[Lovey2]

Originally Posted by l2ridehd

Not true. Homes have gone up around 10% over the past year. Varies a bit by model, but only a % or so. However lets assume market demand caused the 30% increase. Real Estate has always been market driven so not sure why any % increase would be gouging?

Ask your friend to sell you his home at 80% of market value and see how quick he changes his thinking. He will sell it at the market no more, no less, and if you accuse him of gouging, do you think he will agree?

Excellent answer!

[golf2140]

I hope they keep going up. My kids will love it !!!!!

[ilovetv]

Originally Posted by njbchbum

does anyone really believe that the developer has any NEED to gouge any buyer?

People will pay a lot to get away from weather like a blizzard in May:

Photos: May winter storm dumps record snow on SE Minn. | Minnesota in Photos | Minnesota Public Radio News

[Lovey2]

Originally Posted by Barefoot

Why are people so critical of the Developer? Real Estate has always been market driven and price increases are not gouging! Every builder in America sells inventory at market price, which is what purchasers are willing to pay.

Gouging implies taking unfair advantage of someone. There are many other retirement communities around that offer lower prices! There is no gun to anyone's head.

Again...excellent answer. I'm only here a short time and I hear a lot about "The Morses" and their empire. I say God Bless them, and I wish I had this fabulous idea and the wherewithal to bring it to fruition. All of my expenses here are less than where I was, and I didn't have ANY of these amenities at my disposal.

[BarryRX]

Originally Posted by justjim

A friend of mine closed on his home just six months ago in TV. He "swears" that prices on an exact Designer home like his has gone up in price 30% in the last six months. He says, "The Developer is gouging people".

$250,000 Designer home with a 30% increase would now cost $325,000. My friend is convinced this is true and I have no reason not to believe him as He is not one to make "things" up. I have no valid data to back him up.

Assuming this is correct, is the Developer gouging people on new homes?

A really poor choice of words. Gouging occurs when someone sells a vital commodity at exorbitant prices, usually after a disaster. For instance, someone selling bottled water at $20 a bottle after a hurricane. No one forces anyone to buy a home here. In the real estate market, supply and demand are the factors that matter most. The developer would be a fool to sell his homes for less money than they are worth on the open market.

[LndLocked]

Why are people so critical of FLIPPERS? Real Estate has always been market driven and price increases are not gouging! Every flipper in America sells inventory at market price, which is what purchasers are willing to pay.

Gouging implies taking unfair advantage of someone. There are many other retirement communities around that offer lower prices! There is no gun to anyone's head.[/quote]

I used Barefoot's posting with a little editing to make a point.

[ilovetv]

Originally Posted by Barefoot

Why are people so critical of the Developer? Real Estate has always been market driven and price increases are not gouging! Every builder in America sells inventory at market price, which is what purchasers are willing to pay.

Gouging implies taking unfair advantage of someone. There are many other retirement communities around that offer lower prices! There is no gun to anyone's head.

This is totally correct. But I meet many people here in TV who have never worked in a private-sector or small business, to actually see income versus expenses.

[justjim]

Originally Posted by LndLocked

Why are people so critical of FLIPPERS? Real Estate has always been market driven and price increases are not gouging! Every flipper in America sells inventory at market price, which is what purchasers are willing to pay.

Gouging implies taking unfair advantage of someone. There are many other retirement communities around that offer lower prices! There is no gun to anyone's head.

I used Barefoot's posting with a little editing to make a point. [/QUOTE]

True an uninformed purchaser will buy at a Flipper's price but not most of us here on TOTV who will do their due diligence.

[OBXNana]

Gouging is when a hurricane hits and stores raise the price of water to $15.00 per gallon. We need water and have to pay the price. Free enterprise allows anyone to raise the price to whatever someone is willing to pay. As long as people continue to scoop up property at the rate they are in The Villages, the developer has the right to ask what he charges. Do I like it as a person getting ready to buy? Of course not, but it is his right. It is also my right to not buy. But, it's also an investment that can only appreciate in value as the boomers continue to age and we will be making that business decision.

[redwitch]

I'm no fan of the developer. I admire the business acumen that created this bubble. I don't admire some of his business practices. However, this arena is not one where he is being unfair or gouging. Real estate is market driven. If people thought these prices were too high, they wouldn't buy and the Morses would lower their prices accordingly. Plain and simple.

[billethkid]

gee I always thought increasing property values were a positive thing.

Is the developer responsible for the increased price of bread? Gasoline?

Supply and demand......does not = gouging.

What is it called when the prices are lower than one expects......surprise!!!!!

btk

[Bogie Shooter]

Originally Posted by justjim

A friend of mine closed on his home just six months ago in TV. He "swears" that prices on an exact Designer home like his has gone up in price 30% in the last six months. He says, "The Developer is gouging people".

$250,000 Designer home with a 30% increase would now cost $325,000. My friend is convinced this is true and I have no reason not to believe him as He is not one to make "things" up. I have no valid data to back him up.

Assuming this is correct, is the Developer gouging people on new homes?

I think you should go back to your friend and share what the posters have said. He needs to remove the "gouging" from his story. What do you think??

[Bonny]

Woo Hoo !! Love all of these posts. It means the value of my house has gone up & I love it !
Not that it matters because I would never move out of the Villages & I love the house I'm in !

[Indy-Guy]

Originally Posted by justjim

A friend of mine closed on his home just six months ago in TV. He "swears" that prices on an exact Designer home like his has gone up in price 30% in the last six months. He says, "The Developer is gouging people".

$250,000 Designer home with a 30% increase would now cost $325,000. My friend is convinced this is true and I have no reason not to believe him as He is not one to make "things" up. I have no valid data to back him up.

Assuming this is correct, is the Developer gouging people on new homes?

If the developer were now selling homes at 30% less than your friend paid for his what would he call him.

In 2006 many people purchased in The Villages then in 2008 the prices went into a nose dive. Some of those people are just now getting their home values back to what they paid in 2006. I think I have my years correct if not I am sure someone will let us know the correct dates. I purchased in May of 2005 and the prices went up like mad for a couple of years after 2005.

The developer has a better grasp on the rate of sale than perhaps any developer in the country. As he raises prices from month to month he watches the rate of sale if there is no slow down he will raise them again until he notices a slow down then he will adjust accordingly.

I used to go to sporting events and purchase tickets from scalpers. I did this for at least 40 years. In the 70's I would purchase great seats for twice the face value that would be a $15.00 ticket for $30.00. I often wondered how long it would take the team owners or University to figure out they were selling an item (ticket) for $15.00 and some one else is selling it for twice the face value. Well they have figured it out because I wouldn't think of pay what they are selling them for now.

I had Indianapolis Colts tickets 14 rows off the field when they first came to Indy. I gave them up when I purchased in The Villages the same seats were $150.00 each. The Colts figured it out and still fill the place.

In 1980 I purchased NCAA final four tickets 3 rows off the floor for $100.00 and was told by friends that I was crazy. I told them I wish I could sign a contract for those same seats at $100.00 for the rest of my life. Those same final four seats now would go on the street for around $4,000.00

I know what does sport tickets and homes have in common? I just got carried away.

[Golfingnut]

It is human nature to take advantage. We all must be vigilant and protect ourselves from anyone and everyone that wears the title of SALES.