[villageuser]

Originally Posted by petsetc

In my limited ownership of 8 years, I do not remember anyone fretting about the bond, one way or the other.

JMHO

Regarding your last statement, as a REALTOR®, most of my customers looking at resale in the Villages request houses that do not have bonds, or very little bond attached (less than $10,000 is usually the number). Homes without bonds are usually a little older, but for those that are looking for little or no bond, that is a trade-off that they’re comfortable with.

[Franee621]

Originally Posted by CoupleNCA

We visited the Brownwood TS to introduce ourselves and interest. But the realtor we were assigned on our first in-person visit has refused to answer one of our most basic of questions multiple times (she seems to keep copy/pasting the same answer

My simple question is this: We've seen several really nice properties that promote the fact that they're "NO BOND". As if it was some huge savings or advantage. I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"

The sales brochures shows the monthly fees as "bond+maintenance+fire" so you can't gauge what percentage each makes up.

I totally understand the concept of the bond and I totally understand why each "Villages" bond may differ in terms of price. But we're merely trying to ascertain if a property being highly-promoted as "NO BOND" is really that significant and should be given priority in our choices.

Can anybody please answer this question honestly? My assigned realtor can't or won't.

A house without a bond is much cheaper. Say a $400,000 home without a bond is $400,000 a house with a say $40,000 bond is $440,000. Even though you don’t have to pay it off and if you sell your house it goes with the house. However there is interest you are paying on the bond. Two exact houses to buy. One has a $40,000 bond one doesn’t. Which would you buy?

[PersonOfInterest]

Originally Posted by CoupleNCA

We visited the Brownwood TS to introduce ourselves and interest. But the realtor we were assigned on our first in-person visit has refused to answer one of our most basic of questions multiple times (she seems to keep copy/pasting the same answer to my very direct question).

My simple question is this: We've seen several really nice properties that promote the fact that they're "NO BOND". As if it was some huge savings or advantage. I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"

The sales brochures shows the monthly fees as "bond+maintenance+fire" so you can't gauge what percentage each makes up.

I totally understand the concept of the bond and I totally understand why each "Villages" bond may differ in terms of price. But we're merely trying to ascertain if a property being highly-promoted as "NO BOND" is really that significant and should be given priority in our choices.

Can anybody please answer this question honestly? My assigned realtor can't or won't.

Your question makes it obvious that you do not fully understand the concept of the Bond. The answer to your question would be found in Comparing the Tax Bills of a house with "NO BOND" and a comparable house that currently has a Bond payment which is included on The Property Tax Bill (Yearly).

Secondly, Get another Real Estate Agent and make sure he can explain the Bond situation.

[jerseyclone]

When I looked into the bond a few years ago the interest was 7% plus an annual service fee. Paid it off asap. The bond is another way for the Villages to make money. Cheap houses and high bonds.

[Laker14]

when I was house hunting, I looked at the existing bond as part of the price.
House A: asking price: 350K, Bond 10K, total cost to buy= 360K

House B: Asking price: 350, Bond-0K, total cost to buy= 350.

My agent told me not to consider the price of the bond. Said it didn't matter. I asked him if he would like to pay it for me then since "it doesn't matter"...he declined to do so, which made me think "maybe it matters"...

[sdeikenberry]

I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"

Can anybody please answer this question honestly? My assigned realtor can't or won't.[/QUOTE]

Several good answers already...but...IMHO homes with bonds paid off are a better investment for several reasons. (1) You don't owe more on your annual taxes. (2) Those homes are generally a little older and previous owners made sometimes significant improvements that you obtain for less that the cost of the improvement. (3) The landscaping is probably better in a home and in the area with the bond paid because it is more mature. (4) Generally, homes with paid bonds will have better shopping closer because those homes are in a more mature area, generally. (5) If you are a golfer, you'll appreciate the proximity of more courses around homes that have bonds paid because they are likely north of 466a.
This all adds up to value that sometimes can't have a dollar value but still is valuable to some buyers.

[Altavia]

Originally Posted by villageuser

Regarding your last statement, as a REALTOR®, most of my customers looking at resale in the Villages request houses that do not have bonds, or very little bond attached (less than $10,000 is usually the number). Homes without bonds are usually a little older, but for those that are looking for little or no bond, that is a trade-off that they’re comfortable with.

Needing a roof replaced to get insurance and higher insurance costs due to a an older home not meeting wind current mitigation standards can more than eat up bond cost. And this will not get better over time.

[john352]

Originally Posted by margaretmattson

From what I heard, the bonds on the newer homes are reaching $50,000. But, that doesn't mean EVERY new home has that amount of bond. The bond payments are NOT included in the purchase price. The payments are amortized over 30 yrs and you pay interest.

Instead of just using a villages rep, get in contact with an MLS realtor. They work for agencies outside of the Villages. They sell preowned homes not listed with the Villages. You should work with BOTH agents. If you can't get answers from the Villages rep, the MLS rep will fill you in.

