Miami Preconstruction Buying Guide: Complete Step-by-Step Process

Your comprehensive guide to purchasing new construction condos in South Florida | By Ron Eppinger Jr, 20+ years specializing in Miami luxury preconstruction

This guide walks you through every step of buying a preconstruction condominium in Miami-Dade, Broward, and Palm Beach counties. Whether you're purchasing your first South Florida property or adding to an investment portfolio, understanding the preconstruction process ensures a successful transaction from reservation to closing.

Step 1: Research and Market Analysis

Understand the South Florida Preconstruction Market

As of February 2026, Miami's preconstruction market includes 64+ active developments ranging from $450,000 studios to $60 million oceanfront penthouses. The market is concentrated in several key areas:

• Brickell: Miami's financial district with 15+ projects, $450K-$20M
• Miami Beach/Sunny Isles: Ultra-luxury oceanfront, $3M-$60M
• Edgewater: Emerging waterfront neighborhood, $800K-$9M
• Coconut Grove: Historic waterfront village, $1.5M-$20M
• West Palm Beach: Expanding luxury market, $2M-$20M

Define Your Objectives

Clarify your purchase goals before beginning your search:

• Primary residence: Focus on lifestyle amenities, location, and school districts
• Second home: Consider rental potential during periods of non-use
• Investment property: Prioritize rental yields, appreciation potential, and exit strategy
• International pied-à-terre: Evaluate building services and property management options

Review Available Projects

Explore all active South Florida preconstruction developments in our Miami Preconstruction Database, which catalogs all 64+ projects with verified pricing, completion dates, and developer information.

Step 2: Financial Preparation

Determine Your Budget

Calculate your total investment including:

• Purchase price: Contract price for the unit
• Closing costs resale: 2-4% of purchase price (title insurance, recording fees, attorney fees)
• Closing costs from developer: 1.75% of the purchase price (includes all closing fees)
• Upgrades and customizations: $25,000-$250,000+ for premium finishes
• Furniture and move-in: Budget 10-15% of purchase price for furnishing luxury units
• Reserve fund: 6 months of HOA fees and carrying costs

Arrange Deposit Funds

South Florida preconstruction typically requires 20-50% down payment in installments:

• Reservation deposit: $5,000-$50,000 (typically refundable for 10-15 days)
• Initial deposit: 10% at contract signing
• Second deposit: 10% within 30-90 days
• Subsequent deposits: 10-30% total at construction milestones

Ensure liquid funds are available for each deposit deadline. Late deposits may result in contract cancellation and forfeiture of previous payments.

Get Pre-Approved for Financing

Even though permanent financing occurs at closing 18-36 months later, obtain pre-approval now to:

• Confirm you'll qualify when the building is completed
• Understand your maximum purchase price
• Identify any credit issues requiring correction
• Demonstrate financial capability to the developer

Foreign nationals: Work with lenders experienced in foreign national programs offering 30-50% down payment financing for international buyers.

Step 3: Select Your Property

Choose Your Neighborhood

Each South Florida area offers distinct advantages:

• Brickell advantages: Walkability, urban lifestyle, strong rental demand, diverse dining and entertainment, public transportation access
• Miami Beach advantages: Oceanfront living, beach access, resort lifestyle, international prestige, established luxury market
• Edgewater advantages: Waterfront at lower price points, emerging neighborhood with appreciation potential, proximity to Design District
• Coconut Grove advantages: Village atmosphere, marina access, family-friendly, lush landscaping, historic character
• West Palm Beach advantages: Lower density, better value than Miami, growing cultural scene, proximity to Palm Beach island

Evaluate Specific Projects

Research each development thoroughly:

