Buying a Condo in Miami: 10 Steps to Know Before You Buy
Thinking About Buying a Condo in Miami? Here's What to Watch For
You've been scrolling listings, you've found a few buildings you love, and you're ready to start. But what do you actually need to know about buying a condominium in Miami before you begin?
The reality is that buying a condo here is not the same as buying a single-family home, and it's not always the same as buying a condo in another city. Miami has its own set of rules and realities: buildings that banks won't finance, a recertification program that can lead to large assessments, units with tenants already living in them, and condo associations that have to approve you before you can move in.
None of this is meant to scare you. It's meant to prepare you. Below, I walk through the 10 steps of buying a condo in Miami, in the order you'll experience them, along with what to watch for at each stage so you can walk in with the full picture
Step 1: Start With Financing (and Know What a Non-Warrantable Condo Is)
Financing is the first step for a reason. In Miami, the building you choose can affect whether you can get a loan at all.
What is a non-warrantable condo?
A non-warrantable condo is a building where banks can't apply regular, conventional financing. There are many of these in Miami, and a building can fall into this category for a number of reasons, including:
- A high percentage of units that are not owner-occupied
- A high percentage of units used as vacation rentals
- The building is involved in litigation
- The building has a significant number of assessments
These are some of the most common reasons, but there are others. What it means for you is simple: you can fall in love with a building and then learn that your bank won't lend there.
Why I recommend talking to at least two loan officers
This is why I recommend that every buyer speak with at least two loan officers, and ideally mortgage brokers. A mortgage broker works with a wide variety of banks. So if your favorite bank doesn't lend in the building you want, a broker can shop around and find out which lenders will.
If you're using a special loan program
If you're planning to use a first-time homebuyer program or another special program with a low down payment, the building matters even more. Depending on whether a building is warrantable or not, a very low down payment may not be an option there. It's worth knowing this before you get attached to a specific property.
Know your monthly bottom line
At the end of the day, what you and your agent need to know is your bottom line: how much can you comfortably afford for housing each month? That number is about more than the mortgage. A building might have a low HOA fee but also carry an assessment or other expenses that change what you actually pay each month. Looking at the full monthly picture, not just the purchase price, is what protects your finances.
Step 2: Sit Down for a Buyer Consultation
Buying a condo is not just going out and looking at properties. Before you tour anything, it's important to sit down with your buyer's agent and go through the entire process step by step.
A good consultation covers how to prepare your expectations, how to prepare your finances, and what to do (and not do) while you're under contract. That last part matters more than people think. I've seen buyers purchase a car right before closing on a property. A big new purchase can change your debt picture at exactly the wrong moment, so the rule is to keep your finances steady until the keys are in your hand.
Narrow down your top three priorities
The other goal of the consultation is to narrow down the three things that matter most to you in a condo. For example:
- Do you prefer an ocean view, or more space?
- Do you want a higher floor or a lower floor?
- Would you rather have a newer building with less square footage, or an older building with more square footage?
There's no right answer here. It depends on how you live. But if you don't narrow these down early, you could end up looking at condos forever, because every building offers a different mix of trade-offs.
Step 3: Understand Florida's Condo Recertification Requirements
This step goes hand in hand with financing and your consultation, and it's one of the most important things to understand before buying an older condo in Miami.
Miami has long had a building recertification program. In 2022, the requirements were enhanced, which means buildings now need to be more thorough. Depending on a building's age, its proximity to the ocean, and several other factors, a building may need to complete major repairs.
Why recertification matters to your budget
Major repairs are paid for by the owners, and that often means assessments. These assessments can be very substantial. They can affect your purchasing power before you buy, and they can affect your finances after you buy.
Here's a scenario to keep in mind: you buy a unit today, and two years from now the building's recertification comes up. If the building doesn't have enough in reserves to cover the required work, owners may be hit with a large assessment that throws off everything you budgeted for.
Again, the goal isn't to scare you away from older buildings. Many older buildings offer more space and character. The goal is for you to know what you may be walking into, especially if you're not buying in a newer building. If you'd like more detail on how the recertification program works, reach out and I'll send you the information.
