How Milestone Inspections Affect Delray Condo Values

Thinking about buying or selling a condo in Delray Beach? Milestone inspections are now shaping prices, financing, and timelines across the county. You want a clear plan that protects your bottom line without surprises. In this guide, you’ll learn how the law works, why it affects value, what to watch for locally, and how to negotiate smart. Let’s dive in.

Milestone inspections in Florida: the basics

Florida requires milestone structural inspections for condo and co‑op buildings that are three or more stories tall. The first inspection is due when a building turns 30 years old, then every 10 years after that. Buildings within three miles of the coastline can face an earlier first inspection at 25 years. You can review the statute for full details in chapter 553.899 of Florida law. See the statute.

Inspections happen in two phases. Phase 1 is a visual assessment by a Florida‑licensed architect or engineer. If the inspector finds “substantial structural deterioration,” Phase 2 is a deeper, more invasive review. Reports are submitted to the local building official, and a summary must be shared with owners. The City of Delray Beach outlines its filing steps and timelines on its site. View Delray’s milestone recertification guidance.

Why inspections move condo values in Delray

Special assessments and reserves

When inspections uncover needed repairs, associations often fund the work through special assessments, higher dues, or loans. Large assessments can reach into six figures per unit in some buildings, which raises carrying costs and pressures resale prices. Recent coverage documents how new rules and repair needs have altered sales outcomes. Read market coverage on assessments and sales.

Florida’s 2025 updates give associations more financing flexibility, including the ability to use lines of credit or loans for reserves and, in limited cases, to pause some reserve contributions. These tools can ease short‑term strain, yet repayment still affects pricing and cash flow. See a summary of 2025 changes (HB 913).

Mortgage and financing hurdles

Fannie Mae and many lenders will not approve loans in projects with significant deferred maintenance, evacuation or unsafe orders, or unresolved critical repairs. If a building is flagged, conventional financing may be unavailable until repairs are complete. That shrinks the buyer pool and can lower sale prices. Review Fannie Mae’s condo project guidance.

Buyer disclosure and leverage

Florida law now requires sellers, through the association, to provide buyers with the inspector‑prepared milestone summary, the SIRS, and other key documents before contract execution. Buyers also get a statutory window to cancel after receipt. This transparency strengthens buyer negotiating power when inspections show future costs. See the resale disclosure statute.

Insurance cost pressures

Milestone requirements overlap with Florida’s property insurance challenges. Higher premiums and stricter underwriting can add to ownership costs and weigh on values, especially when repairs are pending. Read reporting on Florida’s insurance strain.

Local picture: Palm Beach County and Delray

Palm Beach County reports hundreds of buildings subject to milestone inspections in unincorporated areas, with compliance and enforcement underway. Early 2025 county materials noted dozens of buildings behind on filings, underscoring how broad the impact is around Delray. See the county’s update.

Within city limits, Delray Beach follows the state’s Phase 1 and Phase 2 model, requires sealed reports, and outlines submittal procedures through its permitting portal. Associations must submit reports, share summaries with owners, and secure permits for required repairs. Check Delray’s procedures and portal.

If you are selling a Delray Beach condo

• Gather and provide the milestone inspection summary, SIRS, recent financials, and any repair schedules before a buyer signs. Failing to deliver required documents can make a contract voidable. Confirm disclosure rules.
• Build a clear financing plan for repairs with your board, whether through reserves, special assessments, or a line of credit. Communicate timelines and amounts to buyers to preserve confidence. Review 2025 financing options.
• Expect lender questionnaires and estoppel requests. Have up‑to‑date reserve balances, insurance details, and any repair notices ready to keep the deal moving. See common disclosure caveats.
• Price with the inspection in mind. A clean Phase 1 can be a selling point. If repairs are pending, consider credits, escrows, or pricing adjustments to reduce friction with buyers.

If you are buying a Delray Beach condo

• Request the milestone summary, SIRS, association budget, recent meeting minutes, and insurance info before you sign. Use your statutory review window to digest them. Know your rights under 718.503.
• Ask your lender early about project eligibility. If Fannie Mae will not approve the project due to deferred maintenance, you may need cash or a specialty loan, which can affect price and timing. Check Fannie Mae guidance.
• Budget for potential assessments and higher insurance costs. Factor these into your affordability and offer strategy. See insurance context.
• If inspections reveal issues, use the findings to negotiate price, request repairs, or structure an assessment credit at closing.

Negotiation strategies that work now

• For sellers: package transparency with solutions. Provide a summary sheet of inspection status, estimated timelines, and how repairs will be funded. Offer a closing credit or escrow if the buyer’s lender requires repairs to be underway.
• For buyers: tie your offer to documented risk. If the project has significant repairs ahead or limited reserves, seek a price reduction, seller‑paid assessments, or a reserve contribution at closing.
• For both sides: keep financing feasibility front and center. Deals often hinge on project approval and insurance terms, not just appraisal.

Quick checklist

• Sellers
  • Post and share the milestone summary, SIRS, and budgets early.
  • Align with the board on repair financing and timelines.
  • Prepare for lender questionnaires and estoppels.
  • Price for the current condition and reserves.
• Buyers
  • Collect the milestone summary, SIRS, financials, and insurance data.
  • Verify project eligibility with your lender.
  • Model assessments and premiums in your offer.
  • Use your statutory review window to decide.

Ready for tailored guidance on your building, budgets, and the best path to your goals in Delray Beach? Connect with Deborah Puleo to map your next move with confidence.

FAQs

What is a Florida milestone inspection and when is it due?

• Florida requires a structural inspection at 30 years of building age, then every 10 years, with earlier first inspections possible for buildings within three miles of the coast. Review the statute.

How can inspections affect getting a mortgage on a Delray condo?

• If a project has significant deferred maintenance or safety directives, lenders like Fannie Mae may deem it ineligible, which limits financing and can lower sale prices. See Fannie Mae’s policy.

Which documents should I review before buying a resale condo in Delray Beach?

• Ask for the inspector‑prepared milestone summary, the SIRS, current budget and reserves, insurance info, and any repair notices before you sign. See buyer disclosure rules.

Do special assessments from inspections reduce sale prices?

• Large or likely assessments raise ownership costs, which often leads buyers to negotiate lower prices or request credits at closing. See market reporting.

Have Florida laws changed to ease condo repair costs in 2025?

• Yes, updates allow associations to use loans or lines of credit for reserves and to pause some contributions in limited cases, although repayment obligations remain. Read a 2025 summary.

Where can I find Delray Beach’s local milestone process?

• The City of Delray Beach posts procedures, filing steps, and timelines through its Building Division and eServices portal. Visit the city’s page.