Costs of paying cash for home

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Old 02-16-2011, 02:54 PM
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Question Costs of paying cash for home

Hello all: My husband and I have decided to purchase a home in The Villages (woo hoo) sometime this spring. We plan to pay cash. What types of fees and costs are associated with buying a home in Florida without a mortgage. We are in NY where everything is sky high. I've never paid cash for a home. I like the feeling.

We are open to either a new home or a preowned but we want a courtyard villa, if that makes a difference.
  #2  
Old 02-16-2011, 04:52 PM
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Congratulations on your decision. There are no fees for new construction if you pay cash. TV pays all closing costs. All you pay at closing is the prorated amenities, property taxes and assessments (plus the price of home). They will ask you for a down payment when you select your new home.
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Old 02-16-2011, 06:27 PM
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[QUOTE=logdog;331318]Congratulations on your decision. There are no fees for new construction if you pay cash. TV pays all closing costs. All you pay at closing is the prorated amenities, property taxes and assessments (plus the price of home). They will ask you for a down payment when you select your new home.[/QUOTE

you forgot to mention the bond and that could be expensive
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Old 02-16-2011, 09:21 PM
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Default Question on bond

Thanks. Really the price of the home is really the stated price plus the bond, or remaining bond, in the case of a resale. Is the bond typically folded into the mortgage?
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Old 02-16-2011, 09:26 PM
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No the bond is on your tax bill each year and listed as a non advolorum (sp?) item. If you had a morgage, the bond could be escrowed neach month, but a cash sale would just have the bond once a year. You could pay it off in full if you don't want to carry the cost annually.
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Old 02-17-2011, 11:51 AM
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Default or NO bond if pre-own

the bond really is an issue with many newbies and I can't blame them!



Quote:
Originally Posted by Raen Dear View Post
Thanks. Really the price of the home is really the stated price plus the bond, or remaining bond, in the case of a resale. Is the bond typically folded into the mortgage?
  #7  
Old 02-17-2011, 11:51 AM
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Thanks. I'm trying to come close to estimating costs. Is there a formula for determining the bond on new homes? I notice the bond is not listed on the new homes website or on resales other than, sometimes, to note that the bond is paid off or reduced.
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Old 02-17-2011, 12:24 PM
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Hi Raen Dear,
Welcome! You might want to buy title insurance, which many banks just roll into a mortgage. Don't know the cost but it is nominal. When you go to sell your house, it probably would help to have had it.

The bond on the house depends upon the number of homes within your district unit. If you are buying a new CYV, the bond will probably be $20k or more. You are given a once a year opportunity, in June or July (I forgot which) to pay off the bond in full. Otherwise it is prorated for 30 years in your tax bill, at an interest rate of 7.5 percent.

Hope this helps.
  #9  
Old 02-17-2011, 12:25 PM
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Quote:
Originally Posted by Raen Dear View Post
Thanks. I'm trying to come close to estimating costs. Is there a formula for determining the bond on new homes? I notice the bond is not listed on the new homes website or on resales other than, sometimes, to note that the bond is paid off or reduced.
Raen Dear... it's really based on the density of the neighborhood... some villa sections are larger than others so naturally their bond would be slightly lower since there are more people to share the cost... your village sales rep is the only way i was ever able to get the price of the bond... good luck...
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Old 02-17-2011, 04:18 PM
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Quote:
Originally Posted by autoshow View Post
you forgot to mention the bond and that could be expensive
I didn't mention the bond because that is really separate from the mortgage versus cash issue. Bond on a new CYV should be in the 12-15K range. It's about 20K on a Designer. Most people recommend you don't pay the bond off initially.
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  #11  
Old 02-17-2011, 05:25 PM
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Quote:
Originally Posted by logdog View Post
I didn't mention the bond because that is really separate from the mortgage versus cash issue. Bond on a new CYV should be in the 12-15K range. It's about 20K on a Designer. Most people recommend you don't pay the bond off initially.
To pay (off) or not to pay (off) that is the question...

First of all, remember, the bond (or lack thereof) is just part of the cost of your home. Yes, it is paid for differently. Yes, you can pay it off.

I would discuss this with your financial adviser, but here are a couple of quick tips:

1. If this is your first home in TV, live there at least a year before you pay it off. If you HATE your home or location or TV or Florida and you need to resell shortly after you purchase, you will likely not recoup the amount you paid for the bond, or at least not all of it.

2. Otherwise, in terms of paying it off, i think it depends on your financial situation. if you are one of the lucky ones with a private pension, you may want to continue to pay it off a year at a time. If you are retiring with savings plus just a 401(k), you may want to pay if all off as you will not have that "fixed" income stream.

k

Oh my - I see that this is my 999th post...
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Last edited by katezbox; 02-17-2011 at 05:27 PM. Reason: sp and footnote
  #12  
Old 02-17-2011, 08:33 PM
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If you're buying a resale:
- get substantiation on the true remaining balance on the bond
- get a home inspection through an independent third party
- get a termite inspection
- some homeowner's insurance carriers might require a sinkhole inspection
- get title insurance (generally a cost to the seller) - already mentioned

Also as already mentioned, there are the various pro-rated costs for taxes, bond, etc. There will also be fees from the company that handles the closing for their preparation of the paperwork, processing, b.s., b.s., b.s. - they will give you a quote for those costs.

There's really not much to it!

Bill
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Old 02-17-2011, 09:15 PM
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Not to sabotoge this post, but I wonder how many homes are paid off in full at the closing. Many people roll over the $$$ from their old home and enter the next stage of their lives with no mortgage.
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Old 02-17-2011, 09:21 PM
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Quote:
Originally Posted by katezbox View Post
to pay (off) or not to pay (off) that is the question...

First of all, remember, the bond (or lack thereof) is just part of the cost of your home. Yes, it is paid for differently. Yes, you can pay it off.

I would discuss this with your financial adviser, but here are a couple of quick tips:

1. If this is your first home in tv, live there at least a year before you pay it off. If you hate your home or location or tv or florida and you need to resell shortly after you purchase, you will likely not recoup the amount you paid for the bond, or at least not all of it.

2. Otherwise, in terms of paying it off, i think it depends on your financial situation. If you are one of the lucky ones with a private pension, you may want to continue to pay it off a year at a time. If you are retiring with savings plus just a 401(k), you may want to pay if all off as you will not have that "fixed" income stream.

K

oh my - i see that this is my 999th post...
very good advice.
  #15  
Old 02-18-2011, 02:40 PM
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Thank you all so much. Bottom line re the bond is you don't have to pay it at closing. So you factor in the cost of the home, the costs of closing, which seem reasonably nominal, and all the start up costs, utilities, etc.

In general it seems you would be better off with a new home, you get the warranties, nominal closing costs, and, well, it's new, no inherited problems. Location, however, is an issue. The new homes seem to be out in the boonies.

I'm squeamish about foreclosures, seems like battening on someone else's bad luck, but I've seen some awfully nice homes in advantageous location, i.e., nearer Sumpter Landing. Has anyone had experience buying foreclosures?
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