• Developer track record: Review completed projects and delivery history (Related Group, Terra, PMG, Fortune International have strong reputations)
• Architect and designer: Renowned architects add prestige and value (Arquitectonica, Revuelta, ODP Architecture)
• Building amenities: Evaluate pool, spa, fitness center, restaurants, concierge, valet, theater, business center
• Unit features: Review floor plans, ceiling heights, window walls, kitchen appliances, bathroom fixtures
• HOA fee projections: Typical range $0.50-$1.50 per sq ft monthly ($1,000-$3,000 for 2,000 sq ft unit)
• Completion timeline: Verify realistic delivery dates (18-36 months typical)

Select Your Unit

Choose the optimal unit within your selected building:

• Floor level: Higher floors command premiums but offer better views; lower floors provide easier access
• View orientation: Water views, city views, or park views each offer different value propositions
• Corner units: Premium pricing but more windows and light
• Square footage: Balance size needs with budget and resale considerations
• Layout efficiency: Minimize hallway waste and maximize usable living space

Step 4: Make Your Reservation

Submit Reservation Deposit

Once you've selected your unit:

• Pay reservation deposit (typically $5,000-$50,000 depending on unit price)
• Complete reservation agreement specifying the unit, price, and terms
• Understand the reservation period (usually 10-15 days to review documents and sign contract)
• Reservation deposits are typically refundable if you don't proceed to contract

Assemble Your Team

Engage qualified professionals immediately:

• Real estate attorney: Experienced in Florida preconstruction transactions (essential for document review)
• Buyer's agent: Specializing in South Florida preconstruction (no cost to you, developer pays commission)
• Accountant/tax advisor: For tax planning and structure optimization
• Mortgage broker: If financing, choose a lender experienced in preconstruction loans
• Insurance agent: For property and liability insurance at closing

Step 5: Document Review and Due Diligence

Review All Offering Documents

Your attorney should thoroughly review:

• Purchase and Sale Agreement: Your binding contract with all terms, pricing, deposit schedule, and completion timeline
• Condo Declaration: Legal document creating the condominium and defining unit boundaries and common elements
• Condo Association Bylaws: Governance rules, restrictions, and association structure
• Budget and Reserve Study: Projected HOA fees and long-term maintenance reserves
• Offering Plan/Prospectus: Comprehensive disclosure document with all material information
• Floor plans and specifications: Exact unit dimensions and finish specifications

Key Contract Terms to Understand

Ensure clarity on these critical provisions:

• Purchase price: Exact amount with any early-buyer discounts or incentives
• Deposit schedule: Amounts and deadlines for all deposit installments
• Completion date: Estimated delivery with permitted extension periods (typically 6-12 months)
• Developer cancellation rights: Conditions under which developer can cancel (usually if sales don't reach threshold)
• Buyer cancellation rights: Very limited; deposits typically non-refundable after rescission period
• Assignment rights: Can you sell your contract before closing? What fees apply?
• Warranty coverage: What defects are covered and for how long
• Force majeure provisions: Excused delays for events beyond developer's control

Developer Background Check

Verify the developer's credentials:

• Review completed projects in South Florida
• Check track record for on-time delivery
• Research any litigation history
• Verify financial stability and bank relationships
• Read reviews from previous buyers
• Visit completed buildings to assess quality

Step 6: Execute Purchase Contract

Sign the Contract

After document review and attorney approval:

• Sign the Purchase and Sale Agreement
• Sign all supporting condo documents
• Complete developer's financial disclosure forms
• Provide required identification documents
• International buyers: Provide passport and proof of funds documentation

Pay Initial Deposit

Within 10-15 days of reservation:

• Wire 10% deposit to escrow account (never wire directly to developer)
• Confirm escrow receipt with your attorney
• Retain proof of wire transfer for your records
• International buyers: Ensure compliance with anti-money laundering regulations

Step 7: Construction Period Management

Pay Remaining Deposits on Schedule

Track all deposit deadlines carefully:

• Set calendar reminders 30 days before each deposit due date
• Ensure funds are liquid and available
• Missing a deposit deadline can result in contract cancellation and forfeiture
• Typical schedule: 10% at contract, 10% at 30-90 days, 10-20% at construction milestones, 10% at 6-12 months pre-delivery

