Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Resale homes priced higher than new? (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/resale-homes-priced-higher-than-new-59128/)

Challenger 08-22-2012 08:23 AM
Quote:
Originally Posted by l2ridehd (Post 545256)
In general I find re-sale homes cheaper then new. You can't just look and make a determination. You have to do an actual comparison. Look at everything. When looking at a new home price you say "I can buy an XYZ model for $XXX. And a resale just like it is $XX more"

But always consider these things. Did you look at the lot and lot premium for both the new and re-sale? Did you look at the list of options on both homes? Did you consider the bond balance on both homes? Did you consider what you will need to spend the day you move in on both? Attic stairs, landscaping, curtains and blinds, painting, all the cost to get settled in that home?

When I do that kind of detailed comparison, build a spread sheet with all the items and a fair cost for every item (except those I would never do or pay for) and consider that most re-sales sell for on average 96% of list price, then in almost every case the re-sale is cheaper. Then as Bare suggested, find a lower competitive priced home with a motivated seller and you will get a re-sale much cheaper then new.

Real estate is all about location. This holds true in The Villages as well. Where is that lot located, what is it near, does it have a view, back to a busy street, near or under the power line, pickle ball in your back yard, (they start batting that ball real early), and many other things to consider. They ALL impact the value and re-sale value of that home. You can't compare a new home on an interior lot against a resale home on a cul-de-sac and say they are equal. Take that new home and build it on a cul-de-sac and you will add $18,000 to $26,000 lot premium. Try as best as possible to compare apples to apples.
If you really want to make an apples to apples comparison of relative prices , you need to do an analysis of the remaining useful life for all of the systems in a resale , ie: the roof on a new home may have a useful life of 15 years. If the resale is 5 years old then 33% of the useful life has passed. If the cost of replacement is $7500 , you have bought a future expenditure of $2500 -or more. This computation applies to virtually all appliances, windows ,painting ,plumbing , electrical systems etc. and can be a major hidden cost for the resale. To ignor this process is hiding from reality.

Peachie 08-22-2012 09:46 AM
Quote:
Originally Posted by Challenger (Post 545315)
If you really want to make an apples to apples comparison of relative prices , you need to do an analysis of the remaining useful life for all of the systems in a resale , ie: the roof on a new home may have a useful life of 15 years. If the resale is 5 years old then 33% of the useful life has passed. If the cost of replacement is $7500 , you have bought a future expenditure of $2500 -or more. This computation applies to virtually all appliances, windows ,painting ,plumbing , electrical systems etc. and can be a major hidden cost for the resale. To ignor this process is hiding from reality.
Challenger, other than the roof, most things you've listed will last more than 15 years. Since most of us are on the 20-25 year plan at this point, why worry about one's house after one's demise? If a house is 5 years or more old, the price normally reflects that after the nice upgrades have been calculated in to the sale price. :shrug:

l2ridehd 08-22-2012 11:09 AM
I agree Challenger. You should factor some $$ amount for wear and useful life based on the age of the re-sale. I have used $1000 to $2000 a year based on the size of the home. A good rule of thumb is $1 per square foot per year if you have no other yard stick. Also a good home inspection is a cost with a re-sale that probably is not used on most new homes. Taking all these into account, I still find re-sale less then new.

KEVIN & JOSIE 08-22-2012 12:18 PM
Quote:
Originally Posted by Peachie (Post 545361)
Since most of us are on the 20-25 year plan at this point, why worry about one's house after one's demise? :shrug:
Can anyone tell me where I can buy an extended warranty to extend the 20-25 year plan? :a20:

dkrhardy 08-22-2012 12:25 PM
For us, there were so many pre-owned that had lavender, or pink, or red, or you name it colored walls that we just could not begin to put up with. Even for a week or three until they could be painted. Then throw in the wallpaper or those top-o-the-wall trim thingies that look like wallpaper and we were going buggy.
So, throw into this mix that you're buying the previous owners decorating. If you like/love it, then that is a big bonus.
Don & Kaz

l2ridehd 08-22-2012 03:09 PM
I bought one with orange and other real dark colors. Had Tom Campbell painters show up while we were at closing and he had the entire interior repainted with a neutral off white by noon for about $900 and I bought the paint which was another $250. You have to be able to see past that stuff and know what it costs to change things and build that into your cost comparisons.

lovesports 08-22-2012 04:19 PM
Quote:
Originally Posted by l2ridehd (Post 545521)
I bought one with orange and other real dark colors. Had Tom Campbell painters show up while we were at closing and he had the entire interior repainted with a neutral off white by noon for about $900 and I bought the paint which was another $250. You have to be able to see past that stuff and know what it costs to change things and build that into your cost comparisons.
Yep, that's how we got such a good deal. Beautiful house and location but the big room, ugly color. Repainted it myself in a couple hours. So got a beautiful home for 50 thousand less. I love to buy houses that people won't buy because of paint. Easy easy cheap fix for me as I like to paint.

