Resale homes priced higher than new?
 

Just wondering why some resales are priced so much higher than a new home? Looked at new At Ease Cottage homes with prices in the $160K range. Saw some resale At Ease models in the $190K range. I do understand if the resale has extensive upgrades, premium lots, but most of the resales seem to be the same as the new. $30K seems to be a hugh difference. You could do a lot of upgrades with $30K on a new home. Can anyone explain this? I've seen the same on CYV'S. Thanks

Easy, not worth inheriting someone else's ideas and older neighborhood.

We bought new, found it a better deal as you are seeing.

Perhaps...
 

Kevin, it would vary from home to home, of course, but location may be a large factor and consider there is no leeway for negotiation when purchasing new from The Villages whereas a resale may adjust down $10,000 or more in the final offer, extensive upgrades can add up here in a hurry. An excellent landscaping job alone could add $10,000 to $12,000. I would definitely consider a resale along with a new home.

Also don't forget to factor in the bond. Many resales have much lower bonds or no bond at all.

Yep, the price includes the bond and possible upgrades. The folks that swear by the pre-owned homes are usually talking about older homes that had the aforementioned low or no bond.
I'll pay the bond and start with a clean slate. Wait .... that is what we did! :icon_wink:
Don & Kaz

Keep in mind that a realtor will often throw anything against the wall to see if it sticks. I've been told by several reliable sources "in the know" that the average resale closes at about 88% of asking. That includes Villages Properties pre-owned sales which publishes a higher statistic that includes their new homes which have minimal discounts.

Keep in mind that a new home is sold quite bare bones; no screen/storm doors, curtains, builder grade appliances fixtures and lights, minimal yard plantings etc. Ask anyone who bought new, there is usually a lot more "after spent" to make the house a home.

The bond is no big deal, $100 month should not push you to buy a resale.

Landscaping I want to design my own.

I want to start with clean and new, along with the new building code, also new U can get sinkhole, in a resale U can't get it !

That alone offset the bond issue.

Also U have 5 years on termite protection.

I bought a resale home about 3 years ago. I needed a home quickly (due to some issues) that did not allow time for a home to be built. It has loads of great extras that would have cost me thousands in a new home. It has an extremely low bond ($2,000) and similar new homes were $20,000 bond 3 years ago. Now, they are $23,000 to $50,000.

The seller was motivated to sell. He included 3 year termite and bug protection as well as 2 year complete warranty.

I have had no problem getting sinkhole coverage insurance each year and even a decent ($500) deductible on it.

But, each to their own. I have no doubt that your new home will be great and you will be (or are?) a very happy Villager.

I don't think a home that had a bond of 20K 3 years ago is now $50K, mine is about 21K on a new designer.

R U sure that's not just catastrophe sink hole insurance which is standard by state law?

But as long as it's what you want but the OP asked about price and value, a newer home down the road may have a higher resale just because of its age.

Main thing is you're happy with what ever the choice is.

Never considered the 5 year termite protection or the newer energy efficient windows, HVAC, or current building codes. All of the responses have been appreciated. I am gaining more food for thought from the wise TOV members.
:bigbow:

Kevin, another consideration for your tastes or resale is the location of train tracks, sewage plants, the land fill on the south side of 466a and any other type of fixed usage that may bother you or your wife. These items may also factor into resale value. Some people are not concerned by these factors but we have also heard complaints from people who felt they were deceived and wouldn't have bought where they did if they were aware of these installations.

Some resales are priced higher than market. Some sellers think their home is worth more than it really is and some are looking for a big profit. Most would be Villagers are pretty "sharp" about the home market. However, occasionally not! If you are looking for a "real bargain" such as a "sacrifice sale", hard to find in TV by the average buyer. A resale with a fair market price, however, is out there. Bottom line, it really does depend on your preference and desired location. Good luck.

One recent resale
 

that sold within two weeks.....Mira Mesa Golf Course view, Lake view, premier, pool, NO Bond $274,000 asking price....Wow!...someone got a deal!...I would look at everything BUT sure love lots of trees, something that will be in the future south of 466...

