Is 2023 The Best Time to Sell your Brickell Condo?

Should you sell your Brickell condo in 2023? The market has changed. It’s not just about rising inventory or interest rates anymore. Three factors could lead to a situation where buyers hold most of the power: expensive insurance, rising HOA fees, and a milestone inspection.

In the past, buyers had to be careful, but now sellers must be too. Technology and information sharing mean sellers must follow the “seller beware” principle. We’ll show you how these changes can affect demand for certain buildings, which will impact the value of your condo. (List of buildings below.)

New Condo Safety Law | Milestone Inspection & Reserves

Florida’s Senate Bill SB 4-D was passed on May 2022, making it mandatory for any condominium and cooperative buildings, three stories or higher, to undergo milestone inspections without the option to waive funding of reserves. For some buildings, this is as simple as increasing their HOA fees by a certain percentage. This, however,  means a new special assessment to satisfy the reserve fund requirement for some buildings. Special assessments can be a significant obstacle for banks to issue loans. They can also cause buyers to shift to alternative buildings if sellers aren’t willing to liquidate the assessment before the transfer of ownership.

Milestone inspections are one of the largest, lengthiest, and most costly projects for a condominium. Before the change in condo safety laws, condominiums had 40 years to perform this inspection. Now, a milestone inspection is required by December 31 of the year in which the building reaches 25 years of age if it is coastal (or within 3 miles of the coastline) and every 10 years thereafter. Milestone inspections are critical but can affect how buyers perceive certain buildings. Balconies and common areas can be closed for months, which causes the resale process to sit on the market for extended periods or at a discounted price.

Insurance Premiums

Insurance premiums are now being issued at a premium. Many have deemed Florida as having the highest premium rates in the United States. In 2022, insurance rates in Florida increased by 33% compared to the national rate of only a 9% increase, predicting reinsurance costs to rise 40% to 50% more over the Summer. Homeowners insurance is not legally required if the buyer pays cash or outright. Still, if the buyer finances via a mortgage, this is another costly variable to add to carrying costs. Condominiums have master insurance policies where all common areas are covered, but as we continue to see the rise in insurance rates, we can expect the HOA fees to rise accordingly.

Higher HOA Fees

Homeowner association (HOA) fees are rising due to several factors. The new condo safety laws and reserve fund requirements are causing many condominium associations to prepare for milestone inspections. In addition to the milestone inspections, these associations are also facing the challenge of paying higher insurance premiums. As a result, homeowners can expect an increase in HOA fees.

HOA fees are essential for funding the maintenance, repair, and upkeep of shared amenities and common areas within the condominium complex. Depending on the building’s density, a condo owner may notice a subtle or significant increase in their HOA fees. Still, it’s crucial to understand that these fees are necessary to ensure the safety and overall well-being of the community.

As market conditions continue to evolve and new regulations are implemented, it’s essential to remember that HOA fees may fluctuate accordingly. Homeowners should remain informed about any changes to their HOA fees. Additionally they should stay involved in their association’s decision-making process to ensure that their fees are being put to good use.

Is 2023 the best time to sell your Brickell Condo? Brickell (Key) Condos with milestone inspections on the horizon or increased HOA Fees

FAQ

These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023

2. What is the best New Construction Condo in Fort Lauderdale?

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami? 

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!

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