[Putt4Dough]

Originally Posted by RickeyD

You misunderstand. The bond has no value yet the seller is adding his bond payoff to the price of his house thinking it adds value to his house. I would subtract from his asking price what he added and then negotiate down from there. I'm not in the habit of contradicting myself nor am I in the habit of thinking Irrationally when it comes to money.

You are totally clueless. First of all someone offering financial advice should know the correct term is paid, not "payed"

Go to any bank or mortgage broker and ask them if a paid off bond has any "value" in their calculations for a loan. If an unpaid bond exists they will need to see your ability to pay it whether in cash or over time. One of the top three questions from any prospective buyer in Florida is "Does it have a CDD or bond, what is the amount?" They then add this to the purchase price.

Thinking a home with an unpaid bond has the same value or price as a home with a paid bond (no extra tax debt) is completely false.

[Challenger]

Originally Posted by Putt4Dough

You are totally clueless. First of all someone offering financial advice should know the correct term is paid, not "payed"

Go to any bank or mortgage broker and ask them if a paid off bond has any "value" in their calculations for a loan. If an unpaid bond exists they will need to see your ability to pay it whether in cash or over time. One of the top three questions from any prospective buyer in Florida is "Does it have a CDD or bond, what is the amount?" They then add this to the purchase price.

Thinking a home with an unpaid bond has the same value or price as a home with a paid bond (no extra tax debt) is completely false.

Yep

[kstew43]

went to an open house today and the sales agent told us the bond is tax deductable IF you have the right tax accountant. I told him he was mistaken and the only way to make the bond deductable is to refiance the bond.

once again, in front of other people looking at the home as well..... sales agent said I was mistaken...........

Village Sales Specialist.....sure you are.....

[RickeyD]

Originally Posted by Putt4Dough

You are totally clueless. First of all someone offering financial advice should know the correct term is paid, not "payed"

Go to any bank or mortgage broker and ask them if a paid off bond has any "value" in their calculations for a loan. If an unpaid bond exists they will need to see your ability to pay it whether in cash or over time. One of the top three questions from any prospective buyer in Florida is "Does it have a CDD or bond, what is the amount?" They then add this to the purchase price.

Thinking a home with an unpaid bond has the same value or price as a home with a paid bond (no extra tax debt) is completely false.

Thanks for the spellcheck. Let me get this straight since I'm totally clueless. A prospective buyer adds the cost of the bond to the purchase price ? Yes, if and only if it is a new house. A resale house in which it's bond is paid off is worth exactly what it's APPRAISED VALUE is, AND you do not pay one cent above it's appraised value because the owner prepaid the bond off and he wants to recoup his mistake. The bond at that point has no value because it doesn't exist, except in the mind of the owner that paid it off by decreased his net worth. Paying off the bond is not the same as partially prepaying his mortgage in which the seller can recoup upon the house sale due to the accelerated amortization.

[Putt4Dough]

Originally Posted by RickeyD

Thanks for the spellcheck. Let me get this straight since I'm totally clueless. A prospective buyer adds the cost of the bond to the purchase price ? Yes, if and only if it is a new house. A resale house in which it's bond is paid off is worth exactly what it's APPRAISED VALUE is, AND you do not pay one cent above it's appraised value because the owner prepaid the bond off and he wants to recoup his mistake. The bond at that point has no value because it doesn't exist, except in the mind of the owner that paid it off by decreased his net worth. Paying off the bond is not the same as partially prepaying his mortgage in which the seller can recoup upon the house sale due to the accelerated amortization.

So you think an unpaid bond is cost classified differently by an accountant, banker, mortgage broker, or prospective buyer depending on if home is new or a resale? Yikes!!

House A is 3br 2ba 1700 sq ft with appraised value of $250,000
House B is 3br 2ba 1700 sq ft right next door with same view appraised value of $250,000 plus unpaid bond of $20,000, cost of bond if paid with interest is $40,000. You think you can buy both these homes for same price? Heheh

[twoplanekid]

Originally Posted by Challenger

Yep

Not in my experience!

I had my new house in The Villages apprised by a Florida appraiser in order to secure a loan on the house. The appraiser didn’t include the bond amount into the appraised value of the house. The bond amount has no effect on the appraised value of the house for a mortgage. I am not talking about what value a buyer or seller may place on the house by their feelings about the bond.

[Challenger]

Originally Posted by RickeyD

Thanks for the spellcheck. Let me get this straight since I'm totally clueless. A prospective buyer adds the cost of the bond to the purchase price ? Yes, if and only if it is a new house. A resale house in which it's bond is paid off is worth exactly what it's APPRAISED VALUE is, AND you do not pay one cent above it's appraised value because the owner prepaid the bond off and he wants to recoup his mistake. The bond at that point has no value because it doesn't exist, except in the mind of the owner that paid it off by decreased his net worth. Paying off the bond is not the same as partially prepaying his mortgage in which the seller can recoup upon the house sale due to the accelerated amortization.

