Miami Preconstruction Condos: Frequently Asked Questions

Expert answers from Ron Eppinger Jr, Miami Real Estate Specialist with 20+ years of experience in luxury preconstruction developments

Buying a preconstruction condominium in Miami represents a significant investment opportunity, but the process can seem complex for first-time buyers. This comprehensive FAQ addresses the most common questions about purchasing preconstruction condos in Miami-Dade, Broward, and Palm Beach counties, based on over two decades of experience in South Florida's luxury real estate market.

General Preconstruction Questions

What is a preconstruction condo?

A preconstruction condo is a condominium unit purchased before construction is completed, often before construction even begins. Buyers commit to purchasing the unit based on floor plans, renderings, and developer specifications, with the property delivered 18-36 months after contract signing. This allows buyers to secure units at current pricing before market appreciation occurs.

Why buy preconstruction instead of existing inventory?

Preconstruction purchases offer several key advantages:

• Below-market pricing: Early buyers typically save 20-30% compared to post-construction market values
• Customization options: Many developers allow finish selections and minor layout modifications
• New construction warranty: Everything is brand new with builder warranties covering major systems
• Appreciation during construction: Property values typically increase during the 18-36 month construction period
• Extended closing timeline: More time to arrange financing and prepare for ownership
• Investment potential: Ability to assign contracts or sell upon completion at appreciated values

How much do Miami preconstruction condos cost?

Miami preconstruction pricing varies significantly by location and developer. As of February 2026, the market ranges from $450,000 for studios in emerging neighborhoods to $60 million for ultra-luxury penthouses on Miami Beach. The median preconstruction price is approximately $1.2 million. Brickell developments range from $550K-$20M, while Miami Beach oceanfront properties start at $3M and exceed $60M for trophy penthouses. See our complete database for specific project pricing.

What is the typical deposit structure?

Most Miami preconstruction developments require 20-50% of the purchase price as deposits, paid in installments:

• Initial deposit: 10% due at contract signing (within 10-15 days of reservation)
• Second deposit: 10% due 30-90 days after contract
• Third deposit: 10-20% due upon major construction milestones (foundation complete, topping off, etc.)
• Final deposit: 10% due 6-12 months before completion

Ultra-luxury projects ($5M+) may require 50% down, while more accessible developments may accept as little as 20% total. Deposits are typically held in escrow and may earn minimal interest.

Financial and Legal Questions

Can I get financing for a preconstruction condo?

Yes, but financing preconstruction differs from traditional mortgages. Most buyers pay deposits from liquid assets, then obtain permanent financing at closing. Key considerations:

• Pre-approval is essential: Lenders issue conditional approvals based on current financial status and future projected income
• Construction-to-permanent loans: Some lenders offer specialized products that convert from construction to permanent financing
• Foreign national programs: International buyers (40% of Miami's market) can access financing with 30-50% down payments
• Interest rate risk: Rates may change between contract signing and closing 18-36 months later
• Building certification required: Permanent financing requires the building to be fully certified and receive its Certificate of Occupancy

What are the tax implications?

Preconstruction condo purchases have several tax considerations:

• No property tax during construction: Taxes begin when you take ownership at closing
• Homestead exemption: Florida residents using the property as primary residence can save up to $50,000 on assessed value
• Assignment profits are taxable: If you sell your contract before closing, profits are typically taxed as ordinary income or capital gains depending on holding period
• Rental income: If purchasing as an investment, rental income is taxable but many expenses are deductible
• Foreign buyers: International purchasers face FIRPTA withholding (15% of sale price) when selling

Consult with a tax professional specializing in Florida real estate for personalized guidance.

What happens if the developer goes bankrupt?

Developer bankruptcy is rare in Miami's established luxury market, but protections exist:

• Escrow deposits: Florida law requires deposits be held in escrow, separate from developer operating funds
• Deposit refund rights: If construction doesn't commence within specified timeframes, buyers typically receive full deposit refunds
• Purchase agreements include protections: Contracts specify completion deadlines and buyer remedies for non-performance
• Title insurance: Protects against liens and claims on the property
• Research the developer: Established developers like Related Group, Terra, PMG, and Fortune International have decades of successful projects

Can I sell my preconstruction contract before closing?

