Sarasota Florida News & Blog – DWELL Real Estate

RSS Subscribe to this Feed

What Happens if Florida Eliminates Property Taxes?
Here is a very thorough article from U.S, News and World Report discussing the impacts of Florida eliminating property taxes. As a homeowner, I would love this initially. But, I would be concerned with how local services would get the necessary funding to operate. Real estate does not operate in a vacuum. The lower cost of homeownership would be great and I imagine we would see a huge influx of buyers (demand) to the state initially, but people could also eventually leave the state if school quality, police, fire, roads and other maintenance all decline. If these services could be financed effectively from other sources this would give retirees two big reasons to live in Florida - no state income taxes and no property taxes. Full Article How Eliminating Property Taxes Could Impact Florida Homeowners Gov. DeSantis’ proposal to eliminate Florida’s property taxes would have a big impact on homeowners, residents and businesses. Key Takeaways: Florida's Gov. Ron DeSantis has proposed reducing, reforming or potentially eliminating Florida's property taxes. The proposal is in the idea stage. Any rollbacks or changes require a constitutional amendment with a 60% majority vote. The impact on residents and the real estate market remains uncertain, but experts have theories on potential outcomes. As Florida lawmakers debate Gov. Ron DeSantis' proposal to eliminate state property taxes, buyers, sellers, agents, renters and landlords are trying to figure out the potential fallout. DeSantis has floated the idea of eliminating property taxes, a plan that would require major restructuring of how local governments are funded. He has also suggested immediate relief to Florida homeowners through a tax rebate. Lawmakers in both the state House and Senate have responded with different proposals to trim the sales tax, along with other tax changes. DeSantis, however, says he wants to aim tax relief at residents, not tourists. Property taxes are collected by municipalities in all 50 states and help fund public services such as schools, firefighters and police, among other things. While a change in Florida is far from reality, requiring a constitutional amendment with 60% voter approval, it raises the question: What would happen if Florida eliminated or reduced property taxes? Given Florida would be the first state to eliminate property taxes, there is no good model for what could happen if the policy is passed. To better understand what this proposal could do for homeowners, buyers, sellers and renters, we spoke with experts to break down the potential positive and negative impacts. The comments come just days after DeSantis formally proposed a $1,000 property tax rebate for Florida homeowners in a $5 billion plan now awaiting legislative approval. If it passes, checks could start going out in December.  How Florida's Property Taxes Currently Work Property taxes are levied based on a property's annual assessed value. A municipality collects these funds and disburses them to fund local services. "Schools receive the biggest funding, but you also have a local fire department, police officers, roads and other maintenance. However, the percentage of funding varies by municipality," says Noelle Tassey, CEO and president of Redy, an online real estate platform based in Manhattan where agents bid to represent listings. According to the Florida Policy Institute in Orlando, Florida, property taxes make up 18% of county revenue, 17% of municipal revenue and 50% to 60% of school district revenue, depending on the community. The institute's 2025 report shows around $43 billion is collected from property taxes in Florida and allocated to these local services. However, policy analyst Esteban Leonardo Santis says updated numbers are closer to $55 billion. How Would Florida Replace Property Tax Revenue? No official plan has been released about how property tax revenue could be replaced. "Ultimately, whatever you end up doing it's going to have to be pretty drastic. Nothing is free and budgets have to be balanced. You have to raise revenue equitably or cut services," Santis says. The state Senate has outlined a plan to cut sales taxes and commission a study by the Office of Economic and Demographic Research on eliminating property taxes in advance of a potential constitutional amendment for the 2026 ballot, with findings due in the fall. Possible funding sources include: Higher consumption-based sales taxes Budget cuts Increased tourism tax Locally determined special assessments for certain services A combination of these Suzanne Hollander, an attorney and associate professor at Florida International University's Tibor and Sheila Hollo School of Real Estate in Miami, feels the best solution is to combine multiple funding sources to ensure a balanced budget without excessive cuts. "There are a lot of ways it could be funded," says Hollander. "Increasing restaurant, hotel and tourist attraction taxes. They could trim the municipal budget to make sure there's no waste. They could increase property transfer fees so that when you buy or sell a property, you pay a one-time fee, like documentary stamps. They could implement different millage rates for different uses of the