Is Florida a Good Place to Buy Real Estate Right Now?

Is Florida a Good Place to Buy Real Estate Right Now?

Risk #1 – Insurance and Flood Costs Can Kill the Deal

Florida’s insurance market is volatile, and a property that looks affordable on paper can become a money pit once you get real quotes. The Florida Office of Insurance Regulation and Citizens Property Insurance Corporation both warn that coastal and older homes can see premiums jump by thousands, especially if wind or flood coverage is required. Citizens Property Insurance now requires flood insurance on homes with Coverage A of $400,000 or more, and this requirement will expand to all Citizens policies soon. I’ve seen buyers walk away from contracts after discovering insurance would cost $8,000 – $12,000 per year, wiping out any perceived bargain. If you don’t lock down insurance quotes before you commit, you risk losing your deposit or being forced to renegotiate under pressure.

Risk #2 – Condo Reserve and Special Assessment Surprises

Florida condos, especially older or underfunded buildings, are facing new reserve and inspection requirements under Florida Statute 718. Many buildings are now imposing large reserve contributions or special assessments to comply, which can add $10,000 – $50,000 in unexpected costs. According to Florida Realtors, condos are under more pricing pressure than single-family homes, and buyers are often blindsided by these hidden liabilities. I’ve had clients nearly close on a “discounted” condo, only to discover a $25,000 special assessment was about to be levied for structural repairs. Missing this risk can erase any price advantage and lock you into a property with negative equity.

We recently purchased a home in Sarasota, FL. We moved from Cleveland, OH so most of our research was done through emails. My husband had contacted Team Renick about 3 years prior and for those 3 years Mike Renick had sent us perspective houses that were for sale that fit our criteria. In 2019 after we retired, we came down to Florida in August for the purchase of our forever home. This is when we met Eric Teoh, part of Team Renick. Upon our meeting he had put together a portfolio of homes for us to look at. Not only is Eric professional but he treated us like family. He picked us up and took us around for a couple of days looking at houses to purchase. In a very short period of time we found exactly what we were looking for. We could not have been happier with the service we received from Eric and Team Renick. Living out of state made things a bit more challenging for us but Eric made it seem effortless. Thank you again to Eric and Mike! They are the best of the best!!

– danddnorman, Zillow Review

Risk #3 – Local Market Weakness and Resale Trouble

Not all Florida markets are moving in sync – some Gulf Coast and inland areas are forecast to weaken further, especially for condos and in regions like Cape Coral and North Port, according to Realtor.com News and HouseCanary. Homes are sitting longer on the market, and in some areas, prices are flat or declining, which means you could be buying into a value trap. I’ve seen properties in weaker submarkets sit for 90+ days with repeated price cuts, forcing sellers to accept offers well below their expectations. If you buy in the wrong area without understanding local trends, you could face a long, costly resale process or even negative equity.

How to Protect Yourself Before You Commit

1. Get Insurance Quotes Early: Secure written quotes for homeowners, wind, and flood insurance before your inspection period ends.
2. Request Condo Financials and Reserve Studies: Review the latest budget, reserve study, and pending assessments for any condo purchase.
3. Check Flood Zone and Elevation: Use FEMA maps and local building department data to confirm flood risk and required coverage.
4. Analyze Days on Market and Price Trends: Compare current listing and sold data from sources like Redfin and Realtor.com for your target area.
5. Review Florida Statute 718 and 627.712: Understand your rights and obligations regarding condo reserves and windstorm insurance waivers.

What a Local Agent Catches That You Won’t See in the Listing

I’ve saved clients from six-figure mistakes by digging into the details that never show up in a listing. For example, on a Longboat Key condo, I uncovered a pending $30,000 special assessment that the listing agent didn’t mention, and the seller hoped would “blow over.” In Manatee County, I’ve flagged homes where the insurance carrier was about to drop coverage due to roof age – something that would have left the buyer scrambling for expensive surplus-lines coverage at the last minute. These are the kinds of deal-killers that only show up when you know the local market and ask the right questions.

Questions Clients Actually Ask

What’s the biggest risk if I buy in Florida right now?

The biggest risk is underestimating insurance, flood, and assessment costs, which can turn a seemingly affordable home into a financial burden. These costs can change quickly and are often not reflected in the listing price.

Are condos riskier than single-family homes in Florida?

Condos in Florida can carry more risk due to new reserve requirements and the potential for large special assessments, especially in older or underfunded buildings. Always review the condo’s financials and reserve studies before making an offer.

It is easy to understand why Team Renick, led by Mike and Eric, has been successful. I reached out to Mike from Boston, which is where I live. I shared with him exactly what I was looking for. I also explained that my husband and I wouldn’t be down to Florida for about six months. Mike continued to send us listings to view and would check in from time to time. I really like that his approach was more like how can we be of help instead of when are you going to buy! He really did want to make sure that he was not wasting our time with listings we didn’t want to see! Over the six-month period we were able to make some adjustments to what we were looking for. When we arrived in Florida, both Mike and Eric met with us in their office. We developed a plan and Eric took it from there. On our first day of viewings, Eric began by presenting us with a custom book he had put together that included everything we were going to see that day, background information on each condo association, as well as plenty of room for our notes. As the day progressed, it became very clear how well Eric knows this market. If all goes well, we will submit our first offer tomorrow morning. At that point, the boys have told us that both of them will be involved in the negotiations. I know we are going to get this done. If I had to sum up the strengths of Team Renick, it would be easy. They are knowledgeable, hardworking, prepared, keep their word, and most of all both of them demonstrated that they really do care! I know that we wouldn’t find this in a large brokerage! Patty

– tpresman, Zillow Review

How do I know if a market is weakening or stable?

Look at days on market, recent price cuts, and inventory trends for your target area using sources like Realtor.com and Redfin. A local agent can help interpret these numbers and spot warning signs that aren’t obvious online.

What To Do Right Now

Before you make an offer, demand written insurance quotes and review all condo or HOA financials – don’t rely on listing claims or seller assurances.

To search for local properties: search.teamrenick.com
To read more insights: gulfcoastdecoded.com