Bond payments are added to your tax bill annually. Ask what your taxes, including the bond payment, will be before purchasing. Each county has different tax rates. With a bond, your tax bill can be 7- 10 thousand dollars per year.
Good Luck!

I purchased a new home in The Villages in 2004. My plan for financing included a mortgage on the new home. I asked The Villages salesperson what the interest rate on the bond. The bond interest rate was significantly higher than the interest rate on the new mortgage. Therefore, I increased the principal on the home mortgage by the bond principal amount and paid off the bond at closing.

[PjLyness1965]

Originally Posted by Franee621

A house without a bond is much cheaper. Say a $400,000 home without a bond is $400,000 a house with a say $40,000 bond is $440,000. Even though you don’t have to pay it off and if you sell your house it goes with the house. However there is interest you are paying on the bond. Two exact houses to buy. One has a $40,000 bond one doesn’t. Which would you buy?

This is incorrect. It’s actually the opposite. A house with a paid off bond, or no bond for the future buyer, is going to be more expensive because the seller will try to recoup the bond payments. A house with an existing bond is not going to be more expensive because the bond hasn’t been paid off. The only savings a future buyer will see on a house with a paid bond is when they pay their annual taxes because they won’t have an annual bond payment.

Originally Posted by petsetc

I think of the bond as an assumable second mortgage that is attached to the house and is not included in the sale price. So as I see it, the actual price of the house is the sales price PLUS the remaining bond balance. Or to put it another way, you must pay the sales price in full PLUS the remaining bond balance in full to claim your house is free and clear.

I do not believe you can recoup the bond pay-off in a resale unless the bond is at the end of its term. I have chosen to think of it as "just one more thing" not to think about except at tax time.

In my limited ownership of 8 years, I do not remember anyone fretting about the bond, one way or the other.

JMHO

Right. To bond or not to bond is the choice of the buyer in picking a house. If money is no object the buyer doesn't have to blink twice. If every dollar counts each year at tax season, don't buy a house with a bond. It takes about 12 years to have your yearly payment (added to your tax bill) actually go toward principle payment instead of the majority of bond payment going toward interest.

To bond or not to bond is poportionate to your fixed or non-fixed income and a paid off bond can be a benefit. I don't see where it does a lot for sales price in my experience in selling a home in T V.

Where you don't have a bond anymore, the age of a house can mean other costs in bringing a pre-owned home up to date ie: new floors, kitchen, bathrooms, etc. So then it's a wash. However, updates lower the price over all in negotiating price.

Lots to consider so lol circle back it comes back to how much do you want added to your tax bill each year for 30 yrs w interest?

[Wilson02852]

Wrong

It depends on the age of the house. If house is say 15 years old, using your methodology, a $30k bond would only be $15k.

How many plan on living in TV for 30 years? Even if you do and pay it off the true savings is just interest. Most buyers will not pay a premium for paid bond. Like someone said earlier it's only a tie breaker. Style and location mean so much more.

[crash]

Originally Posted by CoupleNCA

We visited the Brownwood TS to introduce ourselves and interest. But the realtor we were assigned on our first in-person visit has refused to answer one of our most basic of questions multiple times (she seems to keep copy/pasting the same answer to my very direct question).

My simple question is this: We've seen several really nice properties that promote the fact that they're "NO BOND". As if it was some huge savings or advantage. I just want to know: "What is the average real-world saving on a property with a bond vs. no-bond?"

The sales brochures shows the monthly fees as "bond+maintenance+fire" so you can't gauge what percentage each makes up.

I totally understand the concept of the bond and I totally understand why each "Villages" bond may differ in terms of price. But we're merely trying to ascertain if a property being highly-promoted as "NO BOND" is really that significant and should be given priority in our choices.

Can anybody please answer this question honestly? My assigned realtor can't or won't.

The bond is about $1000 per year but people who paid it off are probably upping the price by the total of the bond that they paid. In Brownwood area that was around $29,000 sorry of 44 much more. Look at a similar home to see how much they are increasing the cost to recover their bond. In reality the house should be the same cost but sell a little faster if the bond is paid.

[TheWarriors]

As more bonds are paid off in the Villages, buyers are likely to become much more savvy in understanding the true cost of a home. Either way you pay and anyone that doesn’t understand that isn’t financially aware.

[PVR]

Originally Posted by Altavia

Check the comp's for comparable homes with and without bonds.

When we bought, there was no difference in purchase price.

The purchase price can be the same but 1 house may still have a bond to pay so the bond is. An additional charge on that house that carries over to the new owners.
Bond paid means no additional charge.
So on a $300,000 house purchase with a $25,000 bond is actually 335,000. The one without the bond is just $300,000.
The bond have be paid upfront though. It can be paid yearly with your taxes

[MCJEFE]

Ditch that agent if they're not answering your questions.

Robbie Audette is one of the best to work with. Give him a call.
352 360-5535