property. Maybe there is no property tax for residential homesteaded property, but there is one for commercial property." While these ideas and others could theoretically offset the $55 billion deficit for municipalities, implementing them proves challenging. The Hurdle of Replacing Property Taxes Florida law requires a supermajority for tax increases, meaning any changes to millage rates, tourist taxes or consumption taxes, among others, would need an individual joint bill where two-thirds of both chambers to vote in favor of the change. "Each funding solution would need its own joint bill and pass a majority within the Legislature. This makes it difficult to combine funding solutions versus having one option to replace the funding. It's not impossible, but it's a hurdle because of all the levers to pull," says the Florida Policy Institute's Santis. Impacts of Eliminating Florida's Property Taxes It's unclear how eliminating property taxes would fully impact homeowners, renters, buyers and sellers. The Senate bill should help provide a more concrete picture, but for now, there are theories. Improve Homeownership Affordability Florida homeowners are struggling with rising housing costs. According to Redfin and CoreLogic data, home prices in Florida rose an astronomical 64% over the last five years, while property taxes increased 47.5% from 2019 to 2024. Florida's Save Our Homes program caps annual increases in the assessed value of homestead properties at 3% or the Consumer Price Index, whichever is less. This is designed to prevent property taxes from rising too rapidly compared with home price increases. The goal is for assessed values to remain lower than market values, reducing the property tax burden. Eliminating property taxes removes a fluctuating cost for homeowners, offering more security, particularly for those on fixed incomes, such as retirees and the elderly.  No Risk of Losing Your Home From Unpaid Taxes "Taxing land/property is the most oppressive and ineffective form of taxation," DeSantis said in his initial post in early February about the proposal on the social platform X. He followed up later that month, saying, "You're basically paying rent to the government to live on your own property," during a press conference on Feb. 24. Right now a municipality can file a lien against a property for unpaid taxes. If the amount remains unpaid for long enough, the lien can be sold at a tax deed auction, resulting in loss of ownership, even if the home is owned free and clear. This would eliminate that risk entirely. Property Values Would Likely Increase “Property taxes have an interesting double-sided impact on property values,” says Tassey, who has observed that in the New England market, lower property tax states often have higher median home prices. For example, Connecticut’s lower property taxes result in significantly higher home values compared with neighboring Massachusetts. While Massachusetts home prices are also comparatively high, its property taxes hike the overall cost of homeownership. "Massachusetts has a much higher property tax, so the price of the home accounts for the higher cost of property taxes," Tassey says. Higher property taxes can have appeal when they fund an attractive level of services, but that is often a harder case to make when home shopping. Generally, lower property taxes tend to have a positive impact on home prices by making properties more attractive to buyers.  Foreign Investment and Buyer Interest Could Increase "Florida is one of the lowest tax-burdened states to live in. Many people are already interested in moving there for that reason," says Tassey. Eliminating or further reducing property taxes could lead to more foreign investment and out-of-state buyers, she says. This could be a good thing to help gobble up some of the oversupply certain housing markets like Miami are facing, but it may also drive up prices, making homeownership even less attainable for renters looking to buy, says Tassey.  Rents Could Come Down "Landlords bake the property taxes and insurance into your rental rate. So, if property taxes can be eliminated, it takes away a big cost that landlords have," says Hollander. This could theoretically make rents more affordable, but market supply and demand will ultimately dictate pricing. A lower cost for landlords doesn’t necessarily mean they’ll pass those savings on to renters. It Could Result in Underfunded Services Some proposed replacements, like sales and tourism taxes, fluctuate with consumer spending, raising concerns about whether Florida can reliably replace billions in lost revenue without cutting public services. If a viable funding plan isn’t approved, cutting services is the only option impacting schools, infrastructure, transportation and libraries among other public services. Tassey again highlights Connecticut as an example. She says wealthier rural areas have access to well-funded public services, while many densely populated cities with lower-income households are struggling with urban decay due to insufficient funding. Property Values Could Decrease Tassey and Hollander believe property values could rise as demand increases from foreign investors and out-of-state buyers. However, Santis argues that if public services are cut, affluent homeowners may relocate to areas with