The collapse of Champlain Towers South in Surfside didn’t just end lives – it set off a regulatory chain reaction that is still working its way through South Florida’s condo market. For seniors looking to sell in Palm Beach County’s 55-plus communities, the effects are now impossible to ignore.
Paul Saperstein, Team Leader and Broker-Associate at The Saperstein Group with eXp Realty, has closed many transactions annually in Boca Raton, Delray Beach, and Boynton Beach, and has watched the shift reshape nearly every deal his team handles. What the new rules have done to buyer confidence, property values, and the pace of sales is a story most sellers in these communities aren’t fully prepared for.
Before 2021, a building’s reserve fund was rarely a deciding factor in a condo purchase. That changed when Florida responded to the Surfside collapse with sweeping new requirements. Buildings three stories and above must now maintain full reserve funding, meet 10% reserve minimums, and complete 40-year structural studies. The intent was safety. The effect on the market has been significant. “The condo market in South Florida is definitely slower,” Saperstein says. Single-family homes in the same communities, not subject to the same requirements, have remained comparatively strong – a divergence that reflects just how directly the regulations have landed on condo values specifically.
For sellers in these communities, the regulations have introduced a variable that has nothing to do with their individual units. A condo can be well-maintained, attractively priced, and move-in ready – and still sit on the market because the building it sits in is underfunded or facing a structural study. Buyers are now doing a level of due diligence on associations that simply didn’t exist before, asking hard questions about reserve fund health, upcoming assessments, and long-term carrying costs before making any offer.
Tightened association requirements are compounding the pressure further. Credit score minimums and income thresholds – put in place to protect the financial stability of communities – are narrowing the pool of qualified buyers at a moment when sellers can least afford it. For seniors who need the proceeds from a sale to fund assisted living, memory care, or another transition, the speed of a sale matters as much as the final number. The market itself, Saperstein notes, keeps shifting: “Everything’s always changing. When the market changes, the properties have to show a little better – the speed of the sale can be just as important as the price.”
The regulatory cooling has landed on top of an existing tension between buyers and sellers that was already making deals difficult. “The buyers think the prices are like 2008, 2009, and the sellers think the prices are from 2020,” Saperstein says. “We’re stuck in this weird position in between.” Sellers remain anchored to peak pandemic-era pricing. Buyers, now acutely aware of the added costs and risks that come with underfunded buildings, are using the regulatory environment as leverage. The result is a standoff that is slowing transactions across the board.
For sellers who receive a credible offer, Saperstein’s advice is direct: take it seriously. Buyers hold more leverage now than they have since before the pandemic, and the combination of stricter requirements and a cautious buyer pool means that waiting for a better offer carries real risk – particularly for sellers whose next step depends on closing.
Not every condo in South Florida’s senior communities is sitting. The ones moving tend to share two things: buildings with healthy reserves and strong association management, and amenity offerings that today’s more active seniors are willing to pay for. The amenity shift, Saperstein notes, predates the regulatory changes – it reflects a generational change in how seniors want to live. “The neighborhoods that have amenities are fetching far higher numbers,” he says. “Thirty years ago, that was not very common when these neighborhoods were built.”
On the individual unit level, targeted preparation still makes a measurable difference. A full staging package might run $1,500; new flooring another $2,500. “Rather than drop the price by $20,000, if we put $5,000 into the property, it becomes a win-win,” Saperstein explains. In a market where buyers are already scrutinizing building finances, a well-presented unit removes one more reason to hesitate. For sellers navigating a market that has fundamentally shifted, understanding what buyers are actually weighing –and what the regulations have made them more sensitive to – is the difference between a sale and a stall.
About the Expert: Paul Saperstein is Team Leader and Broker-Associate at The Saperstein Group with eXp Realty, working primarily with seniors in South Florida’s 55-plus communities.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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