Advice on potential purchase of a lot in TV
 

I am interested in opinions. I own a home in The Village of Charlotte and am considering building a larger home in The Village of LaGrange in Eastport. I am confused... With the bidding process for lots and potentially purchasing a lot and then not being able to sell my home for the price I need to complete a build that I would want. There are two options: 1) I sell my home first and then when the lot I am interested comes up to enter the lot lottery or 2) Purchase the lot and then try to sell my home. The issues are if I sell my home and rent then I may not get the lot in the area I would like to live since the lots have multiple people trying to purchase. But if I purchase a lot and then try to sell my house if it doesn't sell then I must move forward with the build and that could cause me problems financially. I have spoken to TV sales department and they are very positive that my house will sell which is what I would expect from the sales department. If anyone has had recent experience with this process can you tell me how it went for you? My current house is in very good condition but with all of the new houses for sale in the south I am thinking my house may not sell for what TV market appraisal is. I looked on line and my home would be the 10th pre owned sale sorted on price and square footage. However there are more than 18 new homes that are less expensive based on price and square footage. Your thoughts are appreciated.

-- I very much doubt there are multiple people bidding for lots, in general. That claim is a marketing tactic. There could be a small few of unique lots where that's the case but, mostly not so. Particularly in this sluggish market.

-- Second bolded above - I think you answered your own question.

-- Third above, in this down-sloping market and given appraisals are based on prior sales, this is a fair bet.

You definitely don’t have experience with getting a build lot. We tried for 15 lots, released on different days for multiple weeks. We were #6-41, on all of them. Screen shot of our name and spot for each lot that would accommodate 3,000sf, pool, 3+ car garage stretch if possible.
We were finally #1 on lot #16. Not even close to everything we needed, but close. We wrote a check for $10,000. For two more weeks we tried for 6 lots that had more boxes checked, if we would have been #1 would have lost of initial $10,000. Yes we would have donated the $10,000 to the developer if we were #1. However #2-11 was the closest.

Build lots are far different than a base spec home.

You win on a build lot, you have 24 hours to submit you $10,000, or forfeit. Our first day design team meeting was Labor Day. We didn’t plan to sell our existing homes until after close on the build. Fair warning, you need mortgage in place, either new, bridge, or cash. Developer doesn’t wait for you to sell.

We closed February 15. Todays builds are solid walls so unlike our 10’ block walls, you could close in 3-4 months instead of 5-6.

If you are uncomfortable or need to sell current home you need to strongly rethink strategy. Our first TV home we closed ONE DAY LATE, due to new closing program, on developer end. Even not our fault Our penalty plus $450 for one day late.

If your current home has a View, 3-4 bed with 3+ bath and room for a pool, you have a good shot at selling. If as you stated in the middle road of many preowned and new, you probably will be sitting on that house, or take far less than you need

As I read more and more I shake my head more and more. I don't think the mafia is as bad as what the developer seems to get away with.

I mean, kudos to them. I'd be a bad ass dictator if I could swing it. But I'm just a poor working slob, so all I can do is admire how they pull it off and dream of the day I can sell mine and get out.

If you want a prime view lot, then there is most definitely a lottery involved. Interior lots on the other hand are a dime a dozen and there is no competition for those.

I have recently gone through the process, except I purchased a spec home (larger, with an oversized view lot in a prime location) rather than a lot. I bid on and lost six homes before I won one. It took a few months of bidding and losing. I did not sell my existing house first before buying a new one, and probably won't sell it. I'll just keep and try to rent it (although the rental market isn't great either).

If you don't mind moving twice, and owning two homes would be a financial hardship, then selling your existing home first is of course the financially safest route.

I think the village of Charlotte is a nice location, and I bet if you price it aggressively your house will sell. But, like you, I would be skeptical of the Villages appraisal. I am sure it is an honest appraisal, but if you price it there what would be the advantage that your house would have over all the other similar houses that the Villages has appraised?

Keep in mind that those less expensive new homes also come with a hefty bond. I would never buy a house with a $50k bond.

Our first house was with our bank, developer is not happy. Closing Department had an upgrade on their system previous day of our closing. The program would not send paperwork to our bank, we sat at our bank until 8pm waiting for them to fix.

Finally closing department, said it was our bank, not them, if we would have used Citizens this would Not be a problem. Glitch fixed at 7am following day (two days off work) along with the Penalty.

Our bank took it upon themselves to pay the penalty instead of us.

6 days after closing I received a phone call berating me that “we should have paid the fine, it was our fault for not using citizens.
“Our bank should have not intervened”. My reply, the reason they are my financial institution, is because they Value their customers. A closing department mistake should never be pass on to customer.

Sell your house first.

Then find a place to rent for a short time.

Then buy a lot and build your new house.

That is what we did in 2016 and the whole process was very enjoyable.

Exactly - That is what I was wondering. We would not want to give up our home unless we could purchase a golf course lot or a lot with trees/view. I don't want a postage stamp lot like I have. That is why I am concerned if I sell my house if I will be able to get the type of lot I want.

