The Villages: Why are New Homes Less Expensive Than Resales???
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- Опубликовано: 21 дек 2022
- One of the most asked questions from my clients, when they are on their first buying trip, "Why are the new homes less expensive?" The answer is simple: Location, but watch the video to see why new home locations are not as desirable as the traditional sections of The Villages.
Resales have many upgrades. We tiled our lanai floor, enclosed it with sliding doors and added a Mitsubishi mini split. The cost was around $16K back in 2016. Other upgrades add up. We also paid off our bond after 1 year. Adds up.
All true :)
welcome to the 15,minute city
Know your Demographics ! !
Were younger and more active so chose the Sawgrass Grove area which includes Chitty Chatty, Bradford, Hawkins, Cason Hammocks, St. Catherine's and Citrus Grove.
Spanish Springs = 80 to 90 Year Olds
Lake Sumpter = 70 to 80 Year Olds
Brownwood = 60 to 70 Year Olds
Sawgrass Grove = 50 to 60 Year Olds
Separation of Multimodal, Cycling and Walking Paths are a crucial safety factor often overlooked.
The new South of 44 area got this right ! !
Every time we drive around Spanish Springs it's a White Knuckle Experience with everyone sharing the Adjoined Super Tight Roads 😱
I am glad you are enjoying the area. And you are right, The Villages evolved their golf cart paths over time and are much safer down there, except on Marsh Bend :) The bike and walking paths are separate which is very nice. North of 466A, were are starting to see it turn over quite a bit, so it is getting much younger.
I had to laugh when you said there was so much traffic congestion in the southern area of TV. Actually we live South of 44 and hate when we have to go to the northern section for some shopping due to the horrendous traffic jams and frequent car accidents.
I am not saying there is traffic congestion in the south. I am saying that the congestion in the north and getting to the north is because the only amenities are in the northern section. More amenities are needed in the southern section to alleviate the congestion in the north. The congestion jumped in a big way when they started building in the south, because they did not put in amenities down there and the a higher percentage of people in the south have to use their cars rather than golf carts.
I live in north historic area and love it. Mature landscaping, all the restaurants, doctors and 2 town squares by golf cart. I never drive my car. Plus no huge bonds. Easy access to everything.
I am glad that you like it up there. It is a great location.
You can also add that the driveways are much shorter south of 44 because they moved the homes up 10 ft to increase the back yards by 10 ft. Also the homes seem to be closer to each other. Give it 5 to 10 years before you see stores being built down there.
All true :)
Great informational video.
Well put together video with balanced information. Thanks.
Thank you. I believe people should know all the facts before making such a large decision.
can’t wait to watch this one.
We considered new homes and stopped by the DeLuna area. I found out the ones I saw were in Wildwood city limits. I estimated annual property taxes and figured it would cost me an extra $1200 a year just by being in the city. I asked our TV agent what benefit I might get out of paying the extra money and he said I would be serviced by Wildwood police but fire and rescue were still serviced by the villages. Tack that on to your list of considerations when shopping. I don't know the individual rates but I'm sure it will cost you extra to be inside Lady Lake or any other city that may overlap TV boundaries with little to no tangible benefit.
I did forget about that tax difference. I think that all the new construction after Deluna and Richmond will be in Lake County with similarly higher tax rates. Part of doing these videos is that you want to give a fair and balanced review of the area, but it's hard to do in the new section without sounding too negative. The area has its appeal to some and not to others. But, great catch on the taxes.
I bought a home in Hammock @Fenney one year ago. This is by far the best video I have ever seen explaining the situation down here. I wish I would’ve seen this before I bought. I’m sure you’ve heard that before. I have to drive almost everywhere. Sure will be nice when it gets built up but that takes time. A big box store like a Walmart or Target could make a fortune down here!
Thanks Kent. The interesting part is that Fenney isn't half as bad as some of the other newer locations :)
Lots of good information here David!
Glad you think so!
Thank you, Dave very informative. My wife and I have made four visits to the villages, including a lifestyle and 3 Stays at the Brownwood. We debate back-and-forth when we do retire, whether to buy new or pay a little more and live near the amenities. I think your video makes a strong case for the latter, and I really enjoyed it.
I am glad that it was helpful. Let me know if you ever have any questions.
