[BobKat1]

For a wannabe like me the whole bond issue remains confusing.

I guess the best thing to do when looking at house, new or resale, is to take the selling price of the house, add on the amount of the bond, and that's the actual cost of the house.

Then decide whether to pay off the bond or make annual payments. I think I'd go with the annual payments.

Does that sound correct?

[Bogie Shooter]

Originally Posted by BobKat1

For a wannabe like me the whole bond issue remains confusing.

I guess the best thing to do when looking at house, new or resale, is to take the selling price of the house, add on the amount of the bond, and that's the actual cost of the house.

Then decide whether to pay off the bond or make annual payments. I think I'd go with the annual payments.

Does that sound correct?

Basically you are right.

[Hawkwind]

BobKat1

Yes that is a good way of looking at the bond issue as that dollar figure is there regardless if it is paid off or not. The first question you will want to ask when dealing with a sales rep would be "is the bond paid and if not what is the unpaid balance and for how many years". You will then be better able to compare home per home on an apples to apples basis.

For property tax purposes the county can care less what you pay for the home as they base their assessment on the value compared to other homes in the area. The same is true for purchasing a home fully furnished / turn key. The selling price of the new home does not have the furnishings line itemed out in the selling price. Recently I looked at two fully furnished new homes that were models and shown by Property management of TV. The quoted selling price was the price including the furnishing and Property Management will not reduce that value to reflect the furnishings. I went to the property tax office and talked with the gal there and she stated that the county only looks at the home and property and not the furnishings in it's assessments.

[BobKat1]

Thanks for the information on property assessments. Where we live, property assessments/taxes are a huge issue with no relief in sight.

[Hawkwind]

Originally Posted by ajbrown

As an example, lets say my neighbor and I both paid $200,000 and we owe $20,000 on the bond. We both sell at the same time. Both homes go on the market, mine for $200,000 + $20,000 for bond, theirs for $220,000.

My home for the new buyer will be assessed at $200,000 versus the neighbors will be $220,000.

No that is not correct per my recent conversations with the county appraiser. Both homes would be appraised at the same amount. Bond is not included in their appraisal regardless if it is paid off or not.

The question would be how would the financial intuitions look at the selling price with respect to making a loan. Would they look at the $200,000 or the $220,000?

[Hawkwind]

Originally Posted by JimJoe

I am not sure about in Florida but I "think" in general the assessed value is not merely based on the amount you paid, but more so on the market value of your home as compared to nearby similar properties. Now if you challenged your assessment based on a declining market the cost of the home might be a more important factor. I would like to hear more on this from someone who deals with this issue in Florida please.

Your idea raises interesting points... Why does the seller not include the bond in the cost of the home? Does that effectively reduce the "Price" of the home thereby making it easier to get an appraisal that justifies the price for mortgage approval and reducing the amount of the down payment? Does it lower the initial assessment because it is more likely to be based on the cost of building where there are not similar properties, thereby effectively making homes built in TV more tax affordable until they are at least reassessed than ones that include the cost of infrastructure in the initial purchase price? I assumed there were reasons to have a "bond".. and the more I think about it the more interesting it becomes. I am sure there are other ramifications I have not thought of. Please help with more ideas. Thanks.

You are correct that in TV it is the appraised value and not the selling price of the home and is based on similar properties that have been recently sold in that area.

I think it would make things much clearer if the bond information was fully disclosed in any listing and this was one can truly compare things when looking at homes. Show things on a line item basis would be great.

Bond paid yes or no
Original bond xxxx
Original bond interest xxxx
Remaining bond balance xxxx
Yearly bond payment xxxx

I can only dream.

[villages07]

along those same lines, the county assessor (for tax purposes) does not ascribe lot premiums anywhere near what the Villages charges for them on a new home.

Just looked at Sumter appraiser website for some golf course homes down the street.... they initially paid approx $125K lot premium and the appraiser puts on a $65K land value.

