There are many perks to buying pre-construction condos and homes in South Florida, some of which include:
Securing a beautiful property at a lower price point to benefit from the increase in value over time, without the burden of maintaining the property during the construction period.
Being first to market, and the first to own and/or live in the property.
Having the option to select finishes, floor plans, and more.
In the past decade, Miami, for example, has become a sought-after market by top developers who have redefined and continue to evolve Miami's skyline, common urban spaces and Miami living.
These soon-to-be homes can be purchased at special prices even before the developer breaks ground. The process involved in the purchase of a pre-construction property differs slightly from the purchase of an existing home. Following are five things you need to know before purchasing a pre-construction property in South Florida:
Seek first-class advice. Developers sell the properties in stages (reservation, contract, construction, completion/closing, and new-construction resales). As each stage progresses, gradual adjustments in price are made. Voted "Best Brokerage" for four years in a row, EWM Realty International is a full-service brokerage that you can trust to guide you through a complex real estate transaction.
Have a Financial Plan in Place. You must ensure that you are able to cover the cost of the property in its entirety, plus any additional expenses. Although many of the developers accept bank loans, it is advisable that you do not solely rely on the bank for financing. It's also important to consider that may developers require a 50% cash-only downpayment.
Understand Rules of Resale. A few years ago, the developers changed the rules for re-sale purchases, as some investors made a profit by making an advance sale of the property during the reservation period. Developers have since banned advance re-sales.
Hire a Qualified Attorney. Seek the advice of an experienced and trusted real estate attorney who can guide you and explain each clause written in the contract. Because developers are the ones to write contract, thereby establishing the terms, buyers must also protect their interest by employing the services of a qualified attorney.
Closing Timeframe. As with any investment process, the papers are signed, payments are made and the keys of the property are delivered. However, pre-construction purchases are oftentimes not delivered on the initially established deadline, therefore, buyers should plan accordingly. Depending on the type of agreement that has been signed, the delivery of the property can fall anywhere between 2 and 5 years after the initially agreed upon date.
These are only some of the key points to keep in mind before purchasing pre-construction. Whether you are a local buyer or foreign national, there are a wide array of services, options and financing alternatives available, including purchasing luxury condominiums with up to 97% financing for qualified buyers.
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Do not hesitate to contact me for more information.
Nadjalisse Rodriguez
Realtor Associate
NRodriguez@LiveinSFL.com
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