Premium lots
 

How well (or poorly) do the higher cost Premium Lots hold their value when it comes time to sell?

I think premium lots increase in value faster than non-premium lots. However, I would define a premium lot as having a nice view of the golf course or water. If a corner lot is called premium, then it probably will not appreciate because many people do do even want a corner lot.

I'll give you some exact figures from a period of 8 years. I live in Tamarind Grove off St. Charles and in 2011 when the homes were new, the designers on Odessa Circle sold for about $250K- $280K and the homes on the opposite site of the street backed up to Southern Star Exec and those lots were $135K more. So most of them sold in the $380K to $400K range. Today those homes on the golf course sell for about $500K or with a pool about $575K and I've seen some over $600K.

Of course if your premium lot is on a pond or retention lake, and it drains due to a SINKHOLE, you will lose value. The Developer will not help you, and sinkhole insurance, even tho available, it is not very good and has lots of loopholes. Google the following for examples:
"sinkhole at 733 Winifred Way" and "sinkhole at 17092 McLawren Terrace" and "sinkhole at 2536 Botello Ave", there are more, but you get the idea, watch out for those WATER FRONT views.

When were looking at lots our sales person told us there is no guarantee you will always have a water view.

Op what is your definition of premium?

Corner lots, pie shaped lots are premium lots as well.

A corner lot, with 3500 more square feet typically nets a premium of 15.00 per sq ft. Those extra sq ft appreciate at the same 5% that the home itself does.

Lots where the Developer charges a premium.

I can see now it's not so simple.

For me, nature view lots not on water are more interesting.

Thanks for the quick responses!

About a year ago I checked public data for about 100 lots to look for correlations to lot size, mortgage vs paid off, sq footage and bond payoff.

I didn't know where the data would take me. I chose several connecting streets with no GC, nature, or water views.

Nearly one third were 'premium' lots. Every lot with a paid off bond was a premium, albeit there were only three.

The small homes which were under 1,700 sq ft had a higher rate of mortgages, all were interior lots.

It was a designer neighborhood.

They charge a premium for lots that back to busy streets such as Pinellas or Odell Circle, when in my opinion, that is a detriment.

OP, be sure you do your due diligence for any lot on a body of water that is NOT a golf course. In general you do not own or control the land up to the water. In general you are not allowed to do any maintenance, trimming, etc., in the area near the water. What this means is that if an invasive plant takes up residence or weeds or trees, your view may be history. There have been a few stories on this site where just this happened. Also, the refuge or preserve areas have even more restrictions as these are under the control of the water district. Good luck with your search.

Think snakes.

We live on a pond and TV takes very good care of the lawn and landscape around it. However they will not put weed killer on the lawn area, I asked if I cold control them so they don't spread into my lawn they said they had no problem with my doing so. They also told me that my St. Augustine will gradually take over the grass that they planted and it is doing so at a faster rate than I thought, it looks great. It's very peaceful living on these ponds with all of the different birds, animals, and reptiles that come with it. No snakes so far so that's a good thing.

Great feedback, like I stated, the OP needs to do their due diligence, which it appears you did. I was just trying to point out possible problems, not ones that will always occur, but may occur. I am always cautious about open property next to or very close to a potential house, as you have no control and never know what may happen in the future.
I will also clarify that I see many houses on ponds off some of the major roads and these ponds are very well kept also.

This is what I selected.

Corbin Road is on the other side of the trees so a little worried about future traffic road. A lake beyond that before more construction. Nothing is perfect.

Some new lots appeared to day so I was looking. They illustrated almost every risk discussed here

Yes -- I've always found that very strange. Their thinking is that because a property doesn't back up to another property, THAT is what makes it desirable even though a house can back up to a busy street.

These lots sell for a premium. Interestingly, no additional landscaping for this premium, noisy, unprivate location is ever provided.

TV is the only area of which I have ever heard where backing onto a thoroughfare is considered a premium lot. I imagine privacy, relatively speaking, is what is at a premium as most of the homes in TV are jammed together on small lots.

