Tampa Bay has become an increasingly attractive destination for buyers relocating to Florida, purchasing a second residence or simply looking for a different lifestyle. But understanding the Tampa Bay residential market requires looking beyond individual properties.
For example, Tampa Bay isn’t a single real estate market. A waterfront home on Davis Islands, a condominium overlooking downtown St. Petersburg, a Gulf-front residence on the beaches and an estate in one of Tampa’s private communities can all fall within the luxury market while offering very different ownership experiences.
That raises a more useful set of questions than simply asking what homes are available.
If waterfront living is important, what kind of waterfront? Is direct Gulf access important? What water depth does your boat require? Are there bridges between the property and open water? What is the condition of the seawall and dock, and who is responsible for maintaining them?
If you’re considering a condominium, what are you actually buying into? Beyond the residence itself, what do the association’s financials look like? How adequately is it reserved? Are assessments anticipated? How is the building insured? What restrictions could affect how you use or eventually sell the property?
If you’re relocating to Florida, is the purchase also part of establishing Florida domicile? When should your attorney, CPA or wealth advisor become involved? Should the property be purchased individually, through a trust or another ownership structure? What should be considered before closing rather than afterward?
And how do you choose among Tampa Bay’s different communities? Does the buyer want boating, walkability, privacy, club amenities, newer construction, proximity to Tampa International Airport, access to downtown, or the Gulf beaches? Those priorities can lead to very different parts of the region.
These are only a few of the questions I routinely encounter when working with clients considering Tampa Bay.
They’re also part of what led me to create my Tampa Bay Private Client Handbook.
The handbook is designed to answer many of the questions that arise before a significant residential real estate decision is made—and introduce some that buyers may not yet know they should be asking.
The Purchase Price Isn’t the Entire Cost of Ownership
Florida’s lack of a state individual income tax is understandably part of its appeal, but that doesn’t mean the cost of owning real estate here should be evaluated solely by comparing purchase prices.
Property taxes, insurance, flood exposure, association fees, community assessments and the ongoing cost of maintaining certain types of properties can vary considerably.
Property taxes deserve particular attention. A buyer shouldn’t assume that the seller’s current property-tax bill is a reliable indication of what the buyer will pay after purchasing the home. Florida’s homestead and Save Our Homes provisions can create a substantial difference between the taxable value of a property for a longtime owner and its value following a sale.
That means a $3 million property with a surprisingly low current tax bill shouldn’t necessarily be evaluated using that number.
The better questions are: What might the property be assessed at following the sale? Will it become the buyer’s Florida homestead? Are there HOA or CDD obligations? What does insurance realistically cost for this particular property rather than for a hypothetical home at the same price?
Those numbers provide a much better picture of ownership.
Insurance Should Be Part of the Property Conversation
Insurance in Florida is another subject that deserves to be considered earlier in the purchasing process.
Two similarly priced homes can have very different insurance profiles based on their location, age, roof, construction, elevation, wind mitigation features and flood exposure.
For waterfront properties, those considerations can become even more important.
Rather than waiting until a transaction is well underway, buyers can benefit from asking questions earlier: What flood zone is the property in? Is flood insurance required or advisable? How old is the roof? Are there features that may affect insurability? What does the property’s claims history reveal? Should an insurance professional review the property before the inspection period expires?
A beautiful property can still be a good purchase with higher insurance costs. The important thing is understanding those costs before making the decision.
Waterfront Doesn’t Always Mean Boatable
This is one of the distinctions that can be particularly important for buyers unfamiliar with Tampa Bay.
A listing can accurately describe a property as waterfront without that waterfront necessarily serving the buyer’s intended purpose.
For someone who owns or plans to purchase a boat, the questions become much more specific.
What is the water depth at low tide? Is there sufficient depth at the dock? Are there fixed bridges along the route? What are their clearances? How long does it take to reach open water? Is the existing dock properly permitted? Can it accommodate the buyer’s vessel? What condition is the seawall in, and what could replacement eventually cost?