The problem with Sawgrass Grove is everything there is expensive. I call the restaurant McGreedys. The least expensive entree is $20 for fish and chips. This is a retirement community and the restaurants inside the squares are expensive compared to restaurants outside the squares. Sawgrass Grove is ridiculous. At the bakery a cookie is $5. I think the rents are high and this reflects in the prices. I think the Morse family is getting too greedy. The only supermarket near me is Publix and it reminds me of Crazy Eddie "Our prices are insane". The cost south of the turnpike is higher because there is no competition.
You are right about the high rent. Here is my opinion - It is in the developers best interest to expand retail down in the newer sections. There is a very large premium to buy a home within The Villages due to The Villages experience. You can get a much better home for much less elsewhere, but its the experience that sells. Eventually, the lack of amenities in the south will cause traffic nightmares up in the traditional part of The Villages. This will only hurt the overall product, the experience, and therefore drive down demand. Which no one wants, especially the developer.
I am on vacation in Florida and decided to check out TV as I am considering relocating to Florida. I went to a few open houses and the realtor told us Sawgrass Grove was a nice place for lunch. We decided to go to the food court. We were shocked at the extremely high prices. I know if I do buy in this area I will not be able to afford to eat there frequently although I would come for the night entertainment.
Our biggest thought about new area is huge power lines the turnpike and these new or almost new homes are carrying huge bonds 25k+ and yes 1/2 hour cart ride is about max thanks for great video
There are definitely advantages to the area. But, you need to know what you are getting into. You are right, higher bonds, you need to be careful with traffic noise (if you like spending time outdoors on a lanai). One point, I didn't make in the video is that the scale of The Villages is hard to imagine if you have never visited. In the newer areas, you are a long way by golf cart from errands, golf, and town squares. I know a lot of people buy site-unseen and looking at a map can make it look like a location is better than it is.
Your maps & comments are very helpful. Thanks.
To me, nothing compares to seeing a home, a community first hand.
There are so many things (noise, power lines, location, views, room sizes, ceiling height, amount of natural light in a room, etc.) that a video just can't convey fully.
As a new widower, i.m hoping to do a Lifestyle visit to the TV this spring, and find some villages to consider (or eliminate), either for a full time home, or an investment rental property.
The variety of people & active lifestyle items has me curious.
I agree that it is nothing like seeing things for yourself. Let me know when you are are doing our LSV, I would be more than happy to show you the resale market.
😎
You can find me on messenger. Our patio villas are rented out frequently. We are S of 44 and mixture of ages but many are in their late 50S. We are considering a move soon.
Mostly because the new homes are as basic developer cheap, basic, low end things whereas a resale the kitchen, bath, landscaping have been redone. I have shown houses in the North section that had a $150,000 kitchen where the new homes might have a $10,000 kitchen. I live in the North section in Chatham and love it.
Fantastic!
Thank you :)
Good information.
Thank you sir.
Another positive north of 44 are the availability of Country Clubs,
Very true. I am not sure if they are building more as they put in championship courses south of HWY 44 or not. Another thing for me to check into.
Also a fair bit has to be spent to bring these brand new homes up to the standard of some of the older ones. Driveway painting, epoxy garage floor, attic stairs, enhanced landscaping. My main issue though is that they are a long way from an ED and for retired folks this is critical.
The items you mention would all be updates to the home after they were built, even in the traditional section of The Villages. Builder grade has the norm in The Villages, but the newest homes' builder grade is even less. They are building a new medical facility, but it will be a year out or so. There are a couple of ER's on 44 which are not too far from the new sections. I was speaking to a friend who works for The Villages' development group and his concern is the same as mine, currently, there are no plans for shopping centers down in the new area, and it's not like an outside developer can come in and build them since The Villages owns all the land.
I spoke with several neighbors in The Villages that replaced their entire kitchens as soon as the bought their newly built home! A lot of people got sold by a very well oiled marketing machine. Buyer beware in Florida. Trust nobody in business here. It’s not like your hometown in the north
Some say the south is younger age wise. My village at 466 is younger. My house is 27 yrs old. Most original owners have passed away. I love it in the north with mature landscaping, larger lots and major shopping within 10 min or less. I agree that the south will be the place to be in the future but I live here now : )
They are doing lots of good things in the south like walking trails so depends on what you are drawn to.
