he died.

Anyone else find these clauses immoral?

Where ever you purchase a house you have to come up with 10% when you sign a purchase & sale agreement. One needs to get pre-approved first before making a purchase if that is a concern. There is no need for a home inspection as TV gives a home warrantee. The no profit for 1st year is to discourage speculators coming in, I believe. I don't see TV doing anything out of the ordinary for home sales. JMO

Not at all!

And I suspect you have another agenda.

Gary Morse and his children took over this beautiful place and grew it in just the last fifteen or so years. These kinds of decisions have made it a financially healthy venture and were ultimately good for all of us. They became successful because they were hands on, and responsive to the wants and needs of the people who came and bought here. NO one is forcing anyone to buy here.

So if you or your daughter feel that this is not a good deal, there are all kinds of places being sold everywhere.

I know that Harold Schwartz was a charismatic and friendly hand shaker but his son Gary must have inherited his mother's brains and business acumen. He took his dad's good start and made it to a piece of history. No where in the world exists a place as perfect as this for older adults to spend their victory lap years.

I am sick of people using the word GREEDY when it just means that a business is making a profit instead of a loss.

Thank you, Gracie. You stated that perfectly.

:ho:

Hmmm...How Come You Don't Know??
 

First of all, I'm foursquare behind Gracie's post.

But if you're an old-timer here, didn't you sign up under the same rules? I did, as well as about 100,000 other residents.

But then again, maybe you don't really live here, otherwise you'd know that.

:BigApplause::BigApplause:
Thank you Gracie! Heaven forbid someone make money and be successful. I always thought that was the American dream. I applaud the developer on every aspect of his business success.

My wife and I just bought a new house and I was not bothered by the Terms and Conditions.

There was no restriction on selling your home for a profit until 2004 when they were building south of 466. In 2000, they required $5000 down payment and 20% was due when you ordered your house. As I recall, once you picked out your lot, there was a very limited time until you had to order your house.

You don't have to be such an old timer to see how the terms have changed over the years and will continue to change based on market conditions.

An old timer and his first post. Go figure.
Something smells fishy.....

:agree::bigbow:

We were told of these conditions before we signed on the dotted line. If we didn't like them, we were free to walk away and look elsewhere. Fortunately, we didn't have a problem with any of them and everything went very smoothly. If your daughter has a problem with the terms, then maybe buying new isn't for her. She should, perhaps, look into purchasing a previously owned home, where the terms might be more to her (your?) liking.

The $2500 deposit is (and was) refundable. It was taken out of my visa originally and then they credited it back when I paid the 10% down. I had to show my mortgage lender that it was credited back to my credit card.

Always good advice...if you don't like the terms of the contract, walk away.

Good call by developer
 

They are right. Until the no-sale clause was put in, several people bought/built multiple houses and then turned them for a profit in less than a year. That was totally counter-productive for the developer. Makes perfect sense to not set up competition with yourself.

That is true but speculators are the reason so many condos sat vacant and foreclosed in South Florida. It not only protects the developers investment but ours as well.

When we bought here, over five years ago, we got preapproved before any of the contracts were signed. It took almost no time at all. The rate of the mortgage is locked in within 30 days of the closing. If I remember correctly, we could have locked it in prior to the 30 days. The $2,500.00 non-refundable deposit holds the property. Things go quickly here and I see that as a protection for the buyer. If something happened and that property was withdrawn because something went wrong on your end, I'm positive that same $2,500.00 would be applied to another purchase within a reasonable amount of time. The Developer doesn't go around trying to make enemies. He certainly would not benefit by doing so. Unfortunately, the days of the simple handshake deals are long gone. I believe if you talk to a good sales person in the Villages Sales Office or a manager they would be more than happy to walk you through the rationale for each of their requirements. You'd find that both sides are protected. By the way, we have done many, many closing on homes and businesses and I've never been through such a professional experience as the one I had here. Good luck to your daughter and I welcome her to The Villages.

Xavier

I find it interesting that the developer builds a product that 100,000 people wanted to buy and more still coming to buy and then they are called GREEDY.