I understand a $50,000 bond is hefty but insurance companies are requiring new roofs - which on a house our size are about $25,000, then there is the HVAC which is $13,000 and the hot water heater. So we are going to be spending money either way. We were just thinking about building a larger home with more space and a view versus keeping our present home and replacing everything that is about 13 years old. I am not sure how the insurance can request the new roof when our roof warranty is 25 years, but it is happening and three neighbors on our block have replaced their roofs not due to damage but to keep their homeowner's insurance.

If you don’t like what you have now then what is the loss of renting a furnished home for a year after you sell it while building? You can find flexible landlords as we did when we arrived after selling up north and coming here. Also, on The Villages app homes for sale you can filter “pre owned” homes for sale with “golf view” There are many on the market now to choose from several manufactured homes, one manufactured home site all the way up to $1.2 million. At this age of life why stress playing the lot game, stressing over the build, watching the build, then once you get in the home upgrading, painting, etc, etc.

I personally know of someone who didn’t win the lottery over 70 times for view lot. He finally won!

I dont know how far into retirement you are, but dont do something that will put you in a bind financially, unlesss you have a good plan to unwind it.

Sell or wait
 

What is the old saying - a bird in the hand is better than two in the bush. Sell your home and see if you get what you wanted. I know for a fact the home prices have reduced as I considered selling and buying a new property in Eastport. After looking at the additional costs, I would have doubled my home mortgage because I have a 3percent loan and new mortgage rates are over 6percent. I was looking at a new $480k home, add another full car garage for 30k, a lot on golf course was 150k to $200k depending on the view. Then when you add in any updates or extras add another $100k. I was at $760k. Even if I pulled all the equity out of my home, let’s say $260k, I would still have to finance $500k at 6percent. In addition the new bond was $45k. The payments were almost 4K a month. I walked away and have no regrets. I’m still loving my home and neighbors. The villages will sell your home - no doubt - but will you get what you want for it? Then put your items in a short term rental until you get lucky and buy the lot you want. If you love your home and in no hurry - wait awhile - things will change.

If financial concerns are truly the issue, then move forward with the lot purchase and get a bridge loan.

Yeah, they flat out don't like it if you don't use Citizens, happened to me, too. Hopefully, now that they are getting out of Citizens, that will change.

I would recommend a "bank" appraisal not something the sales agent is giving you. You will have to pay a few hundred dollars for a bank appraiser to evaluate your house, but it will give you piece of mind!

Curious, did you go through what 2 other posters went through where they had to pay a penalty for closing a day late due to developer issues?

How does a bank appraisal over MLS or VLS, give you piece of mind? The seller has the final say on sale amount.

Either way the bank appraisal isn’t going to sell the house faster or at all.

Bank appraisal will give the value of the house in the current market and will also give one the ability to reject a buyers offer if it is not up to market value.

In my experience, agents here will tell you they will get what you want for your house, and they will usually tell you that you’ve chosen a good price. After all, they want to be your agent and make money from selling your house. I put my house in Tierra del Sol South on the Market at $600,000. (On the golf course, pool, lots of upgrades.). I was counting on my equity to pay off a 1200 sq ft courtyard villa to which I was downsizing at $310,000. My agent said it would sell fast at that price. Just then interest rates went up, and I ended up selling it for $525,000 after six months on the market. I had to take money out of my retirement savings to pay off the new house and pay for a new HVAC system and new flooring.

My nextdoor neighbors’ courtyard villa is 1600 sq ft (3 bedrooms, 2 baths, slightly bigger living room than mine, and a lot more hallways). They offered it at $465,000, which I thought was outrageous given that mine was still estimated to sell for $310. Six months later, the price has been lowered to $375,000, and it still hasn’t sold.

So, if the price you want is at all wishful thinking and not based on comps in your neighborhood, you might not get what you need and you may pay mortgages on two homes for months. Housing prices are forecasted to drop 1% in the next year, not go up. It’s a buyers’ market. Don’t count on your improvements actually adding to the sale price. What they do is make it more likely that your house will sell instead of someone else’s.

As for funding it, go to Citizen’s First and get a Bridge Loan for whatever you need to buy the lot and build. They are easy to get, and their purpose is to give you the funds to buy the lot and build the home you want. You can arrange the money in advance and not repay anything until after your first draw on the funds. That’s what made it possible to buy my downsized house, as I couldn’t pay for it until my previous house sold. I was paying for my original mortgage and for a $310,000 Bridge Loan until my first home sold—about four months. It wasn’t easy! I’m so glad that I now have no mortgage, though. Do you REALLY need a larger house?

Tell me you've never bid on a lot without telling me you never bid on a lot.....

The lots in Eastport have just as long or longer than the bidding of lots during COVID. There was a lot a little more than a week ago that had 60+ bids.

SMART
So many houses are being built eventually you will get one that works

The flip side. We bid on 1 golf course view lot only, first time ever, and got it.