Good info....but we HATE TREES. We are tired of a half acre of constant sticks, leaves, Hickory Nuts, Acorns, grass, etc. No green, just concrete sounds great! :1rotfl::1rotfl::wave:

The designer home bonds now are higher than what mine was. The $50K is for a new premier home.

Yes, I have had no trouble getting sinkhole insurance on my homeowner policy. I do not mean the catatrophic ground collapse which is standard.

Value wise, I still think the resale is better. However, the new homes are selling like hot cakes for a good reason. They are great houses and people love The Villages. I know I do!

We bought two resales, both so-called “sacrifice sales” though we feel we paid perhaps only slightly less than fair market value even after all their dropping of prices prior to our seeing them and then subsequent negotiations. Both couples were going into assisted living, their units were ready for them, and they HAD to sell.

The first was a small Designer with tons of desirable landscaping, screened front porch, blinds and other window treatments on all windows, all appliances, all ceiling fans, a stunning dining room chandelier which had replaced the builder’s fixture, attic stairs and floor, water treatment unit, and on and on. ZERO bond. Golf cart included, contents of garage (every hand and power tool imaginable), some older AND newer furniture, both inside and outside, even a computer. House was listed with TV Realty; we were introduced to the owners by their neighbors who are friends of ours; sellers were able to contact realty office and cancel their contract. (We understand this can no longer be done.)

The second house is a Courtyard Villa (Anna Maria) end unit with stunning outside landscaping giving the villa “curb appeal” not often seen in a villa. Inside were upscale upgrades: high end laminate flooring, top-of-the-line carpeting, all blind and window treatments, all ceiling fans, all appliances included plus garage door screen (which we removed—the only thing we didn’t like). Bond was $5,000, now paid off. Inner courtyard was original other than a few plantings which is EXACTLY what we wanted in order to create our own private vision. We bought this house through an outside realty company with whom we were more than satisfied.

Both homes centrally located; we can go anywhere in our electric golf cart, including all three town centers (when Brownwood opens) and return without fear of running out of power. Both houses built in 2004, AFTER the mandated structural changes, meaning our homeowners’ insurance is very reasonable. We have friends who were intent on new construction, bought a smaller CYV in mid-block with a small yard and paid more than we did AND have a much bigger bond AND had to provide everything from window blinds to ceiling fans to appliances. Yes, of course, to each his or her own—we’ve heard many people in TV say that for what they consider their last home, they want to start from scratch—but we feel we did infinitely better on resales both times. And remember, the prices on new construction are chiseled in stone; an asking price on a resale is not the same as a selling price....

Reminds me of my dad. You guys think alike.

Born in the country and became a city slicker. He loved knocking down walls to rebuild another one.

Did I mention he supervised only? :1rotfl:

Kevin & Josie I am with you when it comes to raking leaves. :thumbup:We once had 12 oaks and a couple others on our little acre on the lake. However, I do like a view and want some green. Arizona didn't interest us much because mostly rock and little green! If you want new, its south TV. Resales are all over TV. Its your choice as there are pro and con of both. Even though I could maybe save a few dollars with a resale by the time we got it "our way" the price would be about the same and I would have an older home with older "everything" vs. "everything" new. That's the biggest difference IMHO.

Congratulations sounds like you did well with your purchases. :thumbup: I assume you must rent one of them out? In both cases you bought through a real estate office. Sometimes a lot easier to negotiate with a third party involved. We have done the same in the past including re-decorating and reselling the property. However, that is the past----retired to TV and doing some of the "things" we didn't get to do as much of in our working years. However, perhaps OP would like to follow your example.

The code changed in mid 2005 so I think they were built to old code.

Various versions of the FL building code - - - -

From Florida's Department of Business and Professional Regulation ( Florida Building Code Online ) :

Here are the different versions listed: 2010, 2007, 2004, 2001
Florida Building Codes Home Page

Bill :)

Thanks Bill I said 2005 I guess it was 2007 I should have referenced.

Here's a site telling us the major changes proposed in building code requirements, it underscores the importance of knowing which code a resale was built to.

