Originally Posted by VillagerNut (Post 1315967)

Please feel free to contact any appraiser that you would like to contact here in the area. You will find that no appraiser will take into account that a bond is paid off or has a $50,000 bond. It is part of the tax bill so it has no part in an appraisal. Do buyers look at the fact that a bond is paid off versus a higher bond? Absolutely! But location, what is behind the house like another house or privacy, where the interior walls are at & the list price should normally be the biggest factors when purchasing a home here. When it should come in the play is if you are down to three homes and you cannot decide which one to purchase then you may look at the remaining Bond balance to decide. But overall the person that asked about a $300,000 home, the easiest way to think about it is the newer the House, the higher the CDD bond and the CDD maintenance amounts on your tax bill. Plus sometimes you will find homes where the folks have paid the bond off. Yes our real estate market is extremely different than any other market in the United States. It is up to the owner of the house to decide when or if to pay off the bond!

Originally Posted by Challenger (Post 1315132)

If this this is the case they are violating all the principals of appraisal regulating bodies. The bond is part of total consideration for the house. Should also be included in determining the total consideration for comps. This premise is very strange. I suspect real estate professionals love it as it mis states the purchase price so that bond homes seem to be a better buy and therefore easier to sell. Someone !statistical evidence ---please.

Originally Posted by biker1 (Post 1316016)

If someone is considering two homes, one with and one without a bond, and they are initiating a mortgage, then the comparison is easy. Compare the monthly payments and add in the monthly cost of the bond to the house with the bond remaining. Most people look at the price of the home when they should be looking at the monthly costs. If you are paying cash for the house then the comparison may be a bit different.

Originally Posted by Challenger (Post 1316020)

Agreed- but the total price is still the aggregate of the purchase price and the assumption of any remaining outstanding liens on the property.

I have found that many of the "professionals" selling RE in TV, even those employed by the developer often misstate the facts relating to the financial significance of the "BOND"

Originally Posted by twoplanekid (Post 1316343)

It’s interesting that when you finance, the bond is not included in the appraised value of the house. So, the approved loan amount from the bank and the monthly payments don’t include a bond payment. With bank help you pay the owner/developer the purchase price and then are automatically approved or somehow assumed to be a good risk to pay off the bond. Does anyone else know of a similar bond situation in another location in the US that is treated in this manner?

Originally Posted by willbush (Post 1316417)

We noticed most payments early on was on interest so we paid ours off as we don't plan to move and are very happy not paying someone interest.

Originally Posted by OhioBuckeye (Post 1316434)

If I've got this figured right, I've paid on my bond now for 5 yrs. & I still owe for 25 more yrs. I pay $2,000. a yr. on my bond, so that means I still owe $50,000. To pay that off a lot of people just don't have that kind of money lying around. Also to pay your bond off all at once would mean to me your house would be worth $50,000. more than you paid for it. So if you sell it, that would be great for the buyer but a loss for you. Am I thinking right?:shocked:

Originally Posted by OhioBuckeye (Post 1316434)

If I've got this figured right, I've paid on my bond now for 5 yrs. & I still owe for 25 more yrs. I pay $2,000. a yr. on my bond, so that means I still owe $50,000. To pay that off a lot of people just don't have that kind of money lying around. Also to pay your bond off all at once would mean to me your house would be worth $50,000. more than you paid for it. So if you sell it, that would be great for the buyer but a loss for you. Am I thinking right?:shocked:

Originally Posted by biker1 (Post 1316483)

Not exactly. If you pay off your bond you will only pay off the remaining principle. Your $50K number includes principle, interest, and an administrative fee for the remaining 25 years.