better services, reducing demand and potentially driving prices down. "Eventually, the people who can will vote with their feet and move to areas that have services provided," he says. Residents Might Pay More in Other Ways In 2024, Florida legislators proposed a property tax cut, suggesting replacing the lost revenue with a consumption tax increase, but that bill died in committee. DeSantis has said on X he would not allow a sales tax increase to fund the property tax change. However, makeup income has to come from somewhere, and given the substantial hurdles of a multifunding solution, a single tax increase is a potential solution. According to the Florida Policy Institute, Florida would have to double the current sales tax, which sits at 6% at the state level. Depending on how much you spend in a given year, a 12% sales tax could result in you paying more for public services.  Will Florida Eliminate Property Taxes? This proposal is something the state is taking seriously, says Hollander. However, before moving forward, lawmakers must determine viable funding solutions and assess economic impact. DeSantis is term-limited and will not be able to seek re-election in 2026, so there is always a chance this idea fizzles after he leaves office. However, if a joint bill is proposed and passes a supermajority before the 2026 election cycle, it could appear on the 2026 ballot. Any vote on eliminating or changing property tax law would require a 60% majority vote by registered Florida voters. Nonetheless, it is a serious topic Florida residents should pay attention to as it progresses. Marc Rasmussen Broker/Owner of Corcoran Dwellings Office 941.822.0708
Posted 11 June 2025 | 3:14 pm

Is the Real Estate Bottom Near?
This seems to be the question for many buyers who have been sitting on the sidelines. They fear that they will be able to buy a better house for less in the future. I have been in real estate sales since 2000, so I have seen this 'market bottom predicting' before. Specifically, in the 2008/2009 mortgage meltdown. Back then everyone was trying to pick the bottom as well. I don’t think anyone can accurately pick the bottom to the day, week or month. But, you can get close. Here are some signals that the bottom is here or close. Lower than average sales volumes Falling prices Low consumer sentiment Plenty of media articles about falling real estate prices General fear of the market Low wages growth Fewer people attending open houses Days on market higher than the long-term average Potential interest rate cut looming On the other side of falling prices is a stabilization phase. This is the period where property prices are stagnant for some time before demand builds up and prices begin to rise again. Markets do not turn around overnight. Especially real estate markets. Homeowners are very receptive to hearing that the price of their home has risen but not interested in hearing how it has gone down. Should You Wait or Should You Buy? I think personal circumstances trump the need to pick the bottom of the real estate market. If we were within 5% of the bottom is it smart to pass up a really nice home that checks all of your boxes? One of the best times to buy property is when the herd is walking the other way. I have seen a lot of wealth built when people bought when few wanted to buy and sold when everyone wanted to buy. New listings in the last 7 days Marc RasmussenBroker/Owner of Corcoran Dwellings
Posted 5 June 2025 | 2:30 pm

18-Story Mixed-Use Project Approved for Mira Mar
Sarasota City Commission Approves Land Use Change, Clearing the Way for an 18-Story Mixed-Use Project to Move Forward. After hours of presentations from the applicant, opponents and public comment, commissioners unanimously approved a comprehensive plan amendment at yesterday’s legislative meeting. The Sarasota City Commission voted unanimously on Monday to approve a comprehensive plan amendment that changes the land use designation for part of the Mira Mar Plaza property from “downtown core” to “downtown bayfront,” clearing the way for an 18-story redevelopment behind the historic building on Palm Avenue. The decision marks the latest turn in a high-profile and often contentious process that has pitted the public against the development with concerns including the erosion of neighborhood character, new development precedents and an increase in building heights. Last week, the city voted down another high-rise project just down the street at 1260 N. Palm Ave. The legislative meeting required a super majority vote. The unanimous 5-0 vote followed a daylong hearing that drew hours of public testimony and detailed rebuttals from the new project’s development team. Proponents of the amendment, including architect Rick Gonzalez and the applicant’s legal counsel, argued that the land use change was essential to fund the rehabilitation of the nearly 100-year-old Mira Mar Plaza, which has fallen into disrepair. Gonzalez, who specializes in historic preservation, said that while the building needs new foundations and structural reinforcement, a full restoration is feasible and already underway in the design phase. As far as the residential units, each tower will have 35 condos, for a total of 70, as allowable under the current density limits. The historic Mira Mar Hotel, originally constructed in 1922, was one of Sarasota’s earliest luxury accommodations and later served as apartments and commercial space. Today, it’s home to roughly 48 commercial tenants but has no individual landmark designation. A previous attempt to demolish it in 2022 was denied by the City of Sarasota’s Historic Preservation Board, prompting a shift in strategy by the property’s owners, Seaward Development. They returned with a new proposal: save the building, but increase the allowable height on the rest of the parcel to make the economics work. The applicant argued that a downtown bayfront land use designation was essential to realizing a financially viable plan for preserving the Mira Mar. Increasing the height allowance to 18 stories, they said, would allow two slender residential towers to rise behind the historic structure, creating open corridors for light, air and sweeping views. The applicant also asserted that sales of the upper-floor condominium units—particularly those on floors 14 through 18—would generate the revenue needed to cover the estimated $29 million cost of rehabilitation. Without the extra height, the applicant team said, the building would likely face future demolition, as simply maintaining it in its current condition would not be financially sustainable. The developers also pointed to planned design concessions: reducing the building’s footprint above the podium level—the ground and lower levels of a building that provide a clearly differentiated base or platform for a tower)—to no more than 60 percent of the site, incorporating landscaping and open-air spaces at street level and preserving the street-facing retail experience by taking advantage of floodplain exceptions granted to historic properties. Critics of the proposal, including residents of the neighboring The Mark condominiums, argued that an 18-story structure would be out of scale with its surroundings and set a dangerous precedent. Some questioned the sincerity of the preservation effort and suggested the project should be delayed until the city completes its new Downtown Master Plan. Others feared the new towers would obstruct views and diminish the pedestrian character of the area. Several residents of The Mark condominium objected also said the new towers would obstruct their water views and cast shadows on their pool area. The applicant’s attorney argued that while such concerns were understandable, Florida law does not recognize a private property owner’s legal right to an unobstructed view.  The applicant’s team also insisted that any future proposals to upzone neighboring parcels would be evaluated individually, and that the commission’s action did not establish a legal precedent. The applicant team emphasized that the site, under current zoning, could already accommodate 10 to 13 stories by right—and potentially more if developed under the state’s Live Local Act. Parcels zoned for 18 stories are already common in the neighborhood—for example, the DeMarcay next door. Other speakers cited environmental impacts. “This project will pour more concrete and glass into a part of the city that’s already overheating,” said resident Liz Greenwald. “We keep talking about sea level rise and the urban heat island effect, but then we approve buildings that block airflow and absorb heat. That’s not sustainable planning—it’s short-term thinking.” To address community concerns, the applicant agreed to a series of proffers that will be carried into the forthcoming rezoning ordinance. Among them: the historic Mira Mar must be rehabilitated and issued a certificate of occupancy before the new residential towers can receive one; building podiums must not exceed 60 percent lot coverage; second-floor commercial space in the preserved structure must be offered at no more than 50 percent of the market rental rate for a period of 10 years; and the building’s interstitial space (floor-to-floor gap for mechanical systems) must be minimized to limit overall massing. In addition, the developers said they would forfeit any transfer of development rights from the historic portion of the property and committed to adding pedestrian-friendly ground-floor retail. While Monday’s vote approved only the land use change, the project still requires a rezoning, which will come before the commission at a future public hearing. City attorney Robert Fournier clarified that if the rezoning is not approved, the comprehensive plan amendment would not take effect. Both ordinances are expected to be considered together, with the rezoning coming first. The second reading of the comprehensive plan amendment would follow only if the rezoning passes. It would not be legislative. The first reading for the ensuing rezone of the site are expected to come before the City Commission in July. Commissioners described the decision as difficult but ultimately concluded that preserving the historic Mira Mar for future generations outweighed the potential drawbacks of allowing additional height on a portion of the site.  “We’re relying on the applicant’s good faith to uphold the spirit of what’s been promised today,” said Commissioner Jen Ahearn-Koch. “This is not just about restoring a building. It’s about setting a standard for what kind of development we want in downtown Sarasota—one that values history, design and accountability.”