I think I said this in the video, there are not bad places to live. Just advantages and disadvantages to each location. I just think people should know all the information before making a decision. I think often, people see the model homes and the nice design center then forget about location.
Hi- my husband and I are looking to retire in next 5 years to The Villages. We really never considered a “new” area. We are attracted to the amenities, easy access to healthcare (we probably will need), shopping, churches, etc. The golf car would make it easy to get around and more economical. We are in our late 50s. I am tired of the ageism. Another reason we like TV. However, it seems, that some people want to avoid the “old” area because of “old” people?? Unfortunately, statistically, women outlive their spouse. We are attracted to the social activities, friendships, and safety The Villages offer. Also, we need to be conservative with our finances to make our money stretch into a longer healthy life. We are willing to live in a smaller home for that reason.
The age of the homes gets older as you go north. We are starting to see quite a bit of turnover in the most northern sections. Generally speaking, if you are in the newer areas you will be surrounded by new retirees (high 50s low 60s) who tend to be more active. In the areas where the homes are 20-25 years old, we are starting to see the age average come way down as the older retirees are moving. My advice is to pick the location that matches your lifestyle. Do look at neighbors, do look at the condition of the street, etc. Look at all the factors before you make any decision as to the exact location.
@@DavidMonty thank you for your feedback. Those factors are something for us to consider.
Leesburg is a fine , drive for several things. I live in Citrus Grove ( previously lived Osceola Hills )
Love the SawGrass area , Bexley Bridge opening this summer will be a great n easy drive to Magnolia , golf , etc )
As far as medical ...will drive for quality care vs closer . Do your research before any Doctoring in TV .
Great video , just need to get a bit more 'outside the box' thinking.
Thank you 😊
Thanks Chrystal!
We are looking at a home in Richmond which is everything we would like regarding the home, location, etc except it is just under 1000 feet from the Florida Turnpike. The same home in other locations seems $50K more. We were inside the home when there was traffic noise and we could hear none. Outside at times it was a low whoosh and other times more. We were wondering since you said you would have equity in the home because of the location, do you think the proximity to the turnpike would make it harder to sell when the time comes for us to move on?
My opinion is that it will limit the number of people who will consider the property. However, there are people who are not outdoor people at home and do not use their lanai. They are ok with a home that is less expensive due to the proximity to the turnpike. Things to consider when listening to traffic noise - is the lanai facing the turnpike or away? If it is away, then you usually don't hear it as much. Wind - the wind is blowing from the turnpike it will be much worse, if there is a crosswind or into the Turnpike the noise can be reduced. So, when looking at the home take note of the wind. Winter vs. summer. When the leaves are down and the air is dry in the winter the noise can be much louder. Our lanai faces railroad tracks that are about a mile away. In the summer with the right wind conditions, it's whisper-quiet, in the winter with the wrong wind direction we swear the train will come through our house :)
I also think the difference has to do with upgrades. Older homes have upgrades like driveways, garage floors, lanai (AC and Glass), Luxury vinyl Plank (LVP), pools, granite, gutters, These are expensive options.
I have found the builder grade to be similar between new and older. But, its hard to know on a resale what was an upgrade/update vs. what came new with the home.
Some yes and then it is worth it.
Many homes have upgrades like pools, kitchens, etc.
Very true!
I would think a lot of the lower priced new homes are close to the turn pike and/or transmission lines. With a car, the big box stores are not that far away. Maybe another 10 minutes.
Not all homes are affected by the turnpike or the transmission lines. If you live Fenney, you are 35 minutes from Walmart by , if the traffic is clear. It is my sincere opinion that one of the major draws of The Villages is golf cart living. That is just harder to do if you live in the southern sections because most of the public amenities are in the northern section.
@David Monty can you clarify what you meant at 5:32 about waiting in traffic?
Traffic has been growing at a much faster pace than in the past. It is my opinion that due to the lack of commercial amenities south of HWY 44, to run most errands people need to drive their cars vs. golf carts like most can do north of hwy 44. You either have to go onto Warm Springs which turns into Morse Blvd. or you have to take 301 north. There are several intersections along those routes, especially making left-hand turns that are turning into traffic bottlenecks. I just pointed out a few of those trouble spots. In those spots often you are waiting for 2, 3, 4 cycles of lights turning green to get through. I hope this helps!
