Costs of paying cash for home

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  #16  
Old 02-18-2011, 03:34 PM
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Originally Posted by Raen Dear View Post
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?
Resales can be found closer to the town squires. Resales have more mature landscaping and more mature neighbors. Resales may have upgrades that are appealing to you and save some money down the road. Resales may have part or all of the bond paid off.

We looked at resales and decided to go with new construction. Newer areas have newer neighbors making it a little bit easier to fit in. "Boonies" is really a relative term here. We are by golf cart 5 minutes from Colony Plaza shopping and dining, 10 minutes from LSL and 20 minutes from either Spanish Springs or Walmart. When the newest Town Squire is built, that will be about 20-25 minutes away putting us in the middle of TV at build out.

New construction will always have golf and recreation nearby since that is developed before the homes are built. Resales can turn out to be a better financial decision if the owner has it priced right.
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  #17  
Old 02-18-2011, 03:40 PM
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Forget the Title Insurance if you buy new. Just another fee you don't need.
  #18  
Old 02-18-2011, 03:48 PM
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We paid cash for a resale. It saved us swing loans on our current home, points or costs to get a loan, mortgage insurance and a few other things. When we sell up here then I will put that net back into the income producing portfolio. So much cleaner to have my portfolio manager wire the money at closing.
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Old 02-18-2011, 03:59 PM
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If you are selling a home in the downstate area then the prices here may please you? Without knowing your finances and finacial goals it would be beneficial to pay cash for a house and despite what you may hear pay off the bond as soon as possible. It can be paid off anytime before July each year. If you elect not to pay it off you will soon discover that like any obligation with a principal you will first have to pay off the interest which is to your disadvantage. Also be clear about the cost of your land, and your taxes. Finally you may want to be clear about any hidden costs. I know because they nailed me despite assurances that all had been disclosed.
Let me just say that I wish we had rented here for a time before buying
  #20  
Old 02-18-2011, 04:05 PM
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.....Finally you may want to be clear about any hidden costs. I know because they nailed me despite assurances that all had been disclosed.........
What were the costs that weren't disclosed?

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  #21  
Old 02-18-2011, 05:54 PM
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Forget the Title Insurance if you buy new. Just another fee you don't need.
Foregoing Title Ins. is a choice, but IMHO it may be a regrettable one. Make sure you know the pros and cons of such a decision. Talk to an attorney or two who has no financial interest in your transaction.
  #22  
Old 02-18-2011, 09:50 PM
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Finally you may want to be clear about any hidden costs. I know because they nailed me despite assurances that all had been disclosed.
Let me just say that I wish we had rented here for a time before buying[/QUOTE]

Yes, what hidden costs?
  #23  
Old 02-19-2011, 06:13 AM
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You are very lucky to be purchasing at this time and for cash. It is really a Buyers Market. IMHO, resales are usually better values - especially for cash buyers. You CANNOT haggle over price for a new home but you can over a resale. You mentioned foreclosures. If you find one you like, that may be a great bargain. In the rest of the USA, the cost of the bond that we have here would be part of the price of the home. Here, you think you get a great deal on a home only to learn that you ALSO have a $20K bond to pay off that was not included in the purchase price. Be sure to factor in the bond cost as part of your purchase price - even though you don't have to come up with that money at closing. As a buyer, you have every right to know, and you should demand to be told, the bond on your home. On resales, the old owner paid some so it would be the bond balance. Know that number when you are negotating for the purchase. Some resales are advertised as "Bond Paid Off" because that makes them more attractive buys. On a resale, you can always use the bond balance as part of your price negotiation strategy. Take your time looking around. There are so many homes and so many extras available, it could take awhile to find exactly what you want. Even if you plan to buy new, look around to decide what extras you might want to order when you build. Actually, renting for a month or so is probably a wise idea - then use that time to look around.
  #24  
Old 02-19-2011, 06:51 AM
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You are very lucky to be purchasing at this time and for cash. It is really a Buyers Market. IMHO, resales are usually better values - especially for cash buyers. You CANNOT haggle over price for a new home but you can over a resale.... Here, you think you get a great deal on a home only to learn that you ALSO have a $20K bond to pay off that was not included in the purchase price. Be sure to factor in the bond cost as part of your purchase price... On a resale, you can always use the bond balance as part of your price negotiation strategy... .

Really good comments about the bond. The bonds on the new homes are over $20,000, while depending on the age of the home, bonds on resales are much less for the same model of home, and you will most likely be able to get a more central location. If you see a resale on the market you like, don't be put off by the asking price - people are generally willing to take much less, especially if the home has been on the market for awhile. Good luck.
  #25  
Old 02-19-2011, 10:54 AM
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Originally Posted by Raen Dear View Post
Finally you may want to be clear about any hidden costs. I know because they nailed me despite assurances that all had been disclosed.
Let me just say that I wish we had rented here for a time before buying
Yes, what hidden costs?[/QUOTE]

Raen Dear

You are doing the right thing --asking questions here !! you will get many view points.. So let me add mine

We bought new (Buttonwood) couldnt be happier, especially because we arrived here in late Oct --before the winter rolled in up North.

