Buyer resources built for serious South Florida decisions

What is New Construction?

Pre-construction properties are residential units sold before the building is completed. Buyers purchase directly from developers based on floor plans and architectural renderings. This offers the advantage of customization, modern design, and often lower prices compared to completed properties.

Key New Construction Considerations

• • Developer Reputation: Research the developer's track record, financial stability, and past projects.
• • Contract Terms: Understand cancellation provisions, modification deadlines, and force majeure clauses.
• • Construction Timeline: Ask for realistic completion dates and penalties for delays.
• • Assignment Rights: Check if you can assign your contract to another buyer before closing.
• • Finishes & Options: Understand what's included vs. what costs extra (finishes, appliances, upgrades).
• • Projected HOA Fees: Get written estimates of operating costs and reserve contributions.

Assignment Sales

Many new construction buyers sell their contract before closing. This "assignment" can be lucrative if the building appreciates. However, most developer contracts allow assignments only with developer approval, and many charge assignment fees. The buyer is responsible for any price increases during construction.

Key Steps

1. 1. Make an Offer: Submit a written offer through your agent. Most condos sell between list price and 3-5% below (especially in slower markets).
2. 2. Get Pre-Approved: Secure financing approval before making an offer to strengthen your position.
3. 3. Inspection & Appraisal: Conduct a professional home inspection and condo document review (7-10 days typical).
4. 4. Review HOA Documents: Review condo disclosures, bylaws, rules, and financial statements to understand restrictions and fees.
5. 5. Final Walk-Through: Do a final inspection 24 hours before closing to confirm all repairs were made.
6. 6. Closing: Sign documents, transfer funds, receive keys. Typically takes 30-45 days from offer to close.

Pre-Approval & Loan Types

Getting pre-approved for a mortgage is essential before shopping. A lender will review your credit, income, and assets to determine your maximum loan amount. In Miami, you'll typically need:

• • Credit Score: 680+ for conventional loans, 640+ for FHA (though higher scores get better rates)
• • Down Payment: 20% for conventional (can go as low as 3-5% with PMI), 3.5% for FHA
• • Debt-to-Income Ratio: Most lenders want 43% or less of gross income going to debt payments

Condo-Specific Financing Requirements

Condos have stricter lending requirements than single family homes because lenders view condo buildings as riskier. Many lenders require:

• • Monthly HOA dues must fit within your debt-to-income ratio, so high dues reduce how much you can borrow
• • Building must have adequate reserves (typically 10% of annual budget)
• • Commercial space in building must be less than 25% (usually)
• • No more than 15-20% investor-owned units (varies by lender)

Mortgage Rate & Terms

Current mortgage rates (2026) vary based on market conditions, credit score, and loan type. Fixed-rate mortgages (15-year or 30-year) are most common for owner-occupied purchases. Shop rates with multiple lenders. A 0.25% difference can save tens of thousands over time. Pre-construction purchases may require different financing terms since you're not closing immediately.

Understanding HOA Fees

Most Miami condos are part of a homeowners association (HOA) that maintains common areas, amenities, insurance, and building infrastructure. Monthly HOA fees vary widely based on building size, age, and amenities.

What HOA Fees Typically Include

• • Building insurance and liability coverage
• • Maintenance of common areas (hallways, lobbies, grounds)
• • Amenities (pool, gym, concierge, security)
• • Utilities for common areas
• • Management company fees
• • Reserve contributions for major repairs/replacements

Questions to Ask When Reviewing an HOA

• ✓ What is the reserve study and are reserves adequate?
• ✓ Are there any pending special assessments planned?
• ✓ What percentage of units are investor-owned vs. owner-occupied?
• ✓ What are the building rules (pets, rentals, renovations)?
• ✓ What is the history of HOA fee increases?
• ✓ Is the building well-maintained with no structural issues?

Foreign Buyer Mortgage Options

• • Traditional US Mortgage: Many banks offer mortgages to foreign nationals, though they may require an ITIN, Social Security Number, or higher down payment (typically 30-50%)
• • Portfolio Loans: Some private lenders offer loans without traditional underwriting, though rates are higher
• • Cash Purchases: Many foreign buyers bypass financing and purchase in cash for simplicity

Additional Considerations

• • Tax Implications: Foreign property ownership may have tax consequences in your home country and in the US. Consult a tax professional.
• • Currency Exchange: If transferring funds internationally, monitor exchange rates and timing.
• • Visa / Residency: Purchasing property doesn't automatically grant US residency or visa status.
• • Property Management: Consider hiring a property manager if you don't reside in Florida.

Our Commitment

I am fully committed to fair housing practices and equal opportunity. I treat all clients with respect regardless of protected class status. My services are available to everyone equally.

Florida-Specific Regulations

• • Florida Real Estate Commission (FREC): All agents must follow FREC rules. I am licensed as SL3436346 with Dalton Wade Inc.
• • Property Disclosures: Sellers must disclose known material facts about properties, including mold, flood history, and structural issues.
• • Condo Disclosures: Developer/seller must provide HOA documents, bylaws, and financial statements.
• • Flood Zone / Insurance: Properties in FEMA flood zones require flood insurance (often required for mortgage).

How Your Agent Is Paid

Real estate commissions are fully negotiable and are not set by law, by any Realtor board or association, or by the MLS. Since the 2024 National Association of Realtors settlement took effect, a buyer's agent working through the MLS must have a written agreement with the buyer before touring a home, and that agreement has to state the compensation the agent will receive. The agent cannot collect more than the amount written in it.

Compensation for a buyer's agent is no longer advertised through the MLS and is no longer automatic. A seller may still choose to offer it, or to give a general closing-cost concession, but that is negotiated deal by deal and can be zero. Budget for the possibility that you pay your agent directly, and treat any seller contribution as something to negotiate in the offer rather than something to assume.

Buying From a Foreign Seller (FIRPTA)

FIRPTA is usually described as a seller issue, but the withholding obligation legally sits with the buyer. When the seller is a foreign person, the buyer is the withholding agent, is generally required to withhold 15% of the gross sale price and remit it to the IRS, and can be held liable for the tax if it is not withheld. In practice the closing agent handles the mechanics, but confirm early who is doing it and get written confirmation of the seller's status. A reduced rate or a full exemption can apply, including for a purchase of $300,000 or less where the buyer will use the property as a residence and meets the occupancy test. Have a CPA or attorney review this before closing.

Still have questions?

I'm here to help. Contact me directly with any questions about buying in Miami.