Step 4: Preview Properties (and Record Everything)
Picture this: it's Saturday afternoon, you've just walked through your fifth condo of the day, and someone asks which kitchen you liked best. You pause, because the second and third units have already blended together.
That happens to almost every buyer. In my experience, by the third property, most buyers have already forgotten what the first one looked like. By the fifth, it's easy to feel overwhelmed and to start drifting from what you actually came looking for. You get drawn in by a certain unit's feature, even if it doesn't fit the priorities you set in your consultation.
How to keep your showings clear
- Film and photograph each unit. Later, you can rewatch your own videos and compare properties side by side.
- Write down what matters and what doesn't after each showing, while it's still fresh.
- Communicate with your agent. It's completely normal for your priorities to shift a little along the way. Your agent just needs to understand what you want so the search stays focused.
Step 5: Making an Offer on a Miami Condo
Here's something that surprises many buyers: in Miami, you can't send offers on several properties to see which seller bites. Offers are binding.
When you place an offer, you're proposing a contractual obligation to the seller: you will purchase the property at this price and under these conditions. If the seller agrees, signs, and returns it to you, you are locked in. So make sure you're ready to move forward on any property you submit an offer for.
Watch out for tenant-occupied units
Many condos in Miami are tenant-occupied, and this can affect your purchase more than you'd expect.
If you're financing the condo as your primary residence, your lender will expect you to occupy the unit within a certain window after closing. If the current tenant's lease runs for another eight months, that could be a problem. Before making an offer, talk to your lender or mortgage broker and ask how much time you have after closing to move in.
If the tenant is moving out 30 or 60 days after closing, the bank may be willing to work with you. But if the tenant has a lease that can't be broken, that may be a property you can't buy until the tenant moves out.
It's not all about price
A strong offer is about more than the number. You need to consider all of the terms, including:
- Whether there's a tenant in place
- The condition of the unit
- Contingencies
- The timing of the closing (for example, an owner-occupied unit where the seller needs to move out later)
Offering the highest price or the biggest down payment doesn't always win, and cash doesn't always prevail either. The offer that fits the seller's situation often carries as much weight as the price itself.
Step 6: Your Offer Is Accepted: Submit the First Deposit
Congratulations, you have an accepted offer. This is an exciting moment, and it's also when the real work begins.
The first thing you'll do is submit your initial deposit to a third-party title or escrow company. This company is independent of both you and the seller. It holds the money during the transaction, and depending on how things unfold, it distributes the funds according to the contract.
Step 7: Complete Your Engineer Inspections
Next come your engineer inspections. The way I prepare my buyers for this step is simple: the purpose is to understand what you're walking into, and if there's anything major, that's when we negotiate.
You can technically negotiate over anything, even a light bulb. But getting hung up on very small items isn't usually the smartest way to get a deal to the finish line. Focus your energy on the things that truly matter.
Your inspection window
Your contract gives you a set time frame to complete inspections. This window is agreed upon in the offer, and it's often around 7 or 10 days, depending on what you and the seller agree to. If, according to the contract, you're not comfortable with the condition of the property, you have the ability to exit the contract within that time frame.
Step 8: Secure Your Financing
Once you're comfortable with the inspection and your first deposit is in, you're locked into the contract. Now it's time to secure the loan, and you want to start right away.
Why the building matters to your lender
The loan officer and the underwriter need to complete a series of steps to confirm they can lend in the building. As part of this process, the lender sends a questionnaire to the building's management. The questions are straightforward and all tied to financing, such as:
- Is the building involved in any litigation?
- What percentage of units are owner-occupied?
- Is there an assessment?
- Is there a recertification in progress or coming up?
Essentially, the bank wants to make sure the building fits its lending guidelines. Once the answers come back, you're hoping everything lines up with your lender. If it doesn't, you may need to switch to a different lender, which is another reason having a mortgage broker in your corner can help.
