Why Are New Homes Resold So Fast?
 

When I look in the paper at the homes for sale it's surprising to see so many one year old homes being resold south of the Florida Turnpike. What is going through these recent buyers heads? Your barely settled in and your selling your home already. What gives?

Downsizing does not always work out

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My wife played golf with a woman who was selling her 15 month old home in Marsh Bend. She bought a beautiful golf course lot and then was surprised to find out that people get up REALLY early to mow the course and play golf...

I've heard others have done the same...

Happens with every new build area. It's mostly investors. They buy land, have a house built on it, then sell it for a profit.

The villages has a new rule when you buy - no resales until after 1 year because of buyers buying multiple homes and making a profit right away.

Rather wake up listening to the golf course being mowed than listening to a wrecking ball tear down the clubhouse.

I don’t think it’s because they don’t like living IN the Villages, it is because one needs to make a decision on a lot in a matter of minutes and can’t consider all the issues i.e. lawnmowers at 5am; traffic patterns; etc.

Most sell the same day with multiple back up buyers at significant profit for the seller.

Next to us, the resales included divorce, pay legal bills / legal settlement, death of spouse and with the price up 20% or more, they sold for the gain. Other potential is that they were not retired, and then lost their income to support the mortgage payment. . . There are abandoned houses here where the owners lost jobs and they just stopped paying mortgage and lost their downpayment. . .

Don't assume that everyone views a home in the villages the way that you view your own home. There are many people who will take the money, and build another one or rent for awhile while making another location decision.

I offered the 18 mo old house for sale at 100% over purchase price, no takers. . .

So financial example, round numbers:
Purchase house, $350K at begining of pandemic, mortgage payment $2,000
Sell house for $500K during pandemic, monthly rental payment $1,600 - 2,000 smaller to same size house.

Profit with sale by owner, excluding realtor fees, $150K increase to financial assets.
Monthly rental payment savings 400 - 0, depending upon rental selection. .

$150K = 6+ years of rental payments
or build a new house and include a pool or an additional 500sq ft of living space in a build upgrade.

The financial people aren't looking at the house strictly as a forever house, which you may be. There are many, many other viewpoints of why a house may get resold.

Not new rule…..been here a long time.

They find out how noisy the turnpike is, and how far away from the squares they are.

Some are unable to sufficiently downsize and need to move so they have space for their overabundance of furnishings, 4 cars, etc.

We live in the South and Brownwood doesn't seem that far away. Also, Sawgrass will be open soon. I believe some see that their newer, but gently used, home will sell for more than a new home (only bc of supply and demand). So, essentially, a free upgrade...?

I think it is stupid people buying a house in a stupid location or on a stupid lot.

Once they realize they made a stupid decision, they want to move.