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  • Writer's pictureTara Powell

How it happened: A "Condotel" Tale




We first met Justin in 2021 when he was on the hunt for a new ocean front luxury condo. He is an avid runner and running the beach every day is one of his passions. The market was in a frenzy and what would turn out to be an unprecedented boom. Interest rates were hovering around 3%, inventory was low and properties were getting multiple offers sometimes before they even hit the market.


And then it happened! The perfect 2-bedroom luxury condo came on the market and we went to see it on the first day. Justin loved it! We quickly crafted a winning offer (competing with several other offers) and Justin was elated! It was exactly what he had been waiting for and it was his. Justin and our team jumped into high gear to do our part to close on time. It seems every time I called Justin he was on his beloved beach running but he always took my call to close out the next step. He told me that it was ironic that whenever he called me in the early evenings, I happened to be at one of my children’s volleyball games, but I always took care of business right away for him, and he was so thankful.


This is where the story takes a hard turn. You see the lender on this deal was from out-of-town and wasn't familiar with the local properties. He called Justin TWO DAYS before closing to break some bad news. The underwriter wouldn't write on this property because they considered it a "condotel."


"Condotel", def, A condotel is a hybrid property that combines the ownership of a condominium with the option to rent out units like a traditional hotel. source: Investipedia.com

Now it wasn’t actually a "condotel" but because the lender wasn’t familiar with our area, they mislabeled it. Justin was devastated. Of course, he went for a long run on the beach to burn some frustration.


This is where we sprang into action. We called our local lender connection, Jon Wood with Atlantic Bay Mortgage Group, who had closed on that specific condo before and they were able to save the deal! Our client ended up closing on time and he was beyond excited! This is just one of many stories of clients who would have missed out on their dream home if they had not been represented by a local, experienced buyer’s agent.

"Tara Powell's attitude, focus and efforts were truly stellar and unparalleled by any other realtor I have worked with in over a dozen home sales, and purchases over the past 45 years." Justin P. of Indian Beach


If you’re thinking about buying, call us! I would love an opportunity to represent you in your next purchase.

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