Rearltors: which price point is better for resale? (Tampa, Sarasota: bank owned, fit in)

[gardenpearl]

With all the new construction going on in the area, I'm concerned that if I buy a new 2000 square foot home for just over $300K and want to sell, it won't hold its value, as many builders will be building newer homes for years for about the same price.

I could, instead, fit into a smaller brand new attached new 1500 square foot villa for just over $200K. Which would be more desirable from a resale standpoint if I ever want to move?

[bbronston]

No one here can tell you what is going to happen in YOUR market in the future so the best course of action is to get the home you want now and hope for the best as far as future value. Markets change, trends change, and whatever happens to your market for 2000sf single family properties is likely to happen similarly to a 1500sf villa.

[SoFLGal]

I agree with what everyone has said. I would just make sure you are buying something that you like and are comfortable with. Of course, try to get the best deal. I'm sure you've heard a million times, it's really about location, location, location. Which has the better location--closer to the beaches, better schools, nicer neighborhood, more amenities, etc. It's really turning into more of a sellers market now with low inventory and not many bank owned homes coming on.

[gardenpearl]

I have noticed that, where there is a lot of new building going on, people with homes over 5-10 years old are at a disadvantage unless they are well-maintained and in a desirable complex and/or area.

People probably feel, why not buy brand new for about the same price - or even pay a little more?

[bbronston]

In our area, the construction really never stopped during the recession but it has definitely increased over the past few years. During that time, builders have steadily increased their prices for the same plans and, in some cases, for the lots, too. Those steady increases have allowed resellers to move the market higher because buyers had a choice of spending more for new homes or a little less (although still more than the same house might have sold for just a year earlier) for a resale.

[bbronston]

Originally Posted by JanGG

So, the only advantage to buying an older house would be the location. IMO.

Other reasons for choosing an older house can include price, more mature landscaping, more stable neighborhoods (you don't have to put up with construction noise, dirt, traffic, etc.), and knowing that community fees, if any, aren't being artificially kept low by the developer. Another reason that I hear all the time is that there are many little things that come with a resale that you have to spend additional money to get with new construction (i.e. window treatments, fences, shutters, etc.)

I'm a big fan of new but there are good reasons for going in either direction.

[Ladywithafan]

Originally Posted by gardenpearl

With all the new construction going on in the area, I'm concerned that if I buy a new 2000 square foot home for just over $300K and want to sell, it won't hold its value, as many builders will be building newer homes for years for about the same price.

I could, instead, fit into a smaller brand new attached new 1500 square foot villa for just over $200K. Which would be more desirable from a resale standpoint if I ever want to move?

IMO ~ it is about locationx3 and here are the types of locations that hold value:

#1 ~ Waterfront (Gulf, Bay, River, Lake, Canal, Pond then by beach, seawall deep, canal w/seawall shallow)
~ ex. Home on Anna Maria island facing north on Tampa Bay also sits on four bodies of water: gulf, bay, intra-coastal & river ~

#2 ~ Gated Golf Course Communities: This can get tricky because "golf course communities can be continued to be built as development goes East...
~ ex. The proposed golf course community in NW Bradenton that was in discussion phase in 1992 ~

#3 ~ Downtown/walkable areas land holds the value, not necessarily the house with possible exception of new construction (think South of Hillview area)
~ ex. a frame house from the 40's where termites are holding hands to keep the house up ~ house 0 value, land (depending on size of lot $200K & up depending on the street location in the area South of Mound between Osprey & Orange

Best opinion is to buy the home you enjoy.

[gardenpearl]

What do you think of River Strand and Lennar's construction as compared to other builders and communities, such as Esplanade? One of River Strand's drawbacks to me is lack of a design center and options.

I used to think it was a bit far away from the action, but with the new mall going up and all of Lakewood Ranch's new construction, maybe being a little farther away from the traffic wouldn't be so bad.

Although on the other hand, it may take longer after all those things are built to drive through the area to get to Sarasota.

[bbronston]

I've never seen anything negative about Lennar's quality but I've heard some people express negative opinions about them. I think it is because they are largely a few-frills builder. They put a positive marketing spin on it by saying everything is included but the flip side to that is you have few options or choices. Still, they appear to do a nice job with their communities, IMO.

I-75 is so close and you can hop on and off to get to different parts of Sarasota and Bradenton easily so I don't see much of a downside in terms of travel.

[Sunshine Rules]

Both builders have good options for floor plans, both communities have similar amenities. Of the two, I would say Riverstrand offers more for the golfer with the 3 golf courses and driving ranges. Esplanade appears to have a larger clubhouse. Of the 2, I like the Esplanade clubhouse grounds better, they offer more sidewalks that meander around the lake and other outdoor amenities. The Esplanade dog park is sort of small for the size of the community.

My one comment about the Lennar site staff is that they often conveniently leave off some of the fees that residents will be required to pay. RS has the annual golf & country club fees of about $2400/yr, plus Heritage Harbour Master Association of around $700/year, plus the RS HOA of around $1400/yr (which includes lawn maintenance), plus minimum dining room of $500/yr plus annual CDD fees that are incorporated into the property taxes. They also have a .75% builders fee at closing, irrigation connection fees, a capital contribution fee of $1500 - $2000. Then there are the "upgrades." I have found Lennar is similar to Neal Communities in that respect. Many things a buyer would think should be included in a basic home package are upgrades. You can easily add $40k - $50k in upgrades to that basic home package.

Esplanade has stewardship district fees vs CDD fees that appear on the annual property tax bill. Really the same thing called by a different name. Esplanade has an annual minimum club fee of $500 for food/beverages in the country club restaurant. Buyers will pay a capital contribution at closing of $1500. Annual HOA fees run between $2700 - $2800/yr, depending on lot size. My understanding is this is the same for the "old" and "new" sections.

For the newest section, annual stewardship district fees are running $2085 - $2573/year with annual golf membership dues of $2550 on top of the $500/yr food/beverage.

If you have questions about Esplanade, look up Rhonda Fleming-Hill. She is my go to person there as she knows Esplanade inside and out, which I cannot say about some of the other sales reps.