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Fire sale on FL real estate?
Old 09-01-2007, 11:45 PM   #1
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Fire sale on FL real estate?

One of my friends fwd'd me this link:

CNTX-1845 webshellhome

It sorta has that "everything must go!" feel to it since it is only for the next 10 days, but hard to believe what some of these new construction homes are going for.

For instance, in Port Charlotte:

POMPANO COVE #061. Twin-villa home, lake view, 2BR/2BA plus den and 2-car garage. 1,557 A/C sq. ft. Old Price $256,169 New Price $149,990 Save $106,179 Old Payment $1,281/mo New Payment Only $562mo

This development has a golf course, gym, activity center, etc. It seems like a bargain, if you could even just turn around and rent it for $600 a month. Is it on top of a landfill? Next to a nuke plant? Falling into a sinkhole?? Or has the exuberance just left the market and in its place is over-correction?

I don't live anywhere nearby to be able to check it out, but it sure sounds good "in theory" over the net. :P


Also interesting, when I click through to the development, on the bottom of the house listings, I see:

If you live in one of these states (NY or NJ) our ability to communicate with you may be limited.

I wonder what that is about! (since I live in NY)
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Old 09-02-2007, 06:58 AM   #2
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In some communities, the builder was going to distribute the costs of the roads and infrastructure to all the owners. Buyers bought with a clause that said something like "owners are responsible for the costs of the infrastructure". The costs would not be bad if all 500 lots were sold, but if only 50 lots were sold, then those 50 owners get to divide to total cost of the infrastructure. That is, the builders bills got passed on to the limited number of buyers.

If I find a link on this, I will link it in.
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Old 09-02-2007, 08:31 AM   #3
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This is your LAST CHANCE to get a new Centex inventory home at a drastically reduced price.


Somehow I doubt it will be your "last chance"...
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Old 09-02-2007, 08:43 AM   #4
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It seems that Centex is selling at a loss to adapt to a changed market.
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Old 09-02-2007, 09:19 AM   #5
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Most of the Florida builders have drastically reduced the homes or they are giving away free pools or other goodies .There is a glut of unsold properties here .A lot of condos that haven't sold are being rented cheaply and they are throwing in flat screened Tv's .Apparently investors are offering the builders rock bottom prices on their inventory .Great time to buy if you don't have a house to sell first .Port Charlotte is a so so community not near the gulf .
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Old 09-02-2007, 11:34 AM   #6
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in the next 1-2 years it will be even cheaper when banks sell off the foreclosed flipper homes along with the ARM adjustments where people can't afford 7% rates

and of course the payments being hyped on the website are based on a low teaser ARM rate as well even after 20% down
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Old 09-02-2007, 12:00 PM   #7
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I find it fun to watch the psychology of the market unfold. We were in denial for a while. Now, as prices start to fall, people are looking for speculative bargains. I wonder if prices will fall far enough that we don't want anything to do with real estate. Will we ever see houses as a necessary evil? A depreciating asset that is required to keep the weather out?
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Old 09-02-2007, 12:04 PM   #8
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cheap construction built on cheap property in an area that never was worth much, highlighting how overpriced the product was in the first place. over an hour and a half to tampa's international airport. you get what you pay for.
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Old 09-02-2007, 01:07 PM   #9
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Quote:
Originally Posted by Olav23 View Post
For instance, in Port Charlotte:

POMPANO COVE #061. Twin-villa home, lake view, 2BR/2BA plus den and 2-car garage. 1,557 A/C sq. ft. Old Price $256,169 New Price $149,990 Save $106,179 Old Payment $1,281/mo New Payment Only $562mo

This development has a golf course, gym, activity center, etc. It seems like a bargain, if you could even just turn around and rent it for $600 a month. Is it on top of a landfill? Next to a nuke plant? Falling into a sinkhole?? Or has the exuberance just left the market and in its place is over-correction?
Check out how much it will cost to insure this property. Property insurance in coastal Florida is becoming a real killer with the hurricane exposure.

Also, how does a "formerly" $256K home dropped 41.4% result in a payment lowered by 56.1%? Are they also "closing out" the mortgage rate? Or are they assuming the same down payment on a $150K home as on a $256K home?