@@DavidMonty Thank you, that does help. You did explain it later in the video, should have watched to the end before posting my question, I appreciate the reply.
Does The Villages have a layout/plan of what is to be built within the next 5 years? Meaning new houses/shopping planned by 2028??
I think they do. I don't know the new side of the market very well because as a realtor the developer does not let us assist buyers. I do know they have a lot of videos of what is coming up in the future. If you are looking for something specific, let me know can I can track it down. They may have a master plan for the individual villages and or the units in each village.
@David Monty ok. Thank you. We are hoping to move once our son goes off to college if our jobs continues to be remote and allows us to move. I am just trying to follow trends/pricing.
Homes in the villa areas sell fast because people like to rent them. My neighbor had a one bedroom sold in one day. Time selling now are a little longer.
Yes all homes right now are sitting longer on the market.
My husband and I are interested to see TV & see new model homes. Can we have an appointment this week.
Please email me at davemontysales@gmail.com, or call at 352-571-9705. I can show you resales, you would need a Villages sales agent to see the model homes. But, if you call, I can get you set up with both.
Not all homes are the same here, I bought a new Villa south of Warm Springs and I have a good size lot and full tile in my home.
True, I am not putting down the area, and I often recommend the area, if the client's needs match. Just like any other area, there are advantages and disadvantages. I see so many buyers who fall in love with a new model home and don't pay attention to location. I just think buyers should know all the information before making a decision, not just the well-crafted sales messaging.
Mystifying that not a single word was said about how new construction homes are priced. New homes have a fixed price and frequently sell to the "winner" of the "lottery". No bidding up the price as happens with resales. Which then would effect the price of comps. None of that applies with new construction. Also, while not golf cart accessible, once Meggison connects to 470 (only weeks away) you'll have a 5 minute drive to the intersection of 470/27 with multiple grocery stores, fast food, restaurants and pharmacies. So that end of the Villages will be close to some shopping/restaurants.
I did not intend to make this video about comparing all the aspects of the new area to resales. The point of the video was to point out the lack of commercial amenities, which is undeniable. In my opinion, one of the advantages of The Villages is golf cart access to amenities. You are correct that they will connect Meggison to 470, but you will be hopping in your car and heading into town. You can do that in any retirement community. As far as pricing is concerned. It is rare that homes get bid up. Even during the height of the strong seller's market, only the homes that looked like models got bid up which was maybe 10% of the time. And, when homes were bid up on the resale side, new home prices were adjusted accordingly. New home prices are definitely higher than they were 3 years ago.
I am not bashing the new area. I just want to make sure that people know all the facts before purchasing a home. There are positives and negatives to every area in The Villages, but not all agents relay the negatives. I do. Because I want my clients informed and I never want to hear what I hear from one of my clients what I hear from people who reach out to me, "We wish we knew x", "my villages' agent never told me Y", "I didn't even know there were resales" (my favorite), etc. In general, when people think of The Villages experience they are thinking about town squares, the beauty of green space, golf cart access, etc. The newer areas are a great experience, just not the traditional experience. There you have great walking trails, it seems to be more active (younger), the homes are new with modern floor plans, new streets tend to have great comradery for the first 5-10 years until people move in and out.
@@DavidMonty Prices of new construction are fixed by The Developer. It's not unusual to have 5 or 10 people trying to buy the same new construction home. Rather than let those people bid on the house which would result in higher sale prices, a :"winner" of the lottery gets to purchase the house for the set price. Resales are priced based on what the market will bear. If people were allowed to bid on new homes the sale prices would rise. In some cases significantly. For a video based on prices of new vs resale to leave this out is pretty bad.
Also......NOISE FROM THE TURNPIKE!!!!!
Speaking from experience?
