The Condo Conversation Has Changed: 7 Questions Florida Realtors Should Ask Before Showing the Next Unit
Florida condo rules and financing have changed. Discover 7 questions Realtors should help Buyers ask about HOA fees, reserves, assessments, insurance, and financing in 2026.
The Buyer loves the view.
The kitchen has been renovated. The pool looks like a resort. The building is minutes from the beach, downtown, or their favorite restaurants. The price appears to fit the budget.
And before the showing is even over, you hear:
“I think this could be the one.”
For a Florida Realtor in 2026, that may be exactly the moment when the most important conversation needs to begin.
Because when your client is buying a condominium, helping them evaluate the unit itself is only part of the job.
The building matters.
The association matters.
The monthly fees matter.
The reserves matter.
Insurance matters.
Special assessments matter.
And if your Buyer is financing the purchase, whether the condo project meets the lender's requirements can matter just as much as whether your Buyer qualifies for the Mortgage.
That doesn't mean Florida condos are something Buyers should avoid.
Quite the opposite.
Florida's condo and townhouse market has recently shown renewed momentum. Closed sales increased 11% year over year in July 2026, marking the 11th consecutive month of annual gains. Sales below $500,000 increased nearly 8%, sales between $500,000 and $1 million jumped 24%, and sales at $1 million or more increased more than 31%.
Earlier second-quarter data told a similar story, with statewide condo and townhouse sales increasing 9% year over year and particularly strong growth at both the affordable and luxury ends of the market.
There is opportunity.
But the conversation has changed.
For Realtors, the goal isn't to scare Buyers away from condos. It's to help them understand that they're evaluating both a unit and the financial and physical health of the community around it.
Here are seven conversations worth having before your Buyer falls in love with the view.
1. What Are the HOA Fees and What Do They Actually Cover?
One of the first numbers a Buyer will notice after the Listing price is the monthly condo or HOA fee.
Their immediate reaction may be:
“That's expensive.”
Or perhaps:
“That's actually not bad.”
Neither reaction tells the full story.
A $600 monthly fee in one community could potentially include services and expenses that a $400 fee somewhere else does not.
Depending on the property, association fees might contribute toward items such as:
Building insurance
Exterior maintenance
Roof maintenance
Landscaping
Pool and recreational facilities
Security
Water or utilities
Cable or internet
Management
Common-area maintenance
Reserve funding
Instead of helping the Buyer compare fees based solely on the monthly number, encourage them to understand what that number represents.
A lower HOA fee isn't automatically better.
And a higher HOA fee doesn't automatically make a condo a bad purchase.
The more useful question is:
“What am I getting for this amount, and is the association adequately preparing for future expenses?”
That leads directly to the next conversation.
2. How Healthy Are the Association's Reserves?
This has become one of the most important condo conversations in Florida.
Florida law requires qualifying residential condominium associations to conduct a Structural Integrity Reserve Study (SIRS) at least every 10 years for buildings that are three habitable stories or higher. The study evaluates major components such as the roof, structure, fire protection, plumbing, electrical systems, waterproofing, exterior painting, windows, exterior doors, and certain other significant items.
The SIRS doesn't simply identify components.
It also addresses their estimated remaining useful life, estimated replacement or deferred-maintenance costs, and a recommended reserve funding schedule.
For many Buyers, words such as reserves and reserve study can sound like association accounting details.
Help them understand why they matter.
Imagine a condominium building knows that a major component will eventually need replacement.
Someone will have to pay for it.
The question is whether the association has been systematically preparing for that expense or whether owners could face additional financial obligations later.
That does not mean a Realtor should analyze an association's financial statements as an accountant or give legal advice about compliance.
It means you can help the Buyer recognize which documents deserve attention and encourage them to have appropriate professionals review them when necessary.
A better Buyer conversation
Instead of simply saying:
“The HOA is $650 a month.”