I agree with you. TV is the only place I've ever seen where backing up to a road is considered premium and sells for more money than an interior lot.

I have not seen any indication that these homes sell for more than any other interior properties when it comes to a resale.

They do continue to be considered more desirable. Value of property is market driven and highly geographic.

My granddaughter pays what to me is exorbitant rent on a dinky, Manhattan apartment that doesn't even have a washer or dryer in it.

Here in The Villages people seek other features than where owners come FROM. There is no difficulty selling homes here, new or used and if they are clean and priced fairly, most people make more by far than what they paid for them. And so the value goes up and so do the taxes.

That is how it is.

We bought a pre owned home with an overgrown preserve (swamp) in the back yard. We paid $15,000 more than the same home went for across the street with kissing lanai's in the back yard. We paid the premium for privacy, not necessarily the view, but the view (back yard faces west so beautiful sunsets) is very nice despite the preserve being overgrown. Also, both the views and sounds of the wildlife is another bonus. We have seen more types of birds than we could have imagined, bobcats, fox, rabbits, gators, and yes, snakes, among other unusual animals. We absolutely love our back yard oasis and would never trade it to live on a golf course (we both love to play golf) because of the lack of privacy as well as all the maintenance noise, much of which takes place very early in the morning.

Very nice, sounds like you made a good deal, we have similar preferences.

Upcharging to be next to a busy road seemed strange to me also.

How big a negative is having a cart path behind?

If you like privacy and quiet you don't want a golf cart path and more importantly a tee box behind or beside your home. You'll be hearing gas golf cars all day long, mowers will be out in the mornings just about every day. We lived on a golf course for 13 years and would never do that again unless we were far from the playing area.

Although I was unhappy about choosing a lot 11 years ago on a Championship course, it has been worth every penny. We never did hear the golfers, thanks to the double-pane glass doors and windows. The golf traffic seems to have diminished over the years and we don't hear the mowers in the a.m. any more (hearing has diminished, too). Whenever it rains there is no one playing anyway and we get to enjoy the view undisturbed. The golf path and one of the tee boxes are directly behind.

This is How It REALLY Is!
 

Sorry, but lots that back up to these main streets are NOT considered more desirable than other locations and in terms of resale do not sell more quickly.
Also, houses that back up to a busy street do not sell for more than those which are located elsewhere and do not even sell for the additional premium a first-time buyer originally paid, if that.

There is no prior comment that said homes do not sell fairly easily here. And "highly geographic." Huh?

Just as a point of information, most apartments in Manhattan do NOT have washers and dryers in the unit.
You have to go down the hall or down to a basement to do your wash.
THAT is typical of living in the City and has nothing to do with a home here that backs up to a street.

Maybe it is all terminology.
Maybe it isn't the lots that back to a street (of any kind) being desirable.

But more they are the better choice between having a lanai 10 feet away from your lanai.....and all the other sounds of life going on (some not so good sounds.....smokers....partyers...hackers....etc)
Literally the size of a room away!!!!!!!!!!
The street lots begin to look......desirable!!!!!:icon_wink:

I'll take backing up to a street anytime. Recently looked at a very expensive premier with a birdcage / kissing lanai setup .. The only thing that broke up the potential back door neighbors loud voice was the constant barking of their yippy dog. Needless to say, that was a deal breaker right off the bat

Thanks to all for your comments relative to my question.

I had a last minute chance to change lots for my build but you helped me verify my current choice was the better compromise for me of those available.

I appreciate the guidance and look forward to joining the community before the end of the year!

Our 1st home backed to a villa wall. Which was OK but we found it boring after awhile. We built our current home on a lot which backs to Morse Blvd. Love it. A board fence & 5' Podocarpis give us enough privacy, along with the plantings we put on our side of the fence. We very much enjoy the sounds & view of life passing by. We do have tinted glass sliders on our lanai & roll down shades, which we use for total privacy at night. Since it is a cul-de-sac lot we cannot even see our next door neighbors. Just another option. We had it appraised by a realtor. Had gone up about $70,000 in value in 2 years, not counting upgrades. Is a designer home.

