Why Voting to Sell Could Be Your Best Financial Decision
A clear-eyed look at the math, the market realities, and why waiting for "more money later" may cost you more than you think.
See the FactsThe Hard Truth About Holding
What the "just wait for more" crowd doesn't tell you.
The Illusion of "More Money Later"
It sounds logical: wait a few years, land values will be even higher, you'll get a bigger payout. But here's what that thinking ignores:
Your Payout Is Based on LAND Value—Not Unit Prices
In a condo termination, the building gets demolished. What developers pay for is the 8.3 acres of prime waterfront land—currently valued at $615M+ based on comparable sales (Citadel's $670M assemblage, recent $520M Brickell deal). Your share is pro-rata based on ownership %, regardless of what units are selling for today.
Land Values Peak, Then They Don't
Miami waterfront land is finite. Developers are paying record prices NOW. But markets cycle. Interest rates rise. Capital moves. The window where developers pay $1,700+/sq ft for land won't stay open forever. Today's $615M valuation isn't guaranteed tomorrow.
While You Wait, Costs Are Eating Your Payout
Special assessments, insurance, HOA fees in aging buildings don't grow at 3% per year. Post-Surfside, many Florida condos are seeing 20-50% annual increases in carrying costs. Every dollar you pay in assessments is a dollar less in your pocket when the sale happens.
The bottom line: Your payout comes from land value, which is at historic highs. Meanwhile, your costs keep climbing. Every year you wait, you pay more to hold an asset that's ready to be converted to cash.
The Real Math of Waiting 5 Years
Based on actual 2024-2025 sales data (23 transactions, avg price $573K)
Note: Your payout in a sale is based on land value (~$615M), not individual unit sale prices
*Illustrative example. Your actual costs may be higher.
The Buyer Pool Problem
Who else can actually afford to buy this building?
A $600M+ Purchase Requires a Very Specific Buyer
Let's be honest about the market reality:
Only a Handful of Developers Can Write This Check
Globally, maybe 20-30 developers have the capital, appetite, and Miami expertise to pursue an 8.3-acre waterfront assemblage at $600M+. That's not a robust market—that's a very small club. If current interested parties walk away, who's next in line? Maybe no one for years.
Interest Rates Change Everything
Development deals are financed. When rates were near zero, developers could pencil almost anything. At 7-8% rates? Many projects don't work. The window of favorable financing is not guaranteed to stay open.
Miami's Market Can Cool—It Has Before
Miami saw 30-40% price drops in 2008-2011. The current boom has been fueled by pandemic migration, remote work, and international capital. All three can reverse. When they do, developers pull back. Fast.
Florida's Insurance Crisis Is Real
Insurers are fleeing Florida. Citizens (the state insurer of last resort) is raising rates dramatically. Some condo buildings can't get coverage at any price. This makes older buildings increasingly unattractive—both to live in and to buy.
The Opportunity Window Is Now
You have interested buyers today. Real developers with real capital looking at this specific property. That is not a permanent condition. Markets shift, priorities change, capital moves elsewhere. The question isn't "will there be a higher offer someday?" It's "will there be any offer at all in 3-5 years?"
The Escalating Costs of an Aging Building
What holding really means for your wallet.
After the Champlain Towers collapse, Florida passed SB 4-D requiring mandatory structural inspections and reserve funding for buildings 30+ years old. Our building is 60+ years old.
This means: milestone inspections, Structural Integrity Reserve Studies (SIRS), and fully funded reserves by 2025. Translation? Special assessments of $10,000-$50,000+ per unit are not hypothetical—they're coming.
Buildings don't age linearly. A 60-year-old building doesn't need twice the maintenance of a 30-year-old building—it often needs 4-5x the maintenance.
Plumbing fails. Electrical needs upgrading. Elevators require modernization. Concrete spalls. Seawall repairs. HVAC replacement. Each year, more systems cross from "working" to "critical."
Florida's property insurance market is in crisis. Major insurers have left the state. Those remaining are raising rates 30-50% annually for older buildings.
Some condo associations are seeing 300%+ increases in just 2-3 years. Your monthly costs are going up whether you like it or not—and there's no ceiling in sight.
Banks are increasingly reluctant to write mortgages on older Florida condos with underfunded reserves. No mortgage availability = smaller buyer pool = lower prices.
If a bulk sale falls through, you're left trying to sell your individual unit into a market that's becoming harder to sell into every year.
Here's the collective action problem: if most owners sell but you hold out, you don't gain leverage—you lose it.
You become one of a few remaining owners in a building with no path forward. Developers move on. You're stuck with a unit that's harder to sell, in a building with declining services, and rising assessments split among fewer owners.
Projected Annual Costs: Hold vs. Sell
Time Is Not Your Friend
Every year you wait, your costs go up, the building gets older, the buyer pool shrinks, and your net position erodes. The math doesn't get better with time—it gets worse.
What Your Money Could Be Doing Instead
The opportunity cost of trapped equity.
With Your Sale Proceeds, You Could:
- Buy into a newer building with lower maintenance
- Invest in a diversified portfolio generating income
- Pay off debt and eliminate financial stress
- Help children or grandchildren with home purchases
- Fund your retirement properly
- Travel and enjoy life while you're healthy
- Move to a lower-cost area with higher quality of life
- Start the business you've always wanted
Liquidity is freedom. Your equity sitting in a 60-year-old building is not working for you.
Common Questions & Concerns
Honest answers to what you're probably thinking.
We understand the emotional attachment. This is real and valid. But consider: is this specific building your home, or is Miami your home? With sale proceeds, you could buy or rent in a newer, better-maintained building nearby—same neighborhood, same lifestyle, less financial risk.
Your memories aren't in the concrete. They're in you and your family.
Miami has no shortage of waterfront condos. With $500K-$1M+ in proceeds, you have options. And newer buildings mean: lower insurance, lower assessments, better amenities, easier resale later.
Plus, you could rent for a year while you find the perfect place—earning returns on your invested proceeds the whole time.
If this is your primary residence and you've lived here 2+ of the last 5 years, you get a $250K exclusion ($500K for married filing jointly). For many owners, this covers most or all of the gain.
Even with taxes, the net proceeds invested wisely will likely outperform a depreciating asset with escalating costs.
Maybe. But how much will you have spent in assessments, insurance increases, and HOA fees over those 10 years? $100K? $150K? More?
And will there still be a buyer in 10 years, when the building is 70+ years old and the market has potentially shifted? The bird in hand is real. The one in the bush is speculation.
How the Process Works
- Vote Threshold: Florida Statute 718.117 requires 80% owner approval for termination.
- Appraisal: Independent appraisers determine fair market value for each unit.
- Distribution: Proceeds are distributed based on ownership percentage per the condo docs.
- Timeline: From vote to closing typically takes 6-12 months.
- Relocation: Most deals include relocation assistance and reasonable move-out timelines.
Your Legal Protections
- Can't be forced: 80% threshold means significant owner consensus is required.
- Fair value guaranteed: You're entitled to fair market value appraisal.
- Objection rights: Owners can file objections if they believe process is unfair.
- Legal review: You have the right to have any agreement reviewed by your own attorney.
Voting "yes" doesn't mean you have no protections. It means you're part of a collective decision to unlock value while the opportunity exists.
Questions or Concerns?
We're here to provide information and answer questions—no pressure.