Well said Gracie!!!!!!

Amen to that.

Oh, by the way, I don't believe there are going to be any houses in Brownwood.

Xavier

These kinds of restrictions are common in fast selling developments. Aimed at preventing speculators who can create some very problematic issues

Funny we havn't heard anymore from the OP?

Well said

Mortgage pre-approval is the best thing to have, of course. Didn't most lenders used to ask for 20 percent down to make sure you could afford the house? Then they were taking less and less down and that is what happened to the housing industry in around 2006?

Yes, it does sound as if the OP might have been a troll just looking to stir the pot.

We closed in Feb. We had our preview in Oct. When we left the preview we had a blank contract in hand and knew EXACTLY what the terms would be. We knew if we wanted to finance we had to have that in place prior to writing a contract. Everything is clearly spelled out and there are no surprises. The initial amount put on the credit card is refunded prior to having to pay the balance in full avoiding any finance charges. The 10% goes toward the down payment. Nothing you pay upfront is lost unless you don't do your homework before signing the contract.

As many stated, why buy if you don't like the terms?

Immoral? Naw.
Cutthroat? Maybe, but it keeps the tire kickers out.

I have been here for 14 years, have visited every nook and cranny in the Villages, and it is beyond belief what the Morse family is getting for these homes, but remember why they able to do it is because boomers will pay the price they ask for, and will continue to raise prices and restrictions a bit at a time. The day they stop buying, prices will drop.

... and when they stop building homes, preowned home prices to take a significant hike. Feels good to me.

Xavier

Supply and demand comes to mind. Is your assertion that baby boomers are financially secure but can be led like sheep?

The Morses are not builders. They hire contractors and they get the best price and quality work. They also give a great warranty. Resale houses seldom get the asking price. The actual sold price is quite a bit less.
There are NO restrictions on new homes. Deposit with offer, held in escrow, followed with 10% at time of P&S agreement. STANDARD procedure with all real estate everywhere.

Resale homes in Haciendas of Mission Hills are selling at full asking price and many are $100,000 over original purchase price less than two years ago with homeowners who have done very little improvements. Things sell overnight before they are even advertised.

Hooray!!

The terms seem O.K. if the deal works out fine for the buyer, but if for some good reason the buyer must change his/her mind then the some of the non-refundable terms do seem rascally (hubby "sweaty''s term). After all, they now sell about 1500 new houses a year, so why be so strict?

WELL, because those are the rules. It is because of them we don't have more people who are goonier than the few who slip through the cracks.


They run a well oiled machine and gave us our closing date on the day we signed to have our house built and we would have had to pay $250 to change it even if the house was done ahead of schedule, which is often the case.


They do it because they can, and if people don't like those stipulations, there are ten in line behind them that are willing to abide by the rules.


It isn't a RIGHT to live here. It is a privilege.

My suspicion is that the OP is somehow relate to a realty firm. Hmmmmmm!
JMHO

Gracie : Thank you for your well stated post .
In a similar " vein " please see my recent Post in the " EMT/ Fire Truck " thread .

I am not a " Kool-Aid " drinker however I am a huge fan of Mr. Morse and his family for the high quality attention to detail which they continue to maintain .
I am predicting that it will become an all out " food-fight " when community standards become our responsibility .
Recent Threads provide just a " glimpse " as to what may well lie ahead . A few examples "
1] Lets eliminate Community Watch
2] Lets eliminate the Fire Dept. Emergency response Teams
3] Let`s cut back on the flowers and plantings

I hope you are wrong, however my previous experience with Condo assns leads me to believe that you are right. Many of those orgnizations commit suicide .

Actually you are INCORRECT. As a licensed Realtor in Virginia for many years, I worked for a contractor who was also a developer in new subdivisions. You were only required 2500.00 deposit- the rest came at closing-based on your lender requirements. So those who think 10% down is required everywhere else is incorrect.

Please do a search on FHA/VA New Construction and you will read my horrible time in buying my home (Sales Agent failed to disclose) issues. I love my house--but boy was there stress involved.