The Bond only has value to the bond owner. It has no value to the home owner (new or previously occupied).
A CDD Bond is a lien running with the property and is no part of the appraisal . If one buys a house at the appraised value with an existing bond of $ 10,000 He?She has ,in effect, paid $10,000 in excess of the appraised value.
A rational buyer , understanding the real costs of the remaining bond would not normally pay above appraised value.
Buyers usually only would knowingly pay above appraised value when there was some factor other than market value driving their choice, ie emotional attachment to some facet of the property.

[Sandtrap328]

Originally Posted by Putt4Dough

So you think an unpaid bond is cost classified differently by an accountant, banker, mortgage broker, or prospective buyer depending on if home is new or a resale? Yikes!!

House A is 3br 2ba 1700 sq ft with appraised value of $250,000
House B is 3br 2ba 1700 sq ft right next door with same view appraised value of $250,000 plus unpaid bond of $20,000, cost of bond if paid with interest is $40,000. You think you can buy both these homes for same price? Heheh

Which of those two houses would sell the quickest at $250,000? If they are exactly alike, why would the buyer take on an additional $20,000 burden?

[Dailey]

We paid off our bond up front as we did not want to incur the 6% interest. Will remain to be seen if this was a good move.

[RickeyD]

Originally Posted by Challenger

The Bond only has value to the bond owner. It has no value to the home owner (new or previously occupied).

A CDD Bond is a lien running with the property and is no part of the appraisal . If one buys a house at the appraised value with an existing bond of $ 10,000 He?She has ,in effect, paid $10,000 in excess of the appraised value.

A rational buyer , understanding the real costs of the remaining bond would not normally pay above appraised value.

Buyers usually only would knowingly pay above appraised value when there was some factor other than market value driving their choice, ie emotional attachment to some facet of the property.

Yep

[RickeyD]

Originally Posted by Dailey

We paid off our bond up front as we did not want to incur the 6% interest. Will remain to be seen if this was a good move.

It's a roll of the dice, but you knew that going in.

[RickeyD]

Originally Posted by Putt4Dough

So you think an unpaid bond is cost classified differently by an accountant, banker, mortgage broker, or prospective buyer depending on if home is new or a resale? Yikes!!



House A is 3br 2ba 1700 sq ft with appraised value of $250,000

House B is 3br 2ba 1700 sq ft right next door with same view appraised value of $250,000 plus unpaid bond of $20,000, cost of bond if paid with interest is $40,000. You think you can buy both these homes for same price? Heheh

Clueless as to reality. I would tell the owner of the house with the prepaid bond to go suck an egg if he wanted me to make the same stupid mistake he did. Mr. bond payoff was gambling he'd stay in his house till they carried him out. He lost his own bet.

[rustyp]

Originally Posted by RickeyD

Clueless as to reality. I would tell the owner of the house with the prepaid bond to go suck an egg if he wanted me to make the same stupid mistake he did. Mr. bond payoff was gambling he'd stay in his house till they carried him out. He lost his own bet.

I would shake the hand of the owner of the unpaid bond house for giving me the privilege of paying $120 / month for 360 months. That prepaid bond homeowner was very selfish not to consider the fact I like debt.

[Putt4Dough]

Originally Posted by rustyp

I would shake the hand of the owner of the unpaid bond house for giving me the privilege of paying $120 / month for 360 months. That prepaid bond homeowner was very selfish not to consider the fact I like debt.

LOL Next the financial geniuses here will tell us to pay property taxes using high interest cash advances from credit cards.

Anyway, for those reading along, here are some numbers to consider (this from another poster in 2013 thread)

If you stay in your house 10-12 years you will have paid out enough $$ to have paid off the entire bond up front. You would save the remaining 18-20 yearly payments.

Even if you stay 7 years you will have paid out over 60% of what if would have taken to pay off the bond initially and you will still owe 91% of the original bond or 23 more yearly payments which you must try to pass on to the next buyer

Since you haven't saved anything and have paid the same $$ out towards the bond now, your 7-8 year old house will have a hugh bond still to be paid while the other home will be a bond paid home. Now which house do we think will sell faster? Both owners paid out almost the same $$ for the bond even if you only stay 7-8 years.

[RickeyD]

Originally Posted by Putt4Dough

LOL Next the financial geniuses here will tell us to pay property taxes using high interest cash advances from credit cards.



Anyway, for those reading along, here are some numbers to consider (this from another poster in 2013 thread)



If you stay in your house 10-12 years you will have paid out enough $$ to have paid off the entire bond up front. You would save the remaining 18-20 yearly payments.



Even if you stay 7 years you will have paid out over 60% of what if would have taken to pay off the bond initially and you will still owe 91% of the original bond or 23 more yearly payments which you must try to pass on to the next buyer



Since you haven't saved anything and have paid the same $$ out towards the bond now, your 7-8 year old house will have a hugh bond still to be paid while the other home will be a bond paid home. Now which house do we think will sell faster? Both owners paid out almost the same $$ for the bond even if you only stay 7-8 years.

I understand you're attempting to justify your decision, I applaud that. But, I did notice you're back pedaling now saying the bond off house may sell quicker, maybe but not for more money. Although, if the house is a ****hole nothing will help, bond or no bond.