I spoke to someone today about their Rockledge, Florida home. He had calculated the loss in value on his house and how much appreciation will be necessary to reach the point where his mortgage balance will equal property value.
According to his very basic calculation, it will take seven years of ten percent increases in value to break even.
At that point he will have a house that is not upside down. The truth is he will not get 10% appreciation. I read last week an expert's opinion of appreciation over the coming decade will be possibly 1-2% a year.
Now I am not a financial wizard so I can not vouch for the accuracy of his figures. However, based on sales prices and homes currently on the market in his Rockledge, Florida neighborhood, my opinion is his estimate is probably in the ballpark.
So what will he do? He has considered a short sale. His decision, like many in the same position, will be a difficult one.
If you are considering selling your Brevard County, Florida home but owe more on it that the market will pay, call me to discuss the possibility of a short sale.
Sometimes a short sale is the best decision.
Gary L. Waters, Florida licensed real estate agent, Bucci Realty, Rockledge, Florida working exclusively with Century 21 Baytree Realty. Email me or call me at 321-693-3850.
Read my blog Florida Homes for Sale