I was speaking with a potential client yesterday regarding short sales. In Brevard County Florida there are lots of them. And some appear on the surface to be very good deals.
I have noticed several, OK more than several, neighborhoods in Viera and Rockledge where more than half the properties listed for sale in the subdivision are short sales. Let me repeat - on the surface the prices sure seem very attractive.
However, I wonder how many of these neighborhoods have other homes in the process of entering the foreclosure or short sale market.
Why would a homeowner who paid $250,000 for a home two years ago keep paying his mortgage when the homes in the area are now going for $150,000? This is not a lecture on personal responsibility or personal pride....
Short sales do present opportunities but caution is certainly warranted. In a market where there is....
- excessive re-sale inventory
- growing unemployment
- competing new construction
- declining prices
....caution is the rule of the day because not just any short sale will do!
Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida.