One of the hottest areas of Florida real estate is the preconstruction and new construction markets.  Developers across the state are building at a fantastic rate.  In order to qualify for the various stages of their construction financing, many developers offer discounts to early buyers.  These discounts often result in better-than-average appreciation for buyers and investors.

Just a Few Current PreConstruction and Condo Conversion Projects Projects in RED are in the early stages of pre-reservation - reserve your place in line! Porpoise Point Fishing Resort - Luxury Waterfront Townhomes in Matlacha from $875,500 Olivine at the Township - Coconut Creek Townhomes and Condos from the $170,000s Lexington on the Green - Tamarac Condo Conversion from $129,990 The Venture at Aventura - Aventura Personal Urban Luxury - Still at $400/sq ft - Closing Now!  Oasis on the Bay - Related Group Bayfront Miami from Under $300,000 St. Regis Resort Residences at Bal Harbour - Beachfront Lifestyles from Over $3 Million Sunset Isles of Royal Palm Beach - West Palm Beach Condo Conversion from the $170,000s Terzetto at Aventura - Lifestyle Condos, Lofts, and Villas from $500,000 <> Meadowood Golf & Tennis at Panther Woods - Fort Pierce Golf Course Lots from Under $100,000 Manor Row at Park Central - Orlando Condo Conversion near Mall of Millenia from the High-$100s Addison Pointe at Boca Raton - Condo Conversion from High-$100s to Mid-$300s - SELLING NOW Coco Parc at Coconut Creek - Condo Conversion from $100s to Mid-$200s - Resales Available European Club at Hallandale Beach - New Construction Condos from $400s to Over $1 Million Fairway Greens of Pembroke Pines - Golf Condo Conversion from Mid-$100s to Low-$200s - ALMOST SOLD OUT Grove East in Plantation - New Construction Condominiums from High-$100s to Mid-$300s - SELLING NOW Indigo Lofts on the Bay - Harbor Island - North Bay Village Preconstruction from $800s to Over $2 Million Kensington Royal Palm Beach - Condo Conversion from Mid-$200s to Mid-$300s Mizner Court at Broken Sound - Boca Raton Condo Conversion from Mid-$200s to the $500s Ocean Reserve Sunny Isles Beach - Condo Conversion from High-$200s to Over $600s - SELLING NOW Pineapple Grove Village - Delray Beach Condo Conversion from Mid-$300s to Over $700,000 South Palm Place in Tamarac - Condo Conversion from Mid-$100s to over $300,000 Treasures on the Bay - North Bay Village Condo Conversion from Mid-$200s to Over $500,000 - ALMOST SOLD OUT Village at Town Center - Orlando Area Condo Conversion from Mid-$100s to High-$200s - SELLING NOW Trump Towers by the Sea - Sunny Isles Beachfront NoBe Beach - North Beach Oceanfront NoBe Bay - North Miami Beach Biscayne Bayfront 50 Biscayne - Downtown Miami Bayview Highrise- Resales Now Available Paramount Beach - Sunny Isles Beachfront from $980k Paramount Bay - Arts District with Bay Views from $500s Habour House - Bal Habour Beachfront Condo Conversion - Almost Sold Out 500 Brickell - High-Tech Downtown Living from the $230s Mondrian - Arts District Boutique Condos from $240s Oasis - Fort Myers Caloosahatchee Riverfront from $200s PGA Village - Port St Lucie Golf Course Houses from $300s - Almost sold out! Grove Lofts - Coconut Grove Lofts on Grand Ave from $240s Terzetto at Aventura - condos, lofts, villas Axis at Brickell Village - Downtown Highrise from $200s. Midtown/Uptown Lofts - Great deals on remaining units! Arts District Lofts from just $349k Terrazas River Park Village - Miami Riverfront Highrise from $200s The Avenue at Brickell - Downtown Luxury Highrise from $200s APOGEE - South Pointe Exclusivity from $2.5 Million Trump Grande - Resort living in Sunny Isles Beach - Selling Now! Ocean Marine Yacht Club - Hallandale Waterfront Waverly at Surfside - Beachfront Condo Conversion Ocean V - (Now Trump Towers by the Sea) Terra II - Miami Beachside Villas - Selling Now Beach Club II - Hallandale Beachfront (resales) Beach Club III - Hallandale Beachfront - Selling Now Ocean IV - Sunny Isles Beachfront (resales) Everglades on the Bay - Downtown luxury highrise Blue - Biscayne Bay highrise Midtown Miami - 3,000 Unit Development Infinity at Brickell - Highrise Lofts Downtown The Ivy - Brickell Avenue Luxury Highrise The Plaza - Brickell Avenue Luxury Highrise - SOLD OUT - Resales Available MetOne - downtown Miami highrise Platinum - Arts District midrise New Wave - Arts District Bayfront highrise Onyx - Biscayne Bay luxury highrise Biscayne Landing - planned development, highrises The Lofts Downtown - Unique City Lofts - SOLD OUT - Resales Available Rive Gauche Lofts - Arts District boutique lofts Star Lofts - luxury highrise Arts District lofts One Miami - downtown Miami highrise Ten Museum Park - SOLD OUT Mary Brickell Village - Brickell area highrise Ice - Arts District mid-rise Quantum - Arts District highrise Aventura Marina - bayfront marina community Atrium - Aventura waterfront community Acqualinda - oceanfront highrise The Floridian - Miami Beach highrise Murano Grande - Miami Beach luxury Contact Us for More Preconstruction Information

