Frequently Asked Questions about Buying Pre-Construction and New Construction Condos in Miami

At Mansion 305, we understand the importance of making the right decisions when purchasing a pre-construction condo in Miami. That’s why we have created a comprehensive guide that covers everything you need to know about buying a pre-construction property. Our aim is to ensure that all your concerns are addressed and that you find a condo that perfectly suits your needs.

We are dedicated to providing you with valuable tips and insights that can potentially save you both money and headaches during the pre-construction buying process. Whether it’s answering your questions or offering expert advice, we are here to assist you every step of the way.

Feel free to reach out to us via text, email, or phone. We are readily available to address any inquiries you may have and provide you with the information you need to make informed decisions. Your satisfaction and confidence in your pre-construction condo purchase are our top priorities.

Q: Why do developers offer pre-construction sales?

A: When developers offer pre-construction purchases, they establish a partnership with you, the buyer, serving as both their construction and financing partner for the project. By sharing the project’s risks, they provide incentives such as discounts on the expected market price upon completion and a refund guarantee if the building fails to materialize.

The discount you receive is primarily determined by the timing of your unit reservation. The earlier you commit to the project, the greater the discount offered. This strategy enables developers to secure early sales and generate substantial momentum during the initial sales launch, as these sales are vital for the success of their project.

Q: How much of my money does the developer use during construction?

A: According to the law, developers must hold 10% of the buyer’s purchase price in escrow throughout the project’s duration.

Q: Is my money safe?

A: While every investment carries some degree of risk, the likelihood of a project deviating from its intended course is relatively low. By selecting a reputable developer, you can significantly mitigate these risks. Moreover, partnering with a real estate agent who specializes in pre-construction properties ensures that you receive guidance on both local and international developer reputations, empowering you to make well-informed decisions.

Q: What are the penalties if I cancel my pre-construction contract?

A: During the reservation phase, buyers have the flexibility to cancel their reservation agreements at any time and for any reason. However, once the buyer progresses to signing the official purchase contract and receiving the condominium documents in the contract phase, Florida law provides a 15-day rescission period. Within this period, buyers can still back out of the contract for any reason. However, after the 15-day period, canceling the contract without penalty becomes challenging. As long as the developer fulfills their written promises regarding the property, canceling the contract at a later stage may result in the loss of the deposit without any room for negotiation.

Q: Do I need to pay a fee for a real estate broker’s help?

A: In South Florida, you can receive the assistance of a real estate agent at no cost to you. However, it is essential to choose an agent with expertise in pre-construction properties to ensure a successful purchase. That is why, at Mansion 305, we can partner you with a highly trusted and experienced agent to ensure that you get the best service and have all the information to make the best pre-construction purchase decision.

Q: Can I inspect the property before closing?

A: Before the closing, you will have the chance to conduct a thorough walkthrough inspection of the property. During this inspection, your designated agent and a representative from the developer will carefully examine the property for any defects or issues. Any identified problems will be documented, and the developer will be given a reasonable timeframe, usually around 30 days after the closing, to address and rectify these issues. Based on our experience, this process tends to proceed smoothly as reputable developers have dedicated customer service lines in place to ensure that all items on the checklist are promptly addressed and resolved.

Q: Is there a warranty on the finishes and appliances in my new unit?

A: Appliances typically have a warranty of 6 months to 1 year, while developers generally offer warranties for the building and unit for a reasonable period. Reputable developers often assist with repairs even months after closing, especially when they have active construction crews and permits on-site.

Q: Why should I buy a pre-construction instead of a ready-to-go condo?

A: Historically, purchasing pre-construction properties has presented buyers with a remarkable opportunity to obtain substantial discounts off market prices for brand new properties. In return for these discounts, buyers understand that they will have to wait for the completion of the project and contribute to some of the construction costs. Moreover, in a robust market, it is highly likely that the value of your pre-construction property will increase during the construction period.

Many buyers are attracted to pre-construction purchases as a means to participate in the growth momentum of a city without the immediate responsibility of managing the property during the initial years of the investment, while it is still under construction. Furthermore, for end-users who intend to reside in the property, the allure of being the first to inhabit a brand new residence with modern features and amenities is quite appealing.

On the other hand, already-built condos provide excellent opportunities for buyers who require immediate occupancy, seek prompt living arrangements, or prefer complete visual certainty about the property they are purchasing. These properties offer the desired clarity in terms of visual appearance and spatial layout that some buyers specifically seek

Q: Can I see what the finished product will look like before purchasing?

A: Before signing the purchase contract, you will have comprehensive knowledge of your floor plan, unit location, and the majority of the expected finishes for your unit. Additionally, you will be granted an opportunity to visually inspect the property before the closing day. Many high end developers provide video walkthroughs of the entire development, including the lobby and amenities, allowing prospective buyers to have a virtual tour. Furthermore, developers often construct a model unit at the sales center, enabling potential buyers to experience the finished product, observe the scale of rooms, and explore the featured layout.

