Real Estate Prices with excess supply

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  #31  
Old 10-14-2007, 02:29 PM
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Default Re: Real Estate Prices with excess supply

I plan to look at resales, but all things equal (and adjusting for upgrades and bonds) I'd take a new home. That way I can personalize it to my tastes, not someone elses, plus the roof and HVAC are not already a few years old. New CBS villas are about $180 (plus bond) while resales are seldom below $200K (and while a lower bond, most still have some bond due).
The fact that the realtor wants 6% doesn't mean that's included in the resale markup.

I think the resales are somewhat overpriced. Regardless, it's a business decision to me, my wife can handle the emotional decision part of it all. Just my opinions from the buyer side.
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  #32  
Old 10-14-2007, 05:27 PM
GERALDINE GERALDINE is offline
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Default Re: Real Estate Prices with excess supply

Quote:
Originally Posted by union
Thanks for the updates, I will be coming down to visit around Christmas and will check in. Does anyone know if lots are developed and not sold if there is a possibility existing owners would have their assessments or fees go up. Who pays for or is responsible for all the loans that the developer has taken out to financing the infrastructure and spec homes? I would not want to be on the hook for more than I thought. Please keep me up on anything you might hear. Thanks, Union
Once a Bond is set for a particular area of new homes, it cannot be raised by anyone. You're guaranteed that in your closing documents. However, be aware that as each new area is developed into Villages...their bond is higher than the last Village built....so, in the long run...I guess we're all paying for the developer's financing charges, eh??? In less than 2 years, the bonds on the newest homes are more than double what we paid for the same house. I can assure you the Morse Family will never lose money on anything they do here. Everything they do or finance will be made up for in CDD Bonds. Amenity Fees are a pittance and may go up $5.00 or so a year, but that money is just a tiny drop of water in a big ocean...if you get my drift.
  #33  
Old 10-14-2007, 06:33 PM
Happy Villager Happy Villager is offline
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Default Re: Real Estate Prices with excess supply

What I have noticed in some of the resales here in TV is the homes do not have any, or if any, very little in upgrades and yet they are listed for $50,000 to $75,000 over what they originally paid a few years ago. From what people have previously quoted for what they paid for upgrades on their landscaping, in their lanai's, etc. it would be more advantageous to purchase a newly constructed home and do your own upgrades. The only drawback is the exorbitant bond cost in the newer areas.
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  #34  
Old 10-14-2007, 10:59 PM
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Default Re: Real Estate Prices with excess supply

Thats starting to make some sense - so when the developer issues $60million dollars in bonds to put in infrastructure (that obligates the property owners) but the developer is only able to sell a portion of the lots needed to pay the bonds so each of the existing properties much pay additional amounts to cover the complete project which then is a higher price than previous areas that were completed. Obviously the unsold lots have no money coming in to pay their share of the bond obligation. Is this how it works??? If not who is going to pay for the unsold lots portion of the bonds???
  #35  
Old 10-14-2007, 11:23 PM
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Default Re: JKP Real Estate Prices with excess supply

JKP, while I completely understand your explanation on reasons to purchase a resale from the sellers stand point. You need to understand it from the buyers stand point. I will give you a good for instance.
My home in Calif would have gone for $479,000 just 9 months ago. It has plenty of amenities and upgrades. If I wanted to sell it today maybe I could get $420,000.
The problem I see with the resales I had been considering is none of you seem to have accounted for the fact that your home is just not worth what you are asking. Regardless of what you put into it since you bought it, it is now worth 10% to 15% less as are all the resales on the VLS listings sure many of the show as being in escrow but, I assure you not at the listing price as shown. A lot of you make issue of the furniture your including but, everyones taste is different. On a bunch of the resales I was considering it would be an expense to clear out the furniture not to our liking. So while you consider it a benefit,some people find it a detriment.
Bottom line right now resales are over priced in the villages.
larry
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  #36  
Old 10-15-2007, 04:05 AM
Lil Dancer Lil Dancer is offline
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Default Re: Real Estate Prices with excess supply

I agree that many of the resales are overpriced. But some aren't - consider the designers that have extra large lots, or back up to a privacy wall. These will always command a premium. Also, each buyer's needs vary. We have friends who bought a CBS villa that was furnished, because they really liked the interior decorating, and didnt' want to have to go thru and do the decorating on their own. Its very time consuming. If you can wait 3-5 years for your landscaping to grow, and feel you can do your own interior decorating, either add your own extras or hire someone to come in and do them, in many cases you will save money by buying new. That said, not everyone wants to spend the time or hassle doing that.