Overview (hypothetical example):

• ABC Development is preparing to build a 20-story highrise with each unit expected to sell for $500,000 at completion.
• ABC's Bank requires them to sell 50 units prior to the release of their first construction loan installment.
• ABC then invites preferred Realtors to bring investors and customers into the project.
• Once the required units have been sold, the developer typically increases the price and then announces the project to mainstream real estate agents and may run advertising in industry publications.
• Once this second batch of units are sold, the projects are already nearing 50% sell out. At this point, the developer will typically announce the project to the public and may place advertising in newspapers, magazines and so on.  This is also typcially when the developer opens an advertised Sales Center. Prices at this stage have already increased several times, but are usually still well below the retail price of the units at completion.
  
• As each unit is sold, the developer is under less pressure to discount their pricing as units usually sell faster than the building can be completed.
• Of course, once the building is completed and owners close on their prospective units, they can immediately sell, often with substantial profits.

Real World Examples: Pre-construction projects often sell out in a single day (after public announcement).  Unit prices often change several times during the day as investors line up to reserve their units, which might not be completed for over 18 months. Projects regularly go into RESALES prior to the building being completed. Ocean IV, as an example, went into resales several months before groundbreaking and years ahead of completion.

The Basic Process

• The developer announces that pre-sales begin on a particular date at a particular price range.
• Investors typically 'reserve' their spots in line by placing a $15,000 - $30,000 earnest money deposit in escrow.
• Once contracts are available, Buyers have an opportunity to select the actual unit they wish to purchase and a contract is executed.
  
• Investors then have a 15-day right of recision to cancel the contract without penalty.
• After the 15th day, the investor is usually required to increase their deposit to an amount equal to 10% of the value of their prospective unit.
• Investors are usually required to escrow an additional 10% once construction begins or within 6-8 months.
• The investor may finance the remaining 80% (or more) at closing (up to 3 years later).
• Depending on the developer, investors may be able to sell their contracts prior to actually taking possession of the unit, realizing potential gains before the building is actually complete.
• Other developers require investors to actually close on the unit prior to reselling.
  

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Disclaimer: Information on specific developments or properties is provided as a courtesy for our potential customers. Neither Branon A. Edwards nor Jelena Panfilovaare employed by or are exclusive agents of any of the developers, architects, or sellers mentioned herein.  We are independent real estate agents with Aqualand Realty, Inc and are licensed agents in the State of Florida. By virtue of our licensing, we are able to provide information and assist in the sale and/or purchase of virtually any real estate property in Florida.