Русский
| 022222222 |
305-933-4111
786-853-0191
786-206-7028
Office
Direct
Fax
Ilya Reznik
Licensed Real Estate Broker
| 22222 |
| PreConstructions: |
| Sunny Isles Beach |
| Surfside |
| South Beach |
| Downtown |
| Hollywood Beach |
| Aventura |
| Bal Harbour |
| Miami Beach |
| Brickell |
| Hallandale Beach |
All Rights Reserved. Copyright © 2008 The Reznik Group, Inc
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Both commercial lenders and private investors ascertain the buying public's actual level of interest prior to
funding a project. With adequate interest, funding has a strong potential for moving forward. Adequate interest
typically equates to a pre-sale of 60% to 80%. This can translate into potential savings for buyers who are willing
to reserve a unit or make a purchase at this earliest stage.
Potential Appreciation
Although there is never a guaranty, in many cases the "first day" prices will be lower than the price for
subsequent purchasers. In some cases, developers even offer additional incentives when the opening bell
rings. Of course, as the project progresses from the drawing board to reality, interest by end-users increases.
Needless to say, with a more definite picture, pricing tends to increase. Again, although this has been the trend
thus far, there is no guaranty that this will continue into the future.
Ongoing Appreciation
Many projects are developed in phases, especially the condo towers. For example, the developer will build the
first tower, followed by a second, and sometimes a third or even an eighth. Of course, the first tower prices tend
to be lower and each new tower shows an increase, in some cases significant.
Supply and Demand
The economic rule of supply and demand certainly has been coming into play with South Florida real estate,
especially waterfront and water access properties. At this point in time, the demand is very high. Due to
restrictions by the various municipalities and counties involved, there are certain limitations in terms of the
number of available properties. According to some analysts, over the next eight years, the baby boomer flood will
start to peak. Demand may be even greater than it is now, and the overall supply will probably be more limited.
Note that according to the US census, in 2005 an average of 1,050 people per day move into the state of Florida.
Limited Upfront Carrying Cost
Though developers prefer to go directly to binding purchase agreement i.e. Contract, Reservation Agreements
are used when they choose to begin sales prior to having all permits and plans in place, and prior to
condominium documents approval by the Florida State Government.
If you decide to go ahead with the purchase agreement, payment of the balance of the first 10% will be required.
You will then be granted a 15-day (calendar) rescission period (for CONDOS only) during which buyers may
obtain an attorney to review the contract and condominium documents, or at the very least do so themselves.
This law can be found UNDER SECTION 719.503, FLORIDA STATUTES. Once the rescission period is over,
buyers are committed and any defaults will result in a loss of the deposit. Note; once the 15-day rescission
period has expired the contract becomes "binding" or "hard".
When the building site preparation begins, a second 10% deposit is generally required. From this point forward,
the purchase remains on hold until the development is complete and the property can move forward to closing in
which case either a cash payoff or mortgage will be required. Note; the 20% deposit is made independent to
financing or the final payoff. Buyers may elect to seek financing at their discretion.
Selling Early
There are two options in terms of selling out prior to closing. First is assignment of contract. The second option
becomes possible, when builders will "resell" units prior to the entire development is sold out. If choices one or
two are not offered, there is the option of a simultaneous closing. With per-completion condo resales, the units
are made available to the public at the current pricing as determined by the developer and/or original buyer.
Buyers can list their properties with the developer who will then make them available for purchase.
To learn more about the costs associated with different developments contact The Reznik Group.
Buyers may also obtain the services of a real estate company such as The Reznik Group to promote their unit,
though as a rule, MLS listing before closing on property is typically prohibited by developer.
funding a project. With adequate interest, funding has a strong potential for moving forward. Adequate interest
typically equates to a pre-sale of 60% to 80%. This can translate into potential savings for buyers who are willing
to reserve a unit or make a purchase at this earliest stage.
Potential Appreciation
Although there is never a guaranty, in many cases the "first day" prices will be lower than the price for
subsequent purchasers. In some cases, developers even offer additional incentives when the opening bell
rings. Of course, as the project progresses from the drawing board to reality, interest by end-users increases.
Needless to say, with a more definite picture, pricing tends to increase. Again, although this has been the trend
thus far, there is no guaranty that this will continue into the future.
Ongoing Appreciation
Many projects are developed in phases, especially the condo towers. For example, the developer will build the
first tower, followed by a second, and sometimes a third or even an eighth. Of course, the first tower prices tend
to be lower and each new tower shows an increase, in some cases significant.
Supply and Demand
The economic rule of supply and demand certainly has been coming into play with South Florida real estate,
especially waterfront and water access properties. At this point in time, the demand is very high. Due to
restrictions by the various municipalities and counties involved, there are certain limitations in terms of the
number of available properties. According to some analysts, over the next eight years, the baby boomer flood will
start to peak. Demand may be even greater than it is now, and the overall supply will probably be more limited.
Note that according to the US census, in 2005 an average of 1,050 people per day move into the state of Florida.
Limited Upfront Carrying Cost
Though developers prefer to go directly to binding purchase agreement i.e. Contract, Reservation Agreements
are used when they choose to begin sales prior to having all permits and plans in place, and prior to
condominium documents approval by the Florida State Government.
If you decide to go ahead with the purchase agreement, payment of the balance of the first 10% will be required.
You will then be granted a 15-day (calendar) rescission period (for CONDOS only) during which buyers may
obtain an attorney to review the contract and condominium documents, or at the very least do so themselves.
This law can be found UNDER SECTION 719.503, FLORIDA STATUTES. Once the rescission period is over,
buyers are committed and any defaults will result in a loss of the deposit. Note; once the 15-day rescission
period has expired the contract becomes "binding" or "hard".
When the building site preparation begins, a second 10% deposit is generally required. From this point forward,
the purchase remains on hold until the development is complete and the property can move forward to closing in
which case either a cash payoff or mortgage will be required. Note; the 20% deposit is made independent to
financing or the final payoff. Buyers may elect to seek financing at their discretion.
Selling Early
There are two options in terms of selling out prior to closing. First is assignment of contract. The second option
becomes possible, when builders will "resell" units prior to the entire development is sold out. If choices one or
two are not offered, there is the option of a simultaneous closing. With per-completion condo resales, the units
are made available to the public at the current pricing as determined by the developer and/or original buyer.
Buyers can list their properties with the developer who will then make them available for purchase.
To learn more about the costs associated with different developments contact The Reznik Group.
Buyers may also obtain the services of a real estate company such as The Reznik Group to promote their unit,
though as a rule, MLS listing before closing on property is typically prohibited by developer.
Buying PreConstruction
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