Q: How do I know what I am shown will be delivered?

A: : By going with a developer with a good track record and reputation you can be more certain that you will receive what you have been promised. A good pre-construction real estate broker can guide you on the history of each developer, and you can factor that into your final decision on which project is right for you. It’s likely that you could also see finished properties by the developer to have a sense of their work. Since a pre-construction real estate broker does not work for any particular condo developer and only has incentive to find you the project that suits your needs best, they should be able offer their honest opinion on which projects will be more likely to deliver than others.

Q: Will my unit be move-in ready upon delivery?

A: There are various delivery options for pre-construction projects. Some properties are delivered fully complete and move-in ready. The Estates at Acqualina, a recently completed development, had their residences fully constructed, including closets. Similarly, the pre-construction project St Regis Sunny Isles, which is currently in progress, offers residences that are completely built out with luxurious finishes. The only exception is the master closet, which is left for the buyer to customize and finish according to their preferences. Others provide the choice of optional finishes and design services, which may come at an extra cost. However, the majority of projects are delivered in a “designer-ready” state. This means that the units are fully functional, equipped with complete kitchens, appliances, and bathrooms. However, certain aspects such as floors, wall paint, light fixtures, and other finishing touches are left for the buyers to customize and complete according to their preferences.

If you require assistance with the design and renovation process, we have a network of trusted local vendors whom we can recommend as needed. Our goal is to ensure a seamless experience for our customers, and we are always happy to assist in completing design and renovation projects locally, especially if it is inconvenient or not feasible for you to be present to oversee the process personally.

Q: What will my association fees be?

A: Association fees average around $0.70 per square foot per month, but they can range from $0.60 to $1.30 per square foot, depending on the property’s services and luxury level.

Q: What are the typical closing costs?

A: Developers typically charge a 1.7% to 2% fee at closing to cover sales taxes and administrative costs. Buyers are also required to pay the first month’s association fees and an equivalent of two months’ fees into the reserve account for future common area repairs and replacements.

Q: What are the deposit requirements for a pre-construction condo?

A: Deposit requirements start at 5% but typically range from 10% of the purchase price. Some developers may have fixed deposit structures based on unit type or phase of development.

St Regis Sunny Isles

Q: Can I invest in and flip a pre-construction condo?

A: Most developers discourage condo flipping and may have clauses and processes in place to prevent it.

Q: Can I buy a pre-construction condo in the name of a company?

A: Yes, you can purchase in the name of any type of entity. The developer may require certain documentation for record-keeping.

Q: Why do I need a real estate agent to help me buy a pre-construction condo?

A: With numerous options available and developers promoting their projects, it’s crucial to have an agent with expertise in pre-construction properties. They provide valuable guidance, understand developer reputations, and ensure you make an informed decision.

Q: When is the best time to resell my pre-construction condo?

A: Typically, the optimal time for resale is 1-2 years after project completion, when inventory decreases, other units have been upgraded, and condo associations are well-established and efficient. However, the best-selling times may vary depending on the market and specific building conditions.

Q: What are the most recent pre construction projects that have unique features and stand out?

Bentley Residences

A: Bentley Residences, one of the most prominent pre-construction projects in Miami, stands out for its unique features. One notable feature is the inclusion of the Dezervator, a patented car elevator that allows residents to bring their luxury vehicles directly to their units. This innovative feature adds convenience and exclusivity to the living experience. Another remarkable aspect of Bentley Residences is the diamond-shaped glass design, carefully crafted to resemble the iconic Bentley grill. This design element adds a touch of elegance and sophistication to the building’s architecture, reflecting the luxury and prestige associated with the Bentley brand.

With these distinctive features, Bentley Residences aims to provide a truly exceptional and luxurious living environment for its residents, combining cutting-edge technology with exquisite design inspired by the world-renowned Bentley automobiles.

Another beautiful example of St. Regis Sunny Isles showcases an exceptional feature: the use of photovoltaic glass. This cutting-edge technology seamlessly integrates solar cells into the building’s windows, harnessing solar energy to generate electricity. This innovative approach not only adds an eco-friendly element to the development but also enhances energy efficiency and sustainability.

The photovoltaic glass serves a dual purpose, acting as both a source of renewable energy and a design element. Its sleek and translucent appearance allows natural light to permeate the interiors, creating a bright and inviting living space while reducing the need for artificial lighting during the day.

By incorporating photovoltaic glass into its design, St. Regis Sunny Isles demonstrates its commitment to sustainable living and environmentally conscious practices, offering residents a unique blend of luxury, comfort, and eco-friendliness.

Whether you are looking for the pre-construction development or want to explore existing luxury condominiums on Sunny Isles Beach, we would be happy to guide you through the choices and make sure you can make an informed decision.