kentucky blue 08-22-2012 08:10 PM
Quote:
Originally Posted by lovesports (Post 545546)
Yep, that's how we got such a good deal. Beautiful house and location but the big room, ugly color. Repainted it myself in a couple hours. So got a beautiful home for 50 thousand less. I love to buy houses that people won't buy because of paint. Easy easy cheap fix for me as I like to paint.
Spent 6 months in the real estate business selling homes.After clients telling me they hated the carpet,the paint colors,drapes,etc,i had enough.Could no longer deal with individuals with no imagination and resourcefulness.I went into commercial real estate,dealing with returns on investment,tax benefits, and prime location, have never looked back.I always buy resales in every home i've ever purchased, it's always been better deals,more amenities,and in great locations

dkrhardy 08-22-2012 09:33 PM
I am one of those that wants it my way .. 1st time. I don't want to deal with fixer-uppers. Just me? Nope, lots of us. If you have the time and want to deal with it, OK. I don't .... I'm not wrong, I'm me.
Don

gerryann 08-22-2012 10:29 PM
Quote:
Originally Posted by dkrhardy (Post 545697)
I am one of those that wants it my way .. 1st time. I don't want to deal with fixer-uppers. Just me? Nope, lots of us. If you have the time and want to deal with it, OK. I don't .... I'm not wrong, I'm me.
Don
That's my thinking also Don. What I want, may not be what anyone else wants. What's right for me is right for me.

Barefoot 08-22-2012 10:58 PM
Quote:
Originally Posted by KEVIN & JOSIE (Post 544832)
Just wondering why some resales are priced so much higher than a new home? Looked at new At Ease Cottage homes with prices in the $160K range. Saw some resale At Ease models in the $190K range. I do understand if the resale has extensive upgrades, premium lots, but most of the resales seem to be the same as the new. $30K seems to be a hugh difference. You could do a lot of upgrades with $30K on a new home. Can anyone explain this? I've seen the same on CYV'S. Thanks
Quote:
Originally Posted by l2ridehd (Post 545256)
In general I find re-sale homes cheaper then new. You can't just look and make a determination. You have to do an actual comparison. Look at everything. When looking at a new home price you say "I can buy an XYZ model for $XXX. And a resale just like it is $XX more"

But always consider these things. Did you look at the lot and lot premium for both the new and re-sale? Did you look at the list of options on both homes? Did you consider the bond balance on both homes? Did you consider what you will need to spend the day you move in on both? Attic stairs, landscaping, curtains and blinds, painting, all the cost to get settled in that home?

When I do that kind of detailed comparison, build a spread sheet with all the items and a fair cost for every item (except those I would never do or pay for) and consider that most re-sales sell for on average 96% of list price, then in almost every case the re-sale is cheaper. Then as Bare suggested, find a lower competitive priced home with a motivated seller and you will get a re-sale much cheaper then new.

Real estate is all about location. This holds true in The Villages as well. Where is that lot located, what is it near, does it have a view, back to a busy street, near or under the power line, pickle ball in your back yard, (they start batting that ball real early), and many other things to consider. They ALL impact the value and re-sale value of that home. You can't compare a new home on an interior lot against a resale home on a cul-de-sac and say they are equal. Take that new home and build it on a cul-de-sac and you will add $18,000 to $26,000 lot premium. Try as best as possible to compare apples to apples.
L2ridehd has given an excellent reply to the OP's initial question. Good explanation!

KEVIN & JOSIE 08-22-2012 11:44 PM
Quote:
Originally Posted by Barefoot (Post 545717)
L2ridehd has given an excellent reply to the OP's initial question. Good explanation!
I just wonder when I look at a home, an At Ease for example, that is brand new for the 160K range, and then I see a resale At Ease for 40K more because it is on a larger lot, is the used home worth 40K more just because of the lot? I do understand that many look at the lot because they may want the extra space, I look at it as more grass to cut. Again, I guess it all depends on what you want. I really have not seen any true "BAD" lots in The Villages. Unless you spend alot of time outside on your property, the lot size would not add that much value to me. Most of my activity would be spent enjoying the amenities and areas maintained by The Villages. I guess I could see the older home with the larger lot priced the same as a new home with a small lot, just can't justify paying more for an older used home.

mickey100 08-23-2012 05:18 AM
That was our thought too when we bought. We have a house behind us, which we have camouflaged with landscaping. They've enclosed their lanai so there are no noise issues, and the situation suits us fine. I don't spend any time sitting around, so I don't need a view, and as fast as landscaping grows down here, who wants to take care of it, or spend money to have it done for you. We looked at lots that were corner lots which were quite a bit more expensive. They still had a neighbor behind them, and with the larger yard, had to pay more for taxes and maintenance. Plus being on a corner you have cars, golf carts and people walking by all the time, so where is your privacy? Made no sense to me. We have numerous friends that have lots on a golf course, and factored into their home price is $100 - $150K for the golf course lot. We play enough golf that we have no desire at all to be on a golf course. I might have enjoyed a water view, but felt that was too much money for the lot - just a matter of principle. But we live in a culture that values status symbols, so there are some people who feel the need to have the premier home on a golf course, the luxury car, etc. For some reason, that has never been something we valued. To each his own I guess.

