MORE ABOUT THE PRECONSTRUCTION BUYING PROCESS

Arguably the hottest sectors of Florida real estate are the preconstruction and new construction markets. Developers across the state are building at a fantastic rate to meet the high demand of a historic migration of people from around the USA and the world to South Florida. Over one thousand fifty people per day move into sunny Florida!

In order to qualify for their construction financing, many developers offer discounts to early buyers. These discounted prices often result in better-than-average appreciation for buyers and investors. Developers sell pre-construction at lower prices because they usually need these "pre-sales" in order to secure a construction loan. Lenders typically require that 50% to 80% of a project be pre-sold; that is executed contracts and 20% deposits in escrow.

Seasoned buyers already know the value of buying preconstruction. Getting in on the ground floor is a fantastic opportunity to save thousands of dollars. One of the greatest benefits of buying in the preconstruction phase is that prices typically are lower than those of existing like-kind re-sales of existing real estate.

Developers discount the prices of preconstruction units to give buyers the incentive to buy something that a buyer will have to wait to enjoy. As construction progresses, Developers typically increase the price of preconstruction units. The earlier in the process one is able to purchase, the lower the price generally may be.

Needless to say, pricing at its lowest is very desirable. In order to access first round pricing, one must work with a top broker. Chariff Realty Group's long lasting relationships with developers in South Florida puts us in a position to best serve our clients.

Planning and patience pay off when buying preconstruction property. First, you need to plan on having the necessary funds when it comes time to "go to contract". In most cases it is required that a total of 20% of the purchase price be placed in an escrow account.

This is typically is done in two phases.

• At contract a 10% deposit is due.
• Second, as the developer "breaks ground" to begin construction, a second 10% deposit is due.

If the preconstruction prices compare favorably with existing re-sales, then there is a good probability that you will enjoy substantial appreciation. Weather you're planning to purchase a preconstruction condo or loft for personal use or for investment Chariff Realty Group is sure to be your key to South Florida real estate.

Learn more on how you can buy preconstruction in Florida by using our trademarked "Agent on Call" Service, which provides clients with access to our expert staff of agents 24 hours a day 7 days a week @ 305.576.7474.