When I spoke to the appraiser's office a while back, they told me they calculate values via a formula ... a base value for a gardenia then add ons for lot size/view, pool, birdcage, golf cart garage etc. They don't look at pavers, landscaping, interior improvements, etc. It appears to be unrelated to what the initial buyer or subsequent buyer pays for the house.

All of this assessment talk is totally unrelated to the bond. The bond is the same for all homes in a section (our section is 3 streets with approx 150 designer homes ranging in initial sales price of $180K to $550K). I don't believe the bond balance or how it factors into a resale deal affect the county property appraiser's valuation for tax purposes. But, I could be wrong.

[ajbrown]

Originally Posted by Hawkwind

BobKat1
For property tax purposes the county can care less what you pay for the home as they base their assessment on the value compared to other homes in the area. The same is true for purchasing a home fully furnished / turn key. The selling price of the new home does not have the furnishings line itemed out in the selling price. Recently I looked at two fully furnished new homes that were models and shown by Property management of TV. The quoted selling price was the price including the furnishing and Property Management will not reduce that value to reflect the furnishings. I went to the property tax office and talked with the gal there and she stated that the county only looks at the home and property and not the furnishings in it's assessments.

This is good info. I have had this wrong I guess. For some reason I had it in my head that the sale price mattered, but what you say make perfect sense.

[Hawkwind]

Originally Posted by villages07

along those same lines, the county assessor (for tax purposes) does not ascribe lot premiums anywhere near what the Villages charges for them on a new home.

Just looked at Sumter appraiser website for some golf course homes down the street.... they initially paid approx $125K lot premium and the appraiser puts on a $65K land value.

When I spoke to the appraiser's office a while back, they told me they calculate values via a formula ... a base value for a gardenia then add ons for lot size/view, pool, birdcage, golf cart garage etc. They don't look at pavers, landscaping, interior improvements, etc. It appears to be unrelated to what the initial buyer or subsequent buyer pays for the house.

All of this assessment talk is totally unrelated to the bond. The bond is the same for all homes in a section (our section is 3 streets with approx 150 designer homes ranging in initial sales price of $180K to $550K). I don't believe the bond balance or how it factors into a resale deal affect the county property appraiser's valuation for tax purposes. But, I could be wrong.

You are 100% correct on all points. Bond balance has no bearing on the county property appraiser's valuation for tax purposes.

[Kelsie52]

I am getting a lot of great info here..And like some other posters I am having trouble with the Tax calculations. I think I have the Bond Squared away.

We have been on several visits over the last year and the Sales Rep keeps telling us the taxes are based on the purchase price of the home . We have been looking at designers between 250 and 350 ---so he claims our taxexs depending on the home would be between 5 and 7 thousand ! with a Bond of 20 thousand.. Does this make sense ? It seemed a little high but what I read it might not be correct .. I appreciate any info since we will more than likely be down again in May and want to purchase something

Thanks ---A true hopetobe

[Hawkwind]

Originally Posted by Kelsie52

I am getting a lot of great info here..And like some other posters I am having trouble with the Tax calculations. I think I have the Bond Squared away.

We have been on several visits over the last year and the Sales Rep keeps telling us the taxes are based on the purchase price of the home . We have been looking at designers between 250 and 350 ---so he claims our taxexs depending on the home would be between 5 and 7 thousand ! with a Bond of 20 thousand.. Does this make sense ? It seemed a little high but what I read it might not be correct .. I appreciate any info since we will more than likely be down again in May and want to purchase something

Thanks ---A true hopetobe

Kelsie52
The taxes are based on the appraised value of the house and not what you paid for it. For example if all the patio villas on a street are the same and all sell for $175,000 and you go and buy one from a private owned for say $225,000 the county will tax you at the same rate as the other homes. They can care less because you overpaid for the home because they are all the same. Now if your home had a pool, birdcage etc that added value to the home then the taxes would be higher.

You can go on the county and see the current tax records for all the homes in TV. Be careful as I believe the first years taxes may cover only the land and not the land and house so what you are seeing on a new home purchased in 2009 is not the same tax total that you would see in 2010 (assuming the mil rates stay the same).