Monitor Construction Progress

Stay informed during the 18-36 month construction period:

• Visit the construction site quarterly to observe progress
• Review developer's construction updates and photos
• Attend buyer update meetings if offered
• Verify the project is on schedule or understand delay reasons
• Join buyer groups to share information and updates

Make Design Selections

Most developers offer customization opportunities 12-18 months before delivery:

• Flooring choices: Porcelain tile, wood, marble, or carpet options
• Countertop selections: Quartz, granite, or marble varieties
• Cabinet finishes: Wood tones and handle styles
• Lighting fixtures: Upgrade options for kitchen and bathrooms
• Appliance upgrades: Premium brands like Sub-Zero, Wolf, or Miele
• Smart home systems: Automated lighting, climate, and security

Budget $25,000-$250,000+ for premium upgrades in luxury developments.

Step 8: Pre-Closing Preparation

Finalize Financing (60-90 Days Before Closing)

If obtaining a mortgage:

• Submit formal loan application with updated financial documentation
• Provide recent tax returns, pay stubs, and bank statements
• Order appraisal (required by lender once building is substantially complete)
• Obtain loan commitment letter
• Lock interest rate (typically 30-60 days before closing)
• Review closing disclosure showing all loan costs

Conduct Pre-Closing Walkthrough (30 Days Before)

Inspect your completed unit:

• Verify all finishes match your selections and contract specifications
• Test all appliances, faucets, electrical outlets, and HVAC systems
• Check windows, doors, and locks function properly
• Inspect flooring, walls, and ceilings for defects
• Document any issues with photos and written punch list
• Developer must remedy defects before closing or escrow funds for repairs

Arrange Insurance

Secure appropriate coverage:

• HO-6 condo insurance: Covers your unit's interior and personal property
• Liability coverage: Protects against lawsuits from injuries in your unit
• Flood insurance: Required if in flood zone, recommended for all waterfront properties
• Umbrella policy: Additional liability protection for high-net-worth buyers

Transfer Utilities

Set up service for closing date:

• Electricity (FPL for most South Florida areas)
• Water and sewer (typically through condo association)
• Internet and cable
• Phone service

Step 9: Closing

Final Walkthrough (Day Before Closing)

Conduct one last inspection:

• Verify all punch list items have been completed
• Confirm the unit is in contracted condition
• Check that all systems remain functional
• Ensure the unit is clean and ready for occupancy

Review Closing Documents

Your attorney will review and explain:

• HUD-1 Settlement Statement: Itemizes all closing costs and fund distributions
• Deed: Transfers ownership from developer to you
• Mortgage and Note: If financing, your loan documents
• Condo documents: Final versions of declaration, bylaws, and rules
• Title insurance policy: Protects your ownership rights
• Certificate of Occupancy: Government approval for habitation

Wire Closing Funds

Send final payment 1-2 days before closing:

• Confirm wire instructions directly with title company (beware of wire fraud)
• Wire balance of purchase price minus deposits already paid
• Include closing costs and prepaid items
• Obtain wire confirmation receipt

Attend Closing

The closing typically takes 1-2 hours:

• Sign all documents with notary present
• Review final numbers with attorney
• Receive keys and access credentials
• Get introduction to building management
• Receive owner's manual with warranty information

Step 10: Post-Closing

Immediate Post-Closing Tasks

• Change locks: Even in new construction, change entry codes for security
• Document condition: Photograph entire unit for insurance records
• Register warranties: Appliances and building systems have manufacturer warranties
• Set up HOA payments: Arrange automatic payment of monthly fees
• File homestead exemption: If using as primary residence (Florida residents only, up to $50,000 tax reduction)

First Year Maintenance

• Report any defects within warranty period (typically 1 year for construction defects)
• Attend HOA meetings to understand building governance
• Familiarize yourself with building rules and regulations
• Build relationships with building staff and neighbors

