The Brevard County, Florida real estate market is no different than most others in Florida. The property values have declined and although the slide is not as pronounced now it still happens. Many of the homes sold in Brevard County, Florida are short sales and foreclosure properties.
[Just last month there were 99 short sales sold in Brevard County, Florida as well as 163 foreclosures sold in Brevard County.]
Having a distressed property not appraise can create a problem for the seller although most sellers include an addendum regarding the ability to obtain a mortgage in any offer to purchase real estate. Still, in a declining market the appraisal may come in low simply because the decisions (short sales must be approved by the lender) are taking so long, sometimes several or more months! What seemed like a good deal may now be a dud!
So now it is either back to the drawing board (new search), attempt to get the lender to reduce the purchase price to the appraisal price, or come up with additional monies if the difference is not significant. This is where an understanding of your goals, the market, and your real desire for "this property" must be evaluated.
There is always a risk when it comes to appraisals whether the purchase is a short sale, standard re-sale or even new construction. It is the nature of the real estate transaction however the risk in a declining or depressed market is a bit more evident.
If you are considering the purchase or sale of a house or condo in Viera, Melbourne, Suntree or Rockledge, Florida, give me a call to discuss how I can assist you. Call me directly at 321-693-3850 or email me if you prefer.
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.