Is Buying Worth It in Siesta Key?
Buying in Siesta Key: The Risks You Need to Know
Quick Answer
Yes, buying in Siesta Key can be worth it, but there are significant risks involved. Florida Statute 718 governs condominium associations, and navigating these rules can be complex and risky if not handled properly. For instance, failing to secure a condo association’s approval can lead to losing a deposit, which could be tens of thousands of dollars. Discovering this issue late in the process can force a buyer to either renegotiate under pressure or walk away from the deal entirely. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
What Actually Breaks Deals in Florida
Condo Association Approvals
The problem often lies with the condo association’s approval process, governed by Florida Statute 718. In one deal, a buyer was blindsided when the condo association denied their application just days before closing, putting their $20,000 deposit at risk. Without this approval, the buyer couldn’t proceed, and the deal collapsed, resulting in a significant financial loss.
We started to talk to a couple who lived in one property, and they told us to call their realtor. One of the first things he said was that he wanted to get to know us, our desires, and our likes and dislikes. We ended up looking at three-bedroom properties instead of two, and the one we chose was beautifully renovated and move-in ready. I appreciated that he was patient and let me work through my decisions without pressure. It was a very professional experience, and he was not only technically competent but also emotionally supportive. He took the time to really get to know us, which is not something you always get from realtors.
– Verified Customer, Customer Review
Insurance Binding Denials
Insurance binding on barrier islands like Siesta Key can be a nightmare due to coastal risks. During underwriting, I’ve seen insurers deny coverage just days before closing, leaving buyers scrambling to find alternatives. This delay can lead to closing postponements and additional costs, sometimes exceeding $5,000 in penalties and fees.
Where It Usually Blows Up
The inspection period is where many deals unravel. This stage is brutal because it’s when buyers discover hidden issues that can derail a transaction. If problems like structural damage or outdated electrical systems surface late, buyers face the choice of renegotiating under duress or risking their deposit by walking away. The financial stakes are high, and timing is critical, as delays can lead to increased costs and lost opportunities.
I had been looking for a local condo for over a year and was very unhappy with the service. I had worked with three agents from three different national chains. None of the three seemed to know the market very well, took the time to understand what I’m looking for, and most importantly rarely followed up when they told me they would. I have never experience such a lazy approach to working with a buyer. Things changed when I met Mike and part of his team at their St. Armands office. The first thing Mike did was apologize for the poor service…even though it wasn’t his fault. I already knew that I found someone who help himself accountable. What a breath of fresh air! After spending about 30 minutes with me understanding what I was looking for, Mike introduced me to Eric. Between the two of them, they found five condos for me to look at. Each of the five, met my criteria. They actually did listen. I’m excited because we plan to submit an offer later today. The market analysis they prepared was thorough and easy for me to understand. I cannot recommend more highly any other realtors to work with. Thank you Mike and Eric!
– Jules Schroder, Google Review
What I Tell Clients Before They Risk Money
- Review Condo Association Rules: Always obtain and review the condo association’s rules and approval requirements before making an offer.
- Secure Insurance Early: Bind your insurance policy as soon as possible to avoid last-minute denials.
- Conduct Thorough Inspections: Schedule comprehensive inspections early in the process to uncover potential deal-breakers.
- Verify Appraisal Conditions: Ensure the property appraises for at least the purchase price to avoid financing issues.
- Check for Permit Violations: Pull county records to ensure there are no outstanding permit violations that could delay closing.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
Questions Clients Actually Ask
What happens if the condo association denies my application?
If the condo association denies your application, you could lose your deposit and the deal could fall apart. Florida Statute 718 governs these associations, and their approval is crucial for closing the deal. Without it, you may have to renegotiate or walk away, risking significant financial loss.
Can I get insurance on a barrier island like Siesta Key?
Yes, but it’s often more complicated and expensive due to coastal risks. Insurers may deny binding at the last minute, which can delay closing and increase costs. It’s essential to secure insurance early to avoid these pitfalls.
What To Do Right Now
Request a copy of the condo association’s rules and approval process before making an offer. This will help you understand any potential hurdles and avoid last-minute surprises that could jeopardize your deal.
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