Should you buy a brand‑new Miami condo or a move‑in‑ready resale? It’s a big decision, especially when timelines, deposits, warranties, and carrying costs differ so much between the two. If you want a clear, local perspective tailored to Miami and Miami‑Dade, you’re in the right place. In this guide, you’ll learn how deposit structures work, what to expect with delivery timelines and interim occupancy, how warranties and finishes compare, and how to weigh resale risk so you can choose with confidence. Let’s dive in.
New vs resale at a glance
- New construction fits you if you can wait for delivery, want modern amenities and a builder warranty, and are comfortable with staged deposits and potential interim occupancy before closing.
- Resale fits you if you want certainty on timing, prefer to see the exact unit and HOA track record before you buy, and value immediate liquidity with established comps.
- In Miami‑Dade, both paths can work well. The right choice depends on your timeline, cash flow, and risk tolerance.
Deposits and contracts in Miami
Pre‑construction and resale purchases follow very different playbooks in Miami. Florida’s condominium framework under Chapter 718 sets many developer and disclosure rules, but your purchase agreement controls the details.
Pre‑construction deposit patterns
- Developers commonly require staged deposits that add up over time. Many Miami projects collect around 10 to 30 percent in total, with additional tranches at calendar or construction milestones. Some boutique or ultra‑luxury offerings may request higher percentages.
- Deposits are typically held in escrow. Refundability depends on your contract and the milestone reached. Many early‑stage deposits become non‑refundable after certain points.
- Assignments and transfers are often possible but can be restricted or subject to developer fees. Review assignment clauses carefully if you may want flexibility.
Resale earnest money norms
- Resale condos use standard contracts with earnest money applied at closing. You’ll rely on seller disclosures and the existing association’s documents to evaluate the building.
Key contract items to confirm
- Exact deposit schedule, escrow handling, and what happens if the developer delays or defaults.
- Contingencies for financing, appraisal, inspection or punch‑list rights.
- Cancellation rights and deadlines for deposit refunds.
- Assignment rules and any transfer fees.
- Developer obligations, delivery dates, extension provisions, and your remedies for delay.
Delivery timelines and interim occupancy
Typical timelines and delays
- Many Miami projects take roughly 18 to 48 months from contract to completion, depending on when sales launched, permitting, financing, labor and supply factors, and weather.
- Delays are common. Contracts often include extension rights for force majeure and lender processes. Remedies vary by contract, from cancellation with refund on significant delay to limited credits.
Interim occupancy explained
- In South Florida, interim occupancy often occurs once a building is substantially complete and residents begin moving in, but before legal closing of each unit. The developer may charge an interim occupancy fee that functions like a monthly charge to cover building operations during this period.
- These fees are not mortgage payments and are usually not tax‑advantaged. They can add meaningful pre‑closing costs for buyers who expected payments only at closing.
- Always confirm whether interim occupancy is anticipated, how fees are calculated, whether any portion is credited at closing, and the expected duration.
What to ask the developer
- What delivery date is in the contract, and what extensions are permitted?
- What constitutes a material delay, and what remedies do you have?
- Is interim occupancy expected, how is it calculated, and how long might it last?
- What is the developer’s delivery track record on prior Miami projects?
Warranties, finishes, and punch lists
What new construction typically includes
- Developers commonly provide limited warranties. Industry norms include about one year for workmanship and materials, short coverage for mechanical systems, and longer limited structural coverage that can extend several years for major structural elements. Exact terms are set in your contract and warranty documents.
- You’ll usually have a punch‑list period after substantial completion to identify items for the developer to correct. Timing and quality of punch‑list completion vary by builder.
How resale compares
- Resale units rely on inspections and seller disclosures. Some appliance or system warranties may transfer, but they are typically limited or near term.
Finishes and upgrade budgeting
- New builds often offer finish selections or upgrade packages during defined windows. High‑end buildings may allow broader customization that increases the contract price.
- Resales are purchased as‑is. In Miami, common post‑close projects include kitchen or bath updates, flooring replacements, and system upgrades like HVAC. Obtain inspection reports and any renovation receipts to estimate costs.
Carrying costs and financing
What you’ll pay and when
- Resale buyers begin normal carrying costs right after closing, including mortgage payments, property taxes, HOA fees, unit utilities, and maintenance.
- Pre‑construction buyers mainly commit deposits until closing. If interim occupancy applies, expect monthly fees before closing. After closing, carrying costs mirror resale.
HOA fees and reserves
- New buildings may show attractive projected budgets early on. After turnover from the developer to the owners’ association, fees often rise to align with full operating needs and reserves.