The view from the backyard may be extraordinary, but for a serious boater, what happens between the backyard and Tampa Bay or the Gulf can be just as important.
With Condominiums, You’re Evaluating More Than the Unit
Tampa Bay and St. Petersburg offer an increasingly sophisticated selection of luxury condominium residences, including newer buildings with extensive amenities and services.
But purchasing a condominium means acquiring an interest in a larger financial and physical structure.
That makes the condition of the building and association relevant to the value of the individual residence.
A buyer may want to understand: What are the association’s reserves? What major capital projects are anticipated? Have there been recent or proposed special assessments? How has the building addressed Florida’s evolving condominium requirements? What insurance does the association carry, and what must the individual owner insure separately? Are there leasing, pet or renovation restrictions that matter to the buyer?
The most beautifully renovated residence in the building doesn’t exist independently of the building’s finances and governance.
New Construction Requires a Different Set of Questions
New construction is another area where buyers can benefit from understanding the process before selecting a property or builder.
With true custom luxury construction, there may be no meaningful advertised base price. The final cost develops through the homesite, architecture, structural engineering, builder specifications, cabinetry, finishes, technology, outdoor living, landscaping and numerous decisions made throughout the project.
The questions therefore extend well beyond, “How much does the house cost?”
Who controls the plans? How are allowances established? How are change orders handled? What isn’t included in the initial construction budget? What happens when material costs change? What deposits are required? What does the builder agreement provide? What are realistic completion expectations? And which highly personalized choices could eventually affect resale?
Building exactly what you want can be one of the advantages of custom construction. Understanding the process is what allows that flexibility to remain an advantage.
The Property May Be Part of a Much Larger Plan
For some buyers, acquiring a Tampa Bay residence is relatively straightforward. For others, it is one component of a larger financial or family decision.
The purchase may coincide with establishing Florida residency, relocating a company, changing estate plans, purchasing through a trust or other entity, selling a residence in another state, or deciding where a family intends to maintain its primary home.
That’s where the questions begin to overlap with other professional disciplines.
How should the property be titled? When should Florida domicile be established? How could the purchase interact with an existing estate plan? Does a trust or other ownership structure make sense? What documentation should be addressed as part of a residency change?
Those aren’t questions a real estate broker should answer in place of an attorney, CPA or wealth advisor.
But they are questions a broker should recognize.
For private clients in particular, real estate representation can work best when the broker is comfortable coordinating with the client’s other advisors so that the property transaction fits into the larger plan.
Knowing the Questions Before You Need the Answers
These are the types of issues I wanted to address when I created the Tampa Bay Private Client Handbook.
It isn’t simply a collection of homes or a list of neighborhoods. It’s intended as a practical resource for understanding many of the decisions surrounding a Tampa Bay residential purchase—from choosing among the region’s very different markets to waterfront due diligence, condominium ownership, custom construction, insurance, property taxes, relocation, Florida domicile and ownership considerations.
It is also designed to be useful for attorneys, CPAs, wealth advisors, family offices and real estate professionals who have clients considering Tampa Bay and want a better understanding of the residential real estate issues they may encounter here.
Not every topic will apply to every buyer. That’s precisely the point.
The objective is to know which questions apply to your situation—and to ask them early enough for the answers to influence the decision.
After more than 27 years in real estate, I’ve found that some of the most important work happens well before a contract is signed.
Sometimes the answer confirms that you’ve found exactly the right property. Sometimes it identifies something that needs further investigation or negotiation. And occasionally, it tells you that a beautiful property isn’t the right purchase after all.
For anyone considering a significant residential purchase or relocation to Tampa Bay, I’ve made the Tampa Bay Private Client Handbook available as a complimentary resource.
To request a copy, contact Steve Eckhardt at Cornerstone Properties International or visit TheTampaMLS.com.
