"No Bond" is promoted in home sales. But what's the real savings?
 

We visited the Brownwood TS to introduce ourselves and interest. But the realtor we were assigned on our first in-person visit has refused to answer one of our most basic of questions multiple times (she seems to keep copy/pasting the same answer to my very direct question).

My simple question is this: We've seen several really nice properties that promote the fact that they're "NO BOND". As if it was some huge savings or advantage. I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"

The sales brochures shows the monthly fees as "bond+maintenance+fire" so you can't gauge what percentage each makes up.

I totally understand the concept of the bond and I totally understand why each "Villages" bond may differ in terms of price. But we're merely trying to ascertain if a property being highly-promoted as "NO BOND" is really that significant and should be given priority in our choices.

Can anybody please answer this question honestly? My assigned realtor can't or won't.

So do you like giving away 10, 20, 30 ,40 thousand? If bond not paid you have to pay it if you buy the property.

:)Residential Bond Assessment Information - for Bond Amortization Schedules. The District web site is full of information too. -https://www.districtgov.org/

Bonds are different for different houses and in different Districts. Everyone pays $125 for Fire in Sumter Co.

Look up resales on the County Web Sites:
Welcome to The Property Appraiser's Office for Lake County, Florida
Home - Sumter County Property Appraiser
MCPA Home

:ho:

Check the comp's for comparable homes with and without bonds.

When we bought, there was no difference in purchase price.

From what I heard, the bonds on the newer homes are reaching $50,000. But, that doesn't mean EVERY new home has that amount of bond. The bond payments are NOT included in the purchase price. The payments are amortized over 30 yrs and you pay interest.

Instead of just using a villages rep, get in contact with an MLS realtor. They work for agencies outside of the Villages. They sell preowned homes not listed with the Villages. You should work with BOTH agents. If you can't get answers from the Villages rep, the MLS rep will fill you in.

Bond payments are added to your tax bill annually. Ask what your taxes, including the bond payment, will be before purchasing. Each county has different tax rates. With a bond, your tax bill can be 7- 10 thousand dollars per year.
Good Luck!

Note that you don't have to work with an "assigned" agent. You can fire the agent and select whatever agent you want to work with. Do a little research and find an experienced agent who you like and ask them to show you some houses.

Chris Hallmark is one of the most experienced and best agents who works for The Villages. If you call him, I am sure that he will show you any of The Villages houses and answer any questions you have.

No bond in Lady lake

It may not be possible to give an overall average savings. There are too many different bond amounts and too many homes to calculate it. Still, your person could do a better job of answering your question.

For just a general ballpark use an annual payment of $1,800 with 15 years left for a total amount of $27,000.

NOTE: the amount will be less in the north and far more in the south.

It is easy to determine an exact amount for any home:

• - Use the address of the home to find the most recent tax bill
• - Look for the bond line in the lower section. If it is not $0 then you can challenge the statement that it has been paid off
• - The tax bill will show the Section number for the home
• - Use the Section number to find the bond amortization schedule on districtgov.org
• - If the bond is not paid off then you have the choice of paying the current balance or the remaining annual payments. THAT is the savings on a home with the bond already paid.

I think our maintenance fee is about 700/year. So you pay that regardless of bond being paid off.

My guess is the value of the house will be related to bond paid or not. So a re-sale probably adjusts price up if bond is paid. Most likely it's a wash, but at least one less thing to deal with if it's paid.

Buying a home where the bond is paid of is a big savings. The average interest on a Bond is around 6% and probably higher on new homes. That can be more than $1600 -$2000 a year on your tax bill.

That's true so if the buyer is paying cash it's definitely a benefit to have it paid. But if they pay cash and pay off the bond too I still think it's a wash. If you have 2 models exact same model and lot in the same location and one is 400K with no bond and the other has a 25K bond they probably will be listing for 375K.

That's really just my opinion but I'm sure people take into account bond value when setting a list price.

"No Bond" value
 

From what I've seen over the last 4 years, the market value of a preowned home does not seem to increase by the bond payoff amount. "No Bond" seems to be a tie-breaker, when evaluating a home purchase. It does, however, save real $$ annually. If a home buyer plans to stay in their house "forever", then paying off the bond makes sense. However, I've heard that the average buyer in The Villages buys/moves to a new home 3 times (validity unknown). My wife, however, informs me that we are "one and done"!

You can change Villages agents any time you choose. Andrew Mitchell (352-615-7485) has handled 24 buy and/or sell transactions for my friends and family - I highly recommend him.

"Simple question What is the average real-world saving"
Simple answer - $30,000

You question is simple, but the answer is not. Bond amounts vary because the age of homes vary. I'm not sure an average answer is the best thing to have. It would be better to look at each house that you are interested in individually.

Now, should it be a priority? It was not for us. We bought the house we wanted in the area that we wanted to live. If we paid a little more, so be it. For us it is worth it.

I think of the bond as an assumable second mortgage that is attached to the house and is not included in the sale price. So as I see it, the actual price of the house is the sales price PLUS the remaining bond balance. Or to put it another way, you must pay the sales price in full PLUS the remaining bond balance in full to claim your house is free and clear.

I do not believe you can recoup the bond pay-off in a resale unless the bond is at the end of its term. I have chosen to think of it as "just one more thing" not to think about except at tax time.

In my limited ownership of 8 years, I do not remember anyone fretting about the bond, one way or the other.

JMHO