Posted 21 May 2025 | 1:41 pm

Inventory Climbs - Your March 2025 Market Update
Sarasota County Highlights: Single-Family Homes: Sales surged to 817 units, marking a 38.7% increase from February and a 13.0% rise year-over-year. However, the median sale price dipped by 8.8% compared to March 2024, settling at $469,450. Inventory expanded to 4,412 active listings, equating to a 6.9-month supply. Townhomes & Condos: Sales reached 324 units, a 36.7% uptick from the previous month but a 19.8% decline year-over-year. The median price decreased by 10.2% to $346,500. Inventory grew to 2,714 listings, representing a 9.7-month supply, indicating a shift towards a buyer's market. Manatee County Highlights: Single-Family Homes: Sales totaled 668 units, up 33.6% from February but down 8.5% year-over-year. The median sale price rose by 1.5% to $506,317, the highest since June 2024. Inventory stood at 3,256 active listings, a 5.2-month supply. Townhomes & Condos: Sales increased to 300 units, a 19.5% rise from February and a 6.4% increase year-over-year. The median price slightly declined by 1.3% to $338,395. Inventory remained stable at 1,816 listings, an 8.2-month supply. Market Insights: Sarasota's single-family home sales are robust, yet prices are softening, offering opportunities for buyers. In contrast, Manatee's single-family market shows price resilience despite a dip in sales. The condo and townhouse segments in both counties are transitioning towards buyer-friendly conditions, with increased inventory and longer time on the market. Camila Yeager Broker Associate Marketing & Operations Manager
Posted 8 May 2025 | 5:45 pm

Amara - New Sarasota Condos
The Ronto Group, who is also developing Rosewood Residences on Lido Key, has announced a new condo development on Golden Gate Point. Amara on Sarasota Bay will replace Pier 550 on Golden Gate Point with two condo towers and 54 residences. They will start at $4.2 million.  It was just a matter of time until Pier 550 condos were redeveloped. The cute waterfront community was built in the 1940's. While some locals might be upset with the removal of old structures, the highest and best use of such a prime piece of real estate are probably new residences.  Amara on Sarasota Bay are located on the east side of Golden Gate Point. Owners will have amazing views of the water, city and marina. The beauty of this location is the easy access to all of the amenities of downtown Sarasota without the noise and hassles of late night bars, congestion, early morning garbage pickups and other downtown living hassles.  Designed by MHK Architecture, Amara Condos will feature seven different floor plans ranging from roughly 2,600 to 3,500 square feet, with prices starting at $4,200,000. There will also be seven penthouses, two of which will have private swimming pools. The highest-priced units, located on the second floor are listed at $8.5 million.  View All Amara Condos For Sale  Sarasota Magazine article about Amara condos If you would like more information about Amara condos please fill out form below or call Marc Rasmussen at 941.800.5000.
Posted 25 February 2025 | 5:35 pm