Time is of the essence
Your contract includes a financing deadline agreed upon between you and the seller. It could be 30, 45, or 60 days. You're committing to close your loan within that window, so stay on top of every request. Whenever the loan officer asks for a document, send it right away.
Step 9: The Condo Association Application
This step usually runs in parallel with your loan application, and many buyers don't see it coming: you don't just buy the condo. The condo association also has to approve you.
Why your full financial picture matters early
This is why, when I work with buyers, I don't stop at the pre-approval letter you get at the start of the financing process. I want to go deeper into your debt-to-income ratio, your credit score, and the rest of your financial profile. Some buildings have specific requirements, including a minimum credit score to buy. You don't want to find out a month or two into the contract that a building requires a score you don't have.
What the application usually includes
Condo applications typically ask for basic items such as your pre-approval letter and financing information, along with checks like a background check. The approval process can take two, three, or even four weeks.
Remember, if your contract gives you 30 to 45 days to close, that approval timeline eats into your window quickly. Start early and respond fast.
Step 10: Final Walkthrough and Closing Day
This is everyone's favorite step. After all of the work, you're finally ready to close.
The final walkthrough
Before closing, you'll visit the unit for a final walkthrough. The goal is to confirm that everything is in the same condition as when you first saw the property and signed the contract. Nothing should be missing, and everything should be functioning, including the plumbing and electrical.
Closing
Once the walkthrough checks out, the closing usually happens the same day or the day after. And just like that, you're a condo owner in Miami.
What This Means for Buyers, Investors, and Current Owners
If you're buying your first Miami condo
The biggest takeaway is that the building matters as much as the unit. Financing, recertification, assessments, occupancy rules, and association requirements all live at the building level. When you evaluate a condo, you're evaluating both the home and the association behind it.
If you're an investor
Several of these steps carry extra weight for investors. A building with a high share of non-owner-occupied units or vacation rentals may be non-warrantable, which affects financing options. A unit with a tenant in place may work well for an investment purchase, while it could be a challenge for someone financing as a primary residence. It depends on your goals, so talk through your strategy with your agent and lender before you narrow down buildings.
If you own a condo in Miami
If you own a condo in Miami and you've been thinking about making a move, this process is worth understanding from the other side of the table too. The same questions buyers and their lenders ask (Is there an assessment? Where is the building in its recertification? Is there a tenant in place?) are the questions that will shape how your unit is received when you list it. Knowing where your building stands ahead of time helps you set expectations and plan your timing.
If you've been wondering what your condo could sell for, or whether now is the right time, let's have a conversation. No pressure, no commitment.
The Honest Summary
The good
- Miami offers a wide range of condo options, from newer buildings to older buildings with more square footage, across many price points.
- A mortgage broker can open up lending options if your first bank won't finance a building.
- Inspection and financing contingencies give you defined windows to protect yourself, as agreed in your contract.
- With preparation, most of the surprises in this process can be spotted early.
The trade-offs
- Many Miami buildings are non-warrantable, which can limit financing options, especially with low down payment programs.
- The enhanced recertification requirements can lead to substantial assessments, particularly in older buildings with limited reserves.
- Offers are binding, so there's no room to test the waters with multiple offers.
- Tenant-occupied units can complicate financing as a primary residence.
- Condo association approval adds time and may come with requirements like a minimum credit score.
It's not a hard yes or a hard no on any specific building. It depends on your finances, your priorities, and what you're willing to take on. My job is to make sure you see the full picture before you decide.
Ready to Buy a Condo in Miami?
If you're looking to buy, sell, rent, or invest in a condo here in Miami or anywhere in South Florida, please do not hesitate to reach out to me. All of my information is below. Send me a text, send me an email, give me a call, and I'll be more than happy to help you make the move.
And even if you're not ready yet, whether you're three months, six months, a year, or two years out, it's good to have a conversation. Understanding the process early is one of the best ways to prepare for it.
Stefania Mogollon
Miami & South Florida Real Estate Agent
📱 305.600.9602 (call or text)
📧 [email protected]
🌐 Miamicondoshouses.com
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