Why is it that the villages new homes and resale homes on the VLS do not accept VA financing? I find this extremely discriminatory. I know people think the VA is to strict on their inspections, how is that a bad thing? IMHO the developer wants to have the 20% earnest/down payment up front some of which is non-refundable and the VA/FHA and New Convencional loans do not require this. Disappointed in such a great place to live minus the above mentioned. BP
I am not sure. I dont work for The Villages, I am a realtor that only sells resales from the MLS. But, I can give you my opinion or educated guess. First, I only think the VA loan restriction applies to new homes. I think they use the standard listing contract from Florida for resale homes, and its up to the seller if they will accept a VA loan. Second, I am assuming that the financial institution that writes VA loans must adhere to some strict standards. The Villages Developer owns Citizens First Bank in The Villages, and I am ASSUMING that they are not qualified to do VA loans. And, third, the main advantage to using a VA loan is a a very low/zero downpayment. Since the developer requires 10% earnest money on new homes, many people who would ordinarily rely on a VA loan would not be able to come up with the 10% earnest money. Again, this is ALL speculation since I only sell in The Villages but not for them.
We rented in The Villages for 5 weeks and decided to buy a house in Royal Harbor, Tavares FL instead. The Villages is a great escape from reality but it wore thin very quickly for us. We found a unique area in Florida with lakes, beautiful little towns on these lakes with wonderful public waterfront areas, a real hometown feel. Royal Harbor is located on the shore of Lake Harris and boat ramps are right across the street at Hickories Point Park. The area is a place for progressive minded people that enjoy being able to attend festivals in nearby towns on a regular basis. Our specific community of Royal Harbor is great for progressive minded people from the north seeking new friends, daily sports activities like pickle ball and water volleyball! There are friends and fun waiting for you at Royal Harbor! Check us out!
Thanks for the tip, I'm going to check out Royal Harbor. Do they have rentals there?
I am glad that Royal Harbor is a great match for you!
So, would reactionaries find Royal Harbour not to their liking?
@@adamwalker7338 What I hear from several clients/friends who have moved out of The Villages for another community is that they are bored out of their minds. Royal Harbor is a much smaller community - a couple of hundred homes. If you want to boat and that is your main activity, it's a viable option. But, if you are looking for a community with "everything included" you cant beat The Villages, even if you don't have the best location in The Villages.
We are bored out of our minds here S. Of 44. All activities too crowded. Even Sawgrass and the Squares. I don’t think having to be somewhere 2 or more hours early is relaxed retirement living. So, I am home a lot! I pay to go to Genesis gym but it too is very crowded. Fitness room in the Villages is $400 a year. No thanks. Minimal equipment and Medicare doesn’t pay for it.
Reales in fenny area are also more than new.
That is correct. Some of the areas south of 44 like Fenney, Desoto, Marsh Bend, McClure, Chitty Chatty, Bradford, and Deluna are still relatively close to the main part of The Villages and resales will run higher than new homes.
Is there a market to operate a handyman service at the Villages.
YES!! Good handymen are in short supply and a lot of these retirees love to pour money into their homes. If you show up and finish the job at a fair price, you will be busier than you can ever imagine. I am always looking to add handymen to my team of subcontractors, but I vet carefully. I also have handymen (contractors) who are looking to expand, but it hard to find good local labor.
Yeah, can yoiu fix my sink?
Full disclosure please. As a real estate agent aren't you only able to sell used homes in TV? I suggest that is why you are giving such a negative portrayal of the new homes.
I am a full-disclosure person. My close rate with clients is less than the average in a big way. Because I treat my clients with respect. I make sure they have a VLS agent (most MLS agents do not disclose that). If my client's needs align with new homes, I steer them that way. But, I do want them to know the good and the bad of the area. My goal with the video was to bash the south, but let people know what they are buying. It is easy for someone who does not know the area to fall in love with a nice new home, but not fully understand the location. I have had several people regret buying in the area because they did not have all the facts. I have had several clients who love the area. It is my sincere opinion that The Villages' experience revolves around golf cart living, and that is just harder in the southern sections.
TV.
meaning?
The. villages-get it
Churches?
I just went to Google Maps and searched churches. I know that not all show up on the search because one down the street from where I live did not show up. But, 20 churches did show up, all north of 466A. So, from the newer areas about 30 minutes by car.
We heard a Costco has been approved for and is planned near the Villages
… Do you know where?
We just finished our “Lifestyle visit” and just bought a house in Newell. Hoping once the Southern Oaks bridge opens and Eastport is built, we WILL have access to more amenities.
Congrats on your purchase. I have not heard anything about a Costco in the area. I have Googled new Costo stores and there seems to be one planned for Ocala and one planned for the Clarmont area. If you or anyone else knows differently please let me know.
