Category: Distressed

Sellers who are distressed, property which is distressed.

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Selling or Buying a Hurricane Damaged Home

Selling:

  • If the home was damaged, the seller should remove all wet drywall and dry the house out
  • Fill out a seller’s disclosure listing all known damage
  • Don’t cover water stains with paint – no cosmetic coverups
  • Do the necessary repairs and disclose all repairs
  • Get your own mold inspection done
  • Do a pre-listing home inspection to make sure you didn’t miss any repairs
  • Choose licensed Florida contractors to provide estimates and repairs
  • Don’t assume your home will sell only at a discount; many damaged homes are sitting on valuable land and many may even sell at the full market value of the home before it was damaged in the hurricane

Buying:

  • Get both home and mold inspections
  • Choose licensed Florida contractors for estimates and repairs you are considering having done
  • Get it in writing – if the seller wants to sell “as is” – get it in writing what repairs the seller will have done and what potential credits they may give you
  • Ask to see written evidence of the insurance proceeds and when they were disbursed to the seller
  • Make sure the property can be insured!
  • Ask if they have had the home treated for mold and whether they have a mold certification
  • If it looks like there’s no damage from the hurricane, ask if there was damage that was repaired
  • Ask for the seller’s disclosure and be sure to read it very carefully – ask questions about anything that seems vague
  • Know what has been repaired and what hasn’t – if repairs have been done ask what comany did the repairs and be sure to check whether the proper permits for the work were pulled from the local building department
  • If purchasing a condominium (this applies just to hurricane damage, not the new requirements) ask aboiut hurricane-related assessments, hurricane related insurance claims and if there are additional fees ask whether the seller will cover the fees or if the responsibility will be yours as the buyer

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Downsizing Checklist – With Housing Costs Surging Is This a Good Move to Reduce Expenses?

  • What are your total transaction costs on the sale AND the purchase
  • What are the holding costs on the new home
  • Will you have to pay a capital gains tax on the sale of your current home
  • What are the moving costs
  • If you will be using your equity from the sale of your home to purchase the new home without a mortgage, how will losing the interest deduction affect your personal taxes
  • Will you need to store any of your belongings
  • Be sure to factor in your health care costs & inflation in your new location
  • It’s MUCH easier to accomplish a down sizing in your 50s & 60s than in your 70s & 80s
  • What repairs & delayed maintenance will be necessary of your current home to bring it to move-in condition
  • Can you afford the repairs & potential staging costs
  • If you will be purchasing your new home before your old home is sold can you afford the overlapping holding costs
  • Don’t waive a home inspection if you are buying a new build
  • Can you afford the inflation on home services in your new neighborhood
  • Will you regret getting rid of your “stuff”
  • You’re going to get decision fatigue
  • Will you have seller’s remorse
  • Make sure you’re not down sizing too small – you don’t want to have to move twice
  • If you are moving to a completly new area, consider renting before buying

Property taxes, hazard insurance and HOA fees are all increasing and up to 65% of homeowners with mortgages have “escrow shortages” — many were qualified at higher percentages of their income. In my opinion, I would not originate a mortgage (principal and interest) at more than 20-22% of my income because of it. With escrow shortages, your lender keeps the money on a monthly basis that was your old escrow PLUS the amount needed for your new escrow to meet ongoing payments. The average shortage in escrow balances was $2,157.00!!! Property taxes have increased by approximately 15% between 2019 and 2024 (Cotality.) Property insurance has increased approximately 70% between 2019 and 2025, says the Dallas Fed (March.)

This insurance issue is enough on its own to force some homeowners into falling behind on mortgage payments because they cannot move/downsize or otherwise lower their costs.

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2026 Florida Condos Situation

Florida Senate Bill 4D enacted May 26, 2022 on Building Safety called for MIs (mandated inspections) & SIRS (Structural Integrity Reserve Studies) for condo buildings and the disclosures of those results. Link below is the DBPR’s online database of those condos who have submitted their SIRS.

Condo buildings in Florida that were more than 30 years old (in 2022) faced a December 31, 2024 deadline for a mandatory “milestone inspection.” For condo buildings turning 30 years old between 2022 & 2024, the deadline was December 31, 2025.

https://dbpr-publicrecords.myfloridalicense.com/qpr/single/?appid=14f1ed21-7b21-4272-af14-9eaad7911440&sheet=mcprvJW&opt=ctxmenu&select=clearall

So, as of January 1, 2026, the inspection & reserve study deadline has passed. It required FULL RSERVE FUNDING. There was a 365 day Phase 2 repair clock for any immediate repairs required by Milestone Inspections. That is a non-negotiable. The Florida Legislature has not enacted any further extensions for compliance. These condo associations must now pay for their immediate repairs, as well as future reserves (as indicated by their SIRS.)

If a condo building is out of compliance, the local building officials are now in charge. This is a substantial issue. If a condo building is out of compliance, the local building officials may declare the building as an “UNSAFE STRUCTURE” (“unsafe and unfit for occupation”) which is an IMMEDIATE SAFETY EVACUATION that gives occupants “NOTICE TO VACATE” orders. That means the unit is uninhabitable almost overnight. (House Bill 913.) This can be done without any court proceedings. It’s not like a foreclosure situation where you have time to figure it out. The local building officials can “red tag” a building.

If this happens to your condo building you will have trouble securing insurance for the building. If you do not have insurance, any owners with mortgages will be in default technically. Carriers are refusing to renew policies where they deem there has been no repairs progress on the milestone reports. If your association thought they could buy some time, they were wrong.

If you’re shopping for a condo now, be sure you are using an agent who understands these issues to advise you.

A condo may already be in violation. Associations with 25+ units MUST post their milestone reports online,

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NEW Law in Florida Requires Flooding Disclosure

As of October 1, 2024, sellers in Florida are required to disclose previous flooding on a property they sell. This includes any insurance, flood insurance, or FEMA claim. After what we’ve just been through with back to back hurricanes Helene and Milton, this is vitally important if you need to sell your property, even as is. Disclose.

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Real Estate Brokerage in 2023

It’s no secret that the industry seems like it’s imploding. The Federal Reserve’s interest rate increases are creating havoc. Including “owners’ equivalent rent” in a lagging CPI Index is non-sensical. No one pays themselves rent when they’re already typically paying a mortgage payment. My guess is they will keep raising rates until the entire economy is paused because most won’t be able to afford the essentials, also known as food, shelter & clothing (add gasoline & utilities, too!)

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