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.