Try:
“Let's also look at what the fee covers, the association's budget and available reserve information so you can better understand the bigger picture.”
That's a much more valuable conversation.
3. Are There Current or Potential Special Assessments?
Few words get a condo Buyer's attention faster than:
“Special assessment.”
A special assessment can be used to fund significant expenses that aren't fully covered through regular association income or available reserves.
Depending on the community, assessments may relate to repairs, structural work, roofs, elevators, concrete restoration, insurance-related costs or other major projects.
Florida's 2026 condominium statutes allow certain required reserve items to be funded through regular assessments, special assessments, lines of credit or loans, subject to applicable requirements.
That makes several questions important:
Is there a current special assessment?
How much is it?
How long does it continue?
Has the Seller already paid it, or will payments remain after Closing?
Has the association discussed significant upcoming work that could result in another assessment?
And perhaps most importantly:
What does the Contract say about responsibility for association assessments?
This is where Realtors should avoid making assumptions.
Who pays an assessment can depend on the Contract, timing, association documents and specific facts of the transaction.
If there is uncertainty, involve the appropriate parties early rather than discovering the problem days before Closing.
ARETSI has previously discussed how unexpected HOA estoppel information and special assessments can reopen negotiations or create Closing complications.
The earlier everyone understands the issue, the more time there is to address it.
4. Has the Building Completed Its Required Inspections?
This is another conversation Florida Realtors should understand at a high level.
Under Florida law, certain condominium and cooperative buildings that are three habitable stories or more are subject to milestone inspection requirements as they age.
Generally, qualifying buildings must have a milestone inspection by the end of the year in which the building reaches 30 years of age, with additional inspections every 10 years thereafter. If substantial structural deterioration is identified during the first phase, a second-phase inspection may be required.
Why should a Realtor care?
Because your Buyer may understandably want to know:
Has the required inspection been completed?
Were significant repairs recommended?
Is additional inspection required?
Are repairs underway?
Could those repairs affect association finances?
Are relevant reports available for review?
Again, your role is not to interpret an engineering report.
A Realtor shouldn't tell a Buyer that a building is structurally safe based on a personal reading of technical documents.
Instead, help the Buyer obtain the information and know when to ask for professional guidance.
That's an important distinction.
You don't need to be the engineer.
You need to know when the engineer's information matters.
5. Can Your Buyer Actually Finance This Condo?
This may be the most overlooked question in the entire condo transaction.
A Buyer can be well qualified for a Mortgage and still encounter financing challenges related to the condo project itself.
That distinction has become particularly important in 2026.
Fannie Mae and Freddie Mac have updated condo project review, reserve, and insurance standards. Florida Realtors reported that for loan applications dated on or after August 3, 2026, projects that previously might have qualified for certain less extensive review processes generally need a Full Review unless they qualify for a waiver.
Under a Full Review, the lender may need to evaluate matters involving the project itself, including association finances, reserves, insurance, project eligibility, and property condition.
Fannie Mae explains that before a loan secured by an individual condo unit can be delivered to it, the lender must determine that the project satisfies applicable eligibility requirements.
And the issues are not theoretical.
Fannie Mae currently identifies insufficient master property insurance and critical repair issues, including failure to meet applicable inspection requirements, as the two leading reasons condo projects receive an ineligible status in its system. Pending litigation and certain project characteristics can also create issues.
What this means for Realtors
Don't wait until the Buyer is emotionally committed to the property to start asking financing questions.
If the Buyer is using financing, encourage communication with the Loan Officer early.
Questions could include:
“Has the lender financed units in this project recently?”
“Will this project require a Full Review?”
“What association documents will the lender need?”
“Are there any known project eligibility concerns?”
The Buyer may qualify.
The unit may Appraise.
The Home Inspection may go well.
But if the condo project creates a financing issue, the transaction can still become complicated.
Prequalification of the Buyer is not the same thing as project eligibility.