- Established resale associations provide operating history, reserve studies, and assessment records you can review before you buy.
Taxes and insurance in Miami‑Dade
- Property tax assessments typically reflect the unit’s value at or after closing. Plan your tax basis accordingly and consult a tax professional for planning, especially if you consider contract assignments.
- Insurance markets in Florida are volatile. Master policy premiums for condo buildings influence HOA budgets and can increase fees or trigger assessments. Newer code‑compliant construction may improve wind mitigation, yet replacement costs and amenity intensity can still raise premiums.
Financing and appraisal risk
- For new units, your permanent loan funds at closing. Rate changes during construction can affect affordability, and appraised value at completion must support your purchase price.
- Market shifts during the build period can create appraisal gaps. Plan cash reserves or a strategy with your lender to address potential differences.
- Deposit funds are often non‑interest bearing and tied up in escrow until closing unless refundable per the contract.
Resale value and market dynamics
What drives resale risk in Miami
- Oversupply risk matters when multiple projects deliver in the same submarket and price band, which can weigh on resale values.
- Developer quality and capitalization influence construction quality, delivery performance, and post‑turnover issues.
- Amenity and product differentiation, coupled with a strong location, tend to support value retention.
- Macro factors also play a role. Miami’s condo market is sensitive to interest rates, international capital flows, and broader economic conditions.
Liquidity and exit options
- Pre‑construction buyers have limited liquidity during construction. Assignment rights can offer a path to exit, but they are often restricted or fee‑based.
- Resale owners can sell immediately, with established comps and an operating HOA, subject to market conditions.
Decision checklist
Use this checklist to align your choice with your goals:
- Timeline: Do you need keys now or can you wait 1 to 3 plus years?
- Cash and deposits: Are you comfortable tying up non‑interest deposits and potentially covering interim occupancy fees?
- Condition vs warranty: Do you prefer brand‑new with builder warranties or inspected resale with known condition and possible upgrades?
- HOA transparency: Do you want an association with audited history and reserve studies, or are you comfortable with a projected budget that may change after turnover?
- Insurance and taxes: Are you prepared for possible HOA fee changes tied to insurance and for taxes set at a new construction value?
- Resale and rental rules: Do condo documents support your intended use and exit strategy?
- Developer diligence: Have you reviewed the developer’s track record, prior buildings, and any litigation or delivery issues?
What to review before you sign
Request and read the full package. For pre‑construction, ask for:
- The offering plan or prospectus, purchase agreement, and deposit escrow instructions
- Condominium declaration, bylaws, budget, and reserve projections
- Construction schedule, delivery timelines, and extension provisions
- Warranty documents and procedures for claims
- Assignment rules and any transfer fees
- Any available developer financials, lender commitments, and marketing plan
For resale, request:
- Seller disclosures, last two to three years of HOA financials, budgets, reserve studies, and assessment history
- Association rules, rental policies, insurance certificates, and recent meeting minutes if available
- A professional inspection, plus receipts and warranties for recent renovations or system replacements
How we help you choose confidently
Selecting between Miami new construction and resale is not just about a floor plan. It’s a balance of timing, cash flow, building quality, and long‑term value. You deserve an advisor who weighs all of that with you and negotiates terms that protect your interests. If you want a founder‑led, concierge approach that blends lifestyle fit with portfolio thinking, connect with Ginger Coutain to Schedule a Private Consultation.
FAQs
How large are deposits for Miami pre‑construction condos?
- Many projects use phased deposits that total roughly 10 to 30 percent, while some luxury buildings require higher percentages; always verify the developer’s schedule and refund terms in the contract.
What is interim occupancy in Miami condos?
- It is a pre‑closing period after substantial completion when the developer charges monthly fees to occupants to cover building operations, which are separate from a mortgage and can add meaningful pre‑closing costs.
Do new condos include warranties?
- Yes, developers typically offer limited warranties for workmanship and systems, plus a longer limited structural warranty for major structural elements, all defined in your contract and warranty documents.
Are HOA fees lower in new buildings?
- Early budgets can appear lower, especially if subsidized by the developer, but fees often rise after turnover to reflect full operating expenses and reserves.
Which holds resale value better, new or resale?
- Neither is inherently better; outcomes depend on supply in the submarket, developer quality, location, amenities, and broader market conditions.
What documents should I review before a pre‑construction purchase?
- The prospectus, purchase contract, escrow instructions, condo declaration and bylaws, budgets and reserve projections, construction schedule, warranty documents, and any rules on assignments or rentals.
