The Honest Broker: Buyers waiting for Milestone Inspection Results Before Purchasing
BY: Diane Lott, Broker
Paradise Found Realty
Some hesitation is being noted among potential condominium buyers as they wait to see how the latest state guidelines on condo safety play out. Florida lawmakers approved a revised version in early May of last year’s guidelines on ensuring safety in condo buildings to smooth out the process, though experts say that some buyers are choosing to wait to see what happens with assessments before taking a leap. The condo market is in a bit of chaos and uncertainty. The Milestone Inspection affects buildings that are three stories or taller that have been occupied for 30 years or more and inspects structural integrity as well as affects the financial positions of Condo Associations.
A key part of the law entitles buyers of certain buildings to a copy of the milestone inspection of the building when they enter a contract, as well as a structural-integrity-reserve study, which notes the amount of funds needed to be reserved for future major repairs and replacement of the condominium property, with certain exceptions granted.
Buyers are reserving their decisions if interested in an older building to see how this will play out and are hesitating because they don’t want a big expense after purchase.
In older buildings there might be some price depression or reduction of pricing, and more people selling. However, the overall market has been strong. In general, newer construction is doing well depending on the price point the buyer is qualified for.
Despite the uncertainty in some areas or buildings, there are things buyers and sellers can do to prepare and work around it. It’s especially important for a seller to know as much about the building’s financials as possible and to disclose the information upfront to the buyer.
Overall, there are still options for buyers looking to get into a condo. There are very well-maintained older buildings that may not require any significant updates or corrections.
Email: [email protected]
Your Martin County Concierge Real Estate Company!
Office Open by Appointment Only