SO WHERE WILL PRICES GO?
Eric Glazer, Esq.
Published November 14, 2022
I think last nightís 60 Minutes episode made it clear that for
some, living in their condominium unit may simply become
unaffordable. The question isÖÖwhich condos will suffer the
most and which other forms of housing are most likely to retain
their values and even go up.
Everyone is freaking out that all condominium living will soon
become insanely unaffordable but that simply isnít true.
Remember, these new inspection laws only kick in after 25 years
if your condo is on the beach or within 3 miles of the coast.
They donít kick in for 30 years for all other condos. So, if
your condo is new, these new inspections may not apply to you
for decades. Relax.
What else do we know? Full funding of reserves start in 2025
and they canít be waived. Does that spell doom and gloom for
everyone? Not necessarily. If your condominium has always been
doing the right thing and has been fully funding reserves, these
new laws requiring the full funding of reserves may not have a
financial effect on you at all. On the contrary, if you have
been living in a condominium that has been waiving reserves for
years, or even decades, you are in trouble. You have a lot of
catching up to do. But what did you expect? You were never
putting away money for future repairs? Did you think your
building would never need repairs? If it did need repairs, did
you think these repairs would magically be paid?
Remember, these mandatory inspections, mandatory repairs and
mandatory reserves only apply to condominiums of 3 stories or
more. So obviously, if your condominium is under three stories,
you wonít be subject to mandatory inspections or mandatory
reserves. Something tells me, your home will be in high demand.
Of course, if you live in an HOA, the new inspection and reserve
laws wonít apply to you either. No doubt in my mind, condo
dwellers will soon be looking to switch to the HOA way of life.
If you live in one of those condos above 3 stories that is 30
years of age or older and never reserved a dollar, itís going to
be hard to sell your unit. Buyers are more educated now and
realize they would be buying into a financial nightmare. If you
want to sell, your price will definitely have to factor in, what
the new buyer is about to pay for those inspections and repairs.
On the contrary, people who own condos under 3 stories or who
live in HOAs will be in the driverís seat as none of these costs
will be passed on to their potential buyers.
Iím no realtorÖÖ..but this is how I see it.
HOA & Condo Blog
Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric has been the host of Condo Craze
and HOAs, a weekly one hour radio show that airs at 11:00 a.m.
each Sunday on 850 WFTL.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.