We had no hidden costs --everything that was asked for was listed months before when we signed the contract .We have been here almost 4 months and have found nothing that surprised us other than how quickly the days go by----

Buttonwood or the next few new areas are not in the boonies. Within a few years we feel these areas will be central to both Lake Sumter and Brownwood

Paying the bond off for us was a wait and see --people will tell you lots of Villagers move 3 times within the Villages for one reason or another . If you are going to move why pay off the bond ? We will decide in a year or so .

Title insurance !! Peace of mind .. we took it on on advice from a friend up north who was a Title company Vice president ---he told us very few claims for ownership of the property are ever overturned but many are contested. The insurance company has to defend the case for you. No insurance you are on your own --again will it happen --? dont think so .. but I can sleep better becaue my wife isnt asking me what if ??

Good luck
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Old 02-19-2011, 11:13 AM
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BB: I spoke with the smarter half of this twosome and apparently I misunderstood,;albeit I did ask and was not given a response. We took out a bridge loan and paid it off within a month and way ahead of the closing. I was laboring under the belief that since we would not be using the loan we would not have had to make a house payment. The bank grabbed us for one month which was a sizeable amount. I knew that with a mortgage you are always one month ahead of payment but for some reason I was left with the impression that it did not apply in this situation because we were paying it off before it became effective. So from my prospective it was a surprise and an unpleasant one at that time. Banks you can't live with them and you can't live without them, although many of us really give it the old college try and that is why God gave the banks Obama. Good Day!
  #27  
Old 02-19-2011, 11:36 AM
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We had no hidden costs at closing and have had no hidden costs since we purchased in '09. I agree that this is an excellent time to purchase a negotiable resale with extras already included and some or all of the bond paid.

There are great deals to be had on foreclosures, but you have to proceed more carefully. Don't even think of buying a foreclosure without title insurance. Then again, I wouldn't buy any home without it. To me, the cost is too inconsequential to skip it. The historical ownership of any property can be challenged. You could also have a harder time reselling your house if the title wasn't properly researched and insured. No title insurance could be penny wise and pound foolish.
  #28  
Old 02-19-2011, 02:19 PM
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BB: I spoke with the smarter half of this twosome and apparently I misunderstood,;albeit I did ask and was not given a response. We took out a bridge loan and paid it off within a month and way ahead of the closing. I was laboring under the belief that since we would not be using the loan we would not have had to make a house payment. The bank grabbed us for one month which was a sizeable amount. I knew that with a mortgage you are always one month ahead of payment but for some reason I was left with the impression that it did not apply in this situation because we were paying it off before it became effective. So from my prospective it was a surprise and an unpleasant one at that time. Banks you can't live with them and you can't live without them, although many of us really give it the old college try and that is why God gave the banks Obama. Good Day!
rubicon - Thanks for the feedback. Didn't realize there was a bridge loan involved in your deal. Yep, when you start getting the banks involved in loaning you money, they'll have their hand in your pocket somehow! But at the end of the day, their fall-back position is that all of the terms of the loan are in the paperwork............somewhere............all you have to do is try to find it!

Thanks again -
Bill
  #29  
Old 02-19-2011, 11:02 PM
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We had no hidden costs at closing and have had no hidden costs since we purchased in '09. I agree that this is an excellent time to purchase a negotiable resale with extras already included and some or all of the bond paid.

There are great deals to be had on foreclosures, but you have to proceed more carefully. Don't even think of buying a foreclosure without title insurance. Then again, I wouldn't buy any home without it. To me, the cost is too inconsequential to skip it. The historical ownership of any property can be challenged. You could also have a harder time reselling your house if the title wasn't properly researched and insured. No title insurance could be penny wise and pound foolish.
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  #30  
Old 02-20-2011, 12:01 AM
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You could also have a harder time reselling your house if the title wasn't properly researched and insured.
P, I'm not judging you on the above statement and this is not the first time I've read it, but I don't quite understand the reasoning behind it. We've bought and sold homes a number of times over the years and at no time did a question of our having, or any buyers having title insurance come up in the process.

When we bought there were title searches and we purchased title insurance, and that's all that mattered to us. Weither or not the sellers had bought title insurance when they bought the house was of no interest or consequence to us because it only covered them during the life of their ownership. It didn't cover any subsequent buyers. Can someone tell me if there's something I'm missing here that real estate agents and lawyers failed to inform us?
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