How do you guys find all of this stuff? Now I'm interested in reading the codes and how they compare. Had no idea they changed within years. Thanks

I can tell you what color shirt you have on right now, Kevin....... :shocked:

:1rotfl: :1rotfl: :1rotfl: :jester:

Bill :wave:

Bill don't tell them, we need job security. :coolsmiley:

I STRONGLY disagree that the bond is "no big deal". I had a Villages realtor try to tell me that last year and I felt she was insulting my intelligence. The bond on new homes is in the $20k range for cottages and designers, and the interest on the bond is in the 6% range. The interest on a mortgage can be had in the 4% range right now. The interest on the bond is not tax deductible, so the real rate is 6% while the real rate (with the tax deduction) on the mortgage is 2.5 to 3%. If you pay off the bond it is unlikely that you will be able to recoup it on resale, whereas if you amortize it the interest is problematic. Now, I am not saying the bond is a reason to not buy new, but I am saying it is a drawback and should be taken into consideration. What I do when comparing home prices is add the bond remaining to the asking price to determine the real cost of the home.

is it blue?

What you don't see on the building code site is weather or not the county you are dealing with did or did not adopt that code, or any part of it. That is a home rule option, and every county is different.

But let's compare apples to apples. A resale house, with lower bond, will require major repairs (e.g., roof, A/C) sooner than a new house with a higher bond. I think you need to factor in the speed-up of such housing costs.

Gene

I could tell you, but then I'd have to...........ummm, never mind! :jester:

Bill :wave:

Ed, I'm surely not trying to insult anyone's intelligence.

To use your numbers that the cost of interest is 6% on 20K that's 23K in interest over 30 years, but if I'm figuring correctly and it's 3% more than if was a tax deductible interest like a mortgage, that's only about $300 more a year over the term to pay 6%, or $25 a month in extra interest.
I think now I saw it was now 5.5%.

They use
FLORIDA BUILDING CODE 2007 REV 2009.

We always buy resales. Having been a real estate broker for 20 years, we look for bargains. Low list price, low bond, motivated to sell, lots of extras and upgrades, central location, golf course view.

Although I can totally understand why purchasers are attracted to new homes, pristine homes. An opportunity to totally personalize what may be a final home. For me, I love renovating.

Maybe too much time on their hands? Spending the day on the computer instaed of the golf course? Or just staying up late to research things for us lazy folks? I bet they don't get as much sleep as some of us do.
Don

Maybe Bill & I are not yet retired.

I work online all day.........will have more time for golf soooooon

Having bought a new At Ease last year, (which we love), I can tell you there are several options that can dramatically influence the price (and IMHO livability) of this and really any model. We found prices ranged from $160k to $205K for new At Ease homes. Prices will depend on whether you have a volume ceiling or lower ceilings, what type of kitchen and upgrades you have. Add more money to the price for an extended lanai or garage and a golf cart garage. Of course the lot and location will significantly impact prices as well. Upgrades add 10s of thousands of dollars to any model in TV. You really have to decide what model AND upgrades are important to you and then compare prices.

Your subscription to Earthcam really scares me!:22yikes:

:a20:

Bill :wave:

In general I find re-sale homes cheaper then new. You can't just look and make a determination. You have to do an actual comparison. Look at everything. When looking at a new home price you say "I can buy an XYZ model for $XXX. And a resale just like it is $XX more"

But always consider these things. Did you look at the lot and lot premium for both the new and re-sale? Did you look at the list of options on both homes? Did you consider the bond balance on both homes? Did you consider what you will need to spend the day you move in on both? Attic stairs, landscaping, curtains and blinds, painting, all the cost to get settled in that home?

When I do that kind of detailed comparison, build a spread sheet with all the items and a fair cost for every item (except those I would never do or pay for) and consider that most re-sales sell for on average 96% of list price, then in almost every case the re-sale is cheaper. Then as Bare suggested, find a lower competitive priced home with a motivated seller and you will get a re-sale much cheaper then new.

Real estate is all about location. This holds true in The Villages as well. Where is that lot located, what is it near, does it have a view, back to a busy street, near or under the power line, pickle ball in your back yard, (they start batting that ball real early), and many other things to consider. They ALL impact the value and re-sale value of that home. You can't compare a new home on an interior lot against a resale home on a cul-de-sac and say they are equal. Take that new home and build it on a cul-de-sac and you will add $18,000 to $26,000 lot premium. Try as best as possible to compare apples to apples.

I agree.......