Yes, contract assignments are common in Miami's preconstruction market. Key points:

• Developer approval required: Most contracts require developer consent to assign, with approval fees of $5,000-$25,000
• Profit potential: Contracts often appreciate 20-40% during construction as the building nears completion and market prices rise
• Timing matters: Assignments are most profitable 12-18 months before completion when buyers can see construction progress
• Tax implications: Assignment profits are taxable income in the year received
• Buyer qualifications: The new buyer must meet the developer's financial requirements

Process and Timeline Questions

How long does the preconstruction buying process take?

The preconstruction purchase timeline has several phases:

• Reservation (Day 1): Pay $5,000-$50,000 refundable reservation deposit to hold a unit
• Contract review (Days 1-10): Attorney reviews purchase agreement and condo documents
• Contract signing (Days 10-15): Sign purchase agreement and pay 10% deposit
• Deposit schedule (Months 1-18): Pay remaining deposits per contract terms
• Design selections (12-18 months pre-delivery): Choose finishes, upgrades, and customizations
• Pre-closing walkthrough (30 days pre-delivery): Inspect completed unit
• Closing (18-36 months from contract): Final walkthrough, closing, and take possession

When do I need to secure financing?

While you should obtain pre-approval before signing the contract to ensure you'll qualify, permanent financing is typically finalized 60-90 days before the scheduled closing date. Many buyers wait until 6 months before completion to lock rates, though this carries interest rate risk if rates rise during construction.

What can delay completion?

Common delay factors include:

• Permitting delays: City/county approvals can extend timelines 3-12 months
• Labor shortages: Skilled construction labor availability affects schedules
• Material delays: Supply chain issues for imported finishes and fixtures
• Weather: Hurricanes and tropical storms can pause construction
• Design changes: Developer modifications during construction
• Economic conditions: Severe downturns may slow or pause projects

Reputable developers build buffer time into projections. Purchase contracts typically allow 6-12 month extensions beyond the estimated delivery date.

Investment and Market Questions

Is preconstruction a good investment?

Preconstruction has historically been an excellent investment in Miami's appreciating market. Consider these factors:

• Historical appreciation: Miami preconstruction has averaged 8-12% annual appreciation from 2022-2026
• Leverage benefits: 20-50% down payment controls 100% of appreciation on the full value
• Market timing: Buying at current prices before delivery 18-36 months in the future captures market growth
• Rental income potential: Upon completion, luxury condos generate strong rental yields (4-6% gross annually)
• Market cycles matter: Buying during early construction phases maximizes appreciation potential

However, investments carry risks including market downturns, construction delays, and illiquidity during the deposit period.

Which Miami neighborhoods are best for preconstruction?

Each neighborhood offers distinct advantages:

• Brickell: Best for appreciation and rental demand. Financial district location, walkability, and urban lifestyle attract young professionals and international buyers. 15+ projects, $450K-$20M range.
• Miami Beach (Sunny Isles): Ultra-luxury oceanfront, $3M-$60M. International buyers seeking trophy properties. Slower appreciation but prestige value.
• Edgewater: Emerging luxury area with waterfront access, $800K-$9M. Strong appreciation potential as neighborhood gentrifies.
• Coconut Grove: Village atmosphere, waterfront, $1.5M-$20M. Appeals to families and yacht owners. Limited new construction maintains exclusivity.
• West Palm Beach: Expanding luxury market, $2M-$20M. Benefits from Miami overflow and better value proposition.

What are the best-selling preconstruction projects in 2026?

Top projects by sales velocity (February 2026):

• Mercedes-Benz Places (Brickell): 791 units, $550K-$4M, branded luxury, JDS Development
• Bentley Residences (Sunny Isles): 216 units, $5.5M-$35M, car elevators to every unit, oceanfront
• Waldorf Astoria Miami (Downtown): 360 units, $1M-$28M, hotel-condo hybrid, PMG
• Cipriani Residences (Brickell): 397 units, $1.8M-$9M, Italian luxury brand, Mast Capital
• E11EVEN Hotel & Residences (Brickell): 375 units, $2M-$20M, nightlife brand, entertainment complex

See our complete Miami Preconstruction Database for all 64+ active projects.

Foreign Buyer Questions

Can foreign nationals buy preconstruction in Miami?