Anyway, given the cost of insurance and property taxes, even if the mortgage was $562 per month, you'd have to get a lot more than that in rent just to break even in cash flow given insurance and taxes.
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Old 09-02-2007, 02:40 PM   #10
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Originally Posted by twaddle View Post
...

I wonder if prices will fall far enough that we don't want anything to do with real estate.

...

As soon as that happens, and I believe it will in some areas of the country, THAT's the time to be buying...
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Old 09-02-2007, 03:39 PM   #11
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It's depressing ... I took a walk down my (short) street Sat. evening and checked the "info tube" price for two homes on my street. Ask $199K for a nicer home than mine, built in 2004, never lived in. I don't know how much they reduced it over that time. Does not bode well for me selling mine any time soon!
Spring Hill (North of Tampa) if it matters.
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Old 09-02-2007, 07:02 PM   #12
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I think with global warming most of Fla. will be under water. Are these houses raised about 20 feet?
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Old 09-03-2007, 10:02 AM   #13
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Originally Posted by Olav23 View Post
POMPANO COVE #061. Twin-villa home, lake view, 2BR/2BA plus den and 2-car garage. 1,557 A/C sq. ft. Old Price $256,169 New Price $149,990
I haven't looked into the real estate market for decades so I'm not up to date with the new lingo........

Does "Twin-villa home" mean it's a duplex? You know, one of those houses built with a common wall making it into two houses so save on land and construction expenses? But you wind up with neighbors with whom you're very, very cozy.

"Lake view" means the less desireable lot you buy when you can't afford lake front. Right?

It frequently turns out then when the seller embellishes the sow's ear to appear as a silk purse, the buyer winds up with the pig's tail.
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Old 09-03-2007, 10:21 AM   #14
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Yeah, this is just the begining ... sit tight for a year or two. More/Better chaos/opportunity is coming.
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Old 09-03-2007, 12:31 PM   #15
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I haven't looked into the real estate market for decades so I'm not up to date with the new lingo........

Does "Twin-villa home" mean it's a duplex? You know, one of those houses built with a common wall making it into two houses so save on land and construction expenses? But you wind up with neighbors with whom you're very, very cozy.

"Lake view" means the less desireable lot you buy when you can't afford lake front. Right?

It frequently turns out then when the seller embellishes the sow's ear to appear as a silk purse, the buyer winds up with the pig's tail.

You got twin villa right but lake view is Florida lingo for view of the retaining pond .
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Old 09-03-2007, 01:34 PM   #16
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As anybody tried to get a mortgage in the last 2 months?
I'm wondering if the people who would normally be buying
these on speculation can't get a mortgage now?
TJ
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Old 09-03-2007, 02:29 PM   #17
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"Lake view" means the less desireable lot you buy when you can't afford lake front. Right?
Lake view means it's cheaper in cost and taxes than lake front. It may be safer from flooding than a lake front during a hurricane.
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Old 09-03-2007, 02:33 PM   #18
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I'm wondering if the people who would normally be buying
these on speculation can't get a mortgage now?
They are in the process of declaring bankruptcy resulting from previous speculations.
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Old 09-03-2007, 02:57 PM   #19
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Retention ponds. Typically, retention ponds are found in housing and commercial developments that were built in wetlands or wet areas. They are dug to accept the nutrient and pollutant laden water that drains from paved roads and yards of the development to prevent deterioration of "downstream" natural lakes and rivers.Retention ponds. Typically, retention ponds are found in housing and commercial developments that were built in wetlands or wet areas. They are dug to accept the nutrient and pollutant laden water that drains from paved roads and yards of the development to prevent deterioration of "downstream" natural lakes and rivers.




They are not lakes ! No lake view ! No lake Front ! Retention pond view !
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Old 09-03-2007, 04:21 PM   #20
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As anybody tried to get a mortgage in the last 2 months?
Not me. But from what I hear and see, if you were not on the bleeding edge of the go-go mortgage market, you can still get a loan without too much fuss, although it might cost more than it used to. So put down 20+%, document your income, have a 720+ credit score, and generally not appear to be asking for more mortgage than you can really afford, and you can either fit into the conforming box or you can find a traditional portfolio lender (actual bank) to do business with.
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