If you’re just going to reject offers until you get the money you need, why spend the money on bank appraisal?

However in todays market there are hundreds of preowned or new homes for sale, exactly the same. Today is the largest preowned inventory we have experienced in TV.
Owners that need to sell are considering $50,000-$100,000 less than asking. Yes that’s true, because we have made those offers with little pushback.

One of our village had 9 homes for sale all same model, all within $500,000 range. The 3 homes that finally sold took $75-$95,000 less than the asking price. The rest of the homes are still on the market after 11 months.

There is a big difference on want to sell, need to sell, and desperate to sell. That bank appraiser isn’t going to give you piece of mind unless he’s buying the house that he appraised the dollar amount for.
It’s a huge gamble for some to continue to reject offers because the bank appraiser said your house was this much money. Unless of course they have a half $1 million in the bank and then it’s not a big deal.

Sell your home first or have it under contract, with a "contingency" that your house must sell fo you to purchase the subsequent property. Since a contingency is "not" possible on a lottery lot, then you must sell the house first "unless" you can easily carry the expense of two properties Btw, it's a buyer's market.

Not too many lots are big with a view. Look at the big premier homes already built. You can still see and hear the neighbors.

My friend is wanting to build in Eastport. They have lost 3 lots now due to losing the lottery on the lot they chose. These are the lots on the $200K to $300K price range on a championship or a lake. It takes time to get your lot due to so many others wanting them.

Bridge Loan or IRA
 

Your concerns can be solved with a bridge loan. It will cost you some interest and points paid upfront but it will resolve your concerns.

If you have an IRA or SEP retirement account, you can make the loan to yourself. The are limits on the time within which it must be repaid. If not repaid within the time allowed, it will be treated as income for tax purposes.

I went into 9 "lot lotteries" so 27 potential lots based on having to select first, second and third choice each time and was not successful in procuring a desired lot. If your desire is for a lot that will accommodate a large home, or for a view lot you chances to obtain one are going to be slim. I would try to get the lot first then worry about the home sale as you may not get a lot to move forward with building.

Lot puchase
 

Being in retirement and personally being a bit conservative, I would sell existing home before purchasing a lot, unless money is no object. No need to put yourself in a stressful position. You could secure financing for lot and new built home first. Then list home and proceed with purchase. Remember there are likely many extra to purchase when buying new. Good luck.

Most of the homes we looked at that are older than 12 years need a lot of work and updates. That is why we were looking at new. Plus the cost of the new homes on a golf course lot even with the bond is less expensive than an older home on the golf course when you consider the upgrades they need i.e., typically roof, HVAC, etc.

Plenty of those homes have already been "upgraded" and have new HVAC systems.

Plus, they have many of the typical "after market" upgrades than many people want to have.

For example, our (now 7 year old home that we purchased 4.5 years ago), had Plantation Shutters on all the windows, a Pegasus Water Softener, Epoxied Garage Floor, a Stained Driveway, Front Walk and Lanai floor, pull out drawers in the pantry, and built in custom closets in all of the BRs.

Considering the quality (or lack there of) of the new homes. The 12 year old home may be better. I think the 20 year old homes are better built.

Agreed, it's rare that you see a pre-owned home without all the upgrades.

Upgrades as I see it.
1) Newer HVAC and water heater
2) Newer Roof
3) Crown Moulding and Finished moulding around lanai sliders.
4) Plantation Shutters
5) Finished driveway, garage, and lanai floor coatings
6) All Closets upgraded with one of the newer storage systems
7) Hardwood or tile flooring and no rugs.
8) House re-pained in the last 5 years
9) Whole House Surge protection and maybe a lightning protection system.
10) Upgraded landscaping.
11) Whole house water filtration and possibly a water softener
12) Irrigation filter

I'm sure there are many others. In a new built home generally there is no #3, #4, #5, #6, #7, #9, #10, #11 and #12 and you can't imagine how much money it costs for all these upgrades and time and effort to get them done.

Then incoming new residents don’t want crown molding, plantation shutters finished drive (3 years 70% naked drive) many closets done by unique at 40% less than aftermarket, LV pretty common, palms are on the way out nobody want the maintenance, 15 years in TV never needed a water system, irrigation filter not really needed north of 44, but ours was $75.

Younger residents, less grandparents decor and landscaping ideas. But they do mow their own lawns, and garden their beds, with plants from local farms.

After 15 years between the 6’s, it’s refreshing to see a change lifestyle, of capable DYI residents in their 40-55 age groups.

Did you move here from Flint Michigan? ALL of FL has disgusting water. At least everywhere I've been in this state.

Oooh! I forgot about the Crown Molding... Our home came with that, as well...

And a large paver patio off the lanai, easily 10'X15', instead of the little concrete pad...

And they replaced all the carpeting with LVP...

They put up a hedge behind the lanai, but other than than, no other landscape upgrades...

40-55 age groups? That is a very small minority, regardless of where you move...