Frequently Asked Questions About Buying A Preconstruction Condo Unit In South Florida
1. What is Cranespotters.com?
Launched in early 2013, Cranespotters.com - powered by the licensed Florida brokerage CVR Realty™ - is South Florida's first interactive real estate website dedicated exclusively to preconstruction condo projects. Cranespotters.com is focused on all aspects of the preconstruction condo industry in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach. Cranespotters.com offers visitors a variety of services, including a realtime list of proposed towers, an interactive locator map - with a 3D option - to better understand the proposed towers, a calendar of Preconstruction Condo Launch Parties, and a searchable Preconstruction Condo Projects Database™.
2. What is the Preconstruction Condo Desk™ of CVR Realty™? What should I care about the PCD™?
The Preconstruction Condo Desk™ (PCD™) is a team of veteran real estate professionals who specialize in condominiums in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach.
This team of experts works in unison collecting data, gathering intelligence, and accessing the players in South Florida's preconstruction condo sector on behalf of buyers. Actionable market intelligence is the lifeblood of the Preconstruction Condo Desk™.
3. How many new condo towers are proposed for coastal South Florida?
Our research shows more than 100 new condo towers with nearly 15,000 units have been proposed in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach as of Feb. 15, 2013.
4. Is there a list of the proposed condo towers in South Florida?
CVR Realty™ - a traditional real estate brokerage that has evolved out of the data-driven Condo Vultures® concept - has established itself as South Florida's condo experts. Our research of government records related to newly proposed condo towers in South Florida has been cited by local, state, national, and international news outlets. (Check out some of the media reports.) Here is a link to our realtime Preconstruction Condo Projects list of newly proposed condo towers in South Florida.
5. How many of the newly proposed condo towers will be built in coastal South Florida?
As of Feb. 15, 2013, developers have initiated the construction of at least 16 new condo towers. The Declaration of Condominium documents - an administrative step that generally suggests the start of constructon - have been recorded for more than five additional towers in South Florida. Condo construction financing remains a challenge in South Florida so only those projects with an adequate number of presales are thought to be under or planning construction.
6. Why are so many new condo towers proposed? Wasn't South Florida's condo market was in a downward spiral?
During the last South Florida condo boom, developers created nearly 49,000 new units in the region's seven largest coastal condo markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach. As of the end of 2012, an estimated 95 percent of the 49,000 condo units created during the boom have been sold. The weak U.S. dollar coupled with discounted prices worked to attract foreign investors and bulk buyers that purchased the lion's share of the unsold developer units in South Florida's seven largest coastal condo markets.
7. Will this latest building boom be a repeat of the last South Florida condo market boom-and-bust cycle that began in 2003?
This newest South Florida condo boom is based on buyers who are agreeing to make a series of deposits - ranging from 30 percent to 80 percent - during the construction process. Buyers who fail to meet the required preconstruction contract deposits are in jeopardy of losing their funds. Contrast this new model that is commonplace in Latin America with the last South Florida condo boom where developers typically collected deposits of no more than 20 percent at the beginning of the contract period. Buyers were not required to come up with additional funds until the date of closing. Many industry watchers point to the former preconstruction deposit structure as a factor in the widespread speculation that propelled the South Florida condo market before its ultimate crash beginning in 2007.
8. I am potentially interested in purchasing a preconstruction condo unit but am in no rush. Is this the appropriate strategy?
Individuals have traditionally purchased condo units in South Florida for a variety of reasons. Some individuals buy with the plan to live in their units, other plan to rent out their units, and some even speculate on preconstruction condos with the intention of reselling their units at a premium shortly after closing. In 2011 and 2012, many of the preconstruction condo buyers entered into purchase contracts to take advantage of a perception that future prices would be higher once the South Florida condo market returned to some form of normalcy in the future. Adding to the demand for preconstruction condo buyers was the dramatically reduced resale inventory - less than 20,000 condos are on the resale market in South Florida as of Feb. 18, 2013 - coupled with the weak U.S. dollar against foreign currencies.
9. I am not sure what to do in terms of buying a preconstruction condo unit but I hear the launch parties are worth attending?
Many condo projects promote a lifestyle along with the design, amenities, and layouts of a proposed project. To provide a perspective on a project's lifestyle, many developers organize condo launch parties that feature gourmet food, top-shelf liquor, pretty people, and entertainment. If you are interested in attending a condo launch party, please be sure to sign up for the Cranespotters.com Preconstruction Condo Bulletin or contact the Preconstruction Condo Desk™ of CVR Realty™ at 305-865-5859 or Inquiry@CVRRealty.com.
10. How can I get more information on preconstruction condo projects in South Florida?
We encourage you to contact the Preconstruction Condo Desk™ of CVR Realty™ at 305-865-5859 or Inquiry@CVRRealty.com. Alternatively, fill out this preconstruction condo project information request and a member of the PCD will™ respond.