Barefoot 08-23-2012 12:07 PM
Quote:
Originally Posted by KEVIN & JOSIE (Post 545726)

Most of my activity would be spent enjoying the amenities and areas maintained by The Villages.
As you buy in TV, and get over the first burst of bliss, you maybe surprised at how much time you end up spending at home.

When we first bought in TV in 2007, we thought we'd be out every night of the week at the Town Squares, and out every day golfing and at the dog park and doing activities and using the adult pools. We are out a lot, and very active. However a lot of our time is spent in quiet enjoyment of our home. We love to read and relax and entertain in our birdcage. We especially love the quiet serenity and watching the birds on the ponds.

KEVIN & JOSIE 08-23-2012 01:50 PM
Quote:
Originally Posted by Barefoot (Post 545880)
As you buy in TV, and get over the first burst of bliss, you maybe surprised at how much time you end up spending at home.

When we first bought in TV in 2007, we thought we'd be out every night of the week at the Town Squares, and out every day golfing and at the dog park and doing activities and using the adult pools. We are out a lot, and very active. However a lot of our time is spent in quiet enjoyment of our home. We love to read and relax and entertain in our birdcage. We especially love the quiet serenity and watching the birds on the ponds.
It sounds like this lifestyle would be difficult to get use to! :popcorn: :mmmm::mornincoffee::gc:

Barefoot 08-23-2012 01:53 PM
Quote:
Originally Posted by KEVIN & JOSIE (Post 545932)
It sounds like this lifestyle would be difficult to get use to! :popcorn: :mmmm::mornincoffee::gc:
For most of us, it is a little slice of utopia! :clap2:

Quixote 08-24-2012 08:32 PM
Quote:
Originally Posted by KEVIN & JOSIE (Post 545726)
I just wonder when I look at a home, an At Ease for example, that is brand new for the 160K range, and then I see a resale At Ease for 40K more because it is on a larger lot, is the used home worth 40K more just because of the lot? I do understand that many look at the lot because they may want the extra space, I look at it as more grass to cut. Again, I guess it all depends on what you want. I really have not seen any true "BAD" lots in The Villages. Unless you spend alot of time outside on your property, the lot size would not add that much value to me. Most of my activity would be spent enjoying the amenities and areas maintained by The Villages. I guess I could see the older home with the larger lot priced the same as a new home with a small lot, just can't justify paying more for an older used home.
I don’t know what an “At Ease” is, but I suspect it is one of the new models, and I can’t imagine someone choosing between identical models (that is, both recently built and possibly even close to each other). However, as I said in my earlier post on this thread, there is no such thing as an “asking price” on a newly constructed home. There is only a “chiseled-in-stone” price.

On a resale, on the other hand, the sellers may be asking a “sky’s the limit” price. Will they get it, especially if they have to sell as is often the case in a community like ours? I don’t think so.... We have friends who finally settled on a house with an asking price of $525,000 (large house on a cul-de-sac with mega-improvements on the largest lot I’ve ever seen other than in premier villages), and they bought it three months later—for $360,000!

In other words, there’s no saying that the “At Ease” resale will necessarily sell for $40,000 more. In all likelihood it won’t even come close! If you want to “compare apples with apples,” then look at the final sale price of the pre-owned house, not the asking price. There's no question about the price of the new home—or on its bond as well.

ssmith 08-25-2012 08:16 AM
used...cost
 
Also for the guy asking 40 k more for a home on a big lot....you can find the cost that person paid for the home....they also bought it with the big lot and you can use that as a negotiation when giving an offer! After re-reading this I hope I made sense in posting this....I don't know the site where you can find what someone else paid for a house but many of you RE savvy people know what I am talking about.

eweissenbach 08-25-2012 08:46 AM
Quote:
Originally Posted by ssmith (Post 546960)
Also for the guy asking 40 k more for a home on a big lot....you can find the cost that person paid for the home....they also bought it with the big lot and you can use that as a negotiation when giving an offer! After re-reading this I hope I made sense in posting this....I don't know the site where you can find what someone else paid for a house but many of you RE savvy people know what I am talking about.
Here is the Sumter County site -

Sumter County Property Appraiser - Ronnie Hawkins, CFA - Bushnell, Florida - 352-569-6800

Marion County:

Marion County Florida, Property Appraiser

KEVIN & JOSIE 08-25-2012 11:13 AM
:wave: Thanks to all!

eweissenbach 08-25-2012 04:09 PM
Quote:
Originally Posted by eweissenbach (Post 546983)
Failed to include Lake county

Records Search Terms of Use : Lake County Property Appraiser

asianthree 08-25-2012 04:24 PM
Quote:
Originally Posted by lovesports (Post 545546)
Yep, that's how we got such a good deal. Beautiful house and location but the big room, ugly color. Repainted it myself in a couple hours. So got a beautiful home for 50 thousand less. I love to buy houses that people won't buy because of paint. Easy easy cheap fix for me as I like to paint.

well said


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