The hospital is not a guaranteed thing
I am getting mixed reports. Heard that the plans are scraped at least for now. But, that is hearsay.
What is the villages?
The largest retirement community in the world. Currently with 150,000 residents and growing. Located between Ocala and Orlando in Florida.
The new homes have no shopping, none planned, no land reserved to build it. The new homes are surrounded by excessive Turn Pike noise and air pollution.
Time will tell. They will have to eventually build shopping centers down there.
@@DavidMonty But they cant because the developer has preplanned all his land for homes and no shopping districts.
Great overview ... thanks. Two other things: 1) My wife and I simply did not want to be in an area around lots of construction. Although the Villages is great in building out areas quickly and putting in the amenities first, we just wanted to buy in an area that was relatively new, but yet established ... we bought in Pine Hills. 2) The newer areas generally do not seem as "pretty" as north of Hwy 44. For example, compare Morse Av. from 44 north to Morse Av. south and then Warm Springs. There is not that beautiful boulevard feel, at least for us ... we especially don't like all the "build arounds" The Villages has done with trailer parks, run down homes, etc. The entire length of Buena Vista Blvd. north of 44 is beautiful. Someday south of 44 may indeed be the place to be ... given our age, we want to enjoy the best of what The Villages has right now.
All great points. When people think about The Villages they envision north of HWY 44. I have an analogy. Its like what the fast food companies do, they show in their commercials big juicing burgers overflowing the bun (The Villages north of 44), then they sell you the small patty (south of 44). Still a good burger, but not the ideal image.
That is good that you determined those things that are most important to you before you purchased a home in The Villages and not after. After two lifestyle visits we determined we wanted to purchase a 3 bedroom courtyard villa with a golf cart garage and straight driveway. This model of courtyard villa is virtually non existent in the older areas of The Villages. And since we are more nature oriented people that is what drew us to St. Johns which runs along Lake Okahumka and an expansive preserve which we find absolutely beautiful. We found the perfect for us new Avondale model courtyard villa with golf cart garage in the Levi & Boaz neighborhood of St. Johns on an end lot. So we have no neighbors to the right of us as our side wall backs to Warm Springs Ave, and we are a good distance from the neighbors behind us as our lot is designated a pool size lot. We have no interest in putting in a pool but do appreciate the privacy our lot provides us. We are located 1/2 way between Brownwood and Sawgrass which is a 15 minute cart ride to either, and since we are not shoppers or big restaurant goers what is available to us at Magnolia Plaza works for us which if we had to walk there we could. Since our neighborhood has only 160 homes and is isolated from the larger area of St. Johns, most of the neighbors have gotten to know each other since we all moved in around the same time +/- 6 months ago. Other than one neighbor who has decided to sell because they want a larger home, none of my other full time neighbors including us have any intention of leaving our little enclave because what it offers us is what is most important to us. And with all the building going on south of us pretty soon we will be just about the geographic middle of The Villages. We both were lucky to find the perfect Villages home and location that best meets our individual needs.
@@nightengale2123 I am glad that you are pleased with your home and location. I hope that you got from my video that I am not saying that those are bad areas. My goal with all my clients is to provide all the information, good or bad, so they can make an informed decision. I listen to my client's needs and often recommend new homes if their needs, like yours, point toward newer model homes. Darn Veranda series :) The issue is that many people often don't make the time, or have the time to learn the area as you did and end up making decisions to purchase without knowing all the facts. They look at gorgeous models and fall in love with the design center, but often don't really consider the location's advantages and disadvantages.
A big concern that I have noticed is that real estate flippers have really increased the price point of resale homes. A quick refresh for minimal dollars have helped resales in the northern sections of TV.
I flip homes and yes you can charge a premium for them. Updated homes with good locations are in demand. Most people moving into the villages want to unpack and play, and are willing to pay a premium. However, the number of homes that are flipped is too small to affect the over all price trends. It is hard ti find a home that has enough damage to warrant a low enough price to update and make a worth while profit. But, there are a ton of home that need updating that have a low enough price where a home buyer can buy and update and put some instant equity in their pockets. So, we also help our clients update homes using the same contractors we us to flip. If you have not seen my video, biggest bang for your buck, I talk in detail about this.