Why Investors Should Appraise Annually

South Florida property values can go up or down quickly depending on the economy, interest rates, and local demand. For both homeowners and investors, getting a yearly appraisal is an important way to stay updated on your property’s current value. It helps you avoid surprises, plan better, and make smart financial decisions, especially if you’re thinking of investing in lands, refinancing, or building new constructions.

📉 Appraise Before You Invest

Before putting capital into any real estate deal, an appraisal can help you:

⚠️ Catch Zoning Issues Early: Avoid delays or added costs by confirming the property use aligns with current zoning laws.

💸 Prevent Loan Denials: Ensure the property qualifies for your financing terms—misclassifications can shut down deals fast.

📉 Avoid Overpaying: Get a reliable market value so you don’t invest more than the property is worth.

🛠️ Uncover Development Limits: Identify problems with setbacks, density, or lot size that could block your project.

🕒 Protect Project Timelines: Avoid legal surprises like folio splits or compliance gaps that stall construction or refinancing.

👉 These are all issues we’ve seen in real cases, where skipping early appraisals led to costly corrections. A professional appraisal helps you move forward with confidence and protects your investment from the start.

📆 Appraise Annually to Protect Your Portfolio

Even after a purchase, your property’s value can shift quickly in a declining market. An annual appraisal helps you:

·       Track current value against your original investment

·       Flag depreciation before it hits your bottom line

·       Prepare for refinancing, tax appeals, or selling opportunities.

This is particularly crucial in a declining market, where small value changes can lead to significant financial loss over time if not caught early.

⚠️Real Stories: Missed Appraisals, Big Consequences

We've worked with several clients who unfortunately skipped appraisals—only to realize too late that their property values had dropped significantly.

🏗️ Fort Lauderdale Townhouse Highest and Best Use

A client purchased a land in Fort Lauderdale and constructed two townhouses, intending to classify the property as a duplex. Upon seeking refinancing, the appraisal revealed that the highest and best use was as two separate townhouses. This made the client to do legal adjustments, including zoning changes and the creation of separate folios, leading to increased expenses and delays in the refinancing process. This case underscores the importance of early appraisals to align development plans with zoning regulations and market expectations.​

🏠 ADU Misclassification Leads to Refinance Denial

In another case, a homeowner with a primary residence and an accessory dwelling unit (ADU) sought refinancing under a multi-family classification. Initially, the lender considered the property as a duplex. However, the appraisal revealed that while the zoning technically allowed multi-family use, the lot size did not meet the minimum requirement set by the local municipal code. As a result, the property did not qualify as a legal duplex, and the refinance was denied under that loan structure. The client was forced to explore alternate financing options—at higher rates—due to the zoning discrepancy discovered during the appraisal

These examples reinforce how valuable a certified appraiser's insights can be.

📊Mortgage Delinquency Is on the Rise

Mortgage Delinquencies Data from Fannie Mae

📅 December 2024

• Conventional Single-Family Serious Delinquency Rate: 0.56%

  ↗️ Increased by 3 basis points

• Multifamily Serious Delinquency Rate: 0.57%

  ↘️ Decreased by 3 basis points

  
  

📅 January 2025

• Conventional Single-Family Serious Delinquency Rate: 0.57%

  ↗️ Increased by 1 basis point

• Multifamily Serious Delinquency Rate: 0.63%

  ↗️ Increased by 6 basis points

📅 February 2025

• Conventional Single-Family Serious Delinquency Rate: 0.57%

  🔁 No change

• Multifamily Serious Delinquency Rate: 0.63%

  🔁 No change

These month-over-month increases reflect rising financial stress, especially in the multifamily sector, which saw the largest jump. Delinquencies are often tied to overleveraged properties, incorrect zoning assumptions, or stalled refinancing efforts.

👉 Annual appraisals provide a clear picture of current property value, helping investors respond early before delinquency risks increase.