Not making much if anything on this house
 

When we first considered moving to the Villages, the Bridgeport model of home was our first pick. While the kitchen area has changed in the newer design, I still like this model of home. Well, there is an almost new one for sale in Chitty Chatty that is being sold for almost the original purchase price. I would estimate over $10,000 has been spent on landscaping not to mention the other hundreds of dollars spent on other things to made the house livable. The original purchase price in 07/2020 was $530,600 and is now listed for sale at $549,500. If one factors in what has been spent on this house and the sales commission for the sale, the current owners are not making anything off of this sale. If you’re looking to purchase a Bridgeport model, this might be a good deal for you.

Homefinder - The Villages(R) Homes and Villas for Sale

Beautiful home. Extensive crown molding, and there seem to be more than average lighting cans. Lovely back splash, too. I wonder if the home came with some of these improvements?

At any rate, I could live there (if I was inclined to move!).

You make money when you buy real estate. Of course there is no guarantee. At the price point you;ve listed, it appears it must have a water or golf course view in back. You;re complaining about a house in Chitty Chatty ? Looking for price appreciation after 6 months ?? With the number of homes being built around there, the resale will be competing against builder incentives etc. I don;t follow the logic of this being a "deal".

There's really no incentive for them to price the house any higher. A house under a year old has to turn over any profits to the developer.

It is always interesting why a new house is being sold. I wonder if they got tired of the noise from the golf cart traffic right behind their house, the noise on CR468, or trying to turn left when leaving Chitty Chatty.

The home is less than 12 months old. Per the original owners purchase agreement they cannot make a profit in the first 12 months if they sell. This situation was put in place to stop speculation. They are pricing at original price + improvements.

There are conditions where this pricing abnormality works to your advantage, price increase by the developer, sharp increase in inflation or a shortage of some characteristic of the home, making new models dramatically more expensive.

I looked at new houses in that exact area when they were first built. Some of them, including this one, are too close to Morse Blvd. The traffic noise would kill the deal for me.

I would also point out that the rule for "no profit" in the first year is not exactly true. The seller can add the full cost for upgrades and the real estate commission to the price before any profit is calculated.

If a house is not the primary residence, profit is subject to capital gains tax.

Also, in general, when it comes to pricing a house to sell, some sellers recognize that time is money.

If a house is bought and sold within a year, it wouldn't qualify as a primary residence because you need to live in it for at least 2 years. Also, any profit wouldn't qualify for the capital gains tax rate. It would be taxed as ordinary income if sold in less than a year.

That’s right, rg123, I knew it but did not think to put it in.

So whether it is a primary residence or a vacation home, cap gains could kick in — and perhaps mightily. Along with that, a big cap gain could throw a Medicare recipient over the threshold into IRMAA and increase Medicare premium costs two years down the road.

The listing price seeming low could simply mean that the potential for tax consequences is being factored in.

Whatever it is, it is certainly not my business. But I can rarely resist a conversation about taxes. (sigh)

Boring Boomer

A $42,000 bond. Do they have to also pay Wildwood taxes?

Good grief!....
 

how do you know if the money they spent on the upgrades are things others will pay more for??? Answer: you don't. You're speculating on things you have no real knowledge about.

After reading this thread, I decided to drive over and view the house. If you want sit on your lanai and listen to high speed traffic noise from Morse Blvd and low speed traffic noise from the drive through golf cart path in the rear while the afternoon sun beats down on you, with not much of a view, it would be a great house to buy. No wonder they are selling.

Yes

Or a health issue, or a death of an owner, or a number of other issues. At the average age down here a lot of things can happen over a short period of time. There are homes on the market that have never been lived in and they each most likely have a different reason.