Relocating to Miami? What Out-of-State Buyers Need to Know Before You Buy
Buyers relocating to Miami from New York, California, or other high-tax states face a buying process that differs significantly from what they're used to — in contract structure, insurance requirements, closing costs, and timing. The Florida FAR/BAR AS-IS contract has no attorney review period, Miami-Dade has a reversed title insurance custom (buyers pay), homeowners insurance is dramatically more expensive and requires a 4-point inspection, and the homestead exemption has a hard March 1 deadline you cannot miss. Understanding these differences before you make an offer will save you from expensive surprises and help you move quickly and confidently in a market where the best homes don't wait.
By Lynley Ciorobea | June 26, 2026
Buyers moving from New York, California, or Chicago make the same expensive mistakes in Miami's luxury market — not because they're inexperienced, but because the rules are completely different. The contract works differently. Insurance works very differently. The closing cost structure is reversed. And the market's seasonal rhythms are the opposite of what most Northeast buyers expect.
I work with relocation buyers regularly — people making the move from Manhattan, the Hamptons, Los Angeles, San Francisco, and Chicago into Coral Gables, Pinecrest, Palmetto Bay, and Coconut Grove. The ones who come prepared close confidently. The ones who don't often find themselves caught off guard in the inspection period, scrambling for insurance, or missing a tax deadline that costs them thousands.
Here's what you actually need to know.
The Contract Is Different — and There's No Attorney Review Period
This is the first thing New York and New Jersey buyers need to understand: Florida does not have an attorney review period.
In New York and New Jersey, buyers typically have several days after signing a contract to have their attorney review it and, if needed, cancel with no consequences. That window doesn't exist in Florida. Once both parties sign the contract and it is delivered, you are bound. Getting an attorney involved before you sign is not optional — it's how the process works here.
Florida uses the FAR/BAR AS-IS Residential Contract for most residential purchases. The AS-IS designation doesn't mean you're buying blindly. What it means is that the seller has no obligation to make repairs after inspection. What you do get is a full inspection period — typically 15 calendar days — during which you can cancel the contract at your sole discretion and receive your full deposit back, for any reason. You can walk away because the inspection revealed a structural problem, or simply because you changed your mind.
That inspection period is your primary protection. Use every day of it. Get a general home inspection, a 4-point inspection (more on that below), a wind mitigation inspection, and — for any home with a pool, dock, or seawall — the relevant specialty inspections. If you're buying in a flood-prone area, a flood zone determination and elevation certificate are part of your due diligence too.
Another thing that surprises buyers from states with formal attorney review periods: the earnest money deposit timeline in Florida is fast. Deposits are typically due within 3 business days of contract execution, and in Miami's luxury market, sellers expect 3% to 10% of the purchase price up front. On a $3 million home in Coral Gables, that's $90,000 to $300,000 — deposited quickly and held in escrow. Don't wait until the last minute to arrange wire transfer authorization from your bank.
Homeowners Insurance Is the Biggest Shock for Out-of-State Buyers
Nothing surprises relocation buyers more than Florida homeowners insurance.
In New York, California, or Illinois, homeowners insurance on a $2 million home might run $2,000 to $5,000 per year. In Miami, that same property will typically cost $12,000 to $25,000 per year, and sometimes significantly more — depending on the home's age, roof condition, construction type, flood zone, and proximity to the water.
Several things drive this:
4-point inspections: For homes older than roughly 20 years, most carriers require a 4-point inspection of the roof, HVAC, plumbing, and electrical before writing a policy. If the roof is more than 15 years old, you may struggle to find coverage at all — or pay dramatically higher premiums.
Pre-2002 construction risk: Florida's building codes were significantly strengthened after Hurricane Andrew. Homes built before 2002 face higher premiums because they weren't built to current wind-resistance standards. This is one reason why newer construction in Pinecrest can actually be less expensive to insure than an older resale home in the same neighborhood.
Wind mitigation inspections: A wind mitigation inspection documents your home's hurricane-resistant features — roof shape, roof decking attachment, hurricane straps, impact windows and doors. The inspection costs $75 to $150 and can reduce your premium by 25% to 45% if your home qualifies.
Flood insurance: Many areas of Coral Gables, Coconut Grove, and Palmetto Bay near the water are in FEMA-designated flood zones requiring separate flood coverage. The National Flood Insurance Program (NFIP) caps coverage at $250,000 for the building — completely inadequate for a $3 million home. Private flood policies from Chubb, AIG, or Aon Edge can provide coverage up to $10 million to $15 million and are worth reviewing before you buy.
Start the insurance conversation on Day 1 of your inspection period, not Day 14. In Miami's post-crisis insurance market, getting a bindable quote takes longer than most buyers expect, and you don't want to discover a coverage problem with three days left on your inspection period.
What Miami-Dade Closing Costs Look Like for Buyers
If you're accustomed to closing costs in other states, Miami-Dade has one notable reversal that catches almost every out-of-state buyer off guard: in Miami-Dade County, the buyer pays the owner's title insurance policy.
