What is Pre-Selling?
The term “Pre-Selling” is popular in the real estate industry. It basically means the property you are buying is not yet built.
You are buying something that is to be built or completed in the future.
Buying a house and lot during its preselling stage can be hard to understand for first-time home buyers. But there are a lot of advantages to buying pre-selling properties.
Why developers do Pre-Selling?
Some developers do this to help finance the actual construction, while others ensure that the property becomes sold out once it is completed. This practice is completely legal and acceptable.
While it may seem unconventional to a homebuyer to buy a property that does not yet exist (save for the actual site where the property will be built and a blueprint), presold properties afford homebuyers many advantages, such as discounted prices and the first pick of the best locations and/or units. In this article, we have put together a list of benefits of buying properties while they are still in their preselling stage.
Advantages of Buying Pre-Selling House and Lot
Here are some of the benefits of buying real estate during its preselling stage
Preselling House and Lot are Normally More Affordable
In the absence of the physical unit, preselling properties are normally sold at a cut-rate price of 30-50 percent off compared to the price of a finished unit.
Aside from its affordable introductory price, many property developers offer flexible payment schemes and even discounted down-payment prices for their preselling projects. These same developers also offer in-house financing in the event that the homebuyer fails to qualify for a bank housing loan.
Most people are put off by the fact that they need to wait two or more years before they can use the property they purchase but are surprised when they realize that properties that are RFO(ready for occupancy) are much more expensive and the available units are too few. Planning ahead can really save you a lot of money.
Give Buyers Best Choices
In buying preselling properties, buyers are granted a privilege to choose their ideal lot or unit located at an early phase, usually during the project launching stage. When buying a house and lot during the project’s preselling stage, the buyer is given the opportunity to pick the best unit, such as those facing the best direction and located nearest to the gate, or even one of the best units that are normally reserved for repeat customers.
When you buy a project that is in the pre-selling stage, you can choose the unit that you really like, one that is perfect for you. You want the side with sunset, the corner unit, the unit with the lucky number. These are all possible only during the pre-selling stage when there are still only a few buyers and the units available are plenty. This is unlike when you go to a property that is already RFO, the units left available are limited. Buying a property is one of the single most expensive purchases for most of us, surely you wouldn’t settle for anything that is less than the best.
Steady Source of Income
Once the property is completely done and is now ready for occupancy, the buyer can opt to rent it out, and through this, the buyer earns a steady cash flow. If buying a property to have it rented out after completion, it makes sense to buy a preselling one, especially during the project’s earliest stage, as it affords buyers the first pick of units—those that will be loved by future tenants.
Alternatively, the buyer can also make more from his or her property by selling it once completed, by which time the property has increased its value.
Pre-Selling Are an Excellent Investment
The value of the real estate, especially well-located ones, appreciates over time. This is true for preselling properties. At the time of their completion, the value of the preselling house and lots have increased considerably, that the buyer can earn a profit by selling them in the secondary market.
To illustrate how buying properties in the pre-selling stage can be a good investment, let us assume that the year is 2016. Property A is in the pre-selling stage and its selling price is 4 Million. Let us also assume that you chose to pay in deferred cash for seventy-two months (five years). In the year 2021, the property is turned over to you, and you have fully paid the 4 Million already. If the current selling price of your property this year 2021 is 6 Million, you have basically earned 2 Million in just five years by buying in pre-selling! Even if you consider the inflation rate, that is still a good investment.
If the developer made a good job in building the whole community, the value of the house can be much higher. That is why the developer’s reputation in making things happen is a major consideration.
When it comes to our homes, we won’t settle for less than the best for our family.
JJS Realty and Development Inc. is a real estate developer that specializes in community development at Lipa City Batangas.
JJS Realty and Development Inc. is the developer behind the success of Marian Heights and Diamond Heights Subdivision located both at Lipa City Batangas and is always committed to delivering that dream home to its clients now and for generations to come.
