Buying a pre-construction condo in miami can offer some great advantages over buying somethign already built. However, it is a major financial investment with its own advantages and disadvantages. On one side, the prices are usually less expensive than buying into an existing condo building. Plus with new construction, you have the opportunity to buy the exact floor plan, views and floor height that you desire.
But just with any investment, there are always risks involved. Potential risks with pre-construction can include things such as a delayed delivery date, variations in the the floor plan and most commonly, the delivered finishes not being exactly what you expected or what you may have seen in the brochure or online.
If you’re looking to buy a new construction condo in Downtown Miami, Sunny Isles Beach, Bay Harbor Drive in Bay Harbor Islands, or even in Miami Beach FL, there are some great pre-construction projects available in all of these different neighborhoods.Buying a condo in Miami is one of the most important financial decisions that you can make and it requires the right preparation to make sure you enjoy all the benefits of early pricing while minimizing the risks. Before you’re ready to sign the contract, it’s important to make sure you take into consideration all of these factors when buying pre-construction condos in Miami.
Picking the Best Developer for your New Construction Condo
The majority of luxury condominium buildings built in Miami are developed by well-know and well respected real estate developers. Working with a seasoned developer helps makes it eaier because they have done this many times. In the new construction and real estate industry in general, reputation and customer trust is very important.A reliable developer makes sure that your condo is delivered exactly as you expected, including the quality and the design. Once all of the condo units are turned over to the owners, the developer is usually off the hook and the owners will be responsible.
Generally, publicly-traded and well-established developers got to where they are by delivering quality projects for their clients. Lesser-known or startup developers with no reputation to precede them might raise some flags, so be sure to do your own research. The majorty of developers operate thier company’s as LLC’s and dissolve their position as a limited liability company (LLC), leaving the project into condominium conversions.
Check Pre-Sale Price and Payment Terms
The term pre-construction implies that these new developments and real estate properties are marketed and offered before the construction of the building and/or units are available for occupancy. Buying pre-construction usually occurs prior to any construction or ground breaking takes place. To attract potential buyers and future condo owners, units at this stage are sold at significantly lower prices and the developers offer flexible payment plans, usually with just 10% down to go to contract.
From the perspective of the developers, securing buyers early on will indicate whether the project will be successful or they need to adjust pricing. This perceived high interest in the new construction condos confirm the trust and reliability for their lenders and investors.
Pre sale and introductory prices can be up to 30 to 50 percent less expensive compared to today’s selling prices. Once the building is complete, the prices will reflect current market conditions.
When you’re searching for the latest Miami pre-construction condos up for sale, it’s best to get in as early as possible. Buyers find significantly cheaper prices are than their ready for occupancy (RFO) counterparts. Some developers also offer various payment options to in order to attract a larger pool of buyers.
Manage Your Expectations
The real estate agent and developer will usually give a time frame of the completeled project and almost always answer in ranges and never on a specific date. This is because condominium projects, like other new construction efforts, understandably meet delays along the way.This is why purchasing pre-construction condos can great investments, but not a good option for people looking to move into the property by a certain date. Timing is extremely volatile from the unit owner’s side, leaving you essentially clueless about when certain milestones on the project will actually be met.
If you’ve found a unit you really like but would like to put safeguards in place, you might want to request help from your lawyer. They can negotiate for a so-called “outside date” for your contract deposit. Should your side and the developer agree, a clause stipulating that you can cancel the contract and recover the deposit should the developer fail to complete the unit by a certain date. This option is particularly useful for busting markets. If your first choice for a Miami pre-construction condo doesn’t work out, you can recover your deposit and reinvest it somewhere else in the neighborhood.
Make the Purchase
If you think you’ve arrived at a decision regarding your new construction condo unit, getting into a deal with the developer is actually fast and easy. Below are the main steps you’ll have to follow as you turn your real estate dream into reality.
Check your financesBefore you get into a major financial transaction such as purchasing a condominium unit in the pre-selling stage, make sure that you’re ready and capable to meet your end of the bargain. This is also a good time to see lenders willing to cover your financing needs. The importance of being able to pay consistently cannot be overstated, especially in matters of real estate. While there might be considerations extended along the way, failing to meet your duties as the buyer could lead to the unit being defaulted. Visit your developer This is the part where you meet up with a consultant or a sales agent. You can review the technical specifications of the unit including the plans and layout of the pre-construction condo you will be purchasing. During this part, you can request additional add-ons for your unit. You can also review certain design and construction choices and make changes to better suit your needs. For most developers, certain changes can only be accommodated during the planning stage. Once construction starts, customization options become less flexible and start to cost more. Sign and Pay Once both parties have agreed, it’s time to get to the fine print. A contract is drawn that contains the disclosures and all responsibilities of the parties involved. It is highly recommended to have a lawyer review the entire contract to make sure you’re well informed of all details and clauses in the document before signing.
Get Your Miami Condo Today
Everyone wants to enjoy the fruit of their labor, and this also applies to major financial investments such as having pre-construction condos New construction projects offer unparalleled advantages should you avail them early. However, it is important that there are also risks included with pre-construction projects.Additionally, now is a good time to check out the Miami real estate market. There are active development projects across the Sunshine State, from Miami Dade County to Broward County. Whether you’re looking to gaze at the sprawling city skyline or the sands and sea at the South Beach, there are sure condos fit for your taste. If you’re looking for new construction condos, make sure to work with a trustworthy agent who knows the ins and outs of Miami condos. Contact us today and we’ll help you find the Miami condo you’ll soon call your home.