[quote=sunny88]
Just like you we like the expanded floor plan in model 6. Last time we went there about 6 weeks ago they still had some old model 6 available opposite the model homes. Unfortunately, their location is not great. Have you been able to negotiate some additional incentives or are they pretty firm?
We feel that these are quite attractive townhomes and that the value long-term, i.e. after 5-10 years should be significantly higher. Short-term they may go down another 10-15%.[/quote]
Yes, the location wasn’t nearly as good as the old model 6’s, but is acceptable to us, on the walkway to the final phase’s greenbelt (though not fronting directly on it like some of the newly released units – unfortunately, the 3 model 6’s that do face directly into the greenbelt are already under contract).
They were willing to deal on the one remaining old model 6 they had (presumably because, although it’s location is very good, as an older plan model it’s smaller and has significant flaws in the master suite), but were not willing to go further down on the new models – they’re gambling that they can sell them at the current prices with the current incentives. Based on foot traffic that I saw in the past couple of visits to the development, I think they’re probably correct in that assessment (out of 16 or so new units that they’re releasing in the next phase, we saw it go from 1 or 2 contracts last month about this time to over half the units contracted as of Sunday). The new tax credits have clearly brought folks out of the woodwork, though of course we have no way of knowing how many of those contracts will cancel before closing.
On the model 6 we’re going to contract on, the PPSF worked out to about $175 at the market price, which is roughly equivalent to the average closing PPSF of existing SFR’s and condo’s in the area. If you figure in the closing costs allowance and the value of some of the “freebies” (like the washer/dryer/fridge) that don’t usually come with a house, it’s down in the $160’s. As a comparison, the Morningside townhomes have had a number of their foreclosed higher square footage units close in the mid $150’s ppsf, but those have higher HOA’s, a poorer quality (in my opinion) overall development, and a far worse location (especially when the 52 extension comes in right in their backyard).
In the end, we know we could have saved at least 10% (and quite possibly more) by waiting longer, but we plan to be in this townhome for quite awhile (at 2200+ sf we don’t see any problems outgrowing the unit for a very long time), our lease is up roughly around the time the unit will close, and we’re simply tired of renting.
