Miami real estate news and information

Pre-Construction

 Miami’s pre-construction opportunities …  homes, condos, townhouses… often require a 10% escrow deposit  (when purchasing prior to groundbreaking).  

A second 10% downpayment is required at groundbreaking. 

(Purchasing post-groundbreaking  means a 20% good faith deposit, upfront.) 

Of  that 20% earnest money deposit (escrow),  the developer can use half of it toward construction costs. 

Prices often increase once construction begins…  and then again upon project completion … so buying pre-construction can be  financial incentive for investors. 

Developer incentives can further sweeten the pot. 

In a market “upswing”  –   locking in a pre-construction price can be smart move.  

One thing to consider though is that any lender financing  is secured  just prior to closing … rather than at the time of the initial purchase agreement.

Contacts are not generally contingent upon the buyer being able to obtain financing. 

 Interest rates are  locked in near the actual closing date.