https://gotoby.com/wp-content/uploads/2020/10/go-toby-logo.jpg 0 0 Toby Tobin https://gotoby.com/wp-content/uploads/2020/10/go-toby-logo.jpg Toby Tobin2008-07-25 00:00:002021-03-19 15:30:45Second Bank-Owned Lot in Ginn’s Conservatory at Hammock Beach sells for Less Than $100,000
Second Bank-Owned Lot in Ginn’s Conservatory at Hammock Beach sells for Less Than $100,000
This is the second Conservatory lot to sell within two months of being listed under Toby’s Picks.
Palm Coast, Florida – July 25, 2008 – For the second time in weeks, a lot in The Conservatory at Hammock Beach in Palm Coast, Florida sells for under $100,000. Both lots were recently listed under "Toby’s Picks" on the GoToby.com website. No lots had been sold in that community in the previous two years.
The Conservatory was marketed by The Ginn Company during the real estate boom as an upscale private golfing community surrounding a Tom Watson designed golf course and a magnificent clubhouse. As a Ginn community, its property owners would have access to Ginn’s oceanfront Hammock Beach Club, rich with amenities including a Jack Nicklaus golf course and a multi-million dollar swimming complex and fitness facility. Lots were priced from $329.9K to $529.9K. Many were purchased by speculators.
Both recent sales were lender-owned properties, obtained through foreclosure by SunTrust. Each lot carried an optional full golf membership (including membership to the Hammock Beach Club) for $20,000. In addition to the $20,000 membership fee, any past due membership dues would have to be paid.
674 Mahogany Run, listed for $99,000, sold for $85,000. The original owner paid $339,900 in 2005.
435 Bourganville Drive, listed for $119,900, sold for $92,500. It was purchased from Ginn for $469,900.
At least four "short sale" contracts for Conservatory lots have failed to complete after lengthy delays. For buyers, lender-owned properties represent a much better opportunity. As owners through foreclosure, lenders are aware of the market realities and can respond to offers quickly.
"Toby’s Picks" features properties which are exceptional values because of their price and/or their uniqueness.
Will assesments drop in Conservatory?
The question now is; will the sale prices establish a new assessment by the county assessor. The Market approach to establish assessments has the requirements to use current sales data. The assessor can choose to say that in his opinion these are not arm lenght transactions, and ignor them. But the property tax assessment date being January 1 st, every year, will have to look at all the sales of comperable properties, which may reflect more low purchase prices between now and then. The other considerations to the assessment should be the status of the developements owner’s meeting the contactual agreements made, to purchasers, to provide services and amenities. Those new owners will be set back just paying taxes, at the origional sales price, if the assessor does not drop the assessments to reflect the market values, as they will be paying three to four times the purchase price if the assessments are not dropped. That would be more than $4,000 a year above the sale price assessment would be if it were taken as a arms length transaction.