The other nice thing about pre-owneds, is that you know right off what your neighborhood is like. You know if your house is surrounded by houses with barking dogs, or if there are noisy neighbors on one side, if you have a good neighborhood social group, etc... You're taking a chance buying new.
  #37  
Old 10-15-2007, 07:18 AM
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Default Re: Real Estate Prices with excess supply

No such thing in a market economy as 'overpriced'. If anything is actually not priced correctly it will adjust in a free market. You may think that new is more realistically priced at this time BUT if the resales are moving then they must be marked correctly. If they are not moving then they will be adjusted.

It's nothing new and it certainly isn't just applicable to TV. The one thing that TV has going for it from a price point is that it is still a rapidly growing community (at least when compared to most of the country).

As always in Real Estate it's LOCATION, LOCATION, LOCATION!
  #38  
Old 10-15-2007, 07:36 AM
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Default Re: Real Estate Prices with excess supply

Diskman,
You tell it like it is from a buyer's perspective and I applaud you. Many villagers got caught up in the housing boom and bought homes hoping to flip them for a profit. When I visited TV last summer a man at the table next to us was telling a friend he bought 10 patio villas and was going to make a "killing". He'd be making the killing off my hard earned $$$ if I were the buyer. Now that the tables are reversed sellers may need to forget what they paid for the house and accept what the market bears. As for me, I will not buy in TV till the current prices drop another 10 -15% on the lower end homes and up to 25% on the golf front or premier homes.
  #39  
Old 10-15-2007, 08:40 AM
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Default Re: Real Estate Prices with excess supply

I hope that you are right Poromo since I haven't bought yet.
  #40  
Old 10-15-2007, 09:24 AM
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Default Re: Real Estate Prices with excess supply

I wish you luck, poromo, waiting for those price falls. Since hardly a day passes that I don't see one or two moving vans unloading around here, I doubt such a decline in prices will ever be seen here. Yes, homes are moving slower than previous years here at TV but unlike most areas of the country the homes are still moving at a pretty good clip.
  #41  
Old 10-15-2007, 10:24 AM
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Default Re: Real Estate Prices with excess supply

Noleguy,
There are about 1000 resales for sale in TV and another 1000 new homes. As you say, people are moving in but many of the resales are vacant and bleeding the owners each month when their housing payments are due. It is also a tremendous emotional stress on owners waiting to unload a piece of property in this uncertain market.

The Sumter County Appraiser's Office is showing less than 100 home sales per month. At that rate the current inventory is almost two years.

Unless an owner has the cashflow to wait out this market, the prices must drop. This pertains to resales as well as new homes.
  #42  
Old 10-15-2007, 01:05 PM
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Default Re: Real Estate Prices with excess supply

noleguy, every situation is different as people have a unit for sale for varying reasons. If someone is pressed they have to consider how much they are bleeding each month and you reach the breaking point, when you just can't afford to bleed any more.Buy not pricing according to the market and sticking to what you want you can hemorrhage
the past few years were Sellers markets.
Now we are in a buyers market :hot: :hot:
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  #43  
Old 10-15-2007, 01:49 PM
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Default Re: Real Estate Prices with excess supply

I'm about a year away from buyng. I think prices will stay about the same.
There are still retirees and moving vans, as noted, and there's also a lot of inventory.

I see about 95% of the resales priced higher than new, and I understand about bonds paid and furniture and landscaping, but they're still too high.

I plan to simply do a "business case" on how much a particular house is worth, and offer that much at maximum. There are too many similar homes to pay top dollar, again IMHO.
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  #44  
Old 10-15-2007, 03:27 PM
az2fla az2fla is offline
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Default Re: Real Estate Prices with excess supply

In everything where there are buyers and seller, prices must be marked to market...no way around that. A year ago financial stocks were doing just fine. Citigroup could sell it's shares at $57 a share; today it got as low as $45 and change. Recently Google sold for as high as $637 a share; way up from last year's price of $416. It's what someone wants to pay for it.

Around Valentine's Day, roses are priced higher than on the 4th of July. Are incoming buyers to TV willing to pay what houses cost 18 months ago? Unfortunately for sellers many upgrades don't increase the value of a home in a market such as this. Those upgrades may, however, help sell the home sooner than a home without upgrades.
  #45  
Old 10-15-2007, 03:46 PM
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Default Re: Real Estate Prices with excess supply

I agree with noleguy. I do not think you will see that drop here. Not all markets are cold.
Some are still smoking hot! I don't think TV market is smoking hot by any measure but it's slow and steady. Slow and steady is good!
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