Miami Pre-Construction Condos are back, and are so in a big way. However, there is a lot that is different this time around. At the time of this post, there are 151 total towers in South Florida, at some point in the process. There are 36 proposed towers, 81 planned towers, 70 projects that are in the pre-sale phase, 33 under construction and 1 that has been completed. So…what’s different this time? For starters, the deposit structure is completely different, and in a manner that is much more suitable to increasing the probability of the project being built and units actually closed on. What I mean by that, is most of the pre-construction condo projects are requiring much more of a deposit prior to closing. It varies from project to project, but I see a minimum of 50% deposit often. That 50% might be staggered differently, but basically the buyer will have 50% cash down as a deposit. So, if they decide not to close, they are walking away from half the cost of the unit! That in and of itself is a huge deterrent from ‘walking away’. Also, this means these projects are much less dependent on financing in order to complete. With such large deposits, you have more solid buyers and in turn you also have a more solid developer. Both should contribute to the success of the project. Another consideration of the deposit is how much, if any, is deemed to ‘go towards construction’. Please be aware, not every developer contract is the same. There were many lessons learned from the last Pre-Construction boom, so be certain to consult with a professional Miami Area Real Estate Agent. Every sales office is going to be beautiful, with lovely sales people and amazing models and renderings that are going to be spectacular. But, there are real contractual details you must consider as a buyer – and just because everything looks lovely, doesn’t necessarily mean that will be the end product. I saw many ‘winners’ in the last round of Pre-construction……and I saw many ‘losers’. Make sure you buy a Miami Pre-construction Condo that will end up being a ‘winner’ down the road. Contact us today so we can help you in this market, who better to trust than Real Estate Agents that were around during the last time this happened. It is an exciting time for Miami Real Estate, but that is still no substitute for proper due diligence.