3 Closing Mistakes in Siesta Key

Avoid These Closing Mistakes in Siesta Key

What Actually Breaks Deals in Florida

Insurance Binding Failures: On barrier islands like Siesta Key, securing insurance can be a nightmare due to coastal risk. The Office of Insurance Regulation oversees these policies, and insurers often deny coverage at the last minute if they find undisclosed risks. I once had a client whose insurance binder was denied three days before closing, leaving them scrambling to find coverage or risk losing their deposit. This can lead to delays or even a collapsed deal if not resolved quickly.

Condo Association Approval Delays: Florida Statute 718 requires condo associations to approve new buyers, but this process can be slow and unpredictable. During one transaction, the association delayed approval due to incomplete financial documentation, which nearly caused the buyer to miss their closing date. Such delays can result in extended temporary housing costs or losing the property to another buyer.

Recently my husband and I bought a condo in Longboat Key. We initially chose Team Renick simply because they were representing a property we were interested in, but decided to stay with them because they were so attentive. Eric Teoh was the agent assigned to us and he was very efficient, always prompt, and extremely knowledgeable about every property on LBK. When the day came for the walk-thru of the property we decided to bid on, Eric actually helped me measure the walls and even noticed when I wrote the dimensions on the wrong parts of the floor plan. When we had our closing, our attorney was impressed that our realtor was providing us with such a good home warranty. And then there’s Team Renick’s contribution to the LBK nature conservancy for every sale they make. On every front, an outstanding realtor!

– LWGraboys, Zillow Review

Appraisal Gaps: In a competitive market like Siesta Key, properties often sell above appraised value, creating an appraisal gap. Lender underwriting systems will not cover this gap, requiring buyers to bring additional cash to closing. I had a client who faced a $50,000 appraisal gap, forcing them to either renegotiate the price or walk away from the deal, risking their deposit.

Where It Usually Blows Up

These issues typically surface during the final stages of the transaction, just before closing. At this point, buyers and sellers have invested significant time and money, making any disruption particularly painful. Discovering these problems late can lead to financial losses, missed opportunities, and immense stress as parties scramble to resolve issues or face the collapse of the deal.

What I Tell Clients Before They Risk Money

1. Insurance Check: Verify your insurance options early, especially for barrier island properties.
2. Association Approval: Submit all required documents to the condo association as soon as possible.
3. Appraisal Preparedness: Be ready to cover appraisal gaps with additional funds.
4. Inspection Vigilance: Complete thorough inspections and address any issues immediately.
5. Financial Flexibility: Maintain financial flexibility to handle unexpected costs or delays.

My experience was working with Eric Teoh of Team Renick in searching for and purchasing a condo on Long Boat Key, Florida. Eric went above and beyond in his attentiveness, support, and assistance. My wife and I bought in April 2020 after the COVID pandemic had closed or limited many businesses. Whatever problem we had (such as no service being willing or able to pick up trash or unwanted furniture), Eric rose to the occasion and solved the problems for us. No issue was too big or too insignificant. He was knowledgeable about inventory, pricing and legalities. I’ve brought a number of residences but never have had a more positive and satisfying experience.

– Tom OHara, Google Review

Questions Clients Actually Ask

What happens if my insurance is denied last minute?

If your insurance is denied last minute, you risk not being able to close on the property. This can lead to losing your deposit and the property itself unless you can quickly secure alternative coverage.

How do condo association delays affect my closing?

Condo association delays can push back your closing date, leading to increased costs such as temporary housing or storage fees. Florida Statute 718 governs these approvals, and any delay can jeopardize your deal.

What should I do if there’s an appraisal gap?

If there’s an appraisal gap, you’ll need to cover the difference out of pocket or renegotiate the purchase price. Lender underwriting systems will not finance more than the appraised value, putting your deal at risk if you can’t bridge the gap.

What To Do Right Now

Secure a pre-approval from your lender and have a backup insurance plan ready. This proactive step will help you avoid last-minute surprises and keep your transaction on track.

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https://www.teamrenick.com/

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To read more about what Michael shares with his clients:

https://blog.teamrenick.com/