I have a problem. Every time I tour another luxury development in Miami, I find somewhere else I want to live.
Faena had me thinking about the entertainment and what it would be like to have that kind of social scene practically downstairs. St. Regis had me imagining mornings overlooking the ocean. And then there’s Mandarin Orientalu, where apparently someone decided ordinary luxury just wasn’t enough.
By the time I leave these sales galleries, I’ve usually picked out my residence, figured out which amenities I’d actually use, and mentally spent several million dollars I don’t have.
And the crazy part is, some of these buildings won’t even be finished for another three or four years.
But after visiting enough of them, I’ve started noticing something that has absolutely nothing to do with the architecture, the amenities, or those beautiful renderings.
It happens almost every time the conversation turns to sales.
Eventually, I’ll ask how things are going, and somewhere in the conversation, that familiar number comes up again. Around 50% sold.
Now, I’m not suggesting anybody is making these numbers up, but I’m starting to wonder whether all these developers attended the same sales seminar.
The funny thing is that I actually prefer pre-construction. There’s something exciting about getting into a project early, choosing a residence you love, and watching the whole thing come together over the next few years. I’ve looked at enough renderings to know that the finished product can be even more impressive than what you originally imagined, although I’ve also stood outside a few construction sites wondering how on earth they’re going to pull off everything I just saw in the sales gallery.
Still, if I had the money and found the right project, I’d happily wait.
But that brings me back to that 50%.
I started looking into it and discovered that the number might not be as random as I’d thought. Presales can play an important role in securing construction financing, with lenders sometimes requiring developers to have a substantial number of residences under contract before they’ll commit. The requirements vary by lender and project, so I can’t say whether the 50% figure I’ve been hearing has anything to do with financing at the developments I’ve visited. But it certainly made me wonder whether there’s more behind that number than a successful sales presentation.
Of course, reaching a sales milestone and telling prospective buyers how much of a building has sold aren’t necessarily the same thing. One developer might mean executed purchase contracts, while another might include reservations. And depending on how a project releases its inventory, a reported sales percentage might not even reflect the entire building.
I still don’t know whether there’s something special about that 50% figure or if I just keep hearing it. But the more I thought about it, the more I became interested in what the percentage doesn’t tell me.
If a building is already 50% sold, what’s left?
I’m usually looking at the residence I like, imagining the view and figuring out whether I’d actually use all those amenities. Meanwhile, somebody else might already have purchased the floor plan I wanted, on the floor I preferred, with the exposure I hadn’t even thought to ask about.
And just because half the building has sold doesn’t mean the other half is necessarily the less desirable inventory. Maybe the developer has only released certain floors, the larger residences are still available, or a buyer’s plans have changed. A building could be 50% sold by unit count, but that doesn’t tell me which residences are gone, what’s actually available, or whether the one I’d want is still on the market.
If I’m putting down a substantial deposit on a residence that won’t be ready for several years, I want to know how many buyers have actually signed contracts, whether construction financing is in place, and how the project is progressing. A beautiful rendering is one thing. Knowing what you’re committing your money to is another.
After enough tours, I’ve realized that two residences with similar prices can offer completely different lifestyles. One might have the better location, another might offer more privacy, and a third might have amenities you’d actually use every day. You can compare floor plans and prices online all day, but there’s something different about visiting these developments, seeing the locations for yourself and asking questions that don’t always get answered in the sales brochure.
If you’re spending several million dollars on a residence, why limit yourself to the building whose advertisement caught your attention? I’d rather compare what’s available across several developments, understand what makes each one different and find the residence that actually fits how you want to live. The last thing I’d want is for someone to commit to a property because they were told inventory was moving quickly, only to discover something they would’ve loved even more a few blocks away.
Sometimes it’s the view. Other times, it’s discovering a rental restriction that changes how someone might use the property or realizing that a similarly priced residence in another development offers an entirely different lifestyle. Those are the things I pay attention to when I’m touring these buildings. Because when someone asks me which project they should consider, I want to be able to explain the differences beyond the renderings, the amenities, and whatever percentage the sales team tells me they’ve sold.
Because once you’ve found a residence you love, it’s easy to forget there might be another one you haven’t seen yet.
I have another tour coming up, and I’m genuinely curious whether the next developer will tell me they’re halfway sold too.
At this point, I might have to start keeping score.
But the next time somebody tells me they’re 50% sold, I’m going to ask a slightly different question.
What’s still available, and is any of it worth buying?
Find Your Place in Miami
Thinking about buying pre-construction? Before you commit to a particular development, let’s see what else is available. Call me at 786-330-8948 and tell me your preferred location, budget, and timeline. I’ll help you compare developments, explore available residences, and arrange private tours so you can decide with confidence.