If Renting Your Unit

• Review condo association rental restrictions (minimum lease periods, registration requirements)
• Hire property management company if you're not local (typical fee: 8-10% of monthly rent)
• Furnish appropriately for rental market
• Obtain landlord insurance policy
• Screen tenants thoroughly
• Set competitive rental rates ($3-$5 per sq ft monthly typical for luxury units)

Special Considerations for International Buyers

Additional Requirements

• ITIN application: Individual Taxpayer Identification Number required for tax purposes (apply early, processing takes 6-12 weeks)
• Additional documentation: Passport, proof of funds, reference letters from foreign banks
• Foreign national financing: Requires 30-50% down payment, higher interest rates than U.S. citizens
• Currency exchange: Plan for fluctuations in exchange rates during multi-year deposit period
• Estate planning: Consider U.S. estate tax exposure for non-citizens owning U.S. real estate

Tax Obligations

• File annual U.S. tax returns reporting rental income or potential phantom income
• Understand FIRPTA withholding requirements when selling (15% of gross sales price)
• Explore tax treaties between U.S. and your home country
• Consult with international tax specialist

Investment Strategy Tips

Maximizing Appreciation Potential

• Buy early: First buyers get best pricing and unit selection
• Choose established developers: Projects more likely to complete on time and as promised
• Select prime locations: Waterfront, Brickell, and Miami Beach have strongest appreciation history
• Buy slightly above your budget: Higher-end units within a building appreciate faster
• Consider assignment potential: Projects allowing contract sales offer liquidity during construction

Building a Portfolio

• Diversify across neighborhoods and price points
• Stagger purchase dates to spread risk and provide regular cash flow as units deliver
• Mix primary residence with investment units for tax optimization
• Consider 1031 exchange strategies for tax-deferred growth
• Work with experienced preconstruction specialist to identify best opportunities

Common Mistakes to Avoid

• Skipping attorney review: Always have an experienced real estate attorney review your contract
• Not researching the developer: Verify track record before committing deposits
• Ignoring HOA fees: High fees reduce rental yields and resale appeal
• Buying the wrong unit: Views and floor level significantly impact value
• Over-upgrading: You may not recoup premium upgrade costs at resale
• Missing deposit deadlines: Can result in contract cancellation and forfeiture
• Assuming on-time delivery: Plan for potential 6-12 month delays
• Not budgeting for closing costs: Add 2-4% to your budget for fees

Timeline Overview

Typical preconstruction purchase timeline:

• Day 1: Reservation and deposit ($5K-$50K)
• Days 1-10: Document review with attorney
• Days 10-15: Contract signing and 10% deposit
• Month 2-3: Second 10% deposit
• Months 6-18: Additional deposits at construction milestones (10-20%)
• Months 12-18: Design selections and upgrades
• Month 18-36: Construction completion
• 90 days pre-closing: Finalize financing
• 30 days pre-closing: Pre-closing walkthrough
• Closing day: Final payment, sign documents, receive keys

Work with an Expert

Successfully navigating South Florida's preconstruction market requires local expertise and developer relationships. Ron Eppinger Jr has over 20 years of specialized experience in Miami luxury preconstruction developments, with a track record of over $500 million in buyer transactions across Miami-Dade, Broward, and Palm Beach counties.

Why work with Ron:

• Early access to new project launches before public availability
• Established relationships with all major South Florida developers
• Expert guidance on neighborhood selection and unit choice
• Negotiation expertise for pricing and contract terms
• Coordination with attorneys, lenders, and other professionals
• No cost to you - developer pays the commission

Contact Ron Eppinger Jr
Miami Real Estate Specialist
Based in Bal Harbour, Florida
20+ Years Luxury Preconstruction Experience
Email: ron@roneppinger.com
Website: ron305miami.com

Additional Resources:

• Miami Preconstruction Database - Complete listings of all 64+ active South Florida developments
• Preconstruction FAQ - Answers to common questions about buying new construction condos

Last Updated: February 13, 2026 | Ron Eppinger Jr, Miami Real Estate Specialist