Absolutely. International buyers represent approximately 40% of Miami's preconstruction market. There are no restrictions on foreign ownership of U.S. real estate. Key considerations:

• No citizenship required: Anyone from any country can purchase
• Financing available: Foreign national mortgage programs offer 30-50% down payment options
• Tax identification: ITIN (Individual Taxpayer Identification Number) required for tax purposes
• Wire transfer protocols: International deposits must comply with anti-money laundering regulations
• Legal representation: U.S.-based attorney required for closing

What are the tax implications for foreign buyers?

International purchasers face additional tax considerations:

• FIRPTA withholding: 15% of gross sale price withheld when selling (may be refundable if no gain)
• Rental income taxed: Must file U.S. tax returns and pay tax on rental income
• Estate tax exposure: U.S. real estate included in worldwide estate tax calculation
• No property tax premium: Same property tax rates as U.S. citizens
• Tax treaties: Some countries have treaties reducing double taxation

Developer and Building Questions

How do I research a developer's track record?

Evaluate developers using these criteria:

• Completed projects: Review their portfolio of delivered buildings in Miami
• On-time delivery history: Ask about their completion timelines on past projects
• Financial stability: Established developers have equity and bank relationships
• Industry reputation: Check with local brokers and real estate attorneys
• Current projects: Visit their existing buildings to assess quality and attention to detail
• Litigation history: Research any lawsuits or disputes with buyers

Established Miami developers with strong track records include Related Group, Terra, Fortune International, PMG, and Melo Group.

What should I look for in condo documents?

Have your attorney review these critical documents:

• Purchase and Sale Agreement: Your contract with all terms, pricing, deposits, and deadlines
• Declaration of Condominium: Legal document creating the condo and defining unit boundaries
• Condo Association Bylaws: Governance rules for the building
• Budget and Reserve Study: Projected operating costs and maintenance reserves
• Offering Plan/Prospectus: Full disclosure document with all material information
• Floor plans and specifications: Exact unit layout and finish details

What are typical HOA fees and what do they cover?

Miami luxury condo HOA fees typically range from $0.50-$1.50 per square foot monthly. A 2,000 sq ft unit might have $1,000-$3,000 monthly fees. These cover:

• Building maintenance: Exterior, common areas, lobbies, hallways
• Amenities operation: Pool, gym, spa, theater, business center, valet
• Staffing: Concierge, security, maintenance personnel
• Utilities for common areas: Electricity, water, AC for shared spaces
• Insurance: Building exterior and liability insurance
• Reserves: Long-term maintenance fund for major repairs

Oceanfront buildings and those with extensive amenities have higher fees. Budget for annual 3-5% HOA fee increases.

Working with Ron Eppinger Jr

Why work with a buyer's agent for preconstruction?

A buyer's agent specializing in preconstruction provides significant value:

• No cost to buyer: Developer pays the commission (typically 3%)
• Early access: Broker previews and priority reservations before public launch
• Market knowledge: Guidance on which projects offer best value and appreciation potential
• Negotiation expertise: Assistance with pricing, upgrades, and contract terms
• Due diligence support: Coordination with attorneys, inspectors, and lenders
• Timeline management: Tracking deposit deadlines and construction milestones
• Portfolio strategy: Helping investors build diversified preconstruction holdings

What is Ron's experience with Miami preconstruction?

Ron Eppinger Jr brings over 20 years of specialized experience in South Florida luxury preconstruction developments. Based in Bal Harbour, Miami, he has represented buyers in transactions totaling over $500 million across Miami-Dade, Broward, and Palm Beach counties. His expertise includes:

• Relationships with all major Miami developers and sales teams
• Early access to new project launches and best unit selections
• Track record of identifying projects with strongest appreciation potential
• Experience with both primary residence buyers and international investors
• Specialization in ultra-luxury developments ($5M+)
• Comprehensive market knowledge across all South Florida submarkets

Get Expert Guidance

Navigating Miami's preconstruction market requires local expertise and market knowledge. Whether you're buying your first preconstruction condo or building an investment portfolio, Ron Eppinger Jr provides the guidance you need to make informed decisions.

Contact Ron Eppinger Jr
Miami Real Estate Specialist
20+ Years Luxury Preconstruction Experience
Email: ron@roneppinger.com
Website: ron305miami.com

Resources:

• Miami Preconstruction Database - Complete listings of all 64+ active projects
• Preconstruction Buying Guide - Step-by-step process walkthrough

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