Everyone should be happy with the site location they have chosen for their home. At a personal level, I cannot imagine being happy with a lot that backs up to a busy /main street.

The smell and noise of gas golf carts, commercial vehicles, people walking by talking, horns honking, dogs barking, tires screeching, noisy diesel trucks, lack of any privacy . . . the list goes on. And to add insult to injury, having to pay a premium for the lot itself . . . . . No siree!

[QUOTE=Midnight Cowgirl;1669747]Everyone should be happy with the site location they have chosen for their home. At a personal level, I cannot imagine being happy with a lot that backs up to a busy /main street.

The smell and noise of gas golf carts, commercial vehicles, people walking by talking, horns honking, dogs barking, tires screeching, noisy diesel trucks, lack of any privacy . . . the list goes on. And to add insult to injury, having to pay a premium for the lot itself . . . . . No siree![/QUOTE]

You are being overly dramatic. You would be in TV, not in the middle of Times Square or Manhattan.

[QUOTE=Madelaine Amee;1669757]Our house backs onto one of the busier streets, and the only time we notice the noise is when it is cool enough to open the sliders, and even then it is not objectionable. NO odors at all, and we have LOTS of golf carts going by. We do notice the occasional speeder, accelerating from the nearby gate, but we have great view and lots of privacy.
As an aside, according to Zillow, we are up $150K or more in about 6 years!

[QUOTE=villagetinker;1669774]Good for you. :thumbup:
I'm glad to hear a positive comment from a trustworthy source and you are just that!

Mine was just an opinion but we all base what we've bought based upon what we think; yours is tried and true.

A word of caution, however . . . Don't rely on Zillow for the truth.

:agree: I follow five houses owned by family members. Zillow runs consistently from a little bit to quite high on four of them and below market on the fifth. Their valuations seem to have bounced up or down by a few thousand every time I check. It has crossed my mind that providing too high estimated values and running the evaluations up and down pulls people in to keep checking with Zillow. Frankly, it can be a bit addicting (just like TOTV) which may be Zillow's goal.

I went to a TV open house in a premier neighborhood a couple of years ago. The home next door had a very extensive filter system for the enormous pool and hot tub. The sound from this extensive filter system was so obnoxious. It was on the same side of the open house's master bedroom. I would not consider a home with all that noise so close next door.

That is a problem, before we bought in Fenney we found a home that we really liked but same situation so we walked.

Being downwind from a nearby smoker is a huge deal killer for me. Many now smoke outside on a lanai or patio which of course makes it even worse for their nearby downwind neighbors..

Zillow depends heavily on recent what it thinks are comparable sales. So depends on market.

My current home was 30% low for years. It is in a pocket surounded by lowered price homes and no resales since constructed.

The day after it mine was listed for sale, the Zillow price jumped up 40% to within 2% of the listing price.

[QUOTE=Madelaine Amee;1669757]
No, I wasn't being overly dramatic -- not even a little bit dramatic.
I simply cited the possibilities of what one could expect if your house backed up to a busy street in The Villages, not Times Square. You'd be hard-pressed to find a house that backed up to a busy street in Manhattan.

I would look at a corner lot with trepidation. You would have to maintain and landscape, if so desired, on a yard that is usually on the side of a garage, and have a lawn and landscaping that you probably couldn't see. A view for all driving by, but not for the owner, just the extra cost to maintain it.

Quite a bit of hyperbole there. I live in a house that backs up to Morse plus the MMP. Do I hear golf carts, yes. Intrusive, no. Do I hear people walking on the MMP, yes. Intrusive, no. Do I get the smell from golf carts, diesel trucks, no. Do I hear tires screeching, rarely. Do I have privacy, yes, but less than if I lived out in the country and more than with a home behind me. My lot was well worth the premium and not an insult or injury.