The Villages Home Price Reductions

[@sharondurham7161]

We bought our Lake Denham home in September that was discounted by a little over $18,000.

[@badkarma1289]

If I may ask, what were your total closing costs? I ask because an MLS agent said that the difference in closing costs for the buyer in a new home vs. a pre-owned home in The Villages could be substantial (much higher for a new home).

[@GaryAbbott]

That doesn’t make sense as many of the closing costs are bank related except for proration of previous property taxes which is extremely low since the taxes were based on undeveloped property.

[@badkarma1289]

@@GaryAbbott I am far from an expert on these matters, but I believe it had to do with The Villages being the developer/seller, owning the bank as well, and not wanting to absorb/pay for certain fees that a seller outside The Villages normally would.

[@GaryAbbott]

Hopefully you read some of the other comments that explained & cleared up after the video. All the homes reduced were model homes (some furnished & unfurnished) so the prices were higher as they had extra’s to showcase the homes and I found out this discounting is done as an area is completed. One of the conditions if you buy one of these you do not get the one year warranty since they all were built about a year before. My villages agent told me that most of the model homes were sold the week before I did my video. Hope this helps. Also as a buyer of a new home you don’t pay any realtor fees so not sure what a MLS agent is saying that.

[@TheHoppesl]

New house price reduction in the villages has been very common during economic downturns in the past. I have bought during downturns in the villages twice in the past. The largest new house price reduction was in 2008-2010 period. There was a period where almost every new build was discounted. I've had the good fortune of buying in a downturn and selling in an up market twice in the villages. I'm always amused when I hear people say The Villages housing market is bullet proof. They certainly don't suffer like the rest of the country ,but, they have downturns. It always starts with new house sales declining and The Villages makes changes to meet their sales goals. They start to reduce prices and build lower cost homes to bolster sales to meet their sales goals . Then re-sales start to suffer because new homes are the same price or just slightly higher. Then, the price of re-sales start to decrease. That is how the housing market has re-set both times I've experienced it in The Villages.

[@sylviamazzelli7182]

The house in Newell is a demo house and has many upgrades.

[@ckmurphy1]

The prices in older homes are still crazy. Watch the time on the market it has been increasing. People need to remember that the covid premium is over and the 30-80% returns in 5 years is not sustainable and will drop.

[@fierceflyer5]

Gary, I believe those are the Model homes and come furnished. I’ve seen other homes that price dropped that have been on the marker for several months. They are on Meggison.

[@DisMindy5767]

So those homes were not pre-owned. When you select a house to look at, there's a little green square with white letters above the word Tour that says NEW. It's at the bottom of the photo usually in the grass. Maybe that's why you didn't notice it. Green on green. I think they just want to finish out Newell because they've only got a few homes left. They want to focus on Dabney because in a month or so, they'll be selling patio villas in Eastport.

[@bobweber4180]

That's how they sell the last units in a village, I bought this way in 2020

[@GaryAbbott]

Thanks Bob! I learn something new all the time. Hopefully you saved some money as well.

[@carolapostolos8929]

That's true.

[@mikelabbe5913]

Gary, I see a few in the next village too. Have you seen the view these you mention have? There is a power station.

[@noreenn6976]

A nearby power station or ugly power lines would be a big NO for me. I prefer between the sixes.

[@tamarawills]

Those homes are what is left of the model homes The Villages put on the market for sale about 4 weeks ago. The majority of the model homes sold within about two days. They are building a new model center down in The Village of Moultrie Creek, east of Middleton.

[@GaryAbbott]

Thanks Tamara. My Villages agent contacted me right after the video posted and explained they were the model homes.

[@GaryAbbott]

Thanks Tamara. My Villages agent contacted me right after I released the video and stated the same thing as you did.

[@masminor]

Models sell for premiums not discounts prices are returning to 2020 levels hang on for the ride.

[@markryan3124]

Thanks for another great video, Gary. Wishing you a Happy New Year filled with great health, friends, and Villages experiences. As always, appreciate all of your efforts on these videos.

[@GaryAbbott]

Happy New Year!

[@stevewaltz140]

Hi Gary, when I filter homes under $400,000 on the Villages website there are over 10 in Lake Denham marked down. Steve

[@GaryAbbott]

Thanks Steve. I need to try filtering.

[@danielterry382]

I am thinking it is a misprint. Best to call the sales office.

[@GaryAbbott]

Hopefully you figured it out that all those price reductions were the model homes they sell at the completion of a village. So most of them have a much higher value as lots of upgrades and some are furnished. I didn’t know this at the time of filming.

[@napervillerealestatelifewi5148]

I thought most of the reductions were model homes they were trying off load. Those are close to the Turnpike.

[@GaryAbbott]

Yes those home reductions were model homes so some were furnished. A village agent told me most of them sold in the first week when they became available.

[@janetgomes2423]

Model homes, furnished.

[@darlahamel5576]

Only some of the models were sold furnished, not all of them.

[@JenniferCasey-z6t]

There is about 25+ that are showing a price reduction on the Villages Page.

[@GaryAbbott]

I would be interested in what other Villages you found price reductions listed on the web. Thanks

[@JenniferCasey-z6t]

Denham and Newell @@GaryAbbott

[@karenvelez3023]

I was in the Villages for a lifestyle visit in July and November of 2023. Are you not aware that these reduced homes you are talking about were actually the model homes from the model home park we toured that were finally put up for sale? It seems obvious to me that they were put up for sale so they could build a new model home park in the Eastport area, to promote it for the years to come.

[@GaryAbbott]

Thanks Karen. Happy New Year! I wasn’t aware these were model homes.

[@George-og1cz]

Reduced were model homes.

[@bernardbruinius4951]

There are a lot more reduced. I found 67 homes reduced. And I know several of the pending homes were reduced.

[@GaryAbbott]

Are you counting MLS listings or just new homes sold by the Villages?

[@barbaraebner5889]

What is the bond price?

[@GaryAbbott]

I didn’t check the bond prices but most homes in this area are $35 to $40K.

[@masminor]

We are heading into a massive deflationary recession all the leading indicators are flashing green. Not even the Ukraine War and attack in the Middle East can surge oil prices as world wide demand for energy is low and supply is high even with the mysterious under sea oil pipe line explosion from Russia to the European Union. Builders will lead the way cutting prices as supplies cost less and the open borders policies will keep labor cheap. Sell now if you want to realize the gains from the lockdown.

[@badkarma1289]

From a buyer's perspective, I've heard that this summer would be a good time to jump in. What are your thoughts on timing for buyers?