In most of Florida and most of the country, the seller pays for the owner's title policy. In Miami-Dade, the custom is reversed — the buyer pays. On a $2 million purchase, the owner's title insurance policy typically runs $9,000 to $12,000 and is paid entirely by the buyer at closing.
In addition to title insurance, financed buyers in Miami-Dade pay the intangible tax ($2 per $1,000 of loan amount) and documentary stamp taxes on the mortgage note ($0.35 per $100 of the loan). On a $2 million purchase with an $800,000 jumbo loan, that's roughly $1,600 in intangible tax and $2,800 in doc stamps on the note. For a full breakdown of what you'll actually pay at closing, see our detailed guide to Miami-Dade closing costs for buyers.
Cash buyers save considerably over financed buyers in closing costs — and cash is genuinely common in this market. At the $1 million-plus price point, over 50% of single-family home sales in Miami-Dade close in cash. At $3 million and above, the number is higher. If you're financing, a strong pre-approval letter from a reputable lender is essential — especially if your income is complex (self-employed, bonus-heavy, or from a business sale).
Speaking of financing: if your loan amount exceeds $832,750 in Miami-Dade, you're in jumbo territory. Jumbo pre-approval takes longer than conventional, typically 30 to 45 days, and lenders scrutinize income, reserves, and debt ratios more carefully. For condo purchases, lenders may also require project review documentation including reserve study results, litigation status, and owner-occupancy ratios — something that became much more important after Florida's 2025 condo reserve law took effect. If you're considering a condo, read our guide to what to check before making an offer on a Miami condo.
Property Taxes and the Homestead Exemption
Your property taxes will reset completely when you buy in Miami-Dade. The Save Our Homes cap — which has kept many longtime owners paying taxes on assessed values far below market — disappears at the moment of transfer. As a new buyer, you'll pay taxes on the full purchase price in year one.
Millage rates vary by municipality:
Coral Gables: approximately 18.18 mills
Pinecrest: approximately 17.53 mills
Palmetto Bay: approximately 19.13 mills
Miami/Coconut Grove: approximately 19.99 mills
On a $2.5 million Coral Gables home, your year-one property tax bill will run approximately $42,000 to $45,000. That drops significantly once you apply for the Homestead Exemption, which reduces your assessed value by $51,411 in 2026 and caps future annual increases at 3%.
The homestead exemption deadline is March 1. You must establish Florida residency and file by March 1 of the year you want the exemption to take effect. If you close on your home in August 2026, you'll pay full taxes for 2026 and early 2027 — but if you file for homestead by March 1, 2027, you'll have the exemption in place from that point forward. Don't miss the deadline. See our full breakdown of property taxes in Miami-Dade for buyers.
For buyers moving from New York, there's an additional step that matters: Florida domicile documentation. New York State is aggressive about auditing high-income residents who claim to have moved. To properly establish Florida domicile, you need to get a Florida driver's license, register to vote in Florida, file a Declaration of Domicile with your county circuit court, update your professional licenses and bank accounts, and apply for the homestead exemption. The combination of these steps creates a clear paper trail that documents when your primary residence shifted. Given that a $2 million annual earner saves roughly $250,000 per year by leaving New York's income tax behind, getting the domicile documentation right from day one is worth the effort.
Miami's Market Rhythm Is Different From What You're Used To
In New York, the spring market runs March through June. In Miami, the strongest buying season runs from November through April — when snowbirds arrive and Northeast buyers who've been planning a move finally pull the trigger. If you want to be settled into your Pinecrest or Coral Gables home by next January, you need to start your search in October or November of the prior year.
The good news for buyers in 2026: Miami's market is more balanced than it was in 2021 and 2022. Single-family homes in the Coral Gables to Palmetto Bay corridor are averaging 65 to 114 days on market depending on neighborhood and price tier. There's genuine room to negotiate on price, inspection period length, and concessions — particularly for homes that have been sitting for 60 days or more. Buyers who understand their leverage and move strategically are finding real opportunities.
One more thing worth mentioning: in Miami, a lot of the best homes never hit the public market. Sellers of ultra-luxury properties in Cocoplum, Gables Estates, or Old Cutler Bay often prefer discreet sales. Working with a local agent who has relationships in these neighborhoods before you arrive — and who knows what's coming before it's listed — gives you a meaningful edge.
Every situation is different, and the decisions that matter most (which neighborhood fits your lifestyle, whether to buy new construction or resale, how to structure an offer in a competitive micro-market) depend on specifics I can only assess once I understand what you're looking for. If you're relocating to Miami and want a straightforward conversation about how the process actually works here, I'm happy to walk you through it.
Frequently Asked Questions
What documents do I need to establish Florida domicile when relocating from New York?
To establish Florida domicile and protect your income from New York State taxation, you need to get a Florida driver's license, register to vote in Florida, file a Declaration of Domicile with your county circuit court, and apply for the Florida Homestead Exemption by March 1 of the year following your move. You should also update your car registration, bank accounts, and professional licenses to reflect your Florida address. New York is known for aggressively auditing high-income individuals who claim to have moved, so documenting the date of your move and maintaining records that show you spend the majority of your time in Florida is essential.
Is there an attorney review period in Florida like there is in New York and New Jersey?