That's a distinction every condo-focused Realtor should understand.
6. What Does the Master Insurance Policy Cover?
Insurance has become impossible to separate from Florida real estate conversations.
For condo Buyers, there is another layer:
The insurance associated with the condominium project itself.
Fannie Mae's project eligibility requirements include insurance standards for condo projects, and its 2026 updates addressed project standards and property insurance requirements.
This doesn't mean the Realtor needs to become an insurance specialist.
It does mean you shouldn't assume that because a building has insurance, the lender will automatically consider the coverage sufficient.
The Buyer may need to understand:
What the association's master policy covers
What the individual unit owner is responsible for insuring
Whether the lender has reviewed the master policy
Whether flood insurance requirements apply
What the Buyer's individual condo policy may need to cover
How insurance expenses affect the association's budget and monthly fees
Encourage Buyers to speak with their insurance professional and Loan Officer early.
Waiting until shortly before closing to discover an insurance issue can create unnecessary stress.
7. What Do the Condo Documents Tell Us About the Community?
The pool and lobby tell you what the community looks like.
The documents can help tell you how the community operates.
Depending on the transaction and applicable requirements, Buyers may have access to materials such as:
Declaration of condominium
Bylaws
Rules and regulations
Current budget
Financial information
Association disclosures
Reserve information
Milestone inspection materials, when applicable
SIRS information, when applicable
Information regarding assessments
Meeting minutes or other association records, when available
Application or approval requirements
The Buyer may discover practical restrictions that matter enormously to their plans.
Can they rent the unit?
Are there rental waiting periods?
Are short-term rentals prohibited?
Are there pet restrictions?
Are there vehicle restrictions?
Does the association require Buyer approval?
Are renovations restricted?
Are there move-in fees or procedures?
Does the Buyer plan to use the unit as a primary residence, second home or investment property?
A condo can be beautiful and still be completely wrong for a Buyer's intended use.
That's why the document conversation shouldn't happen as an afterthought.
The Question Realtors Should Ask Before the Showing
Here's a simple way to change the condo conversation.
Before taking your Buyer to see five condos, ask:
“What matters to you besides the unit itself?”
Their answers may include:
“I want to rent it eventually.”
“I don't want a huge HOA payment.”
“I have two dogs.”
“I need financing.”
“I don't want surprise assessments.”
“I want a building with strong amenities.”
“I'll only live there six months of the year.”
“I want something near the beach.”
Those answers help you identify potential issues before everyone spends hours touring properties that may not fit.
This isn't about making the search more complicated.
It's about making it more intelligent.
A Simple Pre-Showing Condo Checklist for Florida Realtors
Before your Buyer becomes emotionally invested, try to understand these seven areas:
1. Monthly fees: How much are they and what do they cover?
2. Reserves: What information is available regarding reserve funding and the SIRS, if applicable?
3. Assessments: Are there current assessments or known major projects?
4. Inspections: Is the building subject to milestone inspection requirements, and what documentation is available?
5. Financing: Has the Loan Officer evaluated or discussed the condo project's eligibility?
6. Insurance: Are there master-policy or other insurance issues that could affect financing or ownership costs?
7. Rules: Does the community fit the Buyer's intended lifestyle and use of the property?
You don't need every answer before the first showing.
But knowing which questions will matter can help you guide the Buyer much more effectively.
Don't Confuse Due Diligence With Discouraging the Buyer
Some Realtors may worry that discussing reserves, assessments, and financing too early will overwhelm the Buyer.
The opposite can be true.
Today's Buyers have access to enormous amounts of information online.
What they often lack is context.
A Realtor who says:
“Don't worry about that.”
may unintentionally create uncertainty later.
A Realtor who says:
“That's something we should understand before you make a decision. Let's find the right information.”
builds trust.
The goal isn't to make every condo sound risky.
The goal is to make sure the Buyer knows what they are buying.
