If you’ve been following the Florida condo market, you’ve probably heard the word “assessments” a lot. These are extra fees that condo associations charge owners—often in addition to monthly HOA dues—to pay for big repairs, safety improvements, or to meet new legal requirements. After the Surfside tragedy, Florida passed stricter laws that force condo associations to have proper reserves and complete critical renovations.

Why This Matters to Buyers and Sellers

Banks and lenders are watching closely. In many cases, if a building hasn’t performed the required inspections, finished the necessary repairs, or funded the minimum amount of reserves, some lenders will not finance purchases in that building. That means fewer qualified buyers, lower demand, and more pressure on pricing.

What Sellers Need to Know

  • Disclose Assessments: If your building has an active or upcoming assessment, you must be upfront. Buyers will find out, and hiding it can kill the deal.

  • Understand Market Impact: Buildings with strong reserves and completed renovations are much easier to sell—buyers feel safer and financing is smoother.

  • Plan Ahead: If your building is behind on compliance, expect more questions, more due diligence, and possibly all-cash buyers instead of financed ones.

What Buyers Need to Know

  • Ask About Reserves: Before making an offer, review the building’s financials. Are there reserves? Have major repairs been budgeted for?

  • Check Financing Options: Some lenders will flat-out decline a loan in a building without reserves. Always confirm before falling in love with a unit.

  • Factor in Costs: Assessments can be large—sometimes tens of thousands of dollars per unit. Know exactly what you’re walking into.

How I Guide My Clients

As José Guanti, MBA, I dig into the numbers. I don’t let buyers or sellers walk blind into a deal. For buyers, I review association financials, pending assessments, and financing risks. For sellers, I prepare the right disclosures, position the property honestly, and highlight the long-term improvements so buyers see value—not just cost.

Assessments and reserves aren’t just fine print—they’re the difference between a deal that closes and one that collapses. With the right strategy, you can navigate them and protect your investment.