The only reason the person got the 2500.00 credit back to the credit card as it was deducted from 10% down--You can't use credit to buy a house (Visa). It is against the Lending Laws.

If your daughter is pre-approved with anything other than FHA/VA type loan she can buy a new home. However, if she has limited funds for down payment- she should stick to re-sale. All terms are negotiable and lenders are more flexible with down payments and get creative to help buyers.

Do I think that the Morse family are greedy? Nope--just have control of the development they are continuing to build. If you don't like the terms --they need to look at resale (developer) has no control from a buyers standpoint.

I lived through such an experience with a beautiful 100 year-old Private Country Club which has nearly as you say " committed suicide ".

The local economy in the Buffalo , NY area tanked well before the mortgage crisis rocked our financial system . Members elected a Board which was dominated by men who were CPAs and older .

They felt that the membership waiting list was not as a" deep " nor was the Club Reserve Fund as large as it once was .
These fellows no longer had any children at home and they were strictly golfers .
So they went into basically " austerity mode " and began deep cuts in social programs and general amenities .

In one major act they did the following :

1] Cut back on the pool staff .
2] Eliminated the kids " learn to swim lessons ".
3] Eliminated the coach for the teenagers competitive swim team .
4] Eliminated towel service at the pool .
5] Opened the pool from only Noon until 6PM .
6] Eliminated the House Manager , The Assistant House Manager
7] Eliminated the long time day and evening Dining Room Mangers who had been employed for over 20 years each .
8] Eliminated Linnen Towels in the Rest-Rooms
9] Disbanded the House Decorating Committee [ all women ]
10 ] all but eliminated children's and teens parties and related activities
11] Stopped building and maintaining a winter outdoor ice skating rink
12] Eliminated piano music during Thursday thru Sunday evening dining
13] Eliminated an annual etiquette program for children and teens
14] Cut way back on Holiday Decorating
15] Eliminated " Bridge Classes "
16] Laid Off a long time Golf Pro
17] Hired a much less experienced and less expensive Golf Pro
18] Cut back on traditional social events such as adult Holiday Parties
19] Cut way back on food service at the pool
20 ] Eliminated the Tennis Pro and the children's and teens Tennis Program
21] Opened up the pool on June 15th instead of Memorial Day and closed it on August 30th instead of Labor Day.
22] Cut way back on flowers around the Club House the outdoor dining patio and on the golf course .
23 ] Reduced the food quality

The above list represents only the items which I can now recall .

I tried to warn the Board as an outgoing Member that these deep cuts would result in Members " walking away " especially those who were non-golfing " Social Members " and Members with younger families .

Most often people vote with their feet and leave w/out speaking out . However word quickly spreads and the tour for prospective members became much less enticing .

Result : Within 1 year a large number of Social Members voted with their " feet and wallets ".
As older members retired and moved away the number of new " Full " meaning golfing members did not join when their name came to the top of the waiting list .

Within 2 years there was no longer a waiting list for the first time that anyone could recall .

Some " Full " Members chose to become " Social Members . The monthly dues for a Social Membership were about 33% of the monthly dues of a " Full Member " .
The Revenue from " Initiation Fees " fell off drastically .

The annual Membership Survey indicated that the Membership felt that the overall experience which they would expect form an expensive Private Club no longer justified the annual expense .

Within just a few years the number of " Full Members " had declined from 400 to about 300 . Social Membership was way down .

The annual surveys indicated that the members were not satisfied with the food or the Club House Staff or the overall " experience ". The " Cache " was lost .

I could go on and on but I guess that I have made my point . Take away amenities which makes the experience high quality and unique has a cumulative impact .

While one could easily argue that making one or a few of the changes above should not have an impact on the satisfaction of the experience the cumulative effect can be deadly to an institution .

Yes the economy had an impact as well but I believe that the " damage " was self-administered by a myopic Board .

And finally I do believe that the above history represents some " foreshadowing " as to what may well come when the Developer hands over the reigns .