Florida's Condo Market Is Showing Opportunity Again
This conversation is particularly timely because the market is changing.
As noted earlier, Florida condo and townhouse closed sales rose 11% year over year in July 2026, with gains occurring across multiple price categories.
Second-quarter data also showed strong activity among properties below $200,000 and those priced at $1 million or more, suggesting demand from very different types of Buyers.
For Realtors, that creates opportunity.
Some Buyers may see condos as a more attainable entry point into Florida homeownership.
Others may want a second home, waterfront lifestyle, lower-maintenance property or luxury residence.
But as condo activity improves, agents who understand the transaction behind the unit can provide a much higher level of service.
Showing the property is only the beginning.
The Condo Financing Conversation Is Becoming Even More Important
There is another reason this subject deserves attention now.
Fannie Mae's 2026 changes aren't finished.
Florida Realtors reports that for applicable condo loans, replacement-reserve funding expectations are scheduled to increase from 10% to 15% of annual budgeted income beginning in January 2027.
For agents, the lesson isn't to memorize underwriting guidelines.
Guidelines change.
The more durable lesson is this:
Bring the Loan Officer into the condo conversation early.
When financing depends partly on the financial and physical condition of the overall project, early communication becomes especially valuable.
A Realtor, Loan Officer, insurance professional, association, Title Company, and other transaction professionals may each see a different piece of the puzzle.
Strong transactions happen when those pieces come together early, not three days before closing.
What About the Title Company?
The Title Company's role is different from the Realtor's, lender's, engineer's or insurance professional's role.
During a Florida condo transaction, title and Closing work can involve matters such as ownership, recorded documents, liens, association-related information, estoppel matters and other requirements affecting the transfer.
This is another reason early coordination matters.
An HOA or condominium issue discovered late can potentially affect:
Seller proceeds
Buyer expectations
Negotiations
Closing costs
Documents needed for Closing
Timing
The final Closing
ARETSI has previously discussed how HOA estoppel surprises, unpaid association balances and pending assessments can create complications near Closing.
The earlier the appropriate parties are involved, the more opportunity everyone has to resolve questions before Closing day.
What Florida Realtors Should Remember in 2026
The condo conversation has changed.
A beautiful unit, attractive Listing price, and great location are still important.
But they are no longer the entire conversation.
Today's condo Buyer may also need to understand:
The unit. The building. The association. The reserves. The insurance. The assessments. The financing. The rules.
You don't need to become an attorney, engineer, accountant, insurance agent or Loan Officer to be a great Realtor.
In fact, knowing when not to answer a question outside your expertise is part of providing professional service.
Your value is often in knowing:
Which questions should be asked?
Which documents should be requested?
Which professional needs to answer the question?
And when should that conversation happen?
Preferably, before the Buyer falls in love with the view.
ARETSI: Helping Florida Realtors Get From Contract to Closing
At All Real Estate Title Solutions (ARETSI), we know successful Closings depend on communication, preparation and collaboration.
Our team works with Realtors, Buyers, Sellers, lenders and other real estate professionals throughout Florida to help make the title and Closing process clear and efficient.
Whether you're working with a condominium in Tampa, Clearwater, St. Petersburg, Palm Harbor, Orlando or elsewhere in Florida, involving the right professionals early can help reduce last-minute surprises and keep everyone better prepared for Closing.
The perfect condo is about more than the view. A successful transaction is about understanding the full picture.
For Closing assistance or a Buyer/Seller Closing Quote, visit ARETSI or contact our team at (813) 876-4373.
All Real Estate Title Solutions (ARETSI) Title Insurance Experts With a Personal Touch Tampa & Pasco | Serving Realtors throughout Florida
This article is intended for general educational purposes and is not legal, engineering, lending, insurance, accounting or financial advice. Requirements can vary based on the property, association, financing and transaction. Buyers and real estate professionals should consult the appropriate qualified professionals regarding their specific circumstances.
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