No. Florida does not have an attorney review period. Once both parties sign the contract and it is delivered, the contract is binding. In New York and New Jersey, buyers typically have several days after signing to have an attorney review and potentially cancel the contract — that window does not exist in Florida. What Florida does have is an inspection period (typically 15 calendar days under the FAR/BAR AS-IS contract) during which the buyer can cancel at sole discretion and receive a full deposit refund. You should have an attorney involved from the start, not after the contract is signed.
How does homeowners insurance work differently in Miami compared to other states?
Florida's insurance market is in a fundamentally different position than most of the country. Average homeowners insurance in Miami runs over $16,000 per year for most properties, compared to $1,000 to $3,000 in major Northern cities. You'll need a 4-point inspection (roof, HVAC, electrical, plumbing) for any home older than about 20 years, and carriers may decline to write a policy if the roof is more than 15 years old. Homes built before 2002 face significantly higher premiums because they predate Florida's post-Hurricane Andrew building code reforms. Start the insurance process immediately after going under contract — don't wait until week two of your inspection period.
Are Miami condos subject to the same kind of board approval process as NYC co-ops?
No. Miami condos do not have boards that vote on whether to admit you. In New York City, co-op purchases require a board application of 60 to 100 pages, a review period of two to six weeks, and often an in-person interview. Miami condos have no equivalent process. One important difference in Miami: since 2025, Florida law requires buildings 30 or more years old to conduct Structural Integrity Reserve Studies, which means condo buyers need to evaluate reserve funding levels carefully before making an offer.
What does it mean that Miami-Dade buyers pay the title insurance, not sellers?
In Miami-Dade County, it is the buyer who pays for the owner's title insurance policy — the opposite of most Florida counties and most of the rest of the country. On a $2 million purchase, the owner's title insurance policy typically runs $9,000 to $12,000 and is paid by the buyer at closing. This is simply the local custom in Miami-Dade, and it applies to both financed and cash purchases.
Relocating to Miami is one of the most financially meaningful decisions a high-earner can make — the income tax savings alone are substantial, and the lifestyle is genuinely exceptional. But the market has real nuances that catch out-of-state buyers off guard, and the cost of a misstep in a $2 million to $5 million transaction is not small.
I work with buyers making this move regularly, and I can tell you exactly what to look for in Coral Gables, Pinecrest, Palmetto Bay, Coconut Grove, and the surrounding neighborhoods. If you're thinking through a purchase, reach out. I'm happy to talk through what you're looking for and help you understand what's available in the market right now.
Learn more at lynleyresidential.com.
About Lynley Ciorobea
Lynley Ciorobea is a Miami-born real estate professional known for helping homeowners successfully prepare, position, and sell their homes across Coral Gables, South Miami, Pinecrest, Palmetto Bay, and the surrounding southern Miami neighborhoods. Since 2007, she has built her business around thoughtful strategy, strong negotiation, and a marketing-first approach designed to help listings stand out in an ever-evolving market.
A true local, Lynley grew up in Pinecrest and graduated from Palmer Trinity School before attending Duke University, where she earned a BA in Psychology. Her deep roots in Miami give her a nuanced understanding of the architecture, lifestyle, and character that make each neighborhood distinct. From classic Old Spanish homes in Coral Gables to newer construction in South Miami and Pinecrest, she brings a local perspective that goes far beyond surface-level market knowledge.
Over the years, Lynley has naturally become a trusted resource for homeowners preparing to sell. Many of her clients come to her long before their home ever hits the market, looking for guidance on timing, pricing, improvements, and how to position their property thoughtfully. She approaches each listing as a strategic launch rather than a simple transaction, combining market insight, negotiation experience, and elevated marketing to help sellers move forward with clarity and confidence.
As the founder of the Lynley Residential Group, Lynley remains personally involved in every listing she represents. She leads each transaction from initial strategy through closing, ensuring that every detail — from pricing and preparation to storytelling and exposure — reflects the uniqueness of the home itself. Her work often centers on architecturally interesting properties and homes where thoughtful positioning can make a meaningful difference in outcome.
Throughout her career, Lynley has consistently ranked among the top real estate agents in Miami. She has been recognized as part of EWM's Chairman's Club, placing in the top 5% of the company; in 2022 she was honored as the #2 individual agent at the company overall with $37 million in annual sales; and she's a leader in Miami with Real Broker. With more than $100 million in career transactions and more than 60 5-star Google reviews, her experience spans a wide range of property types while maintaining a strong focus on seller representation in southern Miami.
Beyond her work with clients, Lynley is known locally for her market insight and community-focused content. Through her weekly newsletter, neighborhood videos, blog posts, and social media, she shares thoughtful perspectives on the Miami real estate market and the lifestyle that surrounds it. Her approach is informative without being overwhelming, offering homeowners a clear understanding of how market conditions affect real decisions.
If you're preparing to sell a home in Coral Gables, Coconut Grove, South Miami, Pinecrest, Palmetto Bay, or nearby areas, Lynley offers a local perspective shaped by experience, relationships, and a genuine understanding of what makes Miami homes so special. Learn more at lynleyresidential.com.