Pre-Construction Sales for Builders and Developers
Selling homes and units before and during construction
Presales finance projects. A construction lender often wants to see a level of binding contracts before it funds, and early deposits show the market has accepted the product. Selling something that does not exist yet also carries its own risks: buyers who cancel, deposits handled wrongly, and months of silence while the building goes up. This page covers how BreakThru Realty runs presales.
Reservations Versus Binding Contracts
A reservation holds a buyer’s place in line with a small deposit that is typically refundable; a purchase contract commits the buyer and carries the full deposit schedule. Reservations are useful for measuring demand before prices are final, but a lender generally counts binding contracts, not reservations, and a reservation list that never converts is a false signal. BreakThru Realty uses reservations only where the developer’s attorney confirms they are permitted for the project, sets a date for converting each one, and reports reservations and contracts separately so no one mistakes interest for sales.
Deposit Schedules and Escrow
Pre-construction deposits are usually collected in stages: at contract, at a construction milestone, sometimes again at topping off. How those deposits are held, and whether any can be used for construction, depends on the type of project, Florida law and the contract. For a condominium, the Florida Condominium Act requires developer deposits to be held in escrow. BreakThru Realty does not hold or decide on the use of deposits; it makes sure each buyer understands the schedule before signing, tracks every payment against it, and confirms receipts with the escrow agent. The developer’s attorney sets the structure.
Presales and the Construction Lender
Many construction lenders set a presale requirement before funding, expressed as a share of the homes or units under binding contract with deposits in hand, and sometimes with conditions on who the buyers are and how much they have put down. The exact threshold is a matter between the developer and the lender. What the brokerage controls is the quality of the contracts it brings: qualified buyers, deposits collected on time, a low cancellation rate. BreakThru Realty plans the presale campaign backward from the lender’s requirement and date, and reports progress against it every week. Consult a mortgage lender about the financing terms.
A Price Ladder by Phase
Early buyers take the most risk, and pricing should reward them for it without leaving money on the table. BreakThru Realty sets an opening price for the first release that is attractive against resale and competing projects, then plans stepped increases by release, floor or phase as contracts accumulate, so that every price increase is visible evidence of demand. The ladder is written down in advance with the conditions that trigger each step, which protects the developer from both panic discounts and wishful increases, and gives agents a true story to tell buyers about why now is the time.
Qualifying Buyers Before They Sign
A contract from a buyer who cannot close is worse than no contract: it takes a home off the market for a year and then returns it at the worst time. BreakThru Realty confirms that each buyer understands the deposit schedule and the closing timeline, asks about financing plans and points them to a mortgage lender early, and asks cash buyers for proof of funds in line with the developer’s policy. For buyers who will need to sell a current home, the timing is discussed before signing rather than discovered at closing. The developer decides the standards; the brokerage applies them consistently.
Keeping Buyers Engaged Through a Long Build
The months between contract and completion are when buyers lose heart, hear rumors or find something else. Regular, honest communication is the cure. BreakThru Realty sends construction updates on a set schedule with real progress photographs, reminds buyers of upcoming deposits and selection deadlines well in advance, holds hard-hat tours when the site allows, and tells buyers directly and promptly when a date moves, with the reason. A buyer who hears bad news from the sales team, early, is far less likely to cancel than one who hears it from a neighbor.
Cancellations and Assignments
Every presale program needs written policies for two situations. Cancellations: what happens to the deposit, who decides, and how the home returns to inventory without undercutting current pricing. Assignments: whether a buyer may sell the contract before closing, what fee or approval applies, and whether assignments are restricted in early phases to keep speculation from competing with the developer’s own releases. BreakThru Realty helps the developer and its attorney set those policies, explains them to buyers before they sign, and handles each case against the written terms rather than case by case.
Discuss Your Presales
Where it is, what it is, and where it stands. This goes to the broker of record, who replies within one business day with how BreakThru Realty would approach it, or tells you plainly if we are not the right fit.
Call or email the brokerage directly: (786) 914-1017 · sales@breakthrurealty.com
Questions Builders and Developers Ask
- Do construction lenders require presales?
- Many do. A lender may require a certain level of binding contracts with deposits before it funds construction, and sometimes sets conditions on the buyers. The specific requirement is agreed between the developer and the lender, so consult a mortgage lender or your construction lender for the terms; BreakThru Realty plans presales around whatever that requirement is.
- What is the difference between a reservation and a pre-construction contract?
- A reservation typically holds a place with a small refundable deposit and does not bind the buyer; a contract does, and carries the full deposit schedule. Lenders generally count contracts, not reservations. Whether reservations are permitted for a particular project is a question for the developer’s attorney.
- Who holds pre-construction deposits?
- The escrow agent or other holder named in the contract, as the developer’s attorney structures it under Florida law. For a condominium, the Florida Condominium Act requires developer deposits to be held in escrow. BreakThru Realty tracks each payment and confirms receipts but does not hold deposits or decide how they are used.
- How should pre-construction prices be set?
- With an opening price that is attractive against resale and competing projects, then planned increases by release or phase as contracts come in. BreakThru Realty writes the price ladder and the conditions for each increase in advance, so price changes reflect demand rather than guesswork.
- Can pre-construction buyers assign their contracts?
- Only if the contract allows it. Many developers restrict assignments, especially in early phases, or require approval and a fee. BreakThru Realty helps the developer and its attorney decide